"As we enter a post-Uber age, it isn’t just a 'back end' issue anymore, but a front-and-centre priority."
That's the warning from Temando CEO Carl Harmann, as Amazon prepares to enter local shores.
New research from the logistics platform revealed Australian businesses are technologically unprepared for the growing toll shipping is taking on their bottom line.
The State of Shipping in Commerce survey, which included 258 retailers and 1,279 online shoppers, found consumers are demanding faster, cheaper and more seamless shipping experiences.
Key findings included:
- 65 per cent of consumers stated that they abandoned their cart due to the high cost of shipping, and 68 per cent said they’ll shop more online for free shipping
- A negative shipping experience is enough to put off 59 per cent of customers from shopping with that retailer again, while 80 per cent of shoppers will buy again if they enjoyed the shipping experience.
- In-demand shipping options that cater to convenience such as “specified time slot” (50 per cent) and “weekend or after-hours” (44 per cent), is currently offered by less than a quarter of retailers.
Meanwhile, over a third of retailers who expanded their shipping choices increased their sales. Additionally:
- 51 per cent of retailers say technology platform compatibility is an issue, with 58 per cent finding integrating carrier services into their systems a key challenge.
- 47 per cent of retailers have challenges with shipping and fulfillment automation, yet only 29 per cent are planning to invest in these issues in the next 12 months.
Hartmann said now is the time to act.
“Smart retailers have their foot on the gas and are using the arrival as a huge opportunity to streamline their processes, optimise logistics and embrace digital transformation to put them in a prime position to not only survive, but thrive.
"Consumer demand for seamless shipping to complete their online shopping experience is growing as up to 57 per cent of shoppers will buy from competing stores when retailers fail to provide relevant shipping options to suit their needs.
“Shipping is sometimes overlooked in favour of marketing and packaging, but as we enter a post-Uber age, it isn’t just a 'back end' issue anymore, but a front-and-centre priority to enrich customer experience and fuel growth,” he said.