Shipping standards set by Australian retailers are not meeting consumer expectations according to the latest PayPal mCommerce Index: Trends Report.
The report revealed that Australian consumers now consider free and quick shipping to be a standard, rather than a value add, with 42% of smartphone users saying that businesses are behind when it comes to shipping.
Shipping appears to be a point of difference for consumers, as 63% of online shoppers said they would definitely buy an item in their online shopping cart with next-day delivery.
A further 57% are deterred from shopping at a store again if shipping took too long.
Paypal Australia managing director Libby Roy said the research showed Australian retailers that reliable and effective shipping was a strong opportunity to capitalise on, particularly with the looming entry of Amazon and Alibaba into the market.
“With two online shopping giants, Alibaba and Amazon, poised to enter the Australian market, local consumers will have greater choice and online retail will be more competitive.
"To compete effectively, Australian businesses need to think beyond ‘units sold’ and understand their customer’s full engagement lifecycle including shipping, returns and other value-added benefits.”
Showpo CEO and founder Jane Lu said that it was key for retailers to meet these expectations should they wish to drive growth in the market.
“We know that our customers expect to receive their products quickly – fast shipping, along with a great mobile experience is how we stay ahead.
"We know that we’re not just competing with Australian retailers, the world of online shopping has made every global retailer our competitor.”
Further results revealed that 73% of shoppers abandoned carts due to shipping costs, 42% abandoned because of delivery times and 57% expected there to be some form of next day delivery option.
Yet, with 71% of Australian smartphone users shopping on their mobile phones, the majority of Australian businesses have no plans or don’t intend to offer next-day delivery (54%).
Currently, only a third of Australian businesses offer next-day delivery, with 13% planning to offer the service within the next five years.