E- commerce sites and online shopping is constantly changing customer experiences and preferences. Customers are on a lookout for more and more personalized online shopping expedition. This has encouraged many attractive subsidiary services to keep the customer hooked. One of which was Australia Post’s subscription-based “free” shipping service, Shipster. But after a two-year run, launched in 2017, it is now shutting shop and diversifying to innovation investment to develop new products.
The decision was prompted by the slackening response to their service in spite of having retailers like Myer, Target, Harvey Norman and Accent Group on board. The service will close on July 31, 2019.
The service that provided free shipping to customers was to be a direct competition to Amazon’s Prime subscription service, which launched in June 2018. Customers could avail free shipping if their bill would exceed an amount. This was met with great popularity in the hay days but slowed down as more services like this started surfacing.
Customer preferences and behavioral change also was an important deciding factor. Where earlier customers wanted free shipping facility, now they wanted a wholesome shopping trip online with more emphasis on personalization.
The cost of the subscription fee didn’t optimally cover the cost of orders and both Australia Post and the retailers were partially subsidizing the service. Retailers are also now asking their customers to go for their “click and collect” option for shipping cost reductions.
Annual subscribers will receive a pro-rata refund for any months remaining on their subscription from the end of May.