Delivery choice to fuel eCommerce and retail industry growth, finds study

David McLean, Founder and Chief Executive Officer at HUBBED

Research by HUBBED has revealed the retail and eCommerce industry is exposing itself to substantial loss in online sales due to a divide between consumer delivery expectations. Australians’ increasing appetite for online sales saw nearly $56bn in online retail over the last 12 months to May, which accounts for 14.7% of the nation’s total retail trade estimate.

How is HUBBED’s PUDO solutions helping the industry?

While these figures are positive overall, research shows the industry is not maximising online sales potential, with 90% of respondents saying they abandoned a cart due to high shipping costs and 64% of respondents saying lack of security was a purchase deterrent. HUBBED’s innovative Pick-Up Drop-Off (PUDO) model provides retailers, carriers and consumers with an alternative to the high-cost and environmentally unfriendly traditional home delivery model.

Its proprietary tech is client agnostic and integrates with carriers, aggregators, marketplaces and other eCommerce platforms. HUBBED’s PUDO network enables clients to receive parcels from a designated collection point across more than 2,200 convenient locations nationally, including outlets such as local BP service stations, National Storage and independent retailers.

The research revealed that almost all consumers (91%) made an online purchase within the lead-up to Christmas (79%). End of financial year sales are the second most popular period for online shopping (58%), followed by click frenzy (55%) and Black Friday (52%) sales. 

Returns are also a factor given that almost three quarters (71%) of shoppers say they have returned an item they have bought online. David McLean, Founder and CEO of HUBBED, said while these figures were generally positive, they also highlighted a missed sales opportunity.

How can retailers enhance customer experience?

“Consumers are demanding more convenient, secure and sustainable delivery and return choices. For retailers, the message is clear: If you want to enhance the customer experience, negate cart abandonment, and generate repeat purchases, you must provide consumers with greater control. There are around eight ways consumers can pay online,” David said.

“But most retailers offer two ways to deliver and return items: fast or slow. It’s time for all retailers to offer a more sophisticated delivery option that exceeds customer expectations.” 

HUBBED recently received a $12m investment from the Australian Business Growth Fund to scale up collection points to 3,000 and expand the magnitude of collections services. 

How effective is HUBBED’s PUDO?

The breadth of HUBBED’s PUDO footprint is compelling given that 68% of survey respondents stated it would be far more convenient to pick up their parcel from somewhere close to home, at a time that suits them, and 61% of respondents would prefer to return a purchase via a PUDO point rather than wait for a courier (22%) or drop off instore (17%).

David further commented: “We are committed to levelling the playing field between pure-play eCommerce sites and their bricks and mortar competitors by ensuring everyone has access to omnichannel click and collect. Click and collect is pivotal to the shopping experience, and it’s a choice HUBBED enables every retailer to provide to their customers.”

Signature on delivery (74%) is the most popular delivery method for high-value items, followed by PUDO points and home delivery without a signature. “Retailers are missing out on sales because consumers don’t feel they have a safe place at home for parcels to be delivered, and they aren’t making as many purchases if they can’t sign for it,” David said. 

“Our PUDO network solves this pain point as it’s local, and consumers can trust their parcel will be kept securely on their behalf. The retail industry has evolved considerably regarding how clients can pay for their purchase. We must address the other option clients have at checkout: where and how you want your shopping delivered to, and how you can return it.”

HUBBED’s consumer collections network is being utilised by key local and global carriers, including Couriers Please, DHL, eBay, FedEx, Sendle, TOLL, TNT, and UPS.