Amazon effect forces Aussie retailers into delivery race 

My Nguyen

19th Aug 2025

Two in three online shoppers in Australia will stop buying from a brand after a bad delivery experience, according to research by Shippit.

This aligns with an increase in shoppers’ expectations of better delivery experiences due to the growing dominance of the global retail giant Amazon.

ANZ retailers are reshaping their business model of physical shopping spots with ship-from-store service to run after other global retail giants like Temu and Shein, as well as steering away from retail insolvencies, the research concludes.

“Retailers aren’t just competing on price anymore; they’re competing on experience and more specifically, the speed of delivery,” said Rob Hango-Zada, Shippit’s co-founder and joint CEO.

He said local retailers are now transforming their businesses from the traditional lone online distribution centre to decentralised or hybrid fulfilment models.

Meanwhile, 64 per cent of shoppers would blacklist a brand entirely if they had a single poor experience during their shopping journey, and 51 per cent of younger shoppers expect a higher delivery experience, having been directly influenced by Amazon. Two-thirds of shoppers rank delivery as almost as important as price.

In addition, a key strategy for retailers is to supply a better delivery experience for customers, including fast delivery, reducing emissions, and improving convenience-driven markets, which can help their physical footprints scale up and “turn inventory proximity into a competitive advantage”. 

However, the “increasing local competitiveness” remains the biggest challenge for nearly one in five Aussie retailers, as they strive to close the convenience gap with global giants by streamlining their product handling through emerging delivery adaptations. 

“Whether it’s enabling reliable same or next-day delivery, making stock work harder in stores, or supporting more sustainable delivery options, this model is helping retailers meet growing consumer expectations while driving long-term growth.”

Last month, Uber introduced an instant store pickup and delivery service in Australia.