Poor shipping options and bad customer experiences thwarting online retail sales

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Poor shipping options and bad customer experiences thwarting online retail sales
  • 1 in 2 Aussies (51 per cent) have stopped shopping with an online retailer due to a negative shipping experience.
  • 4 out of 5 Aussie customers saying they’ve made a purchase from a retailer due to free shipping.
  • 60 per cent would prefer to have items shipped in their original packaging to offset potential environmental impacts of shipping.

Research by leading eCommerce SaaS platform, Big Commerce, has revealed Australians are rejecting online shopping following bad customer experiences, with 71 per cent abandoning their shopping carts due to poor shipping options and bad service.

The survey of 3000 consumers and 800 online merchants found shipping plays an important role in the customer journey. The results suggest businesses and brands need to adjust their shipping options to meet changing customer expectations.

According to the study, Aussies overnight shipping is a top priority, with three out of five consumers willing to pay an extra AUD$20 for the service.
Shannon Ingrey, Vice President and General Manager, APAC at BigCommerce said the lack of availability for free shipping options was driving the demand.

“We are seeing that online shoppers are more willing to pay extra for overnight shipping. This is likely due to our geography, Amazon’s limited time in the market, and the scarcity of options available for free express shipping. And, since one in five Aussies would even give up their daily coffee in exchange for free shipping on their online orders, this suggests that we’ve not yet been made accustomed to the service as a complimentary offering from retailers.”

57 per cent of global respondents and 1 in 2 Aussies (51 per cent) have stopped shopping with an online retailer due to a negative shipping experience. In fact, almost half of Australian customers (45 per cent) avoid shopping with brands or retailers that don’t offer free shipping.

Australian shoppers are so keen to get their hands on free shipping 80 per cent have made a purchase from a retailer due to free shipping. In addition, an equal proportion of surveyed Aussies have added items to their cart to meet a minimum order total to receive free shipping in the past 12 months.

2 COMMENTS

  1. We are not all Amazon or Officeworks with distribution points Australia-wide. Free shipping may work fine for larger companies with locations across Australia. Free shipping may also work fine in a local environment delivering to your local city eg. metropolitan Melbourne but in today’s environment the internet has opened the door to invite people from all over Australia to buy online.
    We ship locally and across Australia from Melbourne to Sydney, Cairns, Darwin, Perth to name a few and everything in between. Products vary from small items that fit into a 500gm post satchel to much larger items that have to be delivered by road transport. The shipping costs vary greatly and it is not possible to offer Free Shipping across the board. It’s a sure way of going broke.

    • You make a really good point, Arthur. Australia is a vast continent and Aussies expecting free shipping fail to understand the logistics. But perhaps if they are forewarned by the use of shipping calculators etc at the start of the buying journey there would be less shopping cart abandonment. The same survey identified that they were happy to pay for shipping on overseas items – and sometimes and Australian distributor is shipping equally long distances.

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