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Great news: online shopping to boom in the next year

- September 8, 2020 2 MIN READ

There are little doubts Australia’s retailers are struggling at the moment, with coronavirus having a devastating impact on the sector. However new research reveals the eCommerce sector is booming and is likely to continue to do so.

The findings come from an independent survey by parcel pick-up and drop-off (PUDO) network Hubbed. Results show Australians have embraced the ease of online shopping with more than a third saying they will shop online more than they did during restrictions. A further 31 per cent would shop more online than they did before their State shutdown.

It’s unsurprising that the younger the shopper the more likely they are to shift from shopping in-store to online. Forty-five per cent of 18-50-year-olds would shop more online than in-store now than during the shutdowns, compared with just 19 per cent of over-50s. Similarly, 61 per cent of 18-50s would shop online more in the next year than before the shutdowns, compared with 32 per cent of over-50s.

With Victoria still in a lockdown, Hubbed discovered Victorians were more likely than any other state to continue to spend more online (41 per cent versus 33 per cent in NSW and SA, 31 per cent of Queenslanders, and just a quarter (25 per cent) of West Australians.

CEO and Founder of Hubbed, David McLean, said the online shopping surge is good news for retailers but it is not without its challenges. Deliveries have increased significantly since restrictions and lockdowns came into play. This has impacted the speed of many retailers deliveries. Shopping cart abandonment is another major challenge. Statistica reports[2] that in March 2020 alone, 88 per cent of online shopping orders were abandoned at check-out – primarily because of inflexible delivery options or costs.

“From our survey results, it is clear that the growth in online shopping, which has been exacerbated by COVID-19, is here to stay. The constraints that have been placed on online retailers have highlighted the need for them to be more proactive and agile in streamlining the consumer’s online shopping experience via technology and alternative delivery options. It is also evident that customers want more delivery choices, which will, in turn, support the growth in eCommerce. Retailers should seriously consider their customer delivery choices, such as supporting the use of Click & Collect,” McLean said.

“Ultimately, offering alternative delivery options could be the game-changer to better supporting online demand for the foreseeable future,”McLean concluded.

[1] Survey respondents were required to make at least three or more online purchases in the last three months.[2] Statistica, ‘Online shopping cart abandonment rate in selected industries in March 2020’: https://www.statista.com/statistics/457078/category-cart-abandonment-rate-worldwide/#:~:text=Shopping%20cart%20abandonment%20rate%20worldwide%202020%2C%20by%20industry&text=In%20March%202020%2C%2088.05%20percent,not%20converted%20into%20a%20purchase.

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