E-commerce Competition and Delivery Expectations
E-commerce retailers operate in a competitive environment where major online platforms, such as Amazon, influence consumer standards for delivery times. Smaller businesses often face difficulties competing with the extensive resources of global e-commerce entities.
Impact of Delivery Speeds on Consumer Behavior
Data collected by the e-commerce technology platform Shippit indicates that 51% of Gen Z consumers base their delivery time expectations on Amazon's services. Additionally, 64% of all consumers report they would cease engaging with a brand after a negative delivery experience. Lia Tsimos, founder of Moss & Spy, observed that customers expect rapid delivery, frequently anticipating next-day service for domestic orders or within five days for international shipments.
Retailer Adaptations and Business Models
Amazon asserts that its accelerated delivery services benefit Australian consumers broadly. However, Shippit's findings suggest that 20% of Australian retailers are converting their physical stores into smaller distribution centers to expedite order fulfillment. Rob Hango-Zada, joint chief executive of Shippit, stated that a business strategy focused solely on competing on price for identical products against larger companies is no longer viable. He emphasized that innovative online brands and small businesses that develop unique products appealing to the Gen Z market represent a more sustainable business approach.
The Value of Personalization
Lia Tsimos indicated that the convenience of fast online delivery, such as receiving a package within 24 hours, is highly valued by busy customers, including working mothers. This service contributes to repeat business and enhances customer confidence. Kellie Richardson, owner of Kurved by Design, aims to differentiate her business through personalized customer service. This approach includes online and in-store interactions and a diverse product selection, attracting customers, particularly older generations, who seek a more personal connection.