Kiwis Expect Fast And Free Delivery, But Congested Ports And Roads Point To Delays Over Christmas

New Zealand – Online shopping is booming and it is resulting in fierce competition to get goods out quickly and cheaply, according to new research from leading location data and technology platform HERE Technologies.

The research saw 1,200 Kiwis and Australians surveyed, revealing that 42% of New Zealanders have become more reliant on e-commerce through the pandemic.

However, New Zealanders are facing delays on Christmas deliveries as HERE’s congestion data shows journeys along the Northern Motorway between Port Auckland and Pinehill, a key logistical corridor, have jumped 22% this month compared to October 2021 when the city was in full lockdown.

The data shows an even greater increase in journey times on outbound routes, with travel times along the Southern Motorway between Ellerslie and Port Auckland blowing out by 33% last week compared to two months prior.

This is an early sign that Auckland may return to peak pre-lockdown congestion, which saw travel times along some routes taking twice as long as when there was limited traffic on roads in September and October this year.

The good news is around three in four New Zealanders (71%) said they have been satisfied with their delivery experiences over the past year. Meanwhile, 84% said their delivery experience impacts future shopping choices, with just 4% saying they would go back to a retailer despite having a poor delivery experience.

Delivery timeframes of one to two and three to five days were seen as the most acceptable, with just 4% of respondents saying they would be happy to wait five to 12 business days. Almost half of New Zealanders (46%) surveyed expect to pay nothing for one to two days of delivery, and close to two-thirds (63%) expect three to five days of delivery to be cost-free.

Susan Beardslee, Principal Analyst at ABI Research said, “Asia Pacific, including New Zealand, is leading global e-commerce at nearly 40% of total retail and nearly US $2 trillion in revenue in 2021. This historic demand cuts across all transport modes from road, air, ocean, and rail, to fulfilment centres and reveals gaps and bottlenecks in the supply chain. However, opportunities abound to greatly enhance transparency, integration, flexibility, and automation across the supply chain.”

Daniel Antonello, Director and Head of Business for Oceania at HERE Technologies said, “Truck drivers were driving on near empty roads during lockdowns, but it is starting to show signs of creeping up to congestion levels we were seeing pre-lockdown. With the return of passenger vehicles and a busy shopping period ahead with many still likely to look to e-commerce, it is going to be a logistical challenge – on top of well documented congestion at the port itself.”

The research also revealed that despite physical retail stores beginning to reopen for business as the country’s traffic light system comes into effect, 79% of respondents said they will continue shopping online. However, there are some positive news for brick-and-mortar stores as almost a third (32%) of respondents have indicated that they do not intend to keep shopping online to the same extent beyond the pandemic.

Antonello added, “The duration of physical retail closures has resulted in a change in consumer behavior for the long-term. E-commerce is now a go-to for most as opposed to filling a pandemic-induced gap. As the festive shopping period approaches, retailers should be anticipating multichannel commerce with a weighting towards online, which will pose a challenge in terms of stock management and consistency of experience.”

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