Half of Australia's online shoppers plagued by damaged, lost or stolen goods
More than half of Australian online shoppers have had their purchases arrived damaged or not at all as a result of being lost or stolen during delivery and the majority are looking at better ways to protect themselves, according to a new survey released today.
Whether they are victims of 'porch piracy' or a prevalence of damaged and lost deliveries, many Australian consumers and retailers are facing lengthy delays for replacements or, worse still, being left out of pocket.
The survey was commissioned by Ship-Safely, a new Australian Fintech that is set to change the global online shopping industry with a low-cost shipping protection service that resolves damaged, lost or stolen parcel deliveries quickly, arranging a replacement to be sent within 48 hours of the required information being lodged.
The new survey findings are not dissimilar to surveys from other parts of the world, where, in line with the growth of online shopping, the incidences of deliveries being lost, stolen or damaged at the final hurdle of the e-comm journey is becoming an increasing issue. A recent report in the US found 49 million Americans had at least one package stolen within the last year.
Ship-Safely's CEO and Co-founder, Darren Milne, said the issue of damaged, lost or stolen parcels was sweeping the world and was only worsening.
"We all know someone that has had a parcel arrive damaged or not at all, and unfortunately this can mean significant time and money implications for consumers and also the online retailers, through no fault of their own," Mr Milne said.
The research shows that in a surging online retail market, higher numbers of millennials and Gen Z - who are more frequent users of online shopping - either receive parcels in a damaged state or did not receive at all as it has been lost or stolen (65 per cent and 64 per cent respectively).
It also showed:
- more than a quarter of consumers (31 per cent) had their Christmas presents damaged, lost or stolen with 75 per cent of these gifts valued at over $50.
- of those who had their Christmas gifts damaged lost or stolen, 63 per cent either had to buy another gift or give the gift after Christmas when a replacement was delivered.
- the majority (78 per cent) of online consumers expect getting a damaged, lost or stolen delivery replaced or refunded can take up hours of time.
Mr Milne, said it was clear that damaged, lost or stolen deliveries was a real issue for consumers and also online retailers, who were often the first port of call when delivery issues occur, in all corners of the world.
"Online consumers are looking for better solutions to these significant delivery issues, particularly as they are increasingly relying on online retailers to buy their goods," Mr Milne said.
"Our research shows they are tired of delays in resolving issues, with almost half saying it had taken them days, weeks or even months to get an outcome, with 5 per cent never seeing the problem sorted out at all and others completely giving up hope.
"All in all, that's a lot of people out of pocket, or having to find a last-minute gift for under the Christmas tree!"
The survey was carried out earlier this year with more than 1000 Australians nation-wide participating.
To protect online shoppers globally from the potential frustration, Ship-Safely has developed a low cost, innovative shipping protection service that can be added at online check-outs, ensuring that any lost, damaged of stolen goods are replaced quickly from as little as US$1.50 for purchases up to US$100 or 1.5 per cent of the cart total up to a maximum of US$5000.
Mr Milne said the survey showed that 56 per cent of consumers blamed merchants for their delivery issues, and more than 40 per cent would pay for additional shipping protection to ensure peace of mind that their goods would arrive.
"This is a growing issue throughout the world, including in Australia where 73 per cent are now buying online at least once a month, and 36 per cent are buying weekly," Mr Milne said.
"Consumers who are regularly purchasing online need to consider the risks, and shop around for retailers who offer the protections they need."
Ship-Safely has just fully launched its global product following a six-month pilot program with 100 online merchants – spanning Australia, the US and Europe - to ensure it was able to enhance the experiences for merchants and consumers.
One of the trial retailers, Ed Leaney from one of Australia's leading online uniform shops, Focus Uniforms, said the innovative Ship-Safely was a must for any e-commerce business.
"Ship-Safely makes sure that, when items get lost in transit, they items are replaced quickly and– ensuring that our customers are not left without uniforms and at the same time we were not left out of pocket," Mr. Leaney said.
The Shipping Protection Services can be added to any approved merchant's online
