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Australian Consumers blacklist retailers after bad online shopping experiences

There are three things that can make or break an online shopping experience for Australian consumers according to recent research. They are slow delivery times, poor protection of personal payment data and a poor returns policy. Those who get these things right, however, can benefit from increased customer loyalty, positive reviews and repeat business.

The pandemic has initiated the move to all things digital and online. The demand for online services matched with increasing expectations for online shopping experiences has accelerated. Research produced by SOTI From Bricks to Clicks: State of Mobility in Retail 2021 Report, notes that 83% of Australian consumers say that a bad online shopping experience would destroy their trust in that brand completely.

The three elements that Australian consumers regard as non-negotiable are:

  1. Faster delivery times: One of the leading online shopping trends influencing where a consumer shops, is the promise of fast delivery. Almost a third (31%) of Australian consumers said they typically shop with brands that have the fastest delivery timeframe. A further 57% stated that if the delivery or pick-up of goods took more than two days they would look elsewhere. In fact, 20% believed that events such as the pandemic would eradicate retailers who cannot master their delivery process and experience.
  • Seamless returns: From the Australian consumers’ perspective, the returns experience is just as important as the buying experience, making it mandatory for retailers to create an experience that allows consumers to search, buy and return goods effortlessly.

However, the research demonstrated that many retailers have not yet prioritised creating a seamless shopping experience, with over 70% of Australian consumers indicating that their main online shopping frustrations were due to ineffective delivery and returns processes, and general website inefficiencies.

  • Better protection of personal payment data: More consumer data is being processed and stored for personalised shopping experiences than ever before. While just over half (51%) of Australian consumers agreed they feel their payment data is safe when making an online purchase, nearly 72% said they have abandoned an online purchase because they did not trust the online retailer with their payment details.

Additionally, large retailers have gained more consumer trust when it comes to data security, with 87% of consumers trusting only large and well-known online retailers with their personal payment data, whereas 62% indicated they are nervous about small retailers keeping their data secure.

“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,” said Michael Dyson, VP of Sales, APAC, 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.”

Mark Atterby

Mark Atterby has 18 years media, publishing and content marketing experience.