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

Blog Posts

Designing for a cashless society

More movement has been made toward a cashless society recently, and already we are starting to see enormous implications across our society.

Katja Forbes

Founder and chief, sfyte

Setting advertising objectives for financial performance

I’ll often be talking to clients and at some point say, ‘the most important thing is justifying price’. Then moments later, ‘the most important thing is increasing the size of your customer base’.

Kyle Ross

Strategist, TRP

5 common mistakes to avoid in scalable customer experience

CX is about future-proofing your business by ensuring that your commercial model is always looped into your customers' needs, perceptions, values, beliefs, motivators, and detractors.

Tom Uhlhorn

Founder and strategy director, Tiny CX

This is pure vomit material. Self congratulatory blurbs. No evidence of any innovation or actual value created. Most marketers have compl...

Bobbo

Announcing the CMO50 for 2018

Read more

Unfortunately, the title "AdTech Magic Quadrant" is misleading as it only represent a fraction of the ecosystem. It it is a useful docume...

Ludovic Leforestier

Report: Gartner recognises the best adtech players in Magic Quadrant

Read more

Thanks for writing about chatbots. Definitely bots have the exciting future when it comes to customer engagement, transactional and conve...

Giridhar Prathap Reddy

Australian Open chalks up strong ticket sales with chatbot

Read more

Hello, where are the explanations of all the levels explained? I'd like to review this with a couple of colleagues. Thanks.

Melinda Gonzalez

CMO launches CMO CX, debuts customer experience maturity assessment

Read more

A great and accurate commentary - today we rarely get true personalisation. On web journeys cookies or logins remember who we are, what w...

Ian Moyse

Salesforce: Personalisation is a long way off what consumers now expect

Read more

Latest Podcast

More podcasts

Sign in