Shipster – giving you a bigger slice of a bigger online shopping pie.
Fashion at the forefront
Fashion accounts for more than 20% of online purchases in Australia - so there’s no question that eCommerce is at the core of fashion’s success into the future.
Consumers are more comfortable than ever shopping online as demonstrated by the consistent year on year growth in fashion purchases ‒ 17% growth in the last year alone, with footwear (32%), fashion accessories (18.7%) and active wear (17.4%) showing the biggest improvements.
International trends indicate that there’s still room for significant growth in Australian eCommerce – so how do we help Australian retailers get a bigger slice of a bigger pie?
That’s the question we asked ourselves at Australia Post and one we’re in a great position to address. Every day we connect with more than 11 million Australians through delivery of more than 4 billion items each year to 11.5 million addresses across the country – complemented by a retail network comprising over 4000 post offices nationwide, as well as ever increasing digital visits.
This places us in a unique position to really understand and influence Australian online shopping habits and we’re committed to using this insight to help consumers and retailers alike grasp the amazing eCommerce opportunity.
So how do we really dial it up?
In Australia, we already have two groups of keen online shoppers who are worth a lot to the industry - representing 44% of online spend but comprising only 10% of the population. So who are they?
Meet the time-poor pragmatists who’ll shop the way that’s easiest and quickest. They love saving time shopping online, but will go to the shops to avoid the hassle of not getting what they expect. These trend-setters spend a lot of time online, especially social media. They love the range and the thrill of getting the latest stuff first. Not surprisingly, capturing this more youthful market is key for fashion retailers looking to accelerate growth ‒ more than half of them have a favourite website they’d promote to others.
Yet when we look to the United States and United Kingdom, data suggests we could triple this market and encourage them to shop even more. So what’s stopping them?
Some key concerns for those buying fashion revolved around being unable to assess the quality, or look and feel of a product, while other concerns revolved around returns. However, across all categories, the biggest barrier to online shopping was shipping costs – with 56% of Australians saying they’d shop more if shipping was free.
We could do something about this!
After extensive market research, we have found the sweet spot that overcomes this barrier consumers identify, yet still delivers growth and value for online retailers – and we created Shipster!
Shipster launched just over a month ago and the early signs are already very positive. We’re seeing a 70% increase in subscriber wallet share and a 91% increase in online spend for participating retailers. Subscribers are already spending an overall 30% more on their online shopping. Fashion – already a market leader in online shopping – could be a big winner with a potential 48% increase in the number of online apparel orders.
So how does Shipster work?
Shipster members receive free shipping from participating retailers where the basket size is $25 and over, and the delivery cost is under $20. Consumers from anywhere in Australia can now sign up to receive the first two months of their Shipster membership free then pay a monthly subscription of just $6.95.
There are already more than 50 participating online retailers ‒ including Showpo, SurfStitch, birdsnest, Black Pepper, Myer, Target and Cotton On ‒ with new retailers coming on board regularly. For added value, Shipsters receive one free delivery from Deliveroo each month and $10 off one Aussie Farmers Direct order each month.
Unlocking Shipster’s potential
We’re excited about our next step into regional areas. While spend in metropolitan areas is currently nearly double that of regional areas, we know that some of the biggest online shopping postcodes are in regional areas. Now, Shipster is available in every postcode in Australia and can only further stimulate this potential.
Successful retailers are building strong brand equity in the market by differentiating their offering in a really clever way to create personalised experiences for their customers. And consumers love this with a 28.2% increase in personalised products.
With Shipster, you maintain control of your brand and shopping experience, and keep your direct relationship with your customers, while benefitting from the collective value and reach of a multi-merchant offer that draws on the reach and trust of the Australia Post brand. We’ve had an amazing response from retailers large and small who are keen to get involved and we’d be delighted to hear from you.
1 Inside Online Shopping Report, Australia Post
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