Delivery experience is important to 78% of online shoppers
Australia Post CEO and Managing Director, Paul Graham, shares how our investments in infrastructure and services support your delivery experience success.
85% of shoppers across all generations say a reliable delivery experience will be the most important factor in trusting online retailers in the next 5 years.3
You can do everything else right, but if you don't have a good delivery experience, none of it matters. It's extremely important that the delivery is top notch.”
56% of shoppers rate free shipping as their top delivery preference
Shoppers' top delivery preferences are led by free and fast delivery1
- 1.Free shipping
- 2.Fast delivery
- 3.Free and easy returns
- 4.Secure tracking notifications using a trustworthy app
- 5.Delivery to a Parcel Locker or other out-of-home collection point
For 93% of businesses that offer free shipping after reaching a spending threshold, the package is sent at standard speed.5
How much more will shoppers spend to reach a free shipping threshold?2
- Nothing
- +$1 to $10
- +$11 to $20
- +21 to $30
- +$31 to $50
- +$51 or more
How do businesses react to shoppers' love of free shipping?15
35%
always offer free shipping
30%
provide free shipping when a spending threshold is met
$51-$100
most common threshold set
The overseas trend in free shipping
46% of shoppers worldwide say free shipping is the number one factor motivating them to make a repeat purchase with a retailer.12
Your next step:
Use free shipping as an incentive
Grow your customer base
Provide free shipping to first-time shoppers.
Build a loyalty program
Encourage customers to subscribe to access free shipping.
Grow your email list
Provide free shipping to subscribers.
Boost sales
Create a free shipping promotion when particular products are purchased.
Enhance sale events
Offer free shipping as a promotion during sale events.
Increase basket size
Create a free shipping threshold.
Gen Zs, Millennials and Gen Xs consider fast delivery ideal for future delivery experience
However, this expectation depends on two major factors:2
The occasion being shopped for
Those who make a purchase for a time-sensitive need or special occasion want faster delivery.
The category
Shoppers want fastest delivery when buying from the Health & Wellness, Liquor, Consumer Electronics and Fashion categories.
Deep dive into your category
Look at customer spending, trends and what each generation wants from you.
Who is willing to pay more for next day delivery?2
- Unwilling to pay more
- Up to $5
- Up to $10
- Up to $15
Offering next day delivery is crucial for Mwave as it meets the growing demand.
Customers receiving pre-ordered items soon after the release day significantly boost satisfaction and trust. As we expand, our speed delivery services will become even more critical.”
Your next step:
Set up for customers' fast delivery expectations
Explore our next day delivery options, including Metro and Express.
Invest in local fulfilment centres in high-demand regions, so delivery times are reduced.
Use 24/7 Parcel Lockers to increase first-time delivery rates for your customers' convenience.
Use data analytics to optimise inventory.
Supply chain was very challenging in 2024, especially leading up to Christmas and peak.
We seemed to have gone to COVID-type freight delays and costs. Many products come from Europe in containers via sea, which would usually take about 55 days - however, through 2024 we had to allow 90 days, and it could get pushed out even more. Notwithstanding, we have to be optimistic in a challenging market, so we've pivoted and invested in technology that provides better forecasting to minimise supply chain delays.”
56% of Gen Zs and 45% of Millennials would switch retailers to access out-of-home collection points
How the generations use out-of-home collection points
- Gen Z
- Millennials
would switch retailers to access out-of-home collection points.1
-
Gen Z
-
Millennials
Of out-of-home collection users, almost 1 in 3 Gen Zs always have their parcels delivered to a collection point, while 6 in 10 Millennials choose a collection point when they know they won't be home.4
Top 4 things shoppers like about out-of-home collection points4
Knowing their parcels are kept secure.
Parcels are easy to pick up at a time that suits the shopper.
A great option when home doesn't have a safe place to leave a parcel.
Collection points are conveniently placed near home, work, school or university.
Of Australian businesses who offer out-of-home delivery options, 8 in 10 have only started offering this in the last 5 years 2 - and it's good timing because it's a major global trend.16
Parcel Lockers are expanding around the world, because they meet the needs of shoppers, and achieve higher first-attempt success. They've proven to be key to a great delivery experience.16
Parcel Lockers are our highest rated delivery service from an NPS perspective, because it guarantees first time delivery. Delivery is our customers' last engagement with us until they shop again, so if we provide a great experience then it leaves a very good taste in their mouth.”
