Click Frenzy: Shippit data shows the peak retail season is starting with a bang

Australians have kicked off the start of the peak retail season by spending big during last week’s Click Frenzy sales event over two days from October 24 to 26 according to data from last mile e-commerce logistics and delivery platform Shippit.

Data from two million orders facilitated through Shippit for the two-day event, held on October 24-26, found both the volume and value of orders increased year-over-year, with a 10% increase in orders in 2023 compared to the 2022 Click Frenzy event. 

However, Click Frenzy sales are increasingly being launched prior to the promotion’s official start date. According to the Shippit data, there were 40% more bookings on the day prior to the official launch of the Click Frenzy sales, compared to the days of the actual sales. 

Shippit data shows the value of orders also increased this time around and is up 4.7%, from $107 to $112 per order.

Driving the change is a large jump in order values for the automotive sector, which increased by 26%, and simultaneously a corresponding drop of 20% in order values for the food and beverages sector. 

“Pent-up demand” from shoppers

Shippit co-founder and co-CEO Rob Hango-Zada, who founded the platform with longtime friend William On in 2014 in Sydney, said Click Frenzy has come to represent the start of peak retail season, with many consumers seizing the opportunity to grab a great deal.

“Because discretionary spending softened for much of the last year, there’s pent-up demand from shoppers,” he explains. 

“That prolonged period of softened spending also means many retailers are sitting on excess inventory. Retailers use events like Click Frenzy — and the approaching Black Friday, Cyber Monday weekend — to shift as much of their stock as possible.”

Shippit says it has seen a surge of Australians taking advantage of on-demand delivery options, with demand for its OnDemand services up 180% year-on-year. The delivery startup anticipates this to continue as more Aussies prioritise convenience and flexibility for deliveries. 

OnDemand delivers, which are done with delivery partners like Uber, now represent 1.3% of the share on the Shippit platform.

Hango-Zada says Shippit is expecting shoppers to get their Christmas shopping done early this year. 

“With all four major banks now forecasting an interest rate hike in November, there’s going to be even more pressure on household spending at what is traditionally an expensive time of year,” he says.  

“We anticipate that there will be a spike in the volume and value of online shopping in November as people stock up ahead of Christmas and interest rate hikes. 

“The tightening of discretionary spending could also have a knock-on effect on where they spend too. Retailers like, for example, Kmart and Big W, who have more affordable options will see a surge of customers from their more ‘upmarket’ competitors.

“But, we’ve heard predictions ranging from super-peak to super-low so right now it’s anyone’s guess how December will play out. We do know that retailers are preparing for both scenarios across the board, from flexible staffing to ensuring they have the right carriers to handle fluctuating volumes.” 

Hango-Zada says while sales phenomenons like Click Frenzy, Black Friday and Cyber Monday have been growing every year, they are becoming even more appealing for shoppers today as they battle with cost of living pressures. 

“When discretionary spending drops, demand builds and we typically see that released during these short sales events,” he explains.