What do I need to know about shopper behavior in Australia?

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Author: Hamish Grant, Head of Marketing, Temando

 

With internet access growing to 86% of Australian households last year, so does the influence of eCommerce with online shopping being the third most popular activity. Australians dedicate 43% of their total time consuming through digital devices to their smartphones - more than desktops or tablets, so providing an optimised mobile experience is important.

 

Despite enjoying higher disposable incomes at US$33,138 compared to the global average of US$29,016, 70% of Australian online shoppers abandoned their shopping carts due to the cost of shipping. In comparison, only 12% of retailers in global markets including Australia felt that shopping carts were abandoned due to high shipping costs. This disparity may contribute to the challenges that retailers encounter in Australia, but can be addressed by implementing smarter ways to include ‘free shipping’, alongside other options such as click-and-collect, in-store pick up, and express delivery.

 

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Like American shoppers, Australians resent the difficult process involved in returning merchandise, so driving value with a personalised returns experience that includes a transparent policy, a branded returns portal, and timely communications can help retailers stand out in the saturated Australian market. Similarly, being transparent with deliveries by providing a tracking portal and SMS / text status updates will go a long way in building customer loyalty.

 

The rise of millennials as a significant eCommerce shopper demographic has also impacted Australia in a big way, with 54% of Australian millennials intending to complete their year-end holiday shopping on mobile devices this year, higher than the global average. Having the ability to control their post-purchase shopping experiences is important with this ‘want-it-now’ demographic; 43% would pay a premium for 1-3 hour shipping, and 71% want to make changes to shipping while orders are in transit.

 

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