Sydney, Feb 3: Power Retail, a resource for e-commerce insights, released a new research report which delves into the shopping habits of everyday Australians.
The report has found that revenue had taken a hit no thanks to the Omicron landscape causing delivery delays and general supply chain issues in the sector.
Other key findings include that last December’s e-commerce revenue was down at AU$4.55 billion compared to the same corresponding period in Dec 2020 where it stood at AU$5.29 billion.
The forecast for January remains unchanged standing at $4.49 billion compared to $4.50 billion recorded in the same corresponding period the previous year (Jan 2021).
Despite that, the purchasing power via e-commerce avenues remained stable.
However, consumer confidence had tanked with 29 percent saying they plan to spend less online this month.
While 37 percent of shoppers have had a purchase cancelled by the retailer after payment because of stock unavailability.
Almost a third of shoppers (32 per cent) have abandoned carts because the payment method they wanted was unavailable at the check out.
Other key takeaways from the report include:
● Seven per cent of shoppers start their product search on Amazon, down from 11 per cent last month (November 2021) while eBay increased from 10 per cent to 12 percent.
● Twenty two per cent start their product search via a marketplace, which is the second highest method behind Google standing at 55 per cent. While direct to retailer search increased at the start of Jan, up from 19 per cent from the previous corresponding period in Jan 2021 to 22 per cent last month.
● Fashion is still the most popular purchase category at 27 per cent with electronics also strong at 22 per cent.
● Thirty one per cent of consumers have returned a purchase in the last six months. As predicted, this number experienced a boost after Christmas.
● Thirty one per cent of online purchases were made using PayPal, 17 per cent using BNPL (Buy Now Pay Later), 31 per cent on credit and 19 per cent used debit cards.
● The popularity of Amazon Australia is increasing among Australian Internet shoppers.
● Sixty two per cent of online shoppers have made a purchase on Amazon Australia. This was up from 48 per cent in 2019.
● Amazon Prime is the most popular membership program, with 31.8 percent of online shoppers saying they have a Prime membership while Catch and eBay come in second and third place, respectively. Free delivery is the number one driver, followed by Prime TV streaming services and then fast delivery.
● How is Amazon Australia perceived among Australians? Forty four per cent agree or strongly agree that it has the most competitive pricing, 53 per cent agree or strongly agree that it has the fastest delivery options and 65 per cent say that it makes life easier because they can get lots of things from one place.
● The general perception is that Amazon Australia is a trusted place to shop and is convenient.
Editors’ Note: Data for this report was collected from Dec 2021 and Jan 2022 and were obtained from Power Retail Benchmarking Index, using aggregated e-commerce analytics feeds and externally sourced data from Australia’s Top 100 online retailers, drawn from over 10 million sessions per month, updated every 24 hours and fortnightly surveys with a minimum of 1,000 respondents, from randomly selected Australian online shoppers.
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