New research reveals that physical interactions throughout the customer journey contribute significantly to Australian eCommerce sales.
ShipStation and Retail Economics’ Ecommerce Delivery Benchmark Report 2024 found that around $15 billion of Australian online non-food sales in 2023 interacted with physical touchpoints, highlighting the growing importance of omnichannel strategies that seamlessly blend online and offline experiences.
The report added that while familiar aspects like in-store browsing and returns play a critical role in the omnichannel experience, the research uncovered the rising influence of social media and AI in the shopping journey. TikTok and Instagram in particular reign supreme for product discovery among Millennials and Gen Z consumers and overall, nearly 40 per cent of those under 45 rely on social media for inspiration and product research, compared to just 35 per cent who use retail websites.
“The $15 billion figure paints a compelling picture of consumer behaviour, presenting a significant opportunity for brands to evolve their approach,” David Boyer, VP and Head of ANZ at Auctane, ShipStation’s parent company, said. “Gone are the days of rigid classifications like ‘online’ or ‘offline’ shopping. Today’s informed consumer seamlessly navigates physical touchpoints like brick-and-mortar stores, social media discovery channels, and even embraces innovative solutions like AI-powered assistants to streamline tedious tasks like delivery and product research. This omnichannel journey is not merely a matter of convenience, but rather an opportunity to forge personalised connections that build enduring brand loyalty.”
Meanwhile, the rise of artificial intelligence (AI) is seen to potentially revolutionise shopping. Though some Australian consumers remain cautious, 31 per cent see AI as valuable for streamlining order and delivery updates, and 28 per cent believe it can simplify product research. However, retailers also shared that clear communication and responsible implementation are crucial for building trust and ensuring AI is used effectively.
The report also highlights the concern consumers have on delivery costs. 48 per cent assert that the cost of delivery is the most important factor to them when shopping online. Because of this, 71 per cent say they are less likely to shop with a brand if they charge high shipping costs and 44 per cent are unwilling to pay for premium deliveries.
On the part of the merchants, they have shared some concerns of their own this 2024, particularly the rising overhead costs (37 per cent) weak customer demand (31 per cent), and intense competition (27 per cent).
“The retail landscape has demonstrably shifted towards a unified, omnichannel strategy in 2024,” Richard Lim, CEO of Retail Economics, said. “The $15 billion figure spent online that is heavily influenced by physical touchpoints underscores the dynamic and multi-faceted nature of the modern customer journey. Convenience and value are paramount across all channels, from product discovery to delivery and returns, leaving no room for friction in the experience.
“Retailers must understand this evolution and prioritise seamless, consistent customer experiences, regardless of whether customers choose online, in-store, or a hybrid approach,” Lim added. “Single-channel strategies struggle to maintain relevance in this fluid environment. Embracing a unified, omnichannel approach unlocks the potential for lasting customer loyalty and reinforces brand relevance in the competitive landscape.”
