Many consumers say they like to support their local stores, however, when it comes down to it delivery time and price still influence their buying decisions.
Despite almost two thirds (59 per cent) of Aussie consumers seeing Amazon as a threat to their local retailers, 46 per cent still plan to shop with the retail giant―a move that will create a $131 billion battleground for retailers, according to research from crowd-sourced delivery firm, Go People.
CEO Wayne Wang says Amazon is a clear and dangerous threat to Australian retailers.
“Its huge range of products and aggressive pricing will enable it to capture the market rapidly in Australia,” he explains. “A number of Aussie retailers have said they’ll price match, but not everyone will be able to do that. This will leave a large number of retailers scrambling to win back consumer attention.”
Convenience and delivery options are important factors for Aussie consumers with 50 per cent saying same-day delivery is important to them when choosing where to shop and 12 per cent say they will shop somewhere else if the retailer can’t offer this option.
Indeed, shops that offer three-hour delivery services are now preferred by one in five (19 per cent) shoppers with 32 per cent willing to pay for the convenience.
As Amazon leads on price and variety of products, Wang says Aussie retailers need to look at their delivery options to remain competitive.
“Amazon has really tipped the Australian market on its head, and we can no longer rely on old methods of services. Moving forward, Australian retailers are going to have to offer more choice in delivery options if they are to compete with Amazon―this is a real opportunity for Australian businesses to flex a competitive muscle in the fight for consumer loyalty. We need to be just as innovative as Amazon if we are going to survive.”
For example, Go People’s GoSHIFT enables Aussie retailers to hire shift based drivers as and when needed for as little as $5 per delivery.
“Technology is quickly offering retailers more affordable options to be able to meet the demands of today’s ‘I-want-it-now’ consumers. By using the power of people, Go People are providing cost effective, fast and flexible delivery options, from three hour and same-day deliveries to more traditional longer term delivery choices,” Wang adds.
By Marion Gerritsen
