Delivery reliability is becoming a major issue for Australia’s transport and logistics industry, with new research revealing that concerns about lost, damaged and stolen parcels are driving consumers away from online shopping.
Research commissioned by transport and logistics insurance provider NTI found that 38 per cent of Australians have avoided shopping online because of shipping concerns, while almost 40 per cent of engaged online shoppers have abandoned a purchase for the same reason.
The findings highlight the growing importance of last-mile delivery performance and the role transport operators play in maintaining consumer confidence in online retail.
Delivery reliability matters more than ever
According to NTI, 70 per cent of Australians experienced at least one parcel delivery problem in the past 12 months.
NTI Executive General Manager, Marketing & Proposition, Jason Kibsgaard, said delivery performance was influencing purchasing decisions long before a parcel reached the customer’s front door.
“For 93 per cent of Australian online shoppers, how a retailer handles lost, damaged or stolen parcels is important when deciding where to shop online,” Kibsgaard said.
“Consumers aren’t just thinking about what they want to buy. They’re also considering what happens after the purchase and what support they’ll receive if their parcel doesn’t arrive as expected.”
With Black Friday and Christmas approaching, the research suggests retailers and their logistics partners face increasing pressure to deliver a reliable service during peak demand.
Transport operators are part of the customer experience
For freight and delivery operators, the findings reinforce the importance of reliable transport operations, parcel handling and effective communication when deliveries don’t go to plan.
Almost one-third of Australians (31 per cent) said they would not shop with a retailer again following a shipping problem, while 29 per cent would leave a negative review and another 51 per cent would consider doing so.
Although more than half of consumers hold the courier responsible for delivery problems, 63 per cent would view a retailer more negatively if they were simply told to resolve the issue directly with the delivery company.
“Customers may understand who physically delivers their parcel, but they still expect the retailer to support them when something goes wrong,” Kibsgaard said.
“For retailers, providing that support and greater certainty around delivery can be an important part of the overall customer experience, and a stickiness factor when it comes to loyalty.”
Opportunity for the logistics industry
The research also identified strong consumer demand for greater parcel protection, with 86 per cent of Australians saying they would be more likely to purchase from a retailer that covered lost, damaged or stolen parcels at no additional cost.
NTI believes shipping insurance can help retailers provide greater confidence at checkout, particularly during busy shopping periods.
For transport businesses operating delivery fleets, the findings are another reminder that operational performance has consequences beyond the cost of a missed or damaged delivery.
Vehicle reliability, driver training, safe parcel handling and efficient delivery processes all contribute to the experience customers have with online shopping.
As parcel volumes increase during peak retail periods, the challenge for transport and logistics operators is not simply moving more freight. It’s delivering the consistency and reliability that retailers and their customers increasingly expect.
