The Effects of COVID-19 on Australia 2020

Aug 24, 2020

(Click to view the HD version of this infographic)

In March, Australia announced that it was going into lockdown and stopped all international travel as the number of COVID-19 cases continued to rise. 

With the new lockdown measures in place, more shoppers began to shop online. Online shopping in Australia has grown rapidly since, with 200,000 new shoppers entering the market and making their very first online purchase in April alone. 

We analyzed the trends of two e-commerce logistics variables: transit time to first delivery attempt and the success rate of said delivery attempt for domestic parcels over the last 7 months and here’s what we found:

  • Transit time to first attempt increased from 2.3 days to 3.0 days (March to April 2020). A recent report by Australia Post found a 31% increase in the number of households shopping online in April as compared to the same period last year. More Australians are shopping online.  However, retailers and logistics carriers seemed to struggle to meet this spike in demand; especially at the beginning of the time period when lockdown measures were first put in place. For instance, there were delays at Australian ports as most shipments did not provide the required documentation then; which increased supply chain costs. Nevertheless, it appears that both retailers and logistics carriers are gradually taking steps to adapt to this heightened e-commerce demand. For instance, in response to the consumer shift towards e-commerce, retail giant Amazon announced in June their plan to build warehouses in Sydney and Melbourne. From our data, we do also see average transit times tapering down from the month of May, showing encouraging signs of recovery.

  • The success rate for first attempt deliveries averaged at 94.3% from April to July. This is a marked improvement from an average of 82.3% in the first quarter of this year. Interestingly, this trend corresponds with the surge in alternative delivery options in April this year. Our previous State of E-Commerce in Australia infographic showed that 23% of Australians were already using collection points in 2019. Especially with the 30.3% increase in alternative delivery options this year, we believe that more Australians will embrace this convenient, flexible, and safe option to receive their parcels.

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