- Online shoppers are more mobile, global and marketplace
driven.
- Avid online shoppers purchasing on marketplaces up 12 points to
97 percent.
- Nearly half (47%) bought from international retailers.
- 48% of smartphone users purchased on their device, up 4 points
from 2016.
UPS (NYSE: UPS) – Nearly half of avid U.S. online shoppers
bought items from international retailers, demonstrating the need
for retailers to offer more personalized services as a way to
compete against lower prices, according to the sixth annual UPS
Pulse of the Online Shopper™ study.
The UPS study found that almost all avid U.S. online shoppers
(97%), made purchases on marketplaces, up 12 points from 2016, and
that 81 percent cite price as the most important factor when
searching for and selecting products online. According to
respondents who purchased from an international retailer (47%), 43
percent were driven by lower prices on U.S. marketplaces and 36
percent wanted unique products not found from U.S. retailers.
“The lines that separate domestic and international retailers
continue to disappear,” said Alan Gershenhorn, Chief Commercial
Officer for UPS. “Retailers are now competing across the globe. In
order to win, retailers can distinguish themselves by providing
value through personalized experiences.”
Personalized experiences includes the physical store. Many
online shoppers find stores important to touch and feel products
(59%), solve immediate problems (54%), receive superior customer
service (52%), and participate in rewards/loyalty programs (52%).
Half of shoppers (50%) have used ship-to-store this year, of whom
44 percent made additional purchases in store, and 41 percent plan
to use ship to store more often in the next year.
The use of smartphones continues to be an increasingly important
part of the shopping experience online and in physical stores.
Eight in ten online shoppers use retailer apps, often preferring
apps to websites because of faster speed and a better user
experience. The convenience factor is key as “on the go” mobile
shoppers seek efficiency at every turn. Mobile coupons (50%) and
high-quality product images (50%) are two of the most important app
features.
“Online shoppers are able to shop the world’s boutiques and
bazaars with ease,” said Gershenhorn. “We’re witnessing a glimpse
of the future, when retailers and their customers will be defined
less by geographic location and more by how they connect with each
other. The challenge is to best provide shoppers with the choice,
control and convenience they desire.”
According to eMarketer, global cross-border e-commerce is
projected to grow at an average of 22 percent from 2015 to 2020
compared to 15 percent for U.S. e-commerce during the same time
period.
The top considerations that online shoppers make when purchasing
from international retailers include clearly stating the total cost
of the order including duties and fees (77%), stating all prices in
the shopper’s native currency (76%), the retailer being reputable
(74%), and reasonable speed of delivery (66%).
The Global Retailer Next Door
Of the 47 percent of U.S. consumers who purchased from an
international retailer on a U.S. online marketplace, the majority
of these retailers are based in China (61%), the U.K. (23%), Canada
(15%), and Japan (14%).
UPS recently announced a joint venture with S.F. Holding, the
parent company of China’s market-leading express delivery company
SF Express. The two companies will develop shipping products
designed to help Chinese companies gain greater access to the U.S.
market.
China is now the biggest e-commerce market in the world with
approximately $900 billion USD in 2016 sales, accounting for nearly
half of all digital retail sales worldwide according to
eMarketer.
Global commerce giant Alibