While many retailers see Amazon's price and range as a significant threat to their business, for shoppers, the rubber really hits the road when it comes to shipping. A big part of Amazon's advantage in overseas markets comes from their ability to get products into buyers' hands quickly and efficiently. And high shipping costs are one of the big reasons Aussies don't complete online transactions.
According to Temando's State of Shipping report for 2017 almost two-thirds of consumers stated that they abandoned their cart due to the high cost of shipping. And 68% said free shipping would result in them spending more money.
The survey collected data from 258 retailers and 1,279 online shoppers in Australia.
Giving consumers more choices when it comes to shipping is a big deal with over a third of retailers who expanded their shipping options seeing increased sales.
This is where many Australian retailers are missing the point. Price and range are important but service is critical. And that means getting the supply chain right, all the way to the customer's hands.