According to CouriersPlease CEO Richard Thame, retailers are expected to move away from using SMS delivery alerts in the upcoming fiscal year of 2024. This shift is in response to a growing number of scam incidents involving SMS alerts, making it the most common method used by scammers for the second year in a row.

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Thame stated that in more advanced economies, it is uncommon for consumers to receive tracking links through SMS. This decline in consumer trust has prompted retailers to seek alternative methods of communication to address security concerns.

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Thame predicts that clickable links on mobile devices will become obsolete in the coming year, with a return to email notifications and the use of apps for tracking deliveries. This change is expected to improve security and provide easily verifiable links for consumers.

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In addition to security concerns, economic conditions have also influenced consumer spending habits. Thame expects more consumers to align their spending with retail sales calendars, with online Christmas shopping starting earlier and major sale events beginning earlier and lasting longer.

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He explains that consumers are becoming more savvy about retail sales and the types of discounts to expect, leading them to hold off on spending until these big sale events and compare prices between sales. This trend is also reflected in more economical spending, with essential items taking priority and discretionary spending, such as Christmas gifts, being spread out over a longer period of time.

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Despite economic vulnerabilities, Thame predicts that subscription-based purchases for essential items will continue to trend upwards. This includes items such as toilet paper, cleaning products, food, and pet supplies.

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Thame also expects the use of pick-up and drop-off networks to continue to rise as more people return to their workplaces. This trend is likely to continue as the world adjusts to a new normal in the wake of the COVID-19 pandemic.

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In conclusion, retailers are expected to move away from using SMS delivery alerts in the upcoming fiscal year due to a rise in scams. This change is driven by a decline in consumer trust and a desire for more secure communication methods. Economic conditions have also influenced consumer spending habits, with a focus on aligning spending with retail sales calendars and being more economical in their purchases. However, subscription-based purchases for essential items and the use of pick-up and drop-off networks are expected to continue to rise.

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Sources: https://internetretailing.com.au/consumers-are-ditching-sms-delivery-alerts-due-to-a-rise-in-scams/