Expensive, Slow Deliveries Hamper Online Retail Success

Yesterday’s launch of the 2012 Online Business Index highlights the need for Australia’s postal infrastructure to improve in order to support online retailers.

The number of online retailers complaining about postage costs has risen to 55 percent from 50 percent last year, according to eBay’s 2012 Online Business Index, which was released yesterday.

“One of the highest barriers to e-commerce in Australia is fulfilment,” said the Opposition Minister for Communications and Broadband, Malcolm Turnbull.

68 percent of participants in the OBI believed postage rates were too pricey and 54 percent want improvements in parcel tracking. Many retailers are quick to point the finger at Australia Post, who is known for charging up to 30 percent more than alternative shipping companies.

“The reality is, there is not a single provider that can offer best pricing across the board,” Carl Hartmann, Founder and Director of online logistics company Temando, said. “UPS might be the best on one lane, whilst DHL is best on another.”

The complexity and multitude of various shipping companies and couriers can mean big headaches for retailers that want to be able to get stock at a reasonable rate and speed while also offering their customers the same service.

To find out more about logistics and fulfilment companies that understand online businesses, visit Power Retail’s Solutions Providers page.

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