The US sets the global standard in commerce logistics. So how does Australia stack up compared with the US in terms of shipping options?
The US leads the world charge in terms of retail logistics, with retailers like Amazon and delivery providers like UPS and FedEX setting the standard. The range and speed of delivery options available in the States has led to rising consumer expectations in terms of local delivery options in Australia.
While there is much the Aussie retail industry can learn from the US, we face a host of unique delivery challenges.
“The biggest challenges facing Australia’s delivery networks are rising consumer expectations and the cost to keep up with these,” Carl Hartmann, co-founder and CEO of Temando told Power Retail. “Geographically, Australia is a similar size to the US, but has only 24 million people, and no central hub in the middle of the country. In the US, you’ve got 10 times the population and centrally located distribution hubs.
“This means the US carriers have the order densities to provide a wider range of services, which is far more expensive to replicate in Australia due to infrastructure costs. However, carrier networks in the US and around the world are facing the same challenges: How to augment their existing infrastructure to not only handle the increased volume but to provide the service levels expected by today’s consumers.”
Despite the differences between the Aussie and US markets, it’s still worth examining how Australian retailers perform compared with their counterparts in the US. With the US setting the global standard, a comparison will help retailers to see where they’re coming up short, and where they may be able to shore up their delivery offering.
To facilitate this comparison, shipping software provider Temando has created this infographic, which compares Australia and the US in terms of key shipping elements in commerce. Key findings include:
- 54 percent of Aussie retailers offer multiple shipping options compared with 71 percent in the US
- 75 percent of Aussie enterprise-level retailers absorb the full cost of shipping compared with just 38 percent in the US
- 67 percent of Aussie enterprise-level retailers can ship an order out in under an hour compared with just 29 percent in the US
For more insights, click on the infographic below to enlarge.
by: Julian Thumm | PowerRetail.com.au