Consumers demand better online shipping

Jane Lu has leveraged social media to help expand her online women’s fashion business Showpo which now employs 38 people.

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It’s been operating for six years and Ms Lu says sales are growing.

“We’ve more than doubled in the last year, and we’re expecting over $30 million this year.”

Her customers are demanding unique and affordable fashion and she’s getting it to them quickly by offering next day delivery for metropolitan customers.

“Which i think is very important for millennials, which is a large part of our demographic.”

She’s also reintroducing three hour dispatches even if it requires a premium to be paid.

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PayPay Australia Managing Director, Libby Roy says not all businesses are offering timely delivery.

“More than 50 percent of Australian consumers are saying that Australian retailers are behind when it comes to shipping.”

However, it’s not just about speed – the price of shipping also plays a role.

PayPal’s report showed that while more than 40 per cent of customers have abandoned their online shopping carts because shipping took too long, 73 per cent didn’t go through with their purchase because shipping costs were too high.

“So yes, you do need to think about your economics, so what’s the minimum purchase price that you can afford free delivery,” says Ms Hay who adds that it’s a important to get right to stay ahead of new  more powerful entrants like Amazon.

“Undoubtedly they’re are going to increase competition, but competition is a great thing, and the thing to remember is that they’re not here yet.”

The user experience however starts at the website, and going mobile first is paramount.

Showpo’s Jane Lu says sales are 26 per cent higher on mobile which supports PayPal’s numbers which show 71 per cent of smartphone users are shopping with their mobile phone.