Only one in three retailers use delivery data to improve operations, leaving revenue on the table. Shippit CEO Rob Hango-Zada reveals what smart retailers are doing differently.
Peak season is no longer a two-week, pre-Christmas sprint. Economic pressures and shifting consumer behaviour have redrawn the retail calendar.
This year, peak officially kicks off with Click Frenzy on 11th November, but the shopping season has already begun. Over the past few weeks, Amazon got the party started with Prime Big Deal Days, Myer followed with its Super Weekend, and both David Jones and Target have already rolled out toy sale campaigns to capture early demand.
And you may be thinking, why wouldn’t they? We’re seeing younger generations leading an online spending surge and digital adoption accelerating across all demographics. Today, 60% of Australians hold out for major sales events before spending.
While sales campaigns can drive short-term spikes among cash-strapped consumers, it’s not a sustainable long-term strategy, especially as margins shrink and delivery costs rise. Retailers can no longer rely on slashing prices to win; every conversion needs to be profitable, not just popular. Customer trust is the sustainable, long-term springboard retailers should strive for. Shoppers aren’t just comparing prices anymore, they’re judging reliability at every step of the journey – especially delivery.
Through smarter, AI-powered logistics, retailers can earn not just more sales, but lasting customer trust and loyalty.
The new risk: delivery distrust
As peak season ramps up, the biggest threat to retailers isn’t price competition, but delivery distrust. Almost nine in ten Aussies abandon their carts before checkout, costing retailers billions in lost sales. It isn’t just product or price that drives customers away, but very often a lack of flexible delivery options and Estimated Delivery Dates (EDDs) at checkout.
Modern shoppers expect choice, but above all, they crave certainty. A promise like “Arrives by Friday, December 19” builds far more confidence than a vague estimate like “In 5-7 business days”. Accurate delivery estimates, like those generated by Shippit Intelligence, don’t just reduce cart abandonment, they have been shown to lift conversions by up to nine per cent. When compounded at scale, that unlocks almost 30% more revenue.
By leveraging real-time data to provide accurate delivery estimates and optimise fulfilment, retailers can make and keep promises that give customers the confidence and certainty to shop with you, not a competitor.
Why data, not discounts, will define success
Despite the impact of leveraging real-time data, its potential remains untapped for many. Shippit’s report shows that only one in three retailers consistently use delivery data to improve operations, reduce costs, or enhance customer experience. They’re leaving valuable insights – and therefore revenue and customer trust – on the table. In other words, most retailers are flying blind in the most critical moment of the customer journey.
Peak season doesn’t break retailers because of demand, it breaks them because of the decisions they made – or didn’t make – weeks, or even months, before it began. Most retailers use some form of demand forecasting to predict what customers will buy and prioritise high-demand products. It’s a useful start, and helps reduce the risk of stockouts and missed sales. But knowing what’s coming isn’t enough; the retailers that succeed are those that act on that forecast.
This is where AI-powered logistics really changes the game. Instead of reacting, retailers can now simulate peak season before it even begins; testing delivery capacity, carrier performance and fulfilment scenarios in advance. By testing different strategies, retailers can optimise carrier mix and reduce costly fulfilment errors during high-volume periods. They’re no longer scrambling in the moment, they’re prepared for every scenario.
When retailers pair predictive planning with precise promises, the results are powerful; fewer operational surprises, smoother execution, and happier customers. Data builds trust, and in peak season, trust converts better than any discount ever will.
What smart retailers are already doing
Many retailers still see logistics as a cost center, rather than a competitive advantage. AI is flipping that opportunity, and forward-thinking retailers are pulling ahead. Take Petbarn, for example. With more than 240 stores nationwide, it had to balance two critical priorities: speed and choice, without sacrificing reliability. Pet owners don’t just want fast delivery, they need it. Whether it’s pet food or medication, the promise of “on time, every time” can’t be optional.
By rethinking fulfilment through an automated multi-carrier, data-driven model, Petbarn turned its store network into a flexible fulfilment system capable of managing everything from two-hour orders to next-day and click-and-collect. Petbarn now matches orders with the most suitable carrier based on location, speed, and cost and service, giving customers the certainty to spend.
The impact? Customers who use on-demand delivery now spend 3.5x more and shop 35% more frequently.
The takeaway is clear. Faster delivery wasn’t the only win, customer trust was. When customers know a retailer will deliver exactly when it says it will, that confidence compounds. It drives loyalty, repeat purchases, and real commercial growth. That’s the power of getting delivery right, and the retailers who master it will exceed their targets – both during peak and beyond it.
Delivering trust at scale
The delivery trust gap comes at a steep cost. During peak season, the stakes are higher than ever.
Success comes from proactive problem-solving rather than reactive panic. Issues are resolved before customers notice, updates arrive before they ask, and every order, from checkout to doorstep, is fulfilled exactly as promised. By harnessing data and AI-powered logistics, retailers can meet customer expectations consistently, even under high-volume pressure.
The businesses that come out on top this peak season will be those who deliver not just parcels, but also on their promises.
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