Online shoppers leaving cart because of high shipping costs - report
New research commissioned by HUBBED has revealed that 90% of online shoppers abandoned a cart due to high shipping costs, and 64% say the lack of security was a purchase deterrent.
HUBBED says Australians have an increasing appetite for online sales, with nearly $56 billion in online retail over the last 12 months to May, accounting for around 14.7% of the country's total retail trade estimate.
The research reveals that almost Christmas is the most popular online shopping period, with end of financial year sales coming second. This is followed by click frenzy and Black Friday sales.
But returns are also a factor, given that almost three-quarters (71%) of shoppers say they have returned an item they have bought online.
HUBBED founder and CEO David McLean says these figures are generally positive but also highlight a missed sales opportunity.
"Consumers are demanding more convenient, secure and sustainable delivery and return choices. For retailers, the message is clear: If you want to enhance the customer experience, negate cart abandonment, and generate repeat purchases, you must provide consumers with greater choice and control," he says.
"There are typically around eight ways consumers can pay online. But most retailers only offer two ways to deliver and return items: fast or slow. Its time for all retailers, both big and small, to offer a more nuanced and sophisticated delivery option that exceeds customer expectations."
The company says its innovative Pick-Up Drop-Off (PUDO) model provides retailers, carriers and consumers with an alternative to the high-cost and environmentally unfriendly traditional home delivery model. Its proprietary technology is customer agnostic and integrates with carriers, aggregators, marketplaces and other eCommerce platforms.
HUBBED says its PUDO network enables customers to receive parcels from a designated collection point across more than 2,200 convenient locations nationally, including outlets such as local BP service stations, National Storage and independent retailers.
The company says 68% of people stated it would be far more convenient to pick up their parcel from somewhere close to home, at a time that suits them, and 61% would prefer to return a purchase via a PUDO point rather than wait for a courier (22%) or drop off instore (17%).
"We're committed to levelling the playing field between pure-play eCommerce sites and their bricks and mortar competitors by ensuring everyone has access to omnichannel click and collect," says McLean.
"Retailers are missing out on sales because consumers don't feel they have a safe place at home for parcels to be delivered, and they aren't making as many purchases if they can't sign for it."
McLean says the PUDO network solves this pain point as the company is local, and consumers can trust their parcel will be kept securely on their behalf.
"The retail industry has evolved considerably regarding how customers can pay for their purchase. Now, we must address the other option customers have at checkout: where and how you want your shopping delivered to, and how you can return it," he says.
HUBBED's consumer collections network is being utilised by key local and global carriers, including Couriers Please, DHL, eBay, FedEx, Sendle, TOLL, TNT, and UPS.
