Three Reasons Why 83 Percent of Aussies Would Abandon an Online Retailer

Power Retail By Power Retail | 17 Feb 2021

A new report from SOTI has found that a whopping 83 percent of Australian shoppers would ‘blacklist’ an online retailer if they’ve had a bad shopping experience. 

Unsurprisingly, the three major pinpoints for a customer turning away from a retailer includes delivery times, returns and security. The pandemic has further accelerated these sentiments, as online retail becomes an increasingly popular choice for Australian shoppers.

“During the pandemic, Australian shoppers quickly transitioned to online shopping and instantly made clear what they expected from online retailers and what they’re unwilling to compromise on,” explained Michael Dyson, the VP of Sales APAC at SOTI.

“With the e-commerce space more competitive than ever before, our research shows that a retailer’s failure to satisfy these demands is now a swift dealbreaker for many consumers, which not only drives them to shop with a competing retailer but completely undermines any brand loyalty.”

Delivery: Fast or We’re Furious

For Australian retailers, the competition online is becoming increasingly cut-throat. The report has found that 31 percent of Australians will turn to a retailer that promises speedy delivery. A further 57 percent said they would look elsewhere if a retailer didn’t offer Click & Collect or delivery with a two-day turnaround.

Dyson explained that although e-commerce has experienced an uptick in popularity, it hasn’t helped garner further trust or acceptance of a reduction in delivery standards.

“standards. Rises in consumer demand around deliveries show no sign of slowing and it’s clear that retailers who fail to offer the desired delivery window will immediately lose customers,” he said.

Seamless Returns Should be a ‘Mandatory’ Part of the Shopping Experience

The report also found that returns are an overwhelmingly important part of the shopping experience online. Furthermore, consumers in Australia are reporting that seamless returns and delivery process should be a ‘mandatory’ part of the shopping experience.

The report indicated that 70 percent of Australian shoppers said their main frustration when shopping online is the ‘ineffective’ delivery and returns process and general website inefficiencies.

Another 60 percent of Australian consumers said the returns process should be automated to make it as seamless and effortless as possible.

Security of Payment Data is a Big Pain Point

Another unsurprising aspect of the online retail experience that may keep customers returning is the lack of security for online payment options.

The report found that nearly 72 percent of shoppers said they would abandon their online purchase because they didn’t trust the retailer with their payment details.

Furthermore, 87 percent of consumers said they would only shop with large or well-known retailers, citing they trust these businesses with their online payment data more than others. A further 62 percent said they were ‘nervous’ about smaller retailers having access to their data and keeping it safe.

“It is imperative for retailers to invest in systems and processes that safeguard their customers’ data. Without this assurance of data security, retailers run the risk of losing the trust and loyalty of their customers completely,” said Dyson.

“Retailers also need to ensure that all their systems and processes are connected and improve all areas of the online shopping experience, to remove any barriers that may frustrate and send consumers elsewhere.”

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