Survey: e-tailers concerned about delivery

Internet Retailing

23rd Jan 2018

Keeping up with delivery commitments and increasing the pace of product deliveries have emerged as the primary concerns outlined by online retailers in a survey conducted by CouriersPlease (CP).

The logistics firm recently surveyed 193 online retailers about the challenges they are facing in fiscal 18, finding that the majority (63 per cent) find their most common problem is keeping up with commitments to deliver on time.

48 per cent said they feel pressured to increase the speed of their deliveries, while 46 per cent said their biggest challenge for the second-half of the financial year will be ensuring customers return and continue to shop with them.

“While there is pressure in Australia’s retail industry due to the rise in eCommerce and arrival of online retail giants such as Amazon, Australia’s retail turnover rose 1.2 per cent in November last year, with online retail sales contributing 5.5 per cent of all retail turnover – the highest ever recorded,” said Mark McGinley, CEO of CouriersPlease.

While coverage of Amazon’s local arrival has been extensive, only 41 per cent of survey respondents felt that keeping up with competitors by increasing delivery speed, cost and convenience was a challenge for FY18.

“With Amazon promising to deliver low prices, vast selection and fast delivery to Australian consumers, it is interesting that keeping up with competitors was the fourth most common online retail challenge for our customers this financial year. Instead, commitments to deliver on time and within shorter time frames were considered more of a challenge,” McGinley said.

Other concerns included keeping up with industry innovation (30 per cent), and managing higher volumes of customer enquiries (30 per cent).