Online delivery costs rising as war-driven fuel crisis worsens
Shipping and delivery costs have risen for Australian shoppers since the Middle East conflict began.
New research from Money.com.au reveals more than a third of Australians (36 per cent) have noticed that surge when shopping online. A nationally representative survey also found that 25 per cent are reducing their online purchases.
To avoid ‘hefty’ delivery fees, 20 per cent now prefer shopping in-store rather than online, while more than half of Australians (55 per cent) said their shopping habits remain unchanged.
Sean Callery, finance expert at Money.com.au, said Australians are feeling the “ripple effects” of global conflict at checkout.
“The Middle East conflict is causing logistical disruptions and pushing up fuel and insurance costs, particularly for air freight, which many online retailers rely on to get orders into Australia quickly.
“That ultimately leads to higher delivery fees for consumers who shop online, along with shipping delays and cancellations,” he said, adding that the rise now tips the balance back towards brick-and-mortar stores, where shoppers may also face higher prices, but “can ultimately dodge delivery fees and walk out with their purchase on the spot”.
The research indicates that younger Australians are also shifting away from online shopping. One in three Gen Z shoppers (33 per cent) are returning to in-store retail, followed by 22 per cent of millennials, 18 per cent of Gen X and 14 per cent of baby boomers.
Millennials then lead in cutting back on online purchases (31 per cent), ahead of Gen Z (28 per cent) and Gen X (25 per cent), with just 18 per cent of Baby Boomers reporting reduced online spending.
“The silver lining is that higher delivery fees can also make people think twice about impulse online purchases. With living costs rising, those extra charges can act as a handbrake on discretionary spending, at a time when households are prioritising essentials like the mortgage, fuel and groceries,” Callery concluded.
Meanwhile, a majority of Australians (64 per cent) have yet to notice an increase in online delivery costs since the conflict began on February 28.
Comment Manually
You must be logged in to post a comment.
No comments