‘Peak’ Seasons Have Become a Permanent Labour Crisis: How Retailers Can Take Action
By Jonathan Walsh, Managing Director at Esendex Australia.
Last year, the country entered the retail 'Golden Quarter' with over 3,700 unfilled delivery roles according to our own research - an 11% increase in vacancies from 2024. Major cities took the biggest hit, as vacancies in Sydney, Brisbane and Melbourne surged by 300%.
Worker shortages combined with the ordering rush of the holiday season can quickly spell disaster. But the figures highlight a bigger problem: that delivery delays caused by a lack of staff are no longer just a seasonal issue, but a major structural problem.
Delays are part of the job. When they become inevitable, however, the battle for customer loyalty can be won or lost on communication.
Instead of trying to avoid the unavoidable, logistics and retail leaders should instead look to build a more robust communication strategy to hold the fort while deliveries are put back on track.
Rising Expectations
In search of cheaper deals and unique products, we’re ordering online more than ever before - and that’s putting additional strain on delivery networks. Australia Post had a record peak holiday season last year, delivering a whopping 111m parcels in November and December, up 7.6% from 2024.
Not only are consumers ordering more but their delivery expectations have increased. The so-called ‘Amazon effect’ has put businesses under increased pressure to deliver items promptly, with complete visibility over the entire transaction. For those targeting younger generations, the pressure is even higher: research by Shippit suggests that half (51%) of Gen Z have had their delivery time expectations set by Amazon, and almost half of consumers will shop elsewhere if they think delivery times are too long.
While delivery firms are trying to deliver a fast-rising number of parcels more quickly, the vacancy figures suggest they don’t quite have the resources to deliver.
Why Deliveries Impact Brand Experience
As the last touchpoint in the customer journey, a poor delivery experience is something the consumer will remember after the parcel arrives. Psychology’s ‘peak-end rule’ suggests we are most likely to judge moments by how we felt at the peak and how we felt at the end.
If the end of a customer’s experience is a parcel arriving three days late with no explanation, it leaves a lasting negative impression of the brand and makes return customers less likely. In fact, more than half (58%) of customers will abandon a business after a poor experience.
Building a Resilient Comms Strategy
Filling almost 4,000 roles overnight is out of the question. But it’s possible to keep 4,000 customers - or more - informed of what’s happening. An action all businesses can take now is to revisit their comms strategy and ensure that it’s equipped to deal with delays, be it due to weather, staffing, or seasonal demand.
Introducing automatic status updates can help keep consumers reassured throughout and save them the hassle of needing to reach out for information. Delay notifications can be followed up with specific delivery times and slots so that customers know exactly when to expect their parcel - an essential for items requiring proof of delivery or the recipient to be at home.
It’s also possible to enable two-way communication. This means that customers can redirect or reschedule parcels directly in the conversation, for better choice and customer satisfaction. Crucially, from the business’s standpoint, it will also help to dramatically improve the success rates, ensuring more items are delivered first-time without the need for multiple trips or warehouse space.
A stronger communications link also has a positive impact on both the customer support team and existing drivers. Cutting back the volume of “where is my order?” enquiries and complaints from frustrated customers has a positive impact on staff workload and wellbeing, helping to retain key talent across the chain.
All of this can be done on platforms that consumers are already familiar with, like SMS and WhatsApp, to reduce the consumer hassle of having to sign up to external platforms and ensure that vital messages are not missed.
The labour crisis isn’t something that can be solved overnight, but the communication gap is. As Australian retail enters a new era of almost-continuous peak demand, the brands that thrive will be those that stop viewing delays as avoidable and start viewing them as an opportunity to engage.
By investing in a resilient, automated and mobile-first communication strategy, retailers can protect their bottom line, support their staff, and ensure that even when a parcel is late, the customer’s trust remains intact.