It’s not an easy time to be a retailer. The ups and downs of a pandemic, supply chain shortages, talk of downturns and myriad other global events have all created an environment that could best be described as “tricky”.
As you can probably imagine, that can make it hard to give advice. After all, what works for one retailer may not necessarily work for another. But it’s our job to help guide eCommerce retailers, and there are some nuggets of gold out there right – if you know where to look.
That’s where this article comes in.
35 eCommerce, shipping and fulfilment stats for 2023
Along with our own research (which you can dive into fully here), we’ve pulled together 35 eCommerce, shipping and fulfilment stats that you can use to shape your own strategy this year.
1. Australia’s online shopping industry grew by 8.9% in 2022 to reach $47 billion
That’s right – eCommerce continues to cement itself as a core buying channel for Australian consumers. But that isn’t to say brick and mortar retail is going anywhere, with total retail turnover hitting $411 billion in 2022.
2. Sustainability matters to Australian buyers
Did you know that 3 in 4 Australians consider at least some element of sustainability when they buy online? If you're thinking of ways to grow the sustainable side of your business, consider how you might introduce more sustainable packaging, or perhaps a carbon offset with your delivery options.
3. It’s important to offer a range of delivery options
Respondents to our survey said it was very important to offer a range of delivery options at checkout. Top options included Express, Overnight, Same day and Pick up in Store. Why does this matter? Well, 60% of respondents to a DigitalCommerce360 survey said they’d chosen one retailer over another because the delivery options were preferable.
4. Buyers will pay for faster delivery
Delivery speed ranks as a top motivator for customers. One study found 67 percent of online shoppers would pay more to get same-day delivery if they needed the package for an important deadline. And how should you do this? It all comes down to the courier. Uber, for example, is a great way to introduce same-day delivery.
5. You need to keep customers informed
The excitement customers feel when a package is on the way can quickly turn to frustration if the initial delivery timeline isn’t met. Shopify found that more than two-thirds of shoppers are less likely to buy from businesses that don’t inform them of shipping delays.
6. Supply chain issues aren’t going away anytime soon
While the world is starting to move on and recover, the pandemic-era supply issues will take longer to resolve. 39% of brands say shipping and manufacturing delays – and shipping costs – will continue to be a challenge throughout 2023.
7. Parcel growth isn’t going to slow down
One study from the World Economic Forum estimates that, in spite of supply chain issues and the recent pandemic, global parcel deliveries will climb by 78% by 2030.
8. Packaging is the biggest source of eCommerce emissions
Coming in over six times higher than products purchased in a retail store, packaging is a problem retailers will need to deal with sooner rather than later. Luckily, there are good options available.
9. Load balancing could save your business money
What is load balancing? Well, load balancing means distributing incoming inventory across multiple distribution centres, instead of sending all stock to a warehouse. One study has found that load balancing a warehouse can save up to 25% on shipping costs.
10. The 3PL market is growing
For retailers looking to scale, 3PLs offer an attractive set up. Many retailers agree, with one study finding that the market will grow by 8.5% this year. 37% of respondents to that same survey said they would hire or change 3PL providers in 2023.
11. Smart software helps retailers to save money on shipping
Retailers are using smart software to save time and money: 80% of our survey respondents said they were already using shipping automation software.
Learn more about shipping software on our features page.
12. More retailers will adopt inventory management software in 2023
Inventory management software gives retailers visibility over their operations and cuts down costs. 32% of our survey respondents said they planned to implement inventory management software this year.
13. Small retailers are optimistic about the year ahead
69% of small businesses expect increased revenue and sales in 2023 and 65% forecast greater profits.
14. Courier rates: Negotiating versus aggregating
Aggregators may work when you’re small, but they quickly become a constraint. Instead of having little to no control over courier costs, retailers can negotiate with their couriers directly and keep a handle on costs as their business grows.
74% of our survey respondents said they preferred to negotiate their own courier rates instead of using courier aggregator services.
15. Unifying online and in-store is a challenge
Last year, 50% of brands said unifying online and in-store operations would be their biggest challenge through 2023. And the solution?
16. Businesses will turn to new tools to enable new sales approaches
To solve this in-store/online conundrum, 53% of brands are investing in tools that allow them to sell anywhere. This means omnichannel fulfilment involving smart shipping and inventory management solutions.
17. Consumer love hybrid buying
One study found that 54% of consumers say that in 2023, they’re likely to look at a product online and buy it in a retail store.
