As the financial landscape shifts , shoppers are go ing online in larger numbers than ever before. Australia Post shares the ways in which retailers can boost their online presence and engage shoppers as 2023 marks a new era of eCommerce .
In 2021, Australians reported losses of over AUD$2 billion. This was more than double the losses reported in 2020. However, fraud has one of the lowest reporting rates. It is estimated that this $2bn figure is much lower in relation to fraud offences in an online environment losses.
2023 Brings with it a New Era of eCommerce
Shoppers are searching for businesses they can trust, with a focus on stability and positive relationships.
Consumers may have started the year with financial uncertainty, but when it comes to online shopping they know exactly what they want. They’ve set eCommerce onto a new path and they want retailers to meet their needs in this evolving environment.
In 2023, there’s a focus on building strong relationships with customers, increased sustainability practices and growing expectations on delivery and returns processes.
1. Building customer trust and loyalty has never been more important
As the economic future becomes less easy to predict, loyalty is more important than ever. Shoppers are searching for businesses they can trust, with a focus on stability and positive relationships. If your business can build this kind of bond with your customers, chances are they’ll return again and again.
That’s exactly what online loyalty leader MECCA worked towards with a retention strategy that keeps customers close, even if they aren’t ready to spend. In the 2023 Inside Australian Online Shopping Report MECCA shares with Australia Post how it utilises a tiered loyalty program that keeps customers engaged and aspiring towards higher levels, as well as how it gathers data to ensure it offers rewards that its customers really want.
If your business is keen to re-energise customers with loyalty strategies, try:
2. Why green commerce attracts online customers
Despite budget concerns, consumers are willing to spend with brands that meet their sustainability values. As this trend grows – two in five Australians plan to spend more on sustainable products over the next three years – your customers will be keen to know what you’re doing to help the environment.
This means it’s time to check the health of your business’ green practices.
3. The importance of taking part in key online sale events
While 70% of Australians intend to be more mindful of how they spend their money in 2023, it’s expected they’ll keep shopping online for convenience and competitive pricing.
November 2022 was the largest online shopping month on record, driven by the Black Friday and Cyber Monday sales. This growth is expected to continue: the 2023 Inside Australian Online Shopping Report predicts strong annual growth of eCommerce over the coming decade, with about one in three dollars to be spent online by 2032.
The hunt for bargains is expected to drive more consumers than ever before to key sales events, including Click Frenzy, Afterpay Day, Black Friday, Cyber Monday and more. Keep up to date with all the relevant sales dates with Australia Post’s eCommerce Sales Calendar.
4. How to meet high expectations for efficient delivery
Consumer expectations show a strong trend towards fast delivery and multiple collection options. The 2023 Inside Australian Online Shopping Report reveals that almost a third of consumers now expect deliveries to come faster than they did in 2019.
To meet and exceed these expectations, look at the following processes in your business:
5. The importance of an omnichannel model to increase efficiencies
For bricks and clicks retailers, using the store network to fulfil orders, in addition to warehouses, can help boost the customer experience and increase efficiencies.
Accent Group tells Australia Post, in the latest Inside Australian Online Shopping Report, that an omnichannel model has proven successful as a fulfilment strategy. Utilising an integrated, single view of inventory that’s held across its network of stores, it has discovered a benefit to both customers and the business from the increased inventory available for eCommerce. And it’s all driven by a strategy to fill customer orders as quickly and seamlessly as possible.
Omnichannel retail is a point of innovation that helps bricks and clicks businesses to be resilient in an evolving shopping landscape.
One thing is certain in 2023: it’s a year that presents new opportunities for eCommerce businesses to stand out from the crowd, grow and thrive.
Australia Post’s 2023 Inside Australian Online Shopping Report is packed with exclusive insights, consumer online buying behaviour and trends to help drive your eCommerce strategy.
Consumer Responses to Online Shopping Fraud in Australia
Online shopping fraud, as defined above, is very prevalent, with 40% of online shoppers in the sample having encountered it and 32% having lost money to it.
In 2021, Australians reported losses of over AUD$2 billion. This was more than double the losses reported in 2020. However, fraud has one of the lowest reporting rates. It is estimated that this $2bn figure is much lower in relation to fraud offences in an online environment. Notably, this figure is likely to represent a minority of actual losses.
Fraud is characterised by the use of lies, cheating and deception to gain a financial advantage. There are endless plotlines available to fraud offenders and a multitude of ways that offenders target potential victims. Further, the evolution of technology has exponentially increased the potential reach of offenders and enabled them to connect an ever-growing number of victims. This is particularly the case in the area of online shopping.
Online shopping has been experiencing growth in recent years; however, this was radically accelerated as a result of the global COVID-19 pandemic.
This is attributed to the various periods of lockdown and physical restrictions from March 2020 through 2021. The temporary closure of many physical stores and the geographical restrictions placed on citizen’s movements pushed a greater number of citizens online to purchase all types of goods and services. In April 2020, the highest influx of new online shoppers commenced online shopping, which coincided with the first wave of the pandemic in Australia and the first round of lockdowns and restrictions. Despite the lifting of restrictions and a return to physical trading for businesses, many individuals have maintained their online shopping activities.
It is therefore no surprise that offenders have also embraced the move towards online shopping activities and targeted their fraudulent approaches to this market. Online shopping fraud is broadly defined as schemes that “ involve scammers pretending to be legitimate online sellers, by using a fake website or setting up a fake profile on a genuine website or social media platform ” (ACCC, 2020: viii). The current research builds upon this definition and defines online shopping fraud as “ paying for a product online that you have never received as well as receiving a product that is very different to what you were expecting (usually lower in quality or a counterfeit you were not expecting) ”.
