eCommerce News New Zealand logo
The latest digital commerce news for Kiwi businesses
Story image

A/NZ shoppers plan to spend less, be more selective

By Shannon Williams
Fri 22 Apr 2022

For retailers, 2022 is set to be a year of introspection as shoppers across Australia and New Zealand indicate they plan to spend less, and be more selective in prioritising essentials, according to a new report.

BigCommerce has announced the release of its latest A/NZ State of Ecommerce Report, a localised study designed to give retailers insight into consumer shopping behaviours to help them better deliver on customer expectations, enhance online shopping experiences and stay ahead of the competition.
 
“The beginning of the pandemic pushed shoppers online, and now they’re getting more selective with their spending to prioritise saving more," says Shannon Ingrey, vice president & general manager, APAC at BigCommerce.
 
"We’re at a point where retailers and merchants need to take an introspective look at their key services to address shopper pain points like website speed and fast delivery times."

The new report, which surveyed over 5,690 Australian and New Zealand shoppers, reveals debit cards have risen in popularity, whilst use of Buy Now Pay Later (BNPL) providers has remained consistent. Some shoppers have indicated plans to decrease their future BNPL usage to save more for essentials, while other shoppers continue to prioritise website speed and fast delivery times in their online shopping experience. 
 
Key insights from the survey revealed:

Credit card as a proportion of last payments made has risen to 39% in 2022, up from 26% in 2020 and 2021. Debit cards have also become more popular as a payment method, increasing from 17% in 2020, to 21% in 2021 and now at 23% in 2022.

Thirty percent of respondents also indicate they plan to decrease their BNPL spend, with the majority doing so to save money for essentials (68%).

In 2022, the majority of online shoppers (~ 79%) would be likely or very likely to leave a website and purchase elsewhere if a website is too slow.

Ninety five percent of shoppers indicated free delivery would encourage them to shop with a brand again, while 92% listed expensive shipping as the main deterrent to prevent future purchases.

The majority of purchases made after receiving a marketing prompt came from email (42.1%), while respondents who made a purchase after receiving an abandoned cart email have also doubled to 32% in 2022.

Thirty four percent of respondents indicated they would abandon their purchase if they did not trust the website’s security.

Rise in credit card usage, BNPL remains stable
BNPL usage in A/NZ has remained steady. The report found just under a third of shoppers (32%) said they used BNPL to make a payment in the last six months, compared to 35% in 2021. Looking forward to future spending habits, 30% of respondents plan to decrease their BNPL spend, with the majority (68%) doing so to save money for essentials. Eleven percent of respondents said they planned to increase their spend using BNPL products, with the vast majority (72%) saying they prefer BNPL to credit or debit options.  
 
Website speed and shipping cost transparency continue to be a priority
A/NZ shoppers are prioritising website speed and shipping cost transparency as two key factors determining who they shop with. Fifty eight percent of respondents indicated high shipping costs lead them to abandon cart, with 51% saying that communicating the cost of delivery too late in the process would lead them to abandon cart (24% very likely and 27% likely). Slow delivery is still an issue for 41% of shoppers, with 14% saying they would be likely to abandon cart and 27% saying they would be very likely.

Additionally, over three quarters of respondents indicated they would leave a website and purchase elsewhere if a website is too slow. 

“It’s critical for retailers to ensure they have the right technology and infrastructure in place to prioritise fast, seamless experiences for shoppers,” Ingrey says.

Renewed focus on loyalty programs, addressing customer needs key to retention
Alongside prioritising core aspects of the shopping journey like website speed and transparency around shipping costs, it’s never been more crucial for retailers to focus on the post-purchase experience. With A/NZ shoppers getting more selective with their spending, retailers who cultivate the right rewards and loyalty programs have the potential to turn one-off shoppers into repeat customers in 2022 and beyond. 
 
Forty percent of respondents indicated they have chosen one retailer over another because of a loyalty program offering, with 69% saying they have used a loyalty program to claim a reward in the last three months. For 77% of respondents, free shipping is the number one preferred perk when it comes to these loyalty programs. 

The majority of purchases made after receiving a marketing prompt came from email (42%) and the proportion of survey respondents who continued to make a purchase after receiving an abandoned cart email has doubled up from 16% to 32% from the last survey in 2021.

“Understanding what consumers think and how they behave on a day-to-day basis will be key to the strategic decision-making of every merchant in 2022,” Ingrey says. 

