A new study has revealed that 97 percent of Gen Z shoppers abandon their carts when they’re dissatisfied by the shipping options available at checkout.
According to a new study by Neopost Shipping, order fulfilment is a vital service for Gen Z shoppers, with 97 percent of consumers born after 1995 abandoning their shopping carts over order fulfilment woes.
Out of the retailers and online shoppers surveyed for the ‘Great Expectation: Shipping, CX & Gen Z’ report, two out of five said they would cancel an online order if the shipping was going to take too long to arrive. This figure is reportedly higher than results in other markets, such as the US (21 percent) and the UK and France (27 percent).
Young Australians are also willing to spend more on delivery than their international counterparts, with 62 percent of Gen Z shoppers willing to pay extra for same-day delivery, and delivery within a one to three-hour window.
In the UK, for instance, shoppers pay an average of US$5.70 for delivery within one to three hours. In Australia, young shoppers spend more than double this figure, paying an average of US$14.78 for the same service.
Older Australians are also tighter than Gen Z consumers, with 71 percent of young shoppers saying they would increase their basket size if it meant they got free, fast delivery, compared to only 56 percent of shoppers from older generations.
However, despite a clear demand for alternative shipping options, like click and collect, same-day, and one to three-hour delivery, Matthew Mullen, the senior vice president of Neopost Shipping says not enough suppliers are offering these services.
“Only a fifth of e-commerce businesses offer alternative shipping options such as hyper-local and same-day delivery in a retail environment where Gen Z shoppers have a strong appetite for speedy deliveries,” he said.
These findings correlate with this year’s Pitney Bowes Parcel Shipping Index, which revealed the strong demand for online delivery services in Australia. Released at the end of August, the Index estimates the local parcel shipping industry generated an extra 6.2 percent of revenue over the last 12-months, as the average Aussie received 34 parcels over the last year.
It’s expected that Australia’s parcel market will grow to more than 1 billion parcels a year by 2021, with global shipping volume to surpass 100 billion parcels by the year 2020, according to the Index.
“The Australiana and New Zealand market is gearing for exponential growth as we’re also seeing more and more e-commerce companies looking to the shipping industry with a value proposition,” said Stephen Darracott, ANZ country manager and director, Pitney Bowes.
“As the competition heats up, simplified and reliable service, accelerated delivery times, and transparent and accurate tracking will be the key to success.”