Australian retail supply chains still in recovery mode after 2-year slump

Australian retail supply chains are still struggling to keep up with customer demand, two years after the worst of the COVID-19 lockdowns disrupted the industry.  

According to SOTI’s new study titled ‘The Tech Effect: Strengthening the Omnichannel to Meet Consumer Demands’, 89% of customers around the country are still concerned with shipping delays and product availability.  

39% of Australian customers say delivery times are still slower than usual, higher than the global average of 31%.  

Michael Dyson, VP of Sales, APAC at SOTI, noted that the delivery delays have resulted in Australians preferring to shop locally.  

“A year ago, 61% of Australian consumers would make a purchase that involved international shipping, whereas today this figure is reduced to 57% of shoppers – a 7% reduction,” he said.  

This behaviour is not too surprising, given that 73% of Australian customers place high importance on delivery time and speed when buying from an online retailer.  

With retail supply chains struggling to meet demand, 21% of shoppers say they experienced product availability issues after placing an order, and 41% said the products they wanted to buy were unavailable.  

Decline in Environmentally Conscious Buying Habits 

Besides shifting from international to local stores, the report also notes that Australian shoppers are now less likely to prioritise buying from stores adopting sustainable practices.  

The report states that only 39% of Australian consumers are more likely to patronise online retailers offering sustainable delivery or recyclable packaging. This is markedly lower than the global average of 44% and 45% of European consumers.  

“The decline in environmentally conscious buying habits due to delivery and shipping issues shows how much Australia’s supply chain problems have impacted local shoppers’ mindsets and the retail market overall,” Dyson said

“As a direct result, retailers need to modernise their operations through technologies that increase delivery efficiency, to benefit consumers and the environment, along with optimising the customer shopping experience online and in-store.”