Australians want next-day delivery for online shopping but most local retailers have no plans to provide it

Photo: Kevork Djansezian/Getty Images

New research has found two out of three Australians would buy something online with next-day delivery, but the majority of Australian businesses have no intention of offering that service.

The latest Paypal mCommerce Index report shows 63% of Australians surveyed said next-day delivery would entice them to an online checkout, but that figure dropped to just 28% for stores that offer 4-to-7 day delivery.

Meanwhile, Australian online businesses surveyed showed 54% have “no plans” or “don’t intend to” offer next-day delivery.

“Australian retailers are operating in a global market where free and fast shipping is now a consumer expectation,” said PayPal Australia managing director Libby Roy.

“There’s a real opportunity for Australian retailers who get their shipping speed and price right.”

The survey also found that 73% of shoppers will abandon their carts at the checkout if the delivery fee ends up being too high and 42% will abandon the purchase if the shipping took too long.

With Amazon — famous for its Prime service overseas that provides two-day shipping — coming to Australia, Roy said this shows local businesses need to stop using sales volume as the only metric for success.

“To compete effectively, Australian businesses need to think beyond ‘units sold’ and understand their customer’s full engagement lifecycle including shipping, returns and other value-added benefits,” she said.

“The online shopping experience doesn’t end at the checkout – product delivery is a core part of the end-to-end experience.”

Founder and chief of fashion e-tailer Showpo, Jane Lu, agreed, saying her customers, by default, expect fast shipping and a great mobile experience.

“We know that we’re not just competing with Australian retailers, the world of online shopping has made every global retailer our competitor.”

PayPal’s research surveyed 1,005 consumers and 219 online stores for the report.