Delivery times get longer and more expensive, research finds

(Source: Bigstock)

Online shopping delivery lead times are getting longer – and getting more expensive – according to research from shipping software developer Shippit.

The company’s State of Shipping Report found that the estimated delivery time has risen from two days in 2018 to 5.6 days now. Concurrently, the cost of standard shipping grew from $9 to $10.26 during the six-year period.

Moreover, the study found that the number of retailers promoting flat rate standard shipping increased by 1571 per cent while the most expensive flat rate options surged by 200 per cent.

“Increasing delivery costs along with the need to spend more to access free shipping from a shrinking number of retailers, is cause for concern,” said Rob Hango-Zada, Shippit co-founder and co-CEO.

“Improving delivery speeds on the other hand is promising and the growing number of carrier options for next or same-day delivery demonstrates the industry’s commitment to meeting today’s consumer expectations, it’s simply a matter of how quickly retailers can embrace them.”

The report also noted that there has been a 70 per cent decline in retailers offering free return shipping. Despite click-and-collect services soaring 309 per cent post-Covid, Shippit said that they have since plateaued.

“Today, consumers want choice, convenience and reliability – they are gravitating towards the retailers who can offer that,” said Hango-Zada.

“The complexity for Aussie retailers has increased massively with more optionality and transparency than ever, the way retailers are balancing costs with all of these demands has been eye-opening.”

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