As we venture into 2024, Australian retailers stand at the crossroads of evolving consumer behaviours, economic uncertainties, and technological advancements.
ShipStation, the multichannel, multi-carrier shipping, and fulfilment e-commerce platform, is poised to redefine the retail landscape, offering innovative features to streamline workflows and enhance the overall shopping experience.
Trends of 2023: Adapting to shifting consumer patterns
Economic concerns and early shopping: Last year, persistent economic worries prompted consumers to exercise caution in their spending. Capitalising on this trend, many shoppers embraced Black Friday-Cyber Monday (BFCM) sales events to maintain the festive spirit while making budget-conscious decisions. Surprisingly, over a third of global shoppers planned to start their shopping before the official Black Friday kickoff, according to ShipStation’s Peak Season survey.
Embracing omnichannel behaviours: Following the post-pandemic surge in in-store shopping seen in 2022, last year marked a significant shift back to online spending. This transition ushered in an era where consumers seamlessly navigated between digital and physical channels, choosing the path of least resistance for their purchases. The rise in omnichannel trends resulted in increased marketplace purchases, offering retailers a prime opportunity to focus on delivering a consistent shopping experience across various platforms.
Marketplace dominance: Marketplace purchases became a dominant force, with approximately half of all online orders during the holiday season made through these platforms. Price sensitivity drove this trend, making it crucial for retailers to consider listing their products on marketplaces. Globally, marketplaces were predicted to account for $389 billion worth of sales over the Peak Season, outpacing the broader e-commerce market.
Elevated delivery expectations: Lower delivery costs, faster delivery times, and free returns became increasingly expected by consumers, influenced in part by the Amazon model. Meeting these expectations posed a challenge for retailers aiming to remain competitive in the evolving e-commerce landscape.
Trends of 2024: Navigating the e-commerce seas
Persistent need for omnichannel presence: This year, demand for an omnichannel presence continues to be paramount. Retailers must be present across multiple channels to cater to diverse customer preferences, ensuring a seamless and consistent brand experience.
Marketplace importance: Having a presence on marketplaces remains key to success. Being visible when a consumer is in the market for a particular product, especially when not familiar with a brand, can significantly impact purchasing decisions.
Strategic returns and shipping choices: A robust returns strategy is essential to instil confidence in online purchases. Competitive shipping rates and providing customers with the option to choose between cost and convenience play a pivotal role in preventing cart abandonment.
Strengthened shipping and fulfilment processes: This year, a strong focus on shipping and fulfilment processes is imperative, especially during peak seasons. Retailers are advised to invest in a robust technology stack that supports fast and accurate fulfilment with optimised operating costs.
Upcoming product releases from ShipStation: Elevating retailer efficiency
ShipStation is gearing up for significant product releases over the next few months, preparing and empowering retailers to navigate shifting consumer preferences:
Shipping Strategies: This feature enhances workflow for simplicity, efficiency, and reliability. Think of Shipping Strategies as automated rate shopping, saving time and money. It automatically compares connected carrier account options and applies the service with the lowest rate to each shipment.
Checkout rates: Empowering retailers with the ability to provide customers with competitive shipping rates and choices, preventing cart abandonment. This feature will be available in Shopify, BigCommerce, Wix, and Magento, enhancing the shopping journey for your customers.
Custom Labels: Custom Labels empowers seamless shipping with carriers that aren’t integrated, such as a dedicated delivery fleet. This feature facilitates importing all order details and printing labels without carrier information – perfect for scenarios like Click-and-Collect orders.
Conclusion: Navigating the future with ShipStation
As Australian retailers prepare for the challenges of this year, ShipStation emerges as a strategic partner, offering tailored solutions to streamline operations, elevate customer satisfaction, and stay competitive in the dynamic e-commerce landscape. Prioritising simplicity, efficiency, and reliability, ShipStation is set to empower retailers. Stay tuned for ShipStation’s annual E-commerce Delivery Benchmark report next week, providing insights into global trends and tactics for retailers to thrive in this dynamic environment.