What online shoppers expect: Pitney Bowes

Lack of fast and free shipping and the fear of fraud are two big deterrents for Australian online shoppers.

That’s according to a new study into online shopping habits by Pitney Bowes.

The 2018 Global Ecommerce Study also revealed that 55% of Australian shoppers prefer to shop through retailer websites vs online marketplaces (45%).

As Australian retailers expand their presence locally and around the world, fraud prevention and management at checkout, tracking, shipping costs and customer experience remain top priorities.

The number of online shoppers has increased slightly (92% in 2018 from 91% in 2017) and so has purchase frequency at the daily/weekly level (24% in 2018 versus 23% in 2017). Australia is one of two countries where purchases skew towards online retailers versus marketplaces (55% retailers, 45% marketplaces). The other country is South Korea.

Fewer Australians made a cross-border purchase in 2018 than in 2017 (81% in 2018 versus 88% in 2017), but cross-border shoppers are making purchases slightly more frequently, with 12% of online shoppers making daily or weekly purchases, versus 11% in 2017.

Delivery costs was the top frustration cited by Australians and is higher than any other country (34% versus 23% globally). Other e-retailer/marketplace services that disappointed shoppers were packages not having the correct product, surprise fees and quality of packaging.

Fraud was listed as the leading concern for retailers globally, as 42% of retailers report that more than 10% of their cross-border orders have been rejected by their systems due to fraud suspicion or detection.

“The 2018 Pitney Bowes Global Ecommerce Study revealed that consumers prefer to shop on a retailer’s website, so this presents a unique opportunity to create brand affinity as 62% of shoppers know where and what to shop,” said Shane Lenton, CIO, Cue Clothing.

“As retailers, we need to work to our strengths and capitalise where there is a competitive advantage. Cue achieves this with our endless aisle store-to-door delivery, championing our new 30-minute click and collect and three-hour delivery service from stores. This is reflective of the growing demand to create a seamless buying experience for the shopper regardless of where they shop.

However, purchase is only the initial step in customer engagement and retailers need to double-down on other elements of consumer experience that matter the most — delivery, returns, tracking, localised payment options in both domestic and in cross-border. The post-purchase experience matters significantly too.”

A bad post-purchase experience can cost retailers multiple customers. Yet, despite frustrations, consumers are shopping online more frequently.

For Australians, the three main deterrents are shipping costs, delayed delivery time and concerns the checkout process seemed suspicious/fraudulent. Other reasons cited were unwilling to deal with the returns process and lack of preferred payment options. Globally, Australian shoppers were cited as highest (62%) for abandoning purchase in cross-border due to high shipping/delivery costs, while 34% abandoned due to longer delivery times.

“Successful high-growth retailers and brands not only exceed their customers’ expectations on the post-purchase experience, but they leverage every consumer touchpoint to build brand awareness, further strengthening customer loyalty. The silver lining for retailers: consumers are giving you the blueprint for how to get it right and retailers who heed the call will reap untold benefits in terms of customer loyalty and revenue growth,” said Lila Snyder, President, of Commerce Services, Pitney Bowes.

The Global Ecommerce Study also confirms that consumers start to make judgements on the post-purchase experience even before placing their orders. Across the globe, consumers are becoming more demanding in their expectations for “fast and free”, with under half the population (only 47%) considering two-day free shipping “fast”. This year’s findings from Pitney Bowes’ Global Shopping Study reveal 82% of Australian shoppers prefer free shipping with a longer delivery time, as opposed to shipping at a cost with shorter delivery time (18%).

“If there is one finding for retailers to pay attention to, it’s this one: fast and free shipping is a must. Retailers need to build customer loyalty by delivering exceptional experiences. These findings present an opportunity for brands and retailers to master processes, predominantly shipping space — like customer care and delivery tracking, returns, calculating shipping costs and calculating duties and taxes. While the retail industry invests millions of dollars in marketing to drive consumers to their e-commerce sites, all of that expense and effort is wasted if they don’t also invest in attractive fast and free shipping offers that meet consumer expectations,” said Snyder.

Image credit: ©stock.adobe.com/au/Amy Walters

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