As the Black Friday shopping period gets underway, almost two-thirds (64 per cent) of Australian shoppers have reported a problem getting their goods to them in one piece according to research for NTI, Australia’s leading transport and logistics insurance provider.
NTI head of marketing Jason Kibsgaard says the numbers were even higher for Gen Z and Millennial shoppers.
“Lost or damaged parcels are causing headaches for online shoppers. Thirty-six per cent of Australians have experienced a lost or damaged parcel at least once, with almost 30 per cent reporting multiple issues,” he says.
“Younger shoppers have faced the most frustrations, with 76 per cent of Gen Z and 73 per cent of Millennials hit with lost or damaged parcels.
“The issue is front of mind for many shoppers, with 43 per cent reporting a problem in the last 12 months and that number rises to well over half for Gen Z and Millennials.
“Retailers can pay a high price for shoppers getting the run around on a solution, with satisfaction falling sharply the longer shoppers wait for a result.”
Kibsgaard says online shoppers want a straightforward solution and much prefer refunds or replacements over other forms of compensation such as store credit.
“How retailers handle lost or damaged parcels can be the tipping point for repeat customers, with 70 per cent considering or likely to leave a negative review based on a poor result with a lost or damaged parcel,” he says.
“One in seven shoppers say they wouldn’t come back.”
Shoppers are also seeking peace of mind about their purchases, increasingly interested in shipping insurance to safeguard their parcels.
“As the value of online purchases goes up, shoppers are more likely to be on the hunt for shipping insurance,” he says.
“About half of Aussies say shipping insurance matters to them when they’re spending over $100 and when the price tag goes above $200, all online shoppers prioritise shipping insurance.”
Seventy-two per cent of shoppers say they are more likely to buy from retailers offering shipping insurance.