A new report by Australian eCommerce platform Shippit has revealed retail delivery reliability has hit new heights, with parcel delivery often coming at twice the speed expected in 2024.
Shippit’s Commerce Delivery Report has showcased the changing expectations on Australia’s last-mile delivery sector through insights into delivery preference, speed of delivery and strategic warehouse location.
The report found the upward trend of delivery reliability has continued, with just 7.7 per cent of deliveries experiencing delays. This number represents a significant reduction from the 11.2 per cent in 2023 and 15.7 per cent in 2022.
This improved efficiency has come in the face of a significant consumer preference change in delivery method, with the preference on-demand delivery options rising an unprecedented 490 per cent. Express delivery also grew by nine per cent with click and collect growing 11 per cent.
Key to this improved last-mile reliability has been the ability to deliver to customers from a location close to the final destination. One in seven deliveries were shipped from within 15km of the final destination, which is a significant rise in the one in ten from 2022’s report.
The average quoted delivery time for consumers was also 5.6 days, however actual delivery performance stood at just 2.2 days.
Head of Industry Solutions, eCommerce, Descartes Peoplevox Johannes Panzer says the ability for retailers to utilise new delivery mechanisms is crucial to their sustainability moving into 2025.
“More than ever, success in eCommerce depends on balancing profitability with exceptional customer service,” Panzer says.
“As businesses shift toward more margin-conscious peak sales strategies, optimising shipping costs, leveraging multiple carriers and investing in automation have become essential.
“But delivery isn’t just about the last mile. Fulfilment plays a critical role.
“The better retailers understand, organise and optimise their warehouses, distribution centres and networks, the easier it is to balance cost efficiency with customer experience and meet delivery promises.”
The gains made in the delivery and logistics eCommerce sector have been combated by rising retail business failure though, as consumer trends continue to shift more towards a sales-conscious mindset.
Shoppers are spending less overall per purchase, with the average purchase in 2024 standing at $98 compared to $128 in 2022.
Despite this reduction in spending, average value orders spiked to $130 over the Cyber Weekend period. The average item price has also fallen from $44.21 in 2022 to $28.88 in 2024, suggesting consumers are looking for more budget-friendly items.
Shippit Co-Founder and Joint CEO Rob Hango-Zada says prioritising logistics and delivery capabilities continues to be key for retailers looking to survive in a competitive eCommerce landscape.
“Retailers today are contending with a perfect storm of shifting consumer expectations, economic pressures and intensified competition with global players,” Hango-Zada says.
“Australian Bureau of Statistics data shows business insolvencies surged by 50 per cent this financial year, with retail trade failures rising 14.2 per cent amid growing cost pressures and cautious consumer spending.
“As consumers become more selective with their spending and demanding in their expectations, retailers must work harder to capture every sale, whether through seamless delivery, personalised experiences or competitive pricing.
“Those who fail to adapt risk losing market share to agile competitors who can meet these evolving demands.”
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