Manhattan Associates has issued its findings of a survey of 500 Australian that analysed the ongoing impact of marketplaces such as Amazon, eBay, Temu, and Shein on physical retail stores.

Its findings indicate that nearly 40 per cent of Australians shop weekly on online marketplaces. It reaffirmed the ongoing pattern that shows a decline in visits to physical retail stores, with 80 per cent of respondents reporting reduced in-store shopping due to online purchasing.

Raghav Sibal, Vice President, APAC at Manhattan Associates, stated, "Speed and reliability are now as influential in the purchase decision as price."

It pointed to developments such as Amazon investing $490 million in new fulfilment centres located in Sydney and Melbourne. Sibal commented on this development, saying, "Amazon’s new fulfilment centres in Sydney and Melbourne have raised the bar for logistics performance in Australia, and that’s a positive for the entire sector."

The study found that 44 per cent of consumers would opt for Amazon over Temu, even if the product is more expensive, due to Amazon's faster delivery times. Furthermore, two-thirds of consumers expressed satisfaction with marketplace delivery times, indicating that fulfilment performance is a key driver of customer loyalty.

Despite the convenience of online shopping, nearly half of Australians perceive product quality on marketplaces to be lower than in traditional retail stores. Additionally, while two-thirds of shoppers consider an easy returns process critical, over a third have encountered issues with refunds or returns.

Physical retail still holds appeal for certain consumers, with 42 per cent drawn to stores to see and touch products, and 24 per cent valuing immediate product availability.

Sibal further elaborated on the potential for retailers to bridge the gap between online and offline shopping experiences: "Unified supply chain technology allows retailers to bring together the best of both worlds – the immediacy and connection of in-store retail, with the speed and efficiency of digital commerce. That’s where the future of retail competition lies, and it’s the space where Manhattan is enabling retailers to truly lead."