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This eCommerce logistics provider is forecasting that online shopping growth will drive product prices down


On the back of new research, leading parcel delivery service CouriersPlease (CP) forecasts that the online shopping industry will have a greater focus on low prices, as the industry respondents to consumer preferences.

A survey of an independent nationally representative panel of 1000 Australians who shop online, commissioned by CP, sought to gauge just what those consumer preferences are – quality, receiving the product quickly, or low prices?

It seems that low prices not only trump other factors, but consumers might not have very high expectations of quality when buying on price. When asked about the most important factor to them when shopping online, over half (57 per cent) of Aussie shoppers said it is low prices.

Only 32 per cent said that the quality of the product is more important while receiving the product quickly is the least important (chosen by 11 per cent of respondents).

Fifty-nine (59) per cent of shoppers are satisfied with 75 per cent of the products delivered to them. A quarter (25 per cent) are pleased with the quality of all the items they purchase.

What else did the survey unearth?

The survey also asked shoppers which categories in their experience delivers the lowest-quality products. In a testimony to the global fast fashion phenomenon, two-thirds (62 per cent) of respondents said the fashion and jewellery category delivers the lowest quality products.

Twenty-two (22) per cent chose the technology items and electronics category as delivering the lowest-quality products, and the health and beauty category came in at number three (14 per cent of shoppers said the lowest-quality products came from here).

Interestingly, only five per cent said that the white goods and appliances category deliver the lowest-quality products.

Respondents were also asked what methods they use to reduce their chances of disappointment in the quality of the product.

Two-thirds (67 per cent) said they try reading reviews of the product online, 38 per cent stick to quality brands they know, and 36 per cent only buy from online retailers with a returns policy that will provide a full refund.

What does this survey mean for the online shopping space?

CP spokesperson Jessica Ip says, “More often than not, Aussies expect to get a good deal when shopping online compared with shopping in-store for the same product. At CP, we believe this expectation will only grow as the retail industry continues to shift to online, and e-tailers will follow suit.

Jessica Ip, CouriersPlease Spokesperson

“The consumer expectation is a result of the plethora of online-exclusive discounts, coupons and promo codes, and the ease with which consumers can compare prices online.

“With this in mind, understanding that shoppers often prioritise low prices, at CP we offer delivery services for our partner e-tailers that enable the consumer to make more flexible delivery and returns choices.

“If they are not home to accept their shopping, consumers can instruct the deliverer leave the parcel in a safe place, deliver it to a neighbour, or even reschedule to another day and time that suits them.”

What outstanding online habits do Aussie shoppers have?

4 in 5 shoppers tend to purchase items under $100 online.

Shoppers tend to buy lower-priced items online. The survey results found that 2 in 3 shoppers (63 per cent) will tend to purchase more expensive items in-store instead of online. Eighty-three (83) per cent of shoppers do not spend more than $100 per item when shopping online.

For 44 per cent, the average price point of items purchased online is $50-100 each. Meanwhile, 39 per cent say the average price point is $50 or less. The majority (94 per cent) of shoppers will not purchase items online that cost more than $200 each.

1 in 3 purchase more items when they shop online.

Online shopping tends to make a significant proportion of shoppers spend more – and the younger the shopper, the more they’ll spend online. Thirty-five (35) per cent of shoppers say they buy more items from a retailer when they shop online compared with in store, 39 per cent will spend the same, and just 26 per cent will spend less online.

The findings also reveal that the younger the age group, the more likely they are to purchase more items when they shop online: 50 per cent of 18-29-year olds compared with 33 per cent of 50-59-year-olds and just 20 per cent of over-60s.

2 in 3 shoppers do more product research when shopping online.

Most people do more research on a product – including reading product reviews – before they buy a product online compared with in store – 67 per cent, in fact, as revealed by the survey.

This was most common among younger age groups – 75 per cent of 18-29-year-olds compared with 60 per cent of over-50s.

When shoppers research retailers on product review services, factors are usually based on the product quality, customer service, sizing and whether the product appeared as advertised on the website.

Nearly a third of shoppers spend more time comparing prices when shopping online.

When shoppers browse for an item online, 63 per cent spend more time comparing prices on the same item across a range of retailers than they do when they shop instore.

This is likely due to that fact that the same portal (the internet) enable both the buying and the research, making the research convenient.