AusPost has seen the unstoppable growth of online shopping trend for the past years which means higher customer demand for quicker deliveries. To address this issue, Australia Post will spend close to a billion dollars over the next three years to meet the demand triggered by Afterpay and Black Friday sale. As stated on the recently released government-owned postal service’s annual e-commerce report, Australians spent $27.5 billion shopping online last year, up 24 per cent from 2017. It hit the double digit milestone forecasted two years earlier than Australia Post had expected.
According to Ben Franzi, Australia Post’s general manager of eCommerce, “Several trends have converged to drive faster than expected online shopping growth. Millennials will always want it quickly, want it now and want it cheap. So you get these sales events, buy-now, pay-later all coming together, which is really driving online shopping at the moment." Afterpay and Zip initiated the 6.7% of all online sales in 2017, dominated by women millennial shoppers (79 per cent) buying clothes (48 per cent of all transactions).
Mr.Franzi also pointed out that delivery speed provided retailers an edge over their competitors, since customers are always expecting faster shipping times. Furthermore, Franzi said, “It changes the nature of the distribution; it moves it much more to a point-to-point or a dedicated run, than a standard parcel delivery. Same-day deliveries account for only about 2% of the total volume of the parcels Australia Post handles, but that could grow to as much as 30% of the next five years.”
On the other side, retailers need to do certain actions and change the way they did business to make same-day deliveries work. Like for example, they need to dispatch orders in waves throughout the day, rather than just once at the end of the day. Posties would also need to increase their share of parcel delivery, to cater to the suburbs with the highest delivery demand. With this development, expect more shoppers gearing towards online shopping for the next years.
Source: The Sydney Morning Herald
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