Retailers recognise the importance of unified commerce, but why is implementation lagging?

In today's ever-evolving retail landscape, it's imperative for Australian retailers to embrace digital commerce like never before. According to data from Australia Post, Australians spent $63 billion dollars online, with one in seven households shopping online every week. That is a significant market to tap into. Unified commerce has become a key strategy for adapting to this changing landscape and tapping into the opportunities it presents. In fact, Australia's retail unified commerce market is worth a staggering AU$44 billion, according to the Australia Retail Report 2023. 

However, while the concept and benefits of unified commerce are acknowledged industry-wide, retailers aren’t adopting it. According to SHOPLINE’s Unified Commerce Benchmarking Study, which sought to understand how retail business owners and decision-makers are approaching 2024, there is a notable gap between recognition and implementation of a unified commerce strategy. In fact, 65% of Australian retailers recognise the importance of unified commerce, but only 31% have adopted it. 

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But why?

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Recognition versus Implementation of Unified Commerce 

The statistics paint a clear picture – while recognition of the significance of unified commerce is high among Australian retailers, the actual implementation remains sluggish. It’s a trend that is consistent across retailers of all sizes. Among small retailers - those defined as retailers with less than $10m Gross Value Merchandising (GVM) - only four per cent are currently offering unified commerce while 14% plan to implement it. Among very large retailers (85%) - classified as those with GVM exceeding $100 million, acknowledged the importance of unified commerce, yet only 44% plan to implement it.

So, what lies at the heart of this disparity? 

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Barriers to Unified Commerce Implementation 

According to SHOPLINE’s research, the barriers are varied. Australian retailers face a number of challenges in implementing unified commerce, such as lack of flexibility within existing infrastructures, high costs and limited resources. 

Lack of flexibility with existing infrastructure (55%), cost implications (54%), and resource availability (53%) are identified as primary hurdles in adopting unified commerce. For large and medium retailers - classified as those with GVM ranging from $10m to $50m, resource availability emerges as a predominant barrier, with 80% and 69%, respectively, citing it as a significant challenge.

Data unification poses a considerable obstacle, particularly for large retailers (67%), highlighting the difficulties in aggregating and harmonising data from diverse sources. Two in three (66%) consider integration with existing platforms/software as the most common barrier to adopting new technology. 

Capital cost is another common barrier for retailers (60%), indicating the financial challenges associated with technology adoption. Over two in five (41%) small retailers struggle with selecting the best option when adopting new technology, indicating challenges in navigating the complex landscape of available solutions.

Despite these challenges, there are ways for retailers to overcome the barriers and successfully implement unified commerce into their businesses. 

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Ways to Implement Unified Commerce into your Business 

Irrespective of the size of a retailer, or the barriers preventing their adoption of unified commerce - whether its cost or limited resource, data unification or integrations with existing platforms - there is a solution.

Partnering with the right vendors is crucial. Find a vendor that offers scalable solutions, industry expertise, and robust support services to navigate implementation challenges effectively. With SHOPLINE’s unified solution that seamlessly connects your online and brick-and-mortar stores, we empower retailers - whether you’re an independent operation or an international chain - to tap into the full potential of both worlds and deliver a consistent customer experience across multiple channels.

Investing in flexible infrastructure is another key strategy. Prioritise investments in flexible and adaptable infrastructure that can easily accommodate changes and expansions in your business. SHOPLINE offers solutions designed to seamlessly integrate with existing systems while providing the flexibility to scale as your business grows. 

With cost-of-living pressures affecting everyone, it is also crucial to explore cost-effective solutions. Look for options that deliver maximum value without compromising on quality. SHOPLINE offers competitive pricing options and customisable packages tailored to fit the unique needs and budgetary constraints of retailers. It’s a high-value platform, with a budget-friendly price tag. 

Additionally, prioritising data integration is crucial for success. Ensure seamless connectivity between various platforms and systems to streamline operations and enhance the customer experience. SHOPLINE's unified commerce platform offers robust data integration capabilities, allowing retailers to aggregate and harmonise data from diverse sources for actionable insights and informed decision-making.

While the importance of unified commerce is widely recognised among Australian retailers, there is still work to be done to translate this acknowledgment into action. By prioritising investments in technology, organisational alignment, and customer-centricity, retailers can position themselves for success in an increasingly digital and unified retail environment. SHOPLINE exists to help you navigate those barriers, so you can roll out a unified retail strategy that allows your business to succeed and scale in the short-, medium- and long-term. 

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