Christmas Logistics’ Chaos

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Author: PASA

A new report has found that one in two Aussies will be left empty-handed at Christmas thanks to online delivery delays.

More than half of Aussies (53%) have been left disappointed during the festive season after online orders failed to arrive on time, new research from location mapping company HERE Technologies has revealed. HERE Technologies research was based on a survey conducted by PureProfile of 1,004 participants between the ages of 18 to 65 across Australia.

“Order tracking in the last leg of the shopping experience is a crucial issue for retailers to address, as there is a clear mismatch between what customers expect and what is currently provided by retailers,” said Daniel Antonello, Head of Oceania at HERE Technologies.

“We know Aussie shoppers want to have more visibility and real-time information on their online orders, in fact 90% want to be able to track their parcel in the same way they can see where a Deliveroo or UberEats driver is with their dinner.”

“Given most of the frustrations faced by Aussie shoppers relate to shipping challenges, there is a huge opportunity to improve supply chain management and customer experience with tracking technology, which our research shows customers would be willing to pay a premium for.”

Key findings:

  • West Australians are the worst off with three in five left empty handed, while Tassie shoppers are the least likely to be left hanging during the festive season (41%).
  • With retailers and logistics companies struggling to meet booming digital shopping demands, late deliveries (47%) or inaccurate estimated delivery times (39%) topped the frustrations digitally savvy Christmas shoppers. The trauma of waiting for parcels to arrive before a festive event has caused stress and anxiety for 43% of Aussies, and one in five have had to rush in-store for a last-minute gift purchase when an online order failed to arrive on time.

Ensuring a seamless delivery experience could also boost sales for Aussie retailers, given three quarters (76%) highlighted punctual delivery as the most important consideration when shopping online during Christmas, and almost a fifth (19%) would pay more for an item from a store that they trust to deliver on time.

Despite the risk of late deliveries, many Australians still opt to do their festive shopping online. Over a third (36%) of Australians split their Christmas shopping list between online and instore, with almost twice as many men (21%) choosing to do their shopping exclusively online than women (12%). Some shoppers also opted to take things into their own hands by using ‘click and collect’ (38%) of which, millennials were the most likely to decide to head in store to pick up their online purchase (18-35yos, 44%).

Other key research findings include:

Top shopper frustrations when doing Christmas shopping online include:

  • Delivery is late (47%)
  • Inaccurate delivery date/time (39%)
  • Retailer does not provide regular updates on my order (34%)
  • Inability to track my order like I can for a Deliveroo/UberEats order (29%)

To avoid the frustration of a late festive delivery, shoppers have:

  • Completed online shopping earlier (71.9%)
  • Chosen to click and collect (37.9%)
  • Paid more for an item from an online store they trusted would deliver on time (18.5%)

When looking into the millennial shopper, findings revealed:

  • 1 in 5 millennial shoppers would pay more for an item from an online store they knew would deliver on time
  • A quarter of 26-34yos wanted to be updated when stocks were replenished
  • Younger millennials (18-24yos) most likely to pay for express shipping (31%)
  • The younger the shopper, the more likely he/she would only do his/her festive shopping online
    • 27% (18-24yos)
    • 24% (25-34yos)
    • 15% (35-44yos)
    • 8% (45-54yos)
    • 8% (55-65 yos)
  • Older consumers (55-65yos) more likely to double check an item instore first before deciding to purchase online (48%)

 

About HERE Technologies
HERE, the Open Location Platform company, enables people, businesses and cities to harness the power of location. By making sense of the world through the lens of location we empower our customers to achieve better outcomes – from helping a city manage its infrastructure or a business optimize its assets to guiding drivers to their destination safely. To learn more about HERE, including our new generation of cloud-based location platform services, visit http://360.here.com and www.here.com.

 

About Author

Procurement and Supply Australasia (PASA) is the leading provider of information and education to procurement and supply professionals throughout Australia and New Zealand. PASA supports the largest community of engaged procurement stakeholders in the region, through its renowned series of events, publications, awards, plus various community and network building activities. PASA is a trading name of BTTB Marketing, for many years recognised as the leading producer of conferences and events for the procurement profession in Australia and New Zealand. Whether producing under the BTTB, CIPSA Conferences or now PASA brands over the last ten years, our events have consistently led the market in terms of both educational and networking opportunities.

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