Online Shoppers See Rise in Delivery Fees Amid Middle East Conflict

New research from Money.com.au reveals more than a third of Australians (36%) have noticed an increase in shipping costs and delivery fees when shopping online since the Middle East conflict began. That’s now flowing through to shopping and spending behaviour. The nationally representative survey found that a quarter of Australians (25%) are cutting back on online purchases.

A further one in five people (20%) say they now prefer to shop in-store instead of online to avoid hefty delivery fees. Meanwhile, more than half of Australians (55%) say their shopping habits haven’t changed. Money.com.au’s Finance Expert, Sean Callery, says Australians are feeling the ripple effects of global conflict at checkout.

“The Middle East conflict is causing logistical disruptions and pushing up fuel and insurance costs, particularly for air freight, which many online retailers rely on to get orders into Australia quickly,” he says.

“That ultimately leads to higher delivery fees for consumers who shop online, along with shipping delays and cancellations. It’s tipping the balance back towards brick-and-mortar stores, where shoppers may also face higher everyday prices, but can ultimately dodge delivery fees and walk out with their purchase on the spot.”

“The silver lining is that higher delivery fees can also make people think twice about impulse online purchases. With living costs rising, those extra charges can act as a handbrake on discretionary spending, at a time when households are prioritising essentials like the mortgage, fuel and groceries.”

The survey found that the majority of Australians (64%) haven’t noticed an increase in online delivery fees since the conflict began on February 28.

Younger Australians driving shift back to in-store shopping

The research found that younger Australians are leading the shift away from online shopping, with Gen Z the most likely to return to in-store retail. One in three Gen Z shoppers (33%) say they now prefer to shop in-store, followed by 22% of Millennials, 18% of Gen X and 14% of Baby Boomers (14%). Millennials are the most likely to cut back on online purchases altogether (31%), followed by Gen Z (28%) and Gen X (25%), while just 18% of Baby Boomers say they’ve reduced their online spending.

For more information, visit https://www.money.com.au.