Related stories
Top stories
Story image
Microsoft
Microsoft previews Power Platform website design offering
Microsoft has announced the preview of Power Pages, the fifth product in its Power Platform family, designed for low-code makers and professional developers.
Story image
Digital Transformation
Harnessing digital innovations to maximise loyalty programmes and improve CX
When it comes to the retail sector, merchants have never had access to so many different client touchpoints and data to understand their customers better.
Story image
Infosys
Consumer relationships with digital services continues to change
Two years of pandemic-induced reliance on technology for work has altered our relationship with digital apps and services, new research has found.
Story image
Artificial Intelligence
Gartner reveals top three tech trends for banks this year
Gartner says generative artificial intelligence, autonomic systems and privacy-enhancing computation are gaining traction in banking and investment services.
Story image
Cybersecurity
More than 40% of banks worried about cloud security - report
Publicis Sapient's new report finds security and the lack of cloud skills and internal understanding of business benefits are big obstacles for banks moving to the cloud.
Story image
Artificial Intelligence
Laybuy launches new AI chatbot Hugo using Ambit tech
Laybuy partners with fellow New Zealand company Ambit to launch conversational AI in a bid to support its international growth.
Story image
Omnichannel
Lexmark launches A/NZ first with retail publishing solution
Lexmark, a global imaging and IoT solutions leader, launched its Publishing Platform for Retail (PPR) in Australia and New Zealand.
Story image
Lightspeed
Lightspeed launches all-in-one marketing platform in A/NZ
ECommerce provider, Lightspeed has launched a new all-in-one marketing solution, Lightspeed Marketing & Loyalty in Australia and New Zealand.
Story image
Artificial Intelligence
SAS unveils AI experience to improve kids' batting abilities
SAS has created The Batting Lab, an interactive experience using AI, computer vision and IoT analytics to help kids improve their baseball and softball swings.
Story image
Gaming
Mastercard users can now use rewards points in gaming
Mastercard has launched Mastercard Gamer Xchange (MGX), allowing APAC consumers to convert their rewards points into gaming currency.
Story image
CrescoData
SPS network now available to CrescoData eCommerce customers
CrescoData, a Pitney Bowes Company and PaaS business in the commerce space, says its customers can now connect to the SPS Commerce Retail Network.
Story image
Vodafone
Vodafone NZ buys remaining stake in retail joint venture
Vodafone New Zealand has purchased the remaining 50% stake in the specialist joint venture (JV) with private equity company Millennium Corp.
Story image
Customer experience
Research unveils precarious customer loyalty for retailers
New research has found customers are reassessing established brand loyalties as their priorities and behaviours shift.
Story image
Amazon Web Services / AWS
AWS granted OIO consent for billion dollar NZ Region project
AWS has announced that the Overseas Investment Office (OIO) has granted consent for the advancement of the new billion-dollar AWS Asia Pacific (Auckland) Region project.
Story image
HP New Zealand
HPE NZ sees $8 million decline in latest financial report
HPE New Zealand has seen a decline of over NZD$8 million in the sale of its goods year-over-year, according to its latest financial report.
Story image
Phishing
Google reveals new safety and security measures for users
Google's new measures include automatic two step verification, virtual cards and making it easier to remove contact information on Google Search results.
Story image
Online shopping
A/NZ shoppers plan to spend less, be more selective
For retailers, 2022 is set to be a year of introspection as shoppers across Australia and New Zealand indicate they plan to spend less.
Story image
Adyen
Adyen expands partnership with Afterpay as BNPL payments increase
Adyen has expanded its partnership with AfterPay allowing more of Adyen’s merchants in more countries worldwide to use the BNPL provider.
Story image
Fintech
Incumbent banks must embrace data-centric capabilities
Retail banks are lagging in their ability to offer true omnichannel experiences, as customers pivot to competitors that offer more personalised experiences.
Story image
Manhattan Associates
Shortening the click-to-customer cycle through smart technologies
Speed of delivery without accuracy is a dealbreaker for consumers. How can retailers operating in an omnichannel environment overcome the challenge of click-to-customer cycle times.
Story image
Customer experience
Dell Technologies expands edge innovations for retailers
Dell Technologies has announced the expansion of its edge solutions to help retailers quickly generate more value and deliver enhanced customer experiences.
Story image
Cryptocurrency
Prominent cryptocurrency trader hit by 'perfect storm'
