Shipping Beyond our Shores

BY Francine Ereira,Vice President APAC shipping and fulfillment technology company Temando
13 January 2018

Exploring the global shift in how retailers tackle cart abandonment and why shipping and fulfilment is the new frontier for innovation.

Progress is impossible without change, and no one knows this better than Australian retailers who are riding the globalisation wave. As we welcome the likes of Amazon to our shores, our local retailers are pursuing riches beyond it. With supply chain optimisation being a key area of focus for retail analysts, having the right capabilities in shipping and fulfillment is the key to global success. 


In the latest State of Shipping in Commerce 2017 report we surveyed over 1,000 shoppers and 200 retailers in Australia to show the impact of shipping and fulfillment. Here’s three findings that local retailers need to know before jumping across borders:

58 percent of Australian retailers find integrating carrier services a key challenge

When entering a new market, retailers will want to offer a comparable range of delivery choice that customers are accustomed to -  but need to keep on eye on shipping costs as it can get out of control quickly. This is especially so if retailers aren’t smart about which carriers to engage with for the different zones or countries that they’re shipping to. With close to 60 percent of pure play retailers admitting that carrier integration is a problem for them, any plans for global domination that don’t include multi-carrier integration will be crippled. 

shutterstock_290387087.jpg44 percent of Australian retailers think shoppers prefer ‘fast’ over ‘free’ shipping

When given the opportunity, most shoppers in developed countries such as in the United States, United Kingdom and even Australia would choose free over fast shipping. A high share of local retailers think otherwise, and this misalignment can be a costly exercise for businesses. To spread the risk and avoid alienating shoppers, retailers need to marry their access to multiple carriers with the ability to use shipping rules to control what delivery choices shoppers can see, and where and when they’re available. This way, retailers can experiment with both ‘fast’ and ‘free’ delivery, and determine for themselves the best delivery options to provide at checkout.

Three percent of global customers are not impacted by poor shipping experiences

That means that 97 percent of customers are affected by poor shipping experiences, and they’re not sitting back - over half won’t shop with the retailer again, and over a quarter will tell their family and friends, and leave the retailer a negative review. To minimise raising the ire of new customers, set the standard for amazing shipping experiences. Why not consider real-time tracking updates via mobile and an easy returns shipping process as part of your online customer experience?

Certainly, making e-commerce work well on a global stage takes more than enabling multiple carriers, delivery choice, tracking and returns shipping - but nailing these elements with the help of technology will put your retail business in prime position. Think about the mass populations in the Asia Pacific region and beyond that you can sell to, and profit from, if you combined your knowledge of your local audience with the scalability of shipping technology. The time is ripe for you to change and make progress possible.

Access the full report, State of Shipping in Commerce 2017 from Temando’s website (temando.com) to get a complete view of how shipping and fulfillment impact the Australian retail industry.

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ABOUT THE AUTHOR

Francine Ereira,Vice President APAC shipping and fulfillment technology company Temando

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