ShipStation study reveals what deters e-commerce customers

New research reveals the extent of negative delivery experiences on customer loyalty, suggesting customers can be unforgiving. 

The 'Exploring the Nuances in E-commerce' guide was launched by ShipStation, a global cloud-based e-commerce shipping solution. The guide includes a survey of over 3,000 consumers and 600 online merchants across six markets. 

The research examines the deterrents of consumer loyalty in e-commerce and found that 71% of Australian consumers rank high shipping costs as the most significant barrier to becoming repeat customers.

Regarding delivery options, over 90% of Australian consumers state that a lack of suitable delivery options can influence whether they abandon their cart at the online checkout. 

Specifically, over 60% of consumers say they will sometimes abandon their cart, and 30% indicate they will often or always abandon their cart if their desired delivery option is not offered. 

However, it seems merchants aren't aware of this fact. Over 38% of Australian merchants surveyed believe a lack of delivery options offered at the checkout 'never' prevents consumers from finalising their purchase.

Looking at customer loyalty drivers, 41% of Australian consumers rank the quality of delivery experience as a key reason they regularly buy online from the same brand. Furthermore, affordable prices and product quality rank as the first and second most important factors for consumers. 

Australian merchants agree on the importance of product quality and delivery quality as customer retention drivers in line with consumer expectations but disagree on affordability, with 46.6% of respondents ranking it as a key retention driver. 

Most consumers now take a hybrid approach to shopping, with over 73% of Australian consumers stating they shop online and offline. Specifically, research highlights that 66% of Australian consumers report doing over a third of their shopping online.

Apparel ranks first in e-commerce purchases, with almost 74% of Australian consumers purchasing online in this category over the past 12 months. DIY and Gardening are revealed to be the least popular, with 25% of consumers having bought a product in this category over the past year. 

David Boyer, VP, Head of Australia & New Zealand at Auctane, ShipStation's operating group, says: "In today's age of overwhelming choice, it's never been easier for consumers to chop and change where they buy from. Unsurprisingly, in this landscape, it's also never been more difficult for merchants to retain customers."

"There is no one right approach when it comes to running a successful e-commerce business, but as our new research highlights, the key is to understand how different consumers shop, where they shop and to learn their negotiables and non-negotiables. Only then can you get a clearer picture of how to turn potential consumers into repeat customers."

"As the online shopping experience has become synonymous with the delivery experience, consumer expectations have grown." 

"Just one negative delivery experience can sour consumer perception of a brand and have a detrimental impact on their bottom line."

"The ecommerce market today will favour merchants who understand the opportunities and make the necessary investments in areas such as their delivery experience, omnichannel proposition and options. Those who don't, will find life very difficult." 

Across all the markets surveyed, the most popular to buy online is marketplaces, with almost 56% of global consumers selecting this as their preferred medium. 

However, Australian consumers are the exception, with only 30% choosing marketplaces as their preferred e-commerce channel. Additionally,  while social commerce is growing, only 3% of Australian consumers consider it their preferred e-commerce buying channel. 

With more people choosing to recycle and resell unwanted items, re-commerce is a robust growing industry. Over 43% of Australian consumers resell their old purchases/unused items on third-party platforms. 

Research suggests an opportunity for brands and marketplaces to invest in re-commerce strategies and delivery experiences to meet the growing consumer desire to resell effortlessly.