Consumers are ditching SMS delivery alerts due to a rise in scams
Retailers are expected to shift away from SMS delivery alerts in FY24 due to increasing scam incidents, according to CouriersPlease CEO Richard Thame.
“It’s very rare for consumers in advanced overseas economies to get a tracking link via SMS,” said Thame, noting that SMS has been reportedly the most common contact method scammers used for the second consecutive year.
Thame said that declining consumer trust is prompting retailers to find alternative communication methods to address such security concerns.
“Clickable links on mobile devices will die off over the year, and people will go back to receiving advice via emails to get links that are easily verified, then it will move to apps.”
In addition, economic conditions have also shaped spending habits with more consumers expected to align spending with retail sales calendars, online Christmas shopping to peak earlier, and major sale events to start more advanced and to run longer.
“More consumers understand the retail sales calendar and the types of discounts to expect and are holding off on spending until big sales events while comparing prices between sales,” said Thame.
“They are being more economical: putting essential shopping items first, and they’re spreading out discretionary spending on things like Christmas gifts.”
Meanwhile, Thames forecasts subscription-based purchases for essential items to continue trending up regardless of a household’s economic vulnerability. Such purchases include toilet paper, cleaning products, food, and pet supplies.
He added that pick-up and drop-off networks will continue to take off amid an increasing number of people returning to workplaces.