Limited shipping options for consumers could have a big impact on e-commerce retailers’ bottom line, according to the latest report from Neopost Shipping, a global supply chain technology solutions provider.
The ‘Great Expectations: Shipping, CX & Gen Z’ report reveals almost all of Gen Z Australians, which make up 19 per cent of the population, would skip out on their online purchase if the e-retailer was not able to provide suitable shipping options that would guarantee the timely delivery of their order.
Drawing on data from retailers and online consumers in Australia, United States, United Kingdom and France, the report reveals 2 in every 5 Gen Z consumers in Australia would abandon their shopping carts due to shipping frustrations – the highest among their peers from the other markets (21 per cent in the US and France; 27 per cent in the UK).
With Gen Z (those born after 1995) currently holding an annual national spending power in excess of USD$1 billion and growing, the report’s findings demonstrate the need for businesses to meet the wants and needs of the nation’s next generation of spenders, otherwise they could risk losing up to to 65 per cent of online conversions with this share of Gen Z shoppers opting to buy elsewhere when no suitable shipping option is available.
“There a clear opportunity for businesses who are looking to capture the savvy Gen Z customer to meet these needs and ensure they aren’t missing out on a large chunk of their target market,” Matthew Mullen, Senior Vice President Americas at Neopost Shipping said.
The report also highlights brand reputation could be jeapordised due to Gen Z consumers not enjoying their online shopping experience – 81 per cent of Australian Gen Zs would comment on their shipping experience when leaving online reviews – second to French Gen Z consumers (87 per cent). Globally, 34 per cent of Gen Z consumers said they will leave a negative review following a bad shipping experience, and 56 per cent of Gen Z consumers won’t buy from a retailer again if they had a poor shipping experience.