A new global report on the customer experience (CX) of Gen Z online shoppers has revealed poor shipping options will lead to shopping cart abandonment.
The ‘Great Expectations: Shipping, CX & Gen Z’ report revealed 97 per cent of Gen Z Australians would ditch their online shopping cart if the e-tailer could not provide them with a timely product delivery.
The report surveyed data from retailers and online consumers in Australia, United States, United Kingdom and France. It found shipping issues were a source of major frustration for 40 per cent of Gen Z consumers in Australia. This frustration was well above their peers from other markets (21 per cent in the US and France; 27 per cent in the UK).
The exasperation with poor shipping times was leading young Aussie shoppers to fork out more than double that of their UK and US counterparts to receive same day delivery services. According to the report, Aussie Gen Z consumers are prepared to part with $USD17.10 for hyperlocal (delivery within one to three hours), the highest compared to the other markets.
The report’s findings demonstrate the need for businesses to meet the wants and needs of the nation’s next generation of spenders, or risk losing up to to 65 per cent of online conversions with Gen Z shoppers opting to buy elsewhere when no suitable shipping option is available
Currently Gen Z hold an annual national spending power in excess of USD$1 billion and growing.
“There a clear opportunity for businesses who are looking to capture the savvy Gen Z customer to meet these needs and ensure they aren’t missing out on a large chunk of their target market,” said Matthew Mullen, Senior Vice President Americas at Neopost Shipping.
“Only a fifth of e-commerce businesses currently offer alternative shipping options such as hyperlocal and same day delivery in a retail environment where Gen Z shoppers have a strong appetite for speedy deliveries.”
The report also noted business that offered free local delivery benefitted from an increase in basket size. With 71 per cent of Gen Z consumers opting to purchase more products when delivery was free compared with 56 per cent of average consumers.
Brand reputation also played a significant role in Gen Z purchases and 81 per cent of Gen Z’s would comment on a negative shipping experience, meaning e-tailers need to get it right! 56 per cent of Gen Z consumers won’t buy from a retailer again if they had a poor shipping experience.