[SINGAPORE] Singaporean consumers' top concerns regarding online shopping, such as high delivery costs and delayed or lost packages, are not being adequately addressed by online retailers, according to the latest research conducted by Primer. The study highlights the need for retailers to prioritize key pain points experienced by consumers, including speed, payment options, and security.
The survey, titled "Mind the Gap: Consumer Expectation vs Retailer Reality," was conducted in May 2023 and involved 300 retail business decision-makers and 2000 consumers in Singapore. The findings reveal that online retailers in Singapore may be missing out on maximizing their growth potential by focusing more on expanding their product lines, forming brand partnerships, and entering international markets rather than resolving common payment and delivery issues faced by consumers.
The e-commerce market in Southeast Asia is experiencing rapid growth, and Singaporean retailers face fierce competition from regional players. However, Primer's research suggests that retailers in Singapore are not fully capitalizing on business growth opportunities by neglecting critical consumer concerns.
A significant pain point for Singaporean consumers is delivery and logistics issues. Over 60% of consumers identified high delivery costs as their top concern, followed by delivery delays (56%) and lost packages (49%). Surprisingly, only 24% of retailers are actively working to improve their fulfillment and shipping processes.
Furthermore, a quick and seamless checkout process is crucial for nearly half of consumers. Astonishingly, 76% of shoppers indicated that they would abandon their shopping carts if their preferred payment method was not available. However, only 25% of retailers consider optimizing payment processes as a priority.
Payment security is another area where retailers are falling short. While 70% of consumers believe that robust payment security measures are essential for a satisfactory shopping experience, less than 30% of retailers have strengthened their anti-fraud protection in the past year.
Kailash Madan, Head of APAC at Primer, emphasized the importance of aligning payment processes with consumer demands. While many retailers have made improvements to their payment systems over the past year, it is crucial that these changes effectively address the specific needs and expectations of consumers.
The study also revealed that more than half (53%) of Singaporean retailers view social sales as a significant growth opportunity, with a third of their revenue generated through social media channels. Retailers are actively expanding their payment methods and currencies, with 41% reporting a revenue boost from accepting foreign payments. Nevertheless, retailers need to intensify their efforts to tackle the causes of cart abandonment, as one in three carts are still being abandoned.
Madan pointed out that while product and market expansion are important for business growth, retailers may be neglecting consumer retention by not adequately addressing concerns such as security issues, payment failures, and fulfillment problems.
Technical debt emerged as a common challenge, hindering retailers' ability to optimize checkout flows and other aspects of their businesses. Finding the right technical resources and expertise remains a struggle for many retailers. Madan suggests that automation could be the key to bridging the existing gap between consumers and retailers. Over three in four retailers are investing in automation as part of their business plans, as it offers an opportunity to streamline commerce and payment flows with minimal technical expertise and development costs. By embracing automation, online retailers can future-proof their businesses and cater to the needs of Singaporean consumers, who are known for being highly connected and digitally-savvy.
