Shipping Cost Deter Oz Online Shopper
Australians are reportedly being turned away from online shopping when compared to other countries in the APAC region due to rising shipping costs according to a new report released on Wednesday.
According to Rakuten’s second APAC state of e-commerce report, only 36% of total Australian shopping is done online compared to the APAC average of 47%, as reported by Inside Retail.
The most significant portion of online shopping was conducted on mobile phones at 21% with desktops sharing 19% and tablets holding a mere 6%.
High shipping costs are the most significant issue according to 52% of Australian online shoppers, which reflects customer responses in the report from last year.
In relation to high shipping costs, Australia Post has reportedly increased parcel delivery costs by 7% on average.
This is the second price increase for 2019 and represents the most significant increase in years for Australia Post.
According to Appliance Retailer, carbon-neutral delivery service provider Sendle is introducing price relief measures to circumvent the price increase for holiday season.
“Australia Post is a functional monopoly, and small businesses are at its mercy with frequent price hikes that remain unquestioned and unchallenged,” said Sendle Co-Founder and CEO, James Chin Moody.
Other concerning factors for Australians were item returns, payment security and website legitimacy.
The main driving factor for Australian online shopping is price, with 81.3% of customers citing it as the primary source of encouragement when deciding on purchases.
However, with GST applying to online sales below $1000, this is has become more challenging to achieve.
‘The last thing [customers] need is another price increase to squeeze profitability in the busy holiday season’ said Mr Moody
One curious part of the report said 20% of Australians are influenced by promotions and 16% by rewards program, seemingly echoing the rise of promotional shopping through social media applications like Instagram.
According to research released by ING, over a third of Australian’s (34%) shop through social media, leading to an increase of unplanned purchases.
More than $16 billion have spent on shopping through social media each year.
36% of respondents find that social media pushes targeted advertising to add to the temptation to purchase added to decisions.
“It’s a good idea to be aware of the highly targeted advertising often employed by social media platforms, which can increase temptation to buy things we otherwise wouldn’t have considered,” said Melanie Evans, ING Head of Retail
The most popular social media platform is Facebook, with 22%, with Instagram and YouTube tied with 9%.