Shipping costs a major factor when shopping online

According to latest research.

An Australia Post Insight report has revealed that 65% of Australians have abandoned their online shopping cart due to high shipping costs and a bad delivery experience, which prevents 59% of shoppers from choosing that retailer again. Two-thirds of shoppers say they will shop more online if shipping is free.

Retailers must strike a careful balance between speed, convenience and economic viability, to maintain customer satisfaction levels and safeguard profitability, according to Tryzens CEO, Andy Burton (pictured).

“Success in ecommerce increasingly relies on being able to offer a choice of shipping options coupled with reliable performance against shipping commitments, and good communication to keep the consumer informed, especially if things go wrong, is essential,” he said. “The rise of post-purchase experience platforms such as Narvar, help retailers achieve this.”

Some customers will want or need next-day, or even same-day delivery, and that is a choice that should be accommodated on appropriate commercial terms, Burton said.

“The key is to understand what is driving demand for next-day: is it consumer need or retailer market positioning? If the former then the costs will be less sensitive for the consumer to bear, but if the latter then the costs risk needs to be understood by the retailer in the pitching of the offer. Committing to a shipping service level is as much about reputation as it is about the opportunity to drive sales.

“As we saw with Amazon Prime, making promises that are not achieved will come back to bite you in the court of public opinion and with advertising standards.

“Making sure you can pick, pack, dispatch, track and ship to achieve the service committed is essential. The concept of a relatively small subscription fee for unlimited next-day shipping (as offered by Amazon Prime) is great in principle, but is the commitment to quality achievable and economically viable?

“For most retailers offering next day premium, shipping services will require a payment by the customer to cover the increased costs involved.

“Customers have a wide range of options for shipping, now so more than ever. It is up to the retailers to decide what shipping options work for them. Without the implementation of an effective logistical solution, the Australia’s retail space will struggle to cope with growing consumer demand.”


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