Limited shipping options for consumers could have a big impact on ecommerce retailers’ bottom line, according to the latest report from supply chain technology company Neopost Shipping.
The ‘Great Expectations: Shipping, CX & Gen Z’ report reveals 97 per cent of Australian Gen Z consumers (19 per cent of the population) have abandoned their online shopping cart due to poor shipping options.
Drawing on data from retailers and online consumers in Australia, United States, United Kingdom and France, the report reveals consumers in Australia are more picky than their counterparts in Europe and the US.
With Gen Z (those born after 1995) currently holding an annual national spending power in excess of USD$1 billion and growing, the report’s findings demonstrate the need for businesses to meet the wants and needs of the nation’s next generation of spenders, otherwise they could risk losing up to to 65 per cent of online conversions with this share of Gen Z shoppers opting to buy elsewhere when no suitable shipping option is available.
“There is a clear opportunity for businesses who are looking to capture the savvy Gen Z customer to meet these needs and ensure they aren’t missing out on a large chunk of their target market,” said Matthew Mullen, Senior VP Americas at Neopost Shipping.
“Only a fifth of ecommerce businesses currently offer alternative shipping options such as hyperlocal and same day delivery in a retail environment where Gen Z shoppers have a strong appetite for speedy deliveries.”
According to the report, 62 per cent of Australian Gen Z consumers are more willing to pay for same day or hyperlocal delivery compared to their peers in other markets. Young Aussies will fork out more than double what UK Gen Zs are willing to spend on same day delivery ($USD14.78 compared to $USD5.70) and they will part with $USD17.10 for hyperlocal (delivery within one to three hours), the highest compared to the other markets.
Overall, 71 per cent of global Gen Z consumers will increase their basket size for free hyperlocal delivery compared to 56 per cent of average consumers.
The report also highlights brand reputation could be jeapordised due to Gen Z consumers not enjoying their online shopping experience. 81 per cent of Australian Gen Zs would comment on their shipping experience when leaving online reviews – second to French Gen Z consumers (87 per cent).
Globally, 34 per cent of Gen Z consumers said they will leave a negative review following a bad shipping experience, and 56 per cent of Gen Z consumers won’t buy from a retailer again if they had a poor shipping experience.