Sydney, Aug 8: New research commissioned by HUBBED has revealed the retail and eCommerce industry is exposing itself to a substantial loss in online sales due to a growing divide between consumer delivery expectations and current options.
Australians’ increasing appetite for online sales saw nearly $56 billion in online retail over the last 12 months to May, which accounts for around 14.7 per cent of the nation’s total retail trade estimate2.
While these figures are positive overall, research shows the industry is not maximising online sales potential, with 90 per cent of respondents saying they abandoned a cart due to high shipping costs and 64 per cent saying lack of security was a purchase deterrent.
HUBBED’s innovative Pick-Up Drop-Off (PUDO) model provides retailers, carriers and consumers with an alternative to the high-cost and environmentally unfriendly traditional home delivery model.
Its proprietary technology is customer agnostic and integrates with carriers, aggregators, marketplaces and other eCommerce platforms.
HUBBED’s PUDO network enables customers to receive parcels from a designated collection point across more than 2,200 convenient locations nationally, including outlets such as local BP service stations, National Storage and independent retailers.
The research revealed that almost all consumers (91 per cent) made an online purchase within the lead-up to Christmas (79 per cent).
The end of financial year sales is the second most popular period for online shopping (58 per cent), followed by click frenzy (55 per cent) and Black Friday (52 per cent) sales.
Returns are also a factor given that almost three-quarters (71 per cent) of shoppers say they have returned an item they have bought online.
David McLean, the Founder and CEO of HUBBED, said while these figures were generally positive, they also highlighted a missed sales opportunity.
“Consumers are demanding more convenient, secure and sustainable delivery and return choices. For retailers, the message is clear: If you want to enhance the customer experience, negate cart abandonment, and generate repeat purchases, you must provide consumers with greater choice and control,” David said.
“There are typically around eight ways consumers can pay online. But most retailers only offer two ways to deliver and return items: fast or slow.
“It’s time for all retailers, both big and small, to offer a more nuanced and sophisticated delivery option that exceeds customer expectations.”
HUBBED has recently received a $12 million investment from the Australian Business Growth Fund to scale up collection points to 3,000 nationwide and expand the magnitude of collections services for its customers and partners.
The breadth of HUBBED’s PUDO footprint is compelling given that 68 per cent of people stated it would be far more convenient to pick up their parcel from somewhere close to home, at a time that suits them, and 61 per cent would prefer to return a purchase via a PUDO point rather than wait for a courier (22 per cent) or drop off instore (17 per cent).
“We’re committed to levelling the playing field between pure-play eCommerce sites and their bricks and mortar competitors by ensuring everyone has access to omnichannel click and collect.
“Click and collect is pivotal to the shopping experience, and it’s a choice HUBBED enables every retailer to provide to their customers.”
Signature on delivery (74 per cent) is the most popular delivery method for high-value items, followed by PUDO points and home delivery without a signature.
“Retailers are missing out on sales because consumers don’t feel they have a safe place at home for parcels to be delivered, and they aren’t making as many purchases if they can’t sign for it,” David said.
“Our PUDO network solves this pain point as it’s local, and consumers can trust their parcel will be kept securely on their behalf.
“The retail industry has evolved considerably regarding how customers can pay for their purchase. Now, we must address the other options customers have at checkout: where and how you want your shopping delivered to, and how you can return it.”
HUBBED’s consumer collections network is being utilised by key local and global carriers, including Couriers Please, DHL, eBay, FedEx, Sendle, TOLL, TNT, and UPS.
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