Aussies blacklist slow delivery retailers while port and road congestion chokes supply chains

Melbourne

17 January 2022

Three in four Australians satisfied with their delivery experiences over the past year but just 7% would return to a retailer after a poor experience
Affordable or free delivery topped the list of what makes Australians happy with their e-commerce delivery experience
Roads around Melbourne port 4.3% more congested in November 2021, with ships spending half a day extra at port

Online shopping is booming resulting in fierce competition to get goods out quickly and cheaply, according to new research from leading location data and technology platform HERE Technologies. This could spell trouble for retailers as logistical challenges loom, with new data revealing increased congestion around Melbourne’s port.

According to a map developed by HERE Technologies that displays the time spent in port by container ships and the level of truck traffic congestion affecting ports in 2021, by leveraging its real-time and historical truck traffic data, the West Gate Tunnel and Freeway in Melbourne were bearing the brunt, while roads around Melbourne’s port were 4.3% more congested in November 2021 than average. Container ships were also spending close to two days at the port – more than twice the global median (0.69 days) in 2019.

The research from HERE Technologies saw 1,200 Australians and Kiwis surveyed, revealing that reliance on online shopping has grown in the second year of the pandemic – 44% of Aussies stated they have become more reliant on e-commerce this year compared to 37% saying the same in May 2019.

The good news is around three in four Australians (73%) said they have been satisfied with their delivery experiences over the past year. Meanwhile, 81% said their delivery experience impacts future shopping choices, with just 6% saying they would go back to a retailer despite having a poor delivery experience.

“We’re looking at an increasingly competitive retail space as e-commerce is now a go-to for most people, as opposed to just filling a pandemic-induced gap. Pressure on last-mile delivery is increasing as supply chains try to meet the cost and time expectation of consumers,” said Daniel Antonello, Director and Head of Business for Oceania at HERE Technologies. “This is where location intelligence tools such as post-trip analysis and last-mile delivery route planning applications can help alleviate supply chain pressures and give consumers their ideal delivery experiences.”

In terms of what keeps consumers happy with their e-commerce delivery experience, affordable or free delivery costs topped the list, followed by logistical concerns such as the ability to select specific delivery time slots and be prompted by regular delivery updates.

Delivery timeframes of one to two and three to five days were seen as the most acceptable, with just 9% of respondents saying they would be happy to wait five to 12 business days. Over half of Australians surveyed expect to pay nothing for one to two days of delivery, and over two-thirds expect three to five days of delivery to be cost-free.

The research also revealed that 73% of respondents said they will continue shopping online. However, there are some positive news for brick-and-mortar stores as a third of respondents have indicated that they do not intend to keep shopping online to the same extent beyond the pandemic.

Adam Etherington, Principal Analyst, Digital Enterprise Services at Omdia said, “The COVID-19 pandemic has permanently changed consumers omnichannel demands. Innovative use of edge compute, hybrid cloud, artificial intelligence, 5G, API’s, IoT and Enterprise Resource Planning (ERP) or Supply Chain Management (SCM) capabilities can deliver operational agility, scale, and cost-efficiency for businesses. As such, technology-driven enhancements will determine the winners and losers in the Australian supply chain sector as the economy rebounds.”

Notes to the editor

Port congestion data
https://app.developer.here.com/supply-chain-meltdown-bottlenecks-port-truck-traffic/

Further breakdown of survey findings
The research by Pollfish was conducted in September 2021, surveyed 1,200 Australian and New Zealand residents aged between 18 and 54.

In the past 12 months, how often have you shopped online and had your shopping delivered to you?

Weekly	23%
A couple of times a month	34%
A few times a year	21%
Rarely	9%
Not at all	13%

Do you feel like the pandemic has made you more reliant on the delivery services provided by online merchants?

Yes, definitely	44%
Somewhat	30%
Not at all	26%

Will you continue to use online shopping and delivery services in the long term?

Yes, I am enjoying online shopping	44%
Yes, but probably not to the same extent as right now	33%
No, it's serving its purpose for now but that's it	10%
No, I've not switched to online shopping	13%

How satisfied are you with your overall delivery service experiences over the past 12 months?

Very satisfied	24%
Satisfied	49%
Neutral	15%
Dissatisfied	3%
Very dissatisfied	1%
I’ve not shopped online in the past 12 months	9%

Which of the following factors would most improve the delivery experience of your online shopping?

Respondents listed 1-10 with 1 as highest importance, mean scores in order:
- Cheap or free delivery costs (3.97)
- Specific delivery time slots (5.18)
- Regular updates from the retailer or courier (5.31)
- Same or next day delivery options (5.36)
- Ability to track, trace, and amend schedule (5.44)
- Multiple delivery options based on cost and delivery schedule (5.45)
- Accuracy of delivery schedule (5.65)
- Eco-friendly delivery options (5.94)
- Quality of the delivery service (e.g. no item damage) (6.06)
- Attitude of the delivery personnel (6.63)
Which of the following estimated delivery timeframes would you find acceptable?

Same day	28%
Next day	39%
1-2 business days	45%
3-5 business days	41%
5-12 business days	9%

What would you expect to pay in delivery fees for the following delivery timeframes?

	Nothing	Up to AUD$5	Up to AUD$10	Up to AUD$15	Up to AUD$20	Up to AUD$25	Over AUD$25
Same day	21%	32%	28%	12%	4%	2%	1%
Next day	33%	37%	21%	6%	3%	1%	1%
1-2 business days	51%	31%	12%	4%	1%	1%	0%
3-5 business days	67%	20%	9%	2%	1%	1%	1%
5-12 business days	80%	11%	5%	2%	1%	1%	0%

Would a poor delivery experience put you off making future purchases from the same business?

Yes, I know which retailers give me a good experience and I return to them	38%
Somewhat, I’ll shop around for better options and/or remember a bad experience	43%
Neutral, it’s not something I’ve given much thought to / I don’t shop online enough to know	13%
No, I’m happy to purchase from them again as long as I receive my purchases	6%

Media contacts
Keep Left on behalf of HERE Technologies
Mitchell Blincoe
+61 427 801 843
Mblincoe@keepleft.com.au

HERE Technologies
Camy Cheng
+65 9088 4127
Camy.cheng@here.com

About HERE Technologies
HERE, the leading location data and technology platform, moves people, businesses and cities forward by harnessing the power of location. By leveraging our open platform, we empower our customers to achieve better outcomes – from helping a city manage its infrastructure or a business optimize its assets to guiding drivers to their destination safely. To learn more about HERE, please visit www.here.com and www.360.here.com.