If you've felt like you've been forking out more for delivery on your online shopping lately, you're probably not imagining it.
By Susan Edmunds of RNZ
Research from delivery software firm Shippit shows that New Zealand standard delivery fees have increased from an average of $9.70 last year to $10 this year, and the cost of express delivery has increased from an average of $14.10 to $17.42.
Most retailers were offering some form of free shipping, but the amount that people have to spend to qualify for it had increased.
The report noted that Australian shoppers' expectations for delivery were being pushed up by Amazon, which could fulfil orders within 15 minutes.
Woolworths recently increased the minimum order limit to qualify for its "delivery saver" offer, and the price. Customers now pay $118 per six months rather than $132.99 before and must order at least $100 worth each time, from $80 previously.
Retail consultant Chris Wilkinson, of First Retail Group, said free delivery was a big driver of sales online.
"Put simply, it's a call to action as it makes things easy, removes doubt, time and complexity. Online shoppers expect a frictionless experience … it is not necessarily always about the cost of freight, it's about removing that additional consideration."
He said some businesses we reusing hybrid solutions such as flat rate shipping.
"The best example of why this is important is the number of online retailer show will use free shipping offers as a way to stimulate sales at certain periods of the year to clear overstocks or quickly drive cashflow. They know the freight aspect is often the deal-breaker that makes the difference between a pause or sale.
"Interestingly, some online retailers are encouraging shoppers to join clubs, with one feature of the membership being pre-notification of free-shipping offers, another example of the value shoppers place in it, especially with bulkier types of goods where uncertainties around delivery costs are a barrier."
'Restocking fee' for returns
Another key issue for shoppers was returning items.
Charging for returns – a restocking fee
The research showed that half of shoppers said they would be hesitant to shop with a retailer that did not offer free returns but only 10% did. It is becoming increasingly common for retailers to charge for returns, often called a restocking fee.
Consumer NZ cited one example where a shop was asking people to pay shipping costs for the return plus a handing and processing fee of $60. It said PB Tech charged 20% in restocking fees for change-of-mind returns, Target Furniture 15% and Fishpond 17%.
One shopper, Angela, said she would only buy if she knew it would be easy to return items.
"Especially if they provide the return NZ Post label and all I have to do is drop it off at the post shop."
Another, Niamh, said she was happy to pay for delivery but would not shop if returns were hard.
"Some of the Aussie sites make you pay to return them and the regular postage costs are crazy so I try to find the brand in The Iconic."
In contrast, another shopper said when she had a problem with Temu, her money was just refunded without a request for the item to be returned.
The report said 25% of retailers listed easy or free returns as one of their investment priorities this year.
Free returns reduce perceived risk
Massey University marketing expert Bodo Lang said free returns were a good way for retailers to reduce the perceived risk for shoppers.
"Every purchase entails risk but some products are riskier than others to buy online. Some high-touch products such as fashion typically have to be tried on and felt before a shopper decides to buy an outfit.
"Offering free returns takes the risk of buying the wrong item out of the equation. So, free returns can be a very useful tactic to encourage shoppers to buy items that otherwise they might not buy online."
The report said two-thirds of people were unlikely to return to a retailer after a bad delivery experience.
"Consumers are still spending, they're just more deliberate about who earns it."
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