A leading local crypto currency trading platform, BitPrime, says a "perfect storm" has hit its finances, forcing it to put a halt on operations.
Story image
SAS
New SAS service overcomes subscription fatigue for media companies
SAS has launched SAS 360 Match which helps media companies move towards a AVOD model to generate revenue as subscribers cancel.
Story image
Microsoft
FIS Modern Banking Platform now available on Microsoft Azure
FIS says the partnership will expand its digital online banking to markets like New Zealand, the United Kingdom and Thailand
Story image
Chorus
Chorus enhances West Coast infrastructure for upgraded telecoms
Chorus has announced the completion of a 250km infrastructure project set to provide the West Coast with upgraded and enhanced telecommunications.
Booster
Booster Innovation Fund. A fund of Kiwi ingenuity – for Kiwi investors.
Link image
Story image
Sustainability
Hootsuite 2021 Impact Report shows workforce more diverse
Hootsuite has released its annual 2021 Impact Report detailing the results of its social impact initiatives following the launch of its corporate guiding principles.
Story image
Forrester
commercetools named a Leader in B2B Forrester report
commercetools has been named a Leader in The Forrester Wave: B2B Commerce Solutions, Q2 2022 report, receiving the highest scores possible in 10 criteria.
Story image
Mobility
Hands-on review: STM laptop bags
The advent of hybrid working has meant we need laptop bags. We got our hands on two of the most popular laptop bags from STM.
Story image
Microsoft
Spark launches Microsoft Dynamics 365 upgrade across enterprise
Spark and Microsoft NZ have recently collaborated to launch Microsoft Dynamics 365 across the entire Spark business enterprise.
Story image
Climate change
Record growth for NZ startups as conscious investment trend emerges
New Zealand has a reputation for efficiency and innovation, and has strong potential to be a leader in climate tech.
Story image
Marketplacer
Marketplacer and True Woo partner for wellness marketplace
Marketplacer has announced the completion of a new holistic online marketplace for True Woo, offering a range of products and services targeted at individuals seeking ways to improve their wellbeing.
Story image
Sustainability
The AI Forum helps NZ pave the way with AI sustainability practices
Non-profit organisation The AI Forum is helping Kiwis learn about addressing climate change issues through the use of AI technology.
Story image
Veryfi
Veryfi announces Mobile Receipt Capture for D2C marketing apps
Veryfi has announced a new enhancement to its portfolio, with Mobile Receipt Capture for direct-to-consumer marketing apps.
Story image
Open banking
A look at the rewards and risks of open banking - report
RiskBusiness says its report on open banking finds that while it holds much potential, financial services firms need to ensure they have robust, risk processes.
Story image
CRM
Zendesk announces new conversational CRM solutions
“The last few years have made it obvious that digital is the front door, convenience is paramount and relationships are anchored in conversations."
Story image
Amazon Web Services / AWS
Databricks strengthens AWS partnership with new Lakehouse offering
Customers will experience faster onboarding and unified account administration to make building a Databricks Lakehouse on AWS easier.
Story image
SaaS
Forrester Research names BigCommerce a Strong Performer
BigCommerce has announced it has been named a Strong Performer by Forrester Research in both the Forrester Wave: B2C Commerce Solutions, Q2 2022 and the Forrester Wave: B2B Commerce Solutions, Q2 2022 reports.
Story image
Pinterest
Pinterest partners with WooCommerce and launches app
The new app gives businesses of all sizes the power to turn their product catalogues into shoppable product pins on Pinterest
Story image
Machine Learning
Moloco launches updates to Cloud Demand-Side Platform
The latest updates focus on improving performance through intelligent budget allocation, automating workflows through smart campaign UI/UX, and ad creation.
Story image
Fintech
Visa chooses NZ startup for APAC Accelerator Programme
Visa has selected New Zealand payments startup Cymonz for the 2022 cohort of its Visa Accelerator Programme in Asia Pacific.
Story image
First Table
First Table set to revive restaurant commerce in NZ with platform launch
A new restaurant booking platform has launched in New Zealand, giving Kiwi diners the opportunity to save and book at a variety of restaurants around the country.
Story image
CRM
Freshworks launches new CRM with Shopify availability
Freshworks has launched a new customer relationship management (CRM) solution, which has also been made available on the Shopify apps store.
Story image
Phishing
Retail and wholesale at significant risk of phishing attacks
New research from Zscaler has found that many retail and wholesale environments are at significant risk, with a 400% increase in phishing attacks being reported in the last 12 months.