18. International markets are an opportunity for retailers
In the US, US eCommerce sales hit US$774.6 billion in 2022. In China, cross-border eCommerce imports grew to 483.7 billion yuan in 2021 (around 100 billion AUD).
For Australian retailers looking for export opportunities, growing markets in the US, China, South East Asia and beyond signal an opportunity.
19. Sustainability is a growing concern for all generations
Two years ago, 58% of all online shoppers would pay for sustainable options. Now 90% of Gen X will, up from 34% in 2020.
20. Gen Z’s power and influence continues to grow
Gen Z will have a higher global income than millennials by 2031 and their influence is expected to drive more sustainable trends. As we said earlier, shipping is an area ripe for improvement – with the ability to move to sustainable packaging an easy win.
21. Good returns are good for business
While it may seem counter intuitive at first, if you make it easy for customers to return items, they’ll be more likely to come back in future. Shopify found that 92% of people who make a return will shop with a retailer again if they can offer a good returns experience.
22. The cost of poor deliveries can add up
In one survey, 84% of customers said they wouldn’t make a repeat purchase after just one poor delivery experience. Remember: A negative shipping experience can cause irreparable damage to your brand.
23. Communication throughout the post-purchase stage is key
83% of buyers want regular communication regarding their order status. This means sending personalised, branded order update emails linking to branded tracking pages.
24. Treat your customers as individuals
91% of buyers say they are more likely to shop with a brand that gives personalised offers and recommendations than one that doesn’t.
25. Be strategic with your pricing
One Deloitte study found that strategic price management can increase margins by up to 7% in 12 months. This means digging into your data to discover how your customers shop. Perhaps it’s something as simple as your shipping costs holding them back?
26. Online shoppers buy internationally
57% of respondents to one survey said they buy products from overseas. This is a huge opportunity for many retailers willing to investigate international markets. Smart shipping software can make this much easier.
27. Forced account creation leads to card abandonment
24% of online shoppers abandon a card if they’re asked to create an account. Our suggestion? Use a guest checkout feature with optional account creation.
28. Mobile device abandonment rates are high
Online card abandonment on mobile, according to one study, sits at 84%. In most cases, this speaks to the low effort many companies put into their mobile shopping experiences.
29. Social media commerce is predicted to grow
Social media eCommerce is estimated to climb to $2.9 trillion by 2026, up from $992 billion in 2020. For retailers without a strong social selling presence, now is the time to change.
30. Blogs drive product recommendations
According to one recent study, 61% of online consumers in the US have made a purchase based on a recommendation from a blog – sparking the importance of the platform for retailers.
31. Package delays are a top concern for shoppers
84% of online shoppers rank packages not arriving as a top concern. As a retailer, there’s a lot you can do to alleviate these concerns, primarily through regular post-purchase delivery updates.
32. Amazon still reigns supreme
According to an Inviqa study, 59% Millennials will visit Amazon first when shopping online. For your business, consider everything you can do to set yourself apart.
33. Email eCommerce is an important channel
One study found that 61% of consumers prefer to be contacted by brands via email. What does this mean for you? Pay attention to both your standard product emails and your post-purchase emails – both are important marketing opportunities.
34. Exit-intent popups could save you sales
OptinMonster found that exit-intent surveys helped one customer recover 53% of abandoning visitors. You can take this further with follow-up emails, although make sure you don’t overwhelm your prospective customers with communications.
35. Slow shipping could be costing you
We all like getting products as quickly as possible after we click “buy now”. But did you know that 22% of people will drop out of an online shopping session because of slow delivery times? What’s worse is that they’ll usually go straight to competitor. As we said earlier, this could be the right time to introduce faster delivery speeds.
Wrap up: Use Starshipit to set your eCommerce business up for success
While there’s a lot that’s out of our control right now, you can take control of your eCommerce shipping to reduce costs, improve your customer experience and grow your business.
With Starshipit, a shipping automation platform, you can easily add new couriers and eCommerce platforms to your setup, create email and SMS notifications, branded tracking pages, manage returns and more.
Give yourself a competitive edge and get in touch with one of the team today or read how other retailers (like you) are already finding success with shipping automation.
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Sofia Newcombe
Sofia is one of Starshipit's experienced, customer centric Business Development Managers. She wants to inspire retailers to push their boundaries and obtain peak performance within their Supply Chain. Sofia's expertise is being able to provide a consultative approach every step of the way, always ensuring her interactions provide value, innovation and education.