Your next step:
Make out-of-home delivery options easy for shoppers
Parcel Lockers are ideal for parcels up to 16kg and no larger than 35 x 44 x 61cm.
Our customers value choice and control over their delivery experience, and the Collection Point widget gives them that flexibility.
By making the checkout process more seamless and offering more than one delivery option, we have reduced our cart abandonment rate significantly, helping customers to feel more confident about completing the purchase. Many customers have shared that Parcel Lockers significantly reduce the stress of missed deliveries and carding. Since delivery is our only physical touchpoint with customers, offering a seamless experience every time is essential to delivering positive experiences.”
45% of shoppers actively track parcels - they want tracking to be simple and convenient
When it comes to tracking, shoppers want ease and convenience. The top 3 AusPost app features they like are:4
Being able to request parcels to be left in a safe place.
Easily tracking all their parcels in one place without checking emails.
Having proof of delivery.
In 2024, the AusPost app reached nearly 3.1 million monthly active users on average, a jump from 2.6 million in 2023.
of shoppers across all generations say accurate delivery tracking and updates will be important to them in the next 5 years.3
Consumers have indicated that they value speed, convenience and accuracy, and will reward retailers who provide reliable delivery with loyalty.”
We approach delivery in two folds - accessibility and choice; and experience and ease.
We offer 'Nespresso your way', where you can choose from a wide range of delivery methods - standard delivery, same day, Parcel Lockers, or Click and Collect from our boutiques, to get your Nespresso order the way you like. We also ensure the delivery page experience is seamless with previously filled info and address validation. On our delivery emails for Australia Post parcels, we promote the AusPost app as the best way to know exactly where your parcel is.”
Your next step:
Promote the AusPost app to your customers for a better delivery experience
Consider providing a link to the app:
On the confirmation screen at checkout.
When you send the delivery confirmation or tracking email.
Through a dedicated email campaign.
On your website's FAQ or shipping page.
For 65% of shoppers, friction-free returns contribute to a great online shopping experience
What are businesses' returns policies?
34%Offer free returns.
30%Offer paid returns.
15%Don't offer returns at all, some saying it's not relevant to the goods they sell5
According to Refundid, the current trend is an increase in returns costs, with businesses charging up to 30% more on return shipping costs than the previous year.
Your next step:
Increase returns efficiency
Include as much order information on the return label as possible. It's important to give your warehouse team all the information they need on the label itself, so they can efficiently process and track returns. Include the order number, the number of items that should be in the package and the resolution requirements.
Be a trailblazer when it comes to returns policy optimisation. Try new things that your competitors aren't doing to stand out to customers, such as giving loyal customers extra time to return, or providing first-time customers with an extra 10% on their store credit.
Try not to implement too many systems. Keep it simple for your team - the more you can consolidate the easier it is to manage as you scale.
40% of Australian eCommerce businesses plan to start sending overseas, most in the next 2 to 5 years
40% of business plan to expand internationally in response to market demand, most in the next 2 to 5 years.5
Of businesses who don't send internationally, 63% say they've been held back due to a lack of knowledge about international markets - they'd ideally like to sell to the US, New Zealand and UK as their top three preferred markets.18
We really wanted to nail the domestic market first, and when we were ready to go international our Australia Post account manager stepped in and had a chat with us about what's possible.
They really get in the water with us - at one stage I didn't know whether they were working for Australia Post or working for SIR.! It's all one collaboration, which keeps giving us confidence. Now we serve 90 countries worldwide from our little operation here in Rosebery.”
Your next step:
How to expand to international markets
“Have website pages for each market. Tailor content to the local market on those pages, including spelling and local currency pricing.”
“Monitor sales trends in each market, and make sure you're presenting the top selling products for that market at the top of your page.”
“Be clear that you're an Australian company. The added cost of shipping to the US means all US-based customers must spend over a certain dollar value to qualify for free shipping. By making it clear we're based in Australia, we set the right expectations, which results in our US customers converting at the same rate as our Australian customers.”
“Call out express shipping and the reputable partners like Australia Post that you use to send into the export market, so customers can be confident when shopping with you. We have these callouts on our landing, product, and checkout pages. We're also quick to update the website with messages on cut-off Christmas dates for our US customer base.”
