Delivery delays during holiday season could damage brands' reputation - survey

Businesses need to ensure consumers are aware of the cutoff points for package deliveries before the holiday season, or they risk losing customers.

A recent survey of Australian consumers found that 27% would not purchase from a retailer again if their package was not delivered in time for the upcoming holidays.

The overarching supply chain and delivery delays are also creating headaches in the leadup to the holiday season, creating some discontent amongst consumers who believe that delayed shipments could damage trust (15%), while 12% believe that retailers should be responsible for ensuring packages are delivered in a timely manner.

According to GBG Australia and New Zealand regional general manager Carol Chris, "Retailers and online merchants need to recognise that a significant portion of online shoppers will not show leniency if their customer experience is sub-par.

Chris believes that retailers need to have the technology in place to make sure purchase processes and customer information are both accurate. This is necessary to deliver a 'secure and frictionless' customer experience, Chris says.

Despite the potential negative consequences of delayed shipments, consumers are aware of the factors causing delays. While 66% prefer home delivery, 24% will use click and collect and 5% will pick up from a logistics provider.

The survey also found that overall, 25% of consumers will spend between $501-$1,000 on gifts this year, while; 23% will spend between $251 and $500.

"The ongoing impacts of the pandemic have not deterred Australians from wanting to ensure this time of year remains the biggest and busiest for their online shopping and holiday gifting needs," says Chris.

Other key survey findings:

• Consumers will be most influenced to shop more by sales, promotions and discounts (62%), free shipping (53%), and rewards/loyalty programs (36%).
• More than a quarter (27%) started their holiday shopping in October, 28% planned to start in November, and 30% will be rushing for presents from the start of December to Christmas Eve. 
• Post-pandemic, 61% intend to continue the habit generated during the pandemic of focusing on purchasing more essential products.
• 48% of Australians do not plan to travel this holiday season, 16% have travel booked within their state, and 24% intend to travel domestically. 

PureProfile, on behalf of GBG, surveyed 1,028 Australian consumers in November 2021, to understand the impact of the COVID-19 pandemic on consumers' shopping plans and behaviour for this year's holiday shopping season.  GBG works with more than 20,000 customers across more than 70 countries.