Money

Where is my package?

Published

4 years ago

April 6, 2022

Have you ever received an online order in multiple packages and delivered days or even weeks apart? Raghav Sibal, Managing Director of Australia and New Zealand at Manhattan Associates tells us the root cause and why it’s a havoc for retail supply chains.

Retail supply chains are under greater pressure than ever before due to the ongoing impacts of COVID-19. As both retailers and consumers grapple with these issues, new research has highlighted that Australian retail delivery methods are the main reason for delays and of course, customer dissatisfaction.

Where are the pressure points?

In today’s world, consumers expect their products at lightning speed. To keep up with consumer demand, retailers are trying to get the goods out to customers as quickly as possible.

But unfortunately, in doing so, retailers haven’t made the investments in their technology and supply chains to master this process efficiently and effectively.

Raghav Sibal, Managing Director of Australia and New Zealand at Manhattan Associates joined Ticker and told viewers that a major source of customer dissatisfaction and delays in receiving goods is due to multiple shipments for single orders.

“So if a customer ordered five items in one single shop, it may be coming in two or three different packages to them,” he says.

In fact, new research by Manhattan Associates found 76% of Australian shoppers indicate that they have experienced unusual delays in receiving goods they ordered online in the last three months. Raghav says this is causing friction with the customer, many of whom would prefer options to receive their goods in one delivery.

Is split shipments really a problem if it means getting your goods faster?

Well, considering retailers are under the pump trying to meet customer demands, it is understandable that brands want to get their goods to customers as fast as possible.

Stepping into the consumers shoes – receiving multiple parcels under one online order is actually considered more annoying. Raghav says this method is causing immense frustration.

“Surprisingly, over 66% of customers in Australia have received multiple shipments for a single order. They feel like maybe the order that they placed didn’t go through correctly to the retailer. So they frantically start calling the retailer,” he says.

Customers may be waiting weeks between parcels that are under one order. Raghav says this impacts the hip pocket for retailers, who have to fork out the cash for extra resources across their operations.

“It’s not just about customer dissatisfaction or the impact that it’s having on the retailer’s brand, but also real financial impact. There’s more handling going on in the warehouses, more shipping costs, more packaging, and there’s a whole bunch of waste when retailers are already under pressure,” he says.

“From a financial standpoint, this all adds up and it’s having a significant impact.”

So how does the process of multiple shipments affect retailers?

According to Manhattan’s research, over 70% of customers say that if they can’t find a retailer who’s reliable in the delivery methods, or in communicating about a shipment arrival time, they’re not going to be very keen to continue to do business with them.

“This is greatly impacting brand loyalty and also keeping customers really engaged with that retail,” Raghav told tickerNEWS.

“Are retailers making the right investments in the technology that they’re using or not?”

In a disrupted operating environment, retailers must improve their communication with customers.

Sibal draws on an interesting finding from Manhattan’s survey that suggests only about 50% of customers are getting notified about the delay of a shipment or the fact that it’s come in multiple packages.

Raghav says “that’s not good enough”. Adding, “we’re finding that about 65% or higher, feel like they would rather wait for the goods to arrive as long as they come together.”

What’s the solution to better manage these issues?

Raghav says it all comes down to how the overall ecommerce fulfilment is working for a retailer.

He says the first thing the retailer should do is look at how they are contemplating or considering the stock levels across the network.

“We talk about the network of an omni channel retailer, it could be the DCs, it could be their stores, it could be ports that are still in transit on transport,” Sibal says.

He adds that once retailers have the visibility and understanding of where the stock is, retailers need to be routing the orders and allocating goods in product from the appropriate fulfilment point – whether it’s a DC or a store.

Raghav emphasises that operational visibility and forward planning remain fundamental to ensuring a retail brand has stock available for purchase.

“It’s okay to fulfil an order from one location, which may take a bit longer to fulfil, but you’re sending the package to the customer all at once and in one package,

“So it comes down to visibility across the network, making sure the orders are being sent to the right location for fulfilment. And that all comes through the right investment in an order management system.”

Money

Gold prices soar to $4,000 an ounce milestone

Gold prices soar to $4,000 an ounce amid investor panic over dollar weakness and economic uncertainty

Published

3 hours ago

October 8, 2025

Ahron Young

Gold prices soar to $4,000 an ounce amid investor panic over dollar weakness and economic uncertainty

In Short:
– Gold prices reached $4,000 per ounce due to a declining dollar and economic uncertainties.
– Investors are advised to be cautious as prices near $4,000 may lead to potential market corrections.

Gold prices reached $4,000 per ounce for the first time on Tuesday as investors sought refuge from a declining dollar, geopolitical tensions, economic insecurity, and persistent inflation.Gold futures closed at a record $4,004.40, peaking at $4,014.60 during the day.

Prices have risen about 50% this year, influenced by a 10% drop in the U.S. dollar index and shifts in trade policies under President Donald Trump.

Central banks and retail investors are increasingly purchasing gold.

Countries like China are moving away from U.S. Treasurys after significant sanctions imposed on Russia due to the Ukraine invasion in 2022. Retail investors desire protection from inflation.

The surge in gold prices followed the Federal Reserve’s interest rate cut in September, making short-term debt instruments less appealing. The expectation is for two further rate reductions by year-end, with the Fed’s next meeting scheduled for October 29.

Market Caution

Bank of America has recommended a cautious approach towards gold as prices near $4,000, warning of potential “uptrend exhaustion” that could result in a market correction in the fourth quarter.

Investors should remain vigilant regarding gold investments, as potential price consolidations may occur.

Money

International brands adapt strategies to reach Chinese consumers

International brands adapt strategies to engage Chinese consumers through localisation, data insights, and cultural integration amidst market challenges

Published

2 days ago

October 6, 2025

Ahron Young

International brands adapt strategies to engage Chinese consumers through localisation, data insights, and cultural integration amidst market challenges

In Short:
– U.S. and European brands are refining strategies to engage Chinese consumers despite economic slowdown.
– Localisation and consumer data are crucial for successful market entry and product development in China.

China’s economic slowdown has not deterred U.S. and European brands from redefining strategies to engage Chinese consumers.

The nation remains an enticing market, prompting companies to innovate amid rising local competition.Kraft Heinz, for example, has enlisted a local agency to enhance its ketchup sales, utilising promotional campaigns that resonate culturally, such as marketing ketchup in stir-fried egg dishes. Competition in this market is dynamic, with shifts in consumer behaviour evident over time.

Brands, including Starbucks and Lululemon, demonstrate that successful entry often hinges on localisation.

Effective international marketing strategies dedicate significant resources to content-first campaigns, tailoring products to local preferences. Under Armour’s approach features affordable product lines and community-building through livestreams.

Foreign investment remains robust in China’s evolving market, with brands adapting to new social commerce norms exemplified by platforms like Douyin. The shift presents unique challenges requiring comprehensive strategies, which can quickly yield substantial sales benefits.

Data Utilisation

Access to consumer data is critical for brands navigating the Chinese market. E-commerce platforms like Alibaba provide detailed consumer insights, allowing companies to innovate based on market needs. An example is Perfect Diary, a makeup brand, which successfully developed targeted products for price-sensitive consumers.

With the recent iPhone 17 launch, JD.com reported strong preorder volumes, highlighting the relevance of tailored features in attracting local interest. Companies that establish local R&D facilities gain a competitive edge by developing products that align with local tastes swiftly.

Cultural engagement is paramount for brands aiming to resonate with Chinese consumers.

Collaborations with local artisans signify a deeper cultural integration. Despite market challenges, innovative store designs, like LVMH’s new Shanghai location, reflect a blend of heritage and modern consumer values.

Money

How do banks assess you for a home loan?

Published

3 days ago

October 5, 2025

The Conversation

Ama Samarasinghe, RMIT University

Navigating the money side of buying a home can be daunting – especially if it’s your first time.

Unless you’ve recently come into a small fortune, you’ll need to have saved a deposit and take out a home loan.

That means engaging with the world of banks and mortgage brokers, and grappling with what might be intimidating-sounding jargon – terms like “pre-approval”, “offset accounts” and “serviceability buffers”.

Here’s a general guide to some of the essential steps: how to figure out what you can afford, how the loan process works, and some key things to watch out for before taking the plunge.

How much can you afford?

Taking out a home loan means you’ll be required to make regular repayments over many years. So, a bank or other lender will first want to make sure you can afford them.

This article is part of The Conversation’s series on buying a first home.

We’ve asked experts to unpack some of the biggest topics for first-home buyers to consider – from working out what’s affordable and beginning the search, to knowing your rights when inspecting a property and making an offer.

It’s important to understand the difference between borrowing capacity and affordability.

Your borrowing capacity is the amount a lender is willing to offer you, based on your income and debts, and their own stress tests. Affordability, on the other hand, is about you – your lifestyle, choices and actual spending patterns.

These two things are related but don’t always align, so it’s important to factor affordability into your decision. Being clear on both helps you avoid taking on more debt than you can comfortably manage.

Doing your own calculations first

It’s a good idea to start with your own numbers. List all your household expenses over at least the past six months – everything from groceries to streaming subscriptions – and work out the monthly average.

Streaming apps on a smart TV — Monthly subscriptions – such as streaming services – can have an impact on borrowing power.
Oscar Nord/Unsplash

After setting aside some room for savings and unexpected costs, the remainder gives you an indication of what could be available for mortgage repayments.

As a rule of thumb, many suggest keeping repayments to no more than about 30% of your after-tax income.

Here are a few tips to avoid mortgage stress:

Budget for reality, not hope. Don’t assume you’ll slash spending just because you’ve bought a home.
Stress-test your budget. Could you still make the repayments if your interest rate rose by 0.25–0.5%? What if it rose by 1-2%?
Don’t forget the extra costs that come up with home ownership. Factor in insurance, council rates and higher utility bills in a larger home.

How much will the bank lend you?

Your borrowing power depends mainly on:

household income
living expenses and debts (credit cards, car loans, buy-now-pay-later arrangements)
number of financial dependants.

Most banks have online calculators in their banking apps to check your borrowing capacity. The Australian Securities and Investments Commission (ASIC)’s Moneysmart site also provides calculators for borrowing and repayments.

Lenders are also required by law to check a borrower could still afford repayments if interest rates rose by a certain amount. This “serviceability buffer” is currently three percentage points.

Pre-approval doesn’t guarantee a loan

Getting pre-approval means a lender has reviewed your finances and indicates they’re willing, in principle, to lend you up to a certain amount.

But it isn’t a binding contract. You’re not locked into taking the loan, and the lender isn’t legally bound to provide it.

Still, getting pre-approval can have some benefits, including:

giving you confidence about your borrowing capacity
helping set realistic price limits and narrowing a property search
signalling to real estate agents and sellers that you’re a serious buyer, which can make you more competitive in a hot market.

At auctions, pre-approval is especially important. Once the hammer falls, the sale is binding – there’s no cooling-off period and no finance clause.

If you don’t have pre-approval in place, you could win the bid but may be unable to secure finance, leaving you at risk of losing your deposit.

Different types of loan

One of the first decisions you’ll face is whether to go with a principal and interest loan or an interest-only loan.

Principal and interest is the standard choice. Each repayment reduces both your loan balance and the interest owed. Most first-home buyers opt for this option because it steadily pays down the debt.

Interest-only loans mean that for an agreed period (say five years), you only cover the interest. Repayments are lower during that time, but the loan balance itself doesn’t shrink.

To illustrate, if you took out a $200,000 interest-only loan at 5% for five years, you’d pay $10,000 a year in interest. But at the end of the five years, you would still owe the full $200,000.

Interest-only loans can make sense for some investors focused on cash flow, but they’re far less common for first-home buyers.

Finding a loan

There are many ways to find a loan that suits your needs. You can compare products directly with lenders, use comparison sites, or go through a mortgage broker.

Mortgage brokers compare loans on your behalf and are often paid a commission by the lender, meaning you aren’t directly charged a fee.

It’s important to make sure they’re licensed (check ASIC’s professional register), reputable, and – if possible – recommended by family or friends.

A good broker will break down fees, features and hidden costs so you’re comparing more than just the interest rate. Before you sit down with a broker, think about what matters most to you: getting the lowest cost loan, or flexibility through features?

Take offset accounts as an example, where savings can reduce interest on the loan. An offset is a transaction account linked to your loan. If you owe $450,000 but keep $30,000 in the offset, you’ll only pay interest on $420,000.

Another common feature is called a redraw facility. This lets you make extra repayments (thus reducing the amount of interest you pay) and withdraw them later if needed.

Disclaimer: This article provides general information only and does not take into account your personal objectives, financial situation, or needs. It is not intended as financial advice. All investments carry risk.

Ama Samarasinghe, Lecturer, Financial Planning and Tax, RMIT University

This article is republished from The Conversation under a Creative Commons license. Read the original article.