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Carolyn Young: Retail NZ CEO on the increase in delivery fees in online shopping · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks Be follow
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  Speaker 2: As I was telling you earlier, it looks like the
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  Speaker 2: days of free returns on online shopping are behind us.
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  Speaker 2: According to new research from delivery firm ship It, delivery
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  Speaker 2: fees are up, you have to spend more before you
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  Speaker 2: qualify for free shipping, and fewer retailers are offering free returns.
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  Speaker 2: Carolyn Young as retail end Zed CEO and is with us. Hi,
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  Speaker 2: Carolyn Curder, Heather, how are you. I'm very well, thank you.
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  Speaker 2: So what's behind this? Is it the cost of the
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  Speaker 2: delivery for these retailers.
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  Speaker 3: Yeah, Look, I think it's a couple of things that
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  Speaker 3: are combined in there. There's the obvious piece of courses.
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  Speaker 3: In New Zealand, it's a really complicated space to deliver
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  Speaker 3: to where three islands, two big islands and a small
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  Speaker 3: one at the bottom. We live round the edges and
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  Speaker 3: it's quite difficult to deliver to and so it's quite expensive.
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  Speaker 3: When the Middle East crisis started, we know that freight
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  Speaker 3: companies increase their prices immediately. So what retailers have found
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  Speaker 3: is that they've seen a significant increase in pricing. Now,
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  Speaker 3: when we did our retail Radar serve members in quarter one,
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  Speaker 3: they told us that, you know, thirty three percent didn't
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  Speaker 3: think that they would meet their retail targets. And then
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  Speaker 3: when they looked at what were they going to do
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  Speaker 3: around their concerns with the economy, fifty three percent said
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  Speaker 3: they planned to put up their prices and sixteen percent
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  Speaker 3: said they planned to cut back on some business offerings.
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  Speaker 3: Which is this sort of thing, right, is you know,
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  Speaker 3: free shipping might go out so they can actually cover
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  Speaker 3: their costs because they don't have the ability to cover
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  Speaker 3: those additional costs because someone's changed their mind on the
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  Speaker 3: product they want to buy.
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  Speaker 2: Now, the other thing I was thinking about was at
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  Speaker 2: the start of online shopping shopping, the free return was
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  Speaker 2: kind of like a get out of jail free card,
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  Speaker 2: right whereas it almost felt like it took away an
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  Speaker 2: obstacle for us to actually start to accept the concept.
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  Speaker 2: But now that most of us are doing it, or
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  Speaker 2: many of us are doing it, we don't need it
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  Speaker 2: anymore quite so much. What do you think?
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  Speaker 3: Yeah, look, I think you know, when new things come
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  Speaker 3: on board, you're often looking at how can you entice
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  Speaker 3: people into a new product or a new service or
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  Speaker 3: a new device, and that's certainly one of the ways.
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  Speaker 3: And we know that frictionalist payment in terms of you know,
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  Speaker 3: cart abandonment because of costs of delivery is a thing.
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  Speaker 3: But ultimately, you know, what retailers are saying in New
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  Speaker 3: Zealand is that with the costs where they are, they
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  Speaker 3: can't afford to absorb that when they're still getting really
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  Speaker 3: good sales in store. So, you know, I think it's
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  Speaker 3: that mix that you know, people are either going to
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  Speaker 3: buy online and they understand there's a cost, or they're
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  Speaker 3: going to come in store and buy it without any
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  Speaker 3: cost to delivery.
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  Speaker 2: Oh brilliant. Hey, thank you very much. Running us for
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  Speaker 2: as Carolyn Young, retail en z CEO.
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