According to CommBank's Retail Insights report, free service and the ability to choose a convenient delivery time and place outweigh speed of delivery for consumers.
The research consulted 580 decision-makers from small, medium and large retailers and 1505 consumers, and found that 92% of respondents indicated that free delivery was the most important factor when choosing a retailer to shop with.
When it comes to the time frame of delivery, the report suggests that consumers aren't too fussed on same-day delivery, with many willing to wait at least a day to receive their deliveries to avoid paying a delivery charge.
Source: CommBank Retail Insights report
60% of respondents said that same-day delivery wasn't essential and are happy to wait, while 32% said that same-day was important but weren't willing to pay an extra charge for it. Only 8% of respondents indicated they were happy to pay an extra charge for same-day delivery.
Ultra-fast delivery – delivery within a couple of hours – was also not of high importance to the respondents, with only 7% willing to pay for ultra-fast delivery while 26% said it was important but weren't willing to pay for it.
What was flagged as important was access to online customer service, updates on delivery status and the ability to amend purchases. However the report indicated that only a small number of retailers offer these services.
This may explain why 47% of shoppers are only moderately or not-at-all satisfied with their delivery service.
Source: CommBank Retail Insights report
Commonwealth Bank national manager retail industry, business and private banking Jerry Macey said that while retailer's have been updating their delivery services, consumers' expectations have shifted.
"Over the past decade, retailers have looked to build out distribution channels to match the rise of online shopping.
"But consumers' demands have changed and many retailers remain overly focused on getting parcels to shoppers quickly.
"With consumer expectations around cost and choice outpacing retailers’ offerings, this could be holding back online sales growth more broadly.
"This isn’t entirely surprising. It’s estimated that between 23% and 35% of deliveries fail on the first attempt and with a substantial proportion of the population working full-time, people simply aren’t always home to accept deliveries," he said.
To meet these expectations, the report suggests that smart lockers may be the way to create a flexible delivery service, with 73% of consumers trusting this as a safe delivery method.
"It’s clear that while consumers want lower cost deliveries, they also place a premium on control and flexibility when it comes to managing their deliveries," Macey said.
"New and innovative delivery services are well received by consumers but only a few retailers are offering these features.
"There is an unrealised opportunity to introduce innovative delivery solutions to keep pace with customer expectations, rather than do more of the same," he said.
The CommBank Retail Insights report was released in November.