Study reveals three non-negotiables for Aussie online shoppers

The COVID-19 pandemic has accelerated online shopping trends and increased consumer expectations, prompting retailers to fine-tune their services to stay ahead of the competition. More than 83% of Australian consumers have also said that a bad online shopping experience would destroy their trust in that brand entirely.

A new study by mobile and IoT management solutions provider SOTI has revealed consumers’ top three non-negotiables when online shopping: faster delivery times, seamless returns and better protection of personal payment data.

Michael Dyson, VP of Sales (APAC) at SOTI, noted that as Australian shoppers transitioned to online shopping during the pandemic, their expectations of online retailers were made clear, highlighting what consumers are willing to compromise on.

“With the ecommerce space more competitive than ever before, our research shows that a retailer’s failure to satisfy these demands is now a swift deal breaker for many consumers, which not only drives them to shop with a competing retailer, but completely undermines any brand loyalty,” said Dyson.

A leading online shopping trend that influences where consumers shop is the promise of fast delivery. Approximately 31% of Australian consumers said they typically shop with brands that have the fastest delivery timeframe, while 57% said that if the delivery or pick-up of goods takes longer than two days, they will look elsewhere. Additionally, 20% of consumers believed that events such as the pandemic would eradicate retailers who cannot master their delivery process and experience.

Dyson noted that the rising consumer reliance on ecommerce during the pandemic has not led consumer acceptance of a reduction in delivery standards.

“Rises in consumer demand around deliveries show no sign of slowing and it’s clear that retailers who fail to offer the desired delivery window will immediately lose customers. In fact, more than a third (38%) of global consumers said they would shop elsewhere if the delivery or pick-up of an item was longer than two days,” said Dyson.

For Australian consumers, the returns experience is as important as the buying experience, making it mandatory for retailers to enable consumers to search, buy and return foods effortlessly. However, research shows that many retailers have not prioritised creating a seamless shopping experience, with over 70% of Australian consumers indicating that their main online shopping frustrations were due to ineffective delivery and returns processes, and general website inefficiencies. Additionally, 60% of consumers said the returns process should be more automated to make the experience faster.

While 51% of Australian consumers said they feel their payment data is safe when making an online purchase, nearly 72% said they have abandoned an online purchase because they did not trust the retailer with their payment details.

Large retailers have also gained more consumer trust regarding data safety, with 87% of consumers trusting only large and well-known online retailers with their personal data, while 62% said they are nervous about small retailers keeping their data secure.

Dyson said it is imperative for retailers to invest in systems and processes to safeguard consumer data; without this, retailers run the risk of losing the trust and loyalty of their customers.

“Retailers also need to ensure that all their systems and processes are connected and improve all areas of the online shopping experience, to remove any barriers that may frustrate and send consumers elsewhere,” said Dyson.

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