Trade Resources Industry Views Frustrating Christmas Ahead for SME

Frustrating Christmas Ahead for SME

Lost revenue and frustrated customers are all too common for Australian SME who don’t successfully manage post and shipping services at Christmas, research commissioned by FedEx Express has found.

The poll of 1,000 consumers and 400 SME revealed that 94 per cent of businesses believe Christmas will bring an increased demand for online shopping, but 63 per cent of businesses admit they have not proactively prepared for the peak season.

Three out of four (76%) SME say local businesses are missing out on revenue because they don’t have effective shipping systems, and over half (51%) of consumers believe Australian companies are falling behind their overseas competitors when it comes to preparation for peak season shopping.

FedEx Express Australasia managing director Kim Garner said: “We know Australians love to beat the queues and shop online at Christmas, but too many businesses underestimate the role shipping can play in online shopping. Being unprepared puts them at risk of disappointing their customers and missing out on a golden revenue opportunity.

“When it comes to reputation, positive shopping at Christmas can make all the difference, and a bad one can have lasting consequences. In fact, this research showed that over half (58%) of Australians wouldn’t buy from a business again if its shipping let them down at Christmas.”

The survey highlighted that the speed of delivery is a frustration point for over half (51%) of Australians at Christmas time, with one in seven (15%) parents admitting that one of their children has missed out on opening their gift on Christmas day due to late delivery.

It also showed over a third (34.5%) of SME recognise that the reliability of shipping services will have the biggest impact on their bottom line over the holiday season, and nearly seven in ten (68%) expect late deliveries to create the most customer complaints at this time of year.

“When a shopper is browsing online for Christmas gifts, a trusted shipping service provider can offer the assurance they need to hit the buy button,” said Mr Garner. “The findings from the research will help service providers like ourselves to tailor our services so that they are an even better fit with what our SME customers need for the holiday season ahead.”

Globally, FedEx expects to see a record number of shipments during this year’s holiday season. Estimates indicate the company will handle 317 million shipments between November 27 and Christmas Eve, an increase of 12.4 per cent over the previous year. Close to two thirds (63%) of small & medium sized enterprises in Australia (SME) admit they haven’t proactively prepared for the peak online shopping season. Over half (58%) of Australians wouldn’t use a business again if it let them down over the holiday period, and 81 per cent said a bad shipping experience can be infuriating. Three quarters (76%) of Australian SME say ineffective delivery leads to missed revenue.

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