Report: More than half of Australian consumers ditch online shopping carts before purchase

High shipping costs causing consumers to abandon their online shopping experience before conversion, according to new research report into online retailing

High shipping cost is causing more than half of Australian consumers to ditch their shopping carts before completing an online purchase, according to a new report.

The 2018 Consumer Propensity Study, released by SAP, found 57 per cent of Australian consumers ditch their online shopping carts, with 60 per cent stating this is due to high shipping costs associated with shopping online.

Other key findings include Australian consumers are ditching shopping carts more often than those in Europe (41 per cent) and North America (47 per cent), and 53 per cent of Australian consumers stated that discounts and promotions succeed in nudging them to complete a purchase.

According to SAP, Australian consumers have a high tendency to abandon virtual shopping carts, particularly in the product categories of fashion (67 per cent) and furniture (65 per cent), and 46 per cent are using online carts as a way to compare prices with other brands and websites. 

Price is not the only deciding factor, another driver of cart abandonment is stock availability. Almost a third (32 per cent) of consumers give up on their carts due to out-of-stock items, and 29 per cent don’t purchase if they see longer-than-expected delivery times.

SAP said the findings demonstrate retailers need to be conscious that their supply chain and logistics decisions can impact sales.

“Reviewing cart abandonment data provides a starting point for retailers to identify friction points in the consumer journey and make improvements to the overall purchasing experience”, said SAP Customer Experience vice-president of marketing, Asia-Pacific Japan and Greater China, Jennifer Arnold.

“The findings show customers want the basics done right and are willing to move on to other brands if they aren’t receiving the best experience possible. Today’s customers are taking charge of the relationship they have with brands, and don’t think in terms of B2B or B2C, but ME2B. The results point toward a deeper ask for engaging buying experiences tailored to customers’ individual needs and lifestyles, which extends to ongoing service and support.

“To achieve this, brands need a robust omni-channel approach based on having a view of the customer across all touchpoints at all times, and advanced analytics to anticipate customer behaviours and understand their real-time intent. What’s more, brands need to ensure their business processes and systems are integrated with the experiences they deliver to their customers. With this in place, brands will be able to provide a personalised and responsive consumer experience before and after the checkout process,” Arnold said.

The report also found the key ask for consumers from online retailers in easy exchange and returns (57 per cent), over chatbots (34 per cent) or VR technology (33 per cent). Just under a third (32 per cent) are encouraged to buy when multiple purchase deals are offered, and 31 per cent are motivated when the retailer provides quick responses to their queries on the item.

The global survey, which included 1000 Australian participants, asked online consumers about their shopping preferences and motivation to complete a purchase. The SAP Consumer Propensity Study surveys the behaviours, preferences and attitudes towards a specific aspect of commerce of 600 to 1000 consumers in markets include Australia, Brazil, Canada, China, Colombia, Denmark, France Germany, Hong Kong, India, Italy, Japan, Korea, KSA, Mexico, Netherlands, Poland, Russia, Singapore, Sweden, Thailand, UAE, UK, and the US.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu  

 

Read more: How SAP plans to bring analytics to soccer

 

 

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

More Brand Posts

What are Chris Riddell's qualifications to talk about technology? What are the awards that Chris Riddell has won? I cannot seem to find ...

Tareq

Digital disruption isn’t disruption anymore: Why it’s time to refocus your business

Read more

Enterprisetalk

Mark

CMO's top 10 martech stories for the week - 9 June

Read more

Great e-commerce article!

Vadim Frost

CMO’s State of CX Leadership 2022 report finds the CX striving to align to business outcomes

Read more

Are you searching something related to Lottery and Lottery App then Agnito Technologies can be a help for you Agnito comes out as a true ...

jackson13

The Lottery Office CEO details journey into next-gen cross-channel campaign orchestration

Read more

Thorough testing and quality assurance are required for a bug-free Lottery Platform. I'm looking forward to dependability.

Ella Hall

The Lottery Office CEO details journey into next-gen cross-channel campaign orchestration

Read more

Blog Posts

Marketing prowess versus the enigma of the metaverse

Flash back to the classic film, Willy Wonka and the Chocolate Factory. Television-obsessed Mike insists on becoming the first person to be ‘sent by Wonkavision’, dematerialising on one end, pixel by pixel, and materialising in another space. His cinematic dreams are realised thanks to rash decisions as he is shrunken down to fit the digital universe, followed by a trip to the taffy puller to return to normal size.

Liz Miller

VP, Constellation Research

Why Excellent Leadership Begins with Vertical Growth

Why is it there is no shortage of leadership development materials, yet outstanding leadership is so rare? Despite having access to so many leadership principles, tools, systems and processes, why is it so hard to develop and improve as a leader?

Michael Bunting

Author, leadership expert

More than money talks in sports sponsorship

As a nation united by sport, brands are beginning to learn money alone won’t talk without aligned values and action. If recent events with major leagues and their players have shown us anything, it’s the next generation of athletes are standing by what they believe in – and they won’t let their values be superseded by money.

Simone Waugh

Managing Director, Publicis Queensland

Sign in