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How the rise of online shopping is shaping spending habits this Christmas

A new survey of 1,001 Australians released today has revealed how the economic climate and the rise of online shopping will shape spending habits this Christmas – and how Australians are saying ‘no worries’ to slow deliveries.

Commissioned by Fluent Commerce, a leading provider of distributed order management software which counts global retailers such as JD Sports, LVMH and L’Oreal as customers, the survey finds 46% of Australians have already started shopping for gifts, while 21% of the population are planning to wait until December.

New research from Fluent Commerce found:

  • 46% of Australians have already started shopping for gifts, while 21% of the population are planning to wait until December
  • 56% said rising interest rates will impact how much they spend but 22% said they would not be deterred and planned to spend more on gifts compared to last year
  • 47% said they plan to mix-and-match online with in-store purchases. While 23% said they planned to shop mainly online compared to 28% heading to the shops for all of their Christmas shopping
  • Only 28% of respondents said one-to-two-hour delivery was important to them, while 39% said same-day delivery was important.
  • Interestingly, it appears Australians are more comfortable with longer delivery times with 52% of people saying next-day delivery was important, 58% saying the same about two-day delivery, and 59% saying three-to-five days was fine. It seems Aussies are a little more patient than the consumers surveyed in the US and Europe.

The global economic outlook, including rising domestic interest rates, is expected to have an impact on buying behaviour. 56% of respondents said this will impact how much they spend. At the same time, almost a quarter of those surveyed (22%) said they would not be deterred and planned to spend more on gifts – compared to last year.

Post-COVID, retailers may not know what to expect from shoppers, but according to the survey, Australians may be leaning more towards in-store rather than online purchases. Forty-seven per cent of people said they plan to mix-and-match online with in-store purchases. While 23% said they planned to shop mainly online compared to 28% heading to the shops for all of their Christmas shopping.

As deliveries return to normal, it appears Australians remain very laid back about how quickly their purchases arrive, but cost of delivery is a major sticking point.

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Only 28% of respondents said one-to-two-hour delivery was important to them, while 39% said same-day delivery was important. Interestingly, it appears Australians are more comfortable with longer delivery times with 52% of people saying next-day delivery was important, 58% saying the same about two-day delivery, and 59% saying three-to-five days was fine. It seems Aussies are a little more patient than the consumers surveyed in the US and Europe.

75% of those surveyed said ‘free delivery’ was important to them when deciding which retailer to shop with. For women, this was even more important with 85% holding this view compared to 63% of men.

It appears Australians are also laid back when it comes to delivery delays with only 5% of respondents saying a late package would deter them from shopping with the same store again.

“Globally we are seeing a demand for faster delivery services, especially in metropolitan areas, but Australia is bucking this trend,” says Veronika Birnkammer, Head of Marketing, at Fluent Commerce.

“In some ways it is refreshing that in the face of the pressures of Christmas shopping, Australians are so relaxed. While the sunshine may play its part, we also believe Australian shoppers are savvy and understand the unique and vast landscape they live in and the challenges this poses.

“As technology evolves, expectations may change, but the important thing for retailers is to set realistic delivery timeframes which they can meet to ensure no one is disappointed this Christmas,” Veronika adds.

While the survey shows Australians are laid back in some respects, it also shows Australian shoppers are becoming increasingly savvy with 70% checking if items are in stock before visiting a store to purchase them. Being able to return online purchases in-store is also important for 75% of those surveyed.

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