The state of eCommerce in ANZ

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The last 12 months have put retail to the test with unprecedented woes. Whether it was managing logistics and fulfillment or a complete strategy overhaul, this pandemic has shown us how vital data is for making swift decisions when we’re faced with uncertainty of what’s next. At Ogg, we are able to now look back on these events and review what it’s taught us about the state of eCommerce in ANZ.

Leveraging up-to-date and comprehensive data on the Australian online shopper and the Top 100 Australian retailers, we aim to provide actionable recommendations. we explore key benchmarks, growth levers and how UX drives customer engagement.


The eCommerce landscape in ANZ is rapidly transforming, we’ve seen this in action in real-time. Technology is advancing because it has to keep pace. Retailers and service providers have no choice but to remain nimble, and it’s a reciprocal relationship. Delivery, for example, was flagged (amongst other elements) as a massive growth accelerant. A pandemic may have increased online spend, but without adequate delivery infrastructure, retailers would not have been able to keep up. Scalability, readiness, and agility are highlighted here as essential retail benchmarks, whatever the context.

Key Findings:

  • BNPL usage is still in a transitional stage and its appeal (across segments and categories) should be monitored.
  • Free delivery is a priority for online shoppers and should be offered where possible. The optimal delivery time is between one and five days.
  • Offering fast delivery times can influence where consumers shop; however, they are becoming more patient and less likely to switch retailers because of shipping delays (31 percent).

Growth Levers

While online retailers have experienced many challenges in the last year, managing consumer expectations is something that is less of a hurdle than before. Many of the issues faced by retailers are not difficult to overcome. Product reviews, multiple delivery options, and a seamless checkout experience are some of the elements needing focus. Consumers may be more tolerant of shipping fees for special services or delivery delays, but a frustrating check-out process is a certain way to encourage cart abandonment.

The speed of change may be an enormous challenge for retailers who need to remain nimble, but heeding the signs when it comes to the uptake of offerings such as Click and Collect, means retailers have adequate time to plan and ensure successful strategies are implemented for long-term gain.

Key findings

  • Regular cart abandonment is growing. Retailers need to address the elements leading to this behavior shift.
  • Frustration at check out has caused 79 percent of consumers to abandon their carts.
  • High shipping costs have caused 63 percent of consumers to abandon their carts.
  • Home delivery is still the most popular delivery location, however, Click and Collect demand is growing.

UX & Customer Engagement

Retailers are being pressured to invest in technology like chatbots and virtual reality, but the research shows that what shoppers want is personalized customer service. Chatbots may seem on the surface as a solution for retailers struggling with answering questions quickly or meeting the expectations of customers, but actually, people prefer personal responses when they ask something.

This is why it is vital for retailers to do a deep dive into their specific target market before investing in new tech or changing brand direction. Brand reputation and reliability is far more important to consumers, for example than sustainability. Email is still the most effective form of marketing. We know there are lots of exciting advancements on the horizon, but this means nothing without getting the basics right.

Key findings

  • Virtual reality is dropping in popularity rather than becoming part of consumer expectation.
  • Live chat offerings by retailers have increased.
  • A massive 99 percent of online shoppers would become repeat purchasers if a retailer could respond and resolve a problem with speed.
  • Text messages have overtaken email as the preferred method of delivery updates.

Want to find out more about the state of eCommerce in ANZ? Click Here!


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