Over 40 retailers have signed on to a new shipping membership program from Australia Post that will offer online shoppers free delivery on eligible purchases.
From now until 1 January 2018, shoppers in Melbourne, Sydney and Brisbane can join Shipster for $9.95 to receive free shipping when they spend $25 and over at participating stores, as well as free delivery of one Deliveroo order each month. The shipping costs will be automatically deducted at the checkout.
The National Retail Association CEO Dominique Lamb said the membership program will help Australian businesses keep up with a rapidly-changing consumer market.
“Retailers understand that convenience, speed, value and experience are crucial for attracting modern consumers, so we welcome any initiative that strengthens these offerings,” she said.
“The world has moved on from bricks versus clicks to a full omnichannel approach, so something as simple as cutting out the hefty shipping fee that comes on the end of a purchase allows our retailers to leverage technology to enrich their offerings and strengthen brand loyalty.
Myer, Target, Cotton On, Showpo, Booktopia and Toys R Us are all on board the program, which Lamb said she would like to see rolled out nation-wise to help Australian retailers remain competitive and become true omnichannel brands.
Although innovative retailers are constantly adjusting their business models to keep up with consumer demand and a changing social environment, Lamb said they still have to factor in ways to deal with cost imposts outside of their control.
“Out-of-date legislation, costly red tape, unsustainable penalty rates and unnecessary compliance costs trickle down into higher prices to consumers, so any move that gives customers the opportunity to significantly reduce their shipping costs is a welcome one,” Lamb said.
“Reducing shipping fees supports Australian retailers, who can better support Australian jobs.”
Australia Post acting managing director and group CEO Christine Corbett said the service had launched just in time for Christmas online shopping, which she expects to be bigger than ever this year.
“With online shopping growing from 11.5 per cent to 15 per cent in the last 12 months, we’re predicting the busiest year for online shopping we’ve ever seen at Australia Post.”
Following the introductory period, Shipster membership will cost $6.95 per month and allow customers to receive free delivery where shipping costs less than $20.
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