Australian businesses have benefitted more than $1.8 billion over the past decade from faster delivery times, which have boosted sales and lowered costs.
Faster delivery times have also delivered $366 million in extra value to consumers, according to new research from Mandala Partners.
Mandala’s Benefits Delivered By Faster Delivery report, released on Wednesday, reveals average delivery times have been slashed by almost half to 4.3 days in 2023.
The average delivery time for online purchases was eight days in 2014.
The Amazon Australia-commissioned research found businesses generated $1.4 billion in boosted sales revenue from faster deliveries to customers over the past decade.
In the same period, businesses saved $440 million from faster deliveries between other businesses, allowing quicker access to inputs, greater supply chain flexibility and lower storage costs.
COVID-19 accelerated the shift to online shopping, generating $205 million in value for consumers no longer having to pay high premiums for faster deliveries between 2020 and 2023.
Over the decade, the total value for consumers was $366 million, which includes major benefits for people with disabilities like improved self-reliance and improved quality of life.
About 50 per cent of people with disabilities shop online weekly, compared with 14 per cent of the general population.
The report's release coincides with Amazon announcing same-day delivery for Prime members in Sydney on more than one million products.
“Plummeting delivery times from online shopping have fuelled more than $2 billion in benefits for Australian businesses and consumers,” report author and Mandala partner Adam Triggs said.
“Businesses gained $1.4 billion in sales revenue from faster business-to-customer deliveries over the past decade because people are preferencing speed and convenience.
“There’s also hundreds of millions of dollars in savings for businesses, with faster deliveries meaning less storage costs and quicker access to inputs.
“The pandemic fuelled a massive increase in online shopping and benefits like faster delivery are going to stay with consumers long after the current cost-of-living crisis subsides.
“The massive value consumers are getting from faster online shopping could rise even further with the right policy settings. For example, more flexible zoning laws could put warehouses closer to customers. Easing restrictions on delivery times and vehicle access in urban areas could improve efficiency and reduce congestion."
For interviews contact Matt Coughlan 0400 561 480 / matt@hortonadvsiory.com.au
Full report here.
Contact details:
Matt Coughlan 0400 561 480 / matt@hortonadvisory.com.au