Delivery Disconnect: Why 81% of Australians seek alternatives to retailers

New research conducted by ShipStation, a leading cloud-based ecommerce shipping solution, has shed light on the significant impact of negative delivery experiences on customer loyalty. According to the study, a staggering 81.4% of Australian consumers stated that they are unlikely to shop with a brand again following a below-par delivery experience. 

The comprehensive report, titled ‘Exploring the Nuances in Ecommerce,’ involved surveying over 3,000 consumers and 600 online merchants across six markets. It aimed to delve into the factors driving and deterring consumer loyalty in the ecommerce landscape.  

One of the key findings was that 71% of Australian consumers identified high shipping costs as the biggest barrier to becoming repeat customers. 

When it comes to drivers of customer loyalty, the research revealed that 41% of Australian consumers consider the quality of the delivery experience as a crucial factor in their decision to regularly buy from the same brand.  

Additionally, affordable prices and product quality were ranked as the first and second most important factors for consumers. While Australian merchants agree on the importance of product quality and delivery quality as customer retention drivers, they differed on the topic of affordability. Approximately 46.6% of respondents regarded affordability as a key factor in retaining customers. 

The study also highlighted the evolving buying habits of consumers, with a majority (73%) adopting a blended approach by shopping both online and offline. Specifically, 66% of Australian consumers reported conducting over a third of their shopping online.  

Apparel emerged as the top category for ecommerce purchases, with nearly 74% of Australian consumers having made an online purchase in this category over the past year. On the other hand, DIY and Gardening ranked as the least popular category, with only 25% of consumers making a purchase in this segment. 

The research emphasised the impact of delivery options on consumer behavior. Over 90% of Australian consumers stated that a lack of adequate delivery options could influence their decision to abandon their cart at the online checkout. Further analysis revealed that 60% of consumers would sometimes abandon their cart, while 30% indicated they would quite often or always do so if their preferred delivery option was not offered. In contrast, 38% of Australian merchants believed that a lack of delivery options never prevented consumers from finalising their purchase. 

“In today’s age of overwhelming choice, it’s never been easier for consumers to chop and change where they buy from. Unsurprisingly, in this landscape, it’s also never been more difficult for merchants to retain customers,” says Auctane, ShipStation’s operating group VP and Head of Australia & New Zealand David Boyer.   

“There is no one right approach when it comes to running a successful ecommerce business, but as our new research highlights, the key is to understand how different consumers shop, where they shop and to learn their negotiables and non-negotiables. Only then can you get a clearer picture of how to turn potential consumers into repeat customers.” 

The study also examined the preference of consumers for brand websites versus marketplaces. Globally, marketplaces emerged as the most popular choice for online purchases, selected by nearly 56% of consumers. However, the research revealed that Australian consumers were an exception to this trend, with only 30% preferring marketplaces as their ecommerce channel.