Australian consumers demand greater transparency in delivery services

Australian consumer expectations for delivery services have reached unprecedented levels, according to a new report by SOTI. The report, titled "Techspectations: Consumer Demand for Digital Transformation in Retail," reveals that 77% of Australian shoppers now expect full transparency about the location of their online orders throughout the entire delivery process.

The findings indicate a significant shift in consumer behaviour, with nearly half of all respondents stating they would abandon a purchase if delivery or pickup takes longer than two days. Additionally, 57% expect to be able to pick up an item ordered online on the same day.

Michael Dyson, Vice President for Sales, APAC at SOTI, emphasised the critical need for supply chain optimisation in response to these evolving demands. "As consumers demand real-time information, efficient product availability and rapid delivery in-store and online, supply chain optimisation in the retail industry is critical," Dyson stated. "AI's pivotal role in transforming delivery services cannot be overstated. By leveraging AI, we can harness deeper intelligence from our devices—such as integrating location, signal strength and speed data with critical business information, like inventory levels and delivery status. This integration of AI enhances our delivery systems, ensuring that the efficiency and personalised experience customers expect online are mirrored in our physical delivery processes."

The importance of delivery speed is supported by the fact that almost two-thirds of the surveyed shoppers would continue shopping with brands offering the fastest delivery services. However, the report also notes that returns have become a significant part of the omnichannel journey. More than half (65%) of consumers are more inclined to shop with online retailers that provide multiple return options, and 59% prefer retail stores that offer similar flexibility.

Dyson commented on the blended shopping experience that consumers are increasingly expecting. "The line between online and in-store shopping has become obscured," he said. "Consumers expect a seamless transition between the two, and retailers must integrate these experiences to meet these expectations. This consumer demand points to three key areas of the retail experience – speed, visibility and return options.

He further noted, "These areas depend on a supply chain that is connected and visible in real-time to both the retailer and consumer. This can be addressed with a more seamless, intuitive and automated supply chain operation designed to ensure real-time, reliable visibility of items; to both the consumer and in-store staff."

Customer loyalty is also significantly influenced by the choice of delivery partner, with over a third of consumers reconsidering purchases based on this factor alone. "The selected delivery partner is seen as an extension of the retailer's brand," Dyson explained. "A poor choice can reflect on the retailer's image and prompt customers to look elsewhere. Technologies like SOTI XSight Live View are crucial for providing real-time visualisation of retail operations and the supply chain. Live View enables immediate detection and response to operational challenges by integrating device and operational data."

Dyson concluded by stressing the importance of strategic technological adoption in the retail sector. "It's essential for retailers to monitor how devices are utilised and to proactively address issues. The future of retail hinges not only on adopting technology rapidly, but on strategic planning and enhancing scalability through thoughtful implementation."