Consumers on eBay AU spend $71 a year on delivery and 1 in 10 spend over $200.
The high cost of delivery in Australia is a leading cause of shopping cart abandonment with two thirds of Australians leaving retail websites before completing a purchase. Department chain, Myer, charges $9.95 for deliveries under $100.
Stemming from a lack of transport infrastructure in a country the size of the United States, the problem impacts the online shopping industry, nationally. Only 8% of retail dollars are spent online which is half of what is spent in markets such as Britain.
An effective way to tackle this epidemic is by offering free delivery and returns which is what eBay is planning to offer.
eBay Plus Offerings
Launched only in Germany in October 2015, eBay Plus will roll out to Australia in mid-June which will provide shoppers free delivery and returns on more than 15 million eligible products. Perks also include:
- Exclusive deals such as 60% off popular items and early access to products
- Double flybuys points
- Premium customer service.
The program comes with a $49 annual fee or a $29 introductory offer for the first year after a 30-day free trial.
eBay Plus aims to ramp up local online retail spend from 8% to 20% which will be a huge boost for Australia’s ecommerce industry.
Retailers such as Myer, Target and Chemist Warehouse have already set to include free delivery to eBay Plus members.
Competition with Amazon Prime and Retailers
eBay are going head to head with online marketplace behemoth, Amazon. The mid-June launch will beat Amazon’s Prime launch in Australia by a few weeks and offers an annual price predicted to be cheaper than Prime.
In addition, the announcement came shortly after eBay restricted sellers from using Amazon Fulfilment Service to stock products sold on eBay, which is allowed in the US.
The launch of eBay Plus alongside Amazon Prime is expected to shake up brick and mortar retailers, as well as smaller online retailers across the continent.
As for online shoppers, the launch will begin to resolve the delivery cost issue which plagues Australia.
