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E-commerce

Younger consumers are shopping more frequently – and they want more from stores

A report from Jarden and Shippit shows that young people are shopping online more often, but they also expect more in return.

According to the paper, customers aged 18-34 shop online nearly twice as often (1.8 times) as those aged 35-99. 

They are also more demanding, expecting faster delivery, free returns, click-and-collect and more detailed tracking information. More than 50 per cent have had their delivery expectations raised by Amazon, Temu, and Shein, compared to 35 per cent across all age groups.

About 78 per cent of respondents said post-purchase experience (delivery, returns, tracking) is either “extremely” or “very” important. This means retailers risk losing nearly half of their customers if they fail in post-purchase service.

The report highlights that Amazon is pulling customers away from traditional retailers in both FMCG – such as Coles and Woolworths – and general merchandise thanks to its aggressive investment in fulfilment and logistics.

To retain customers, retailers must enhance their supply chain capabilities, focusing on delivery speed, range expansion, improved post-purchase service and loyalty incentives, the report advises.

Another key takeaway is that Australia’s online sales penetration lags behind the US and UK due to higher cost-to-serve and lack of investment in logistics infrastructure.

Following an increased investment during Covid, many retailers seem to be underinvesting in logistics, and digital experiences risk falling behind, the report stated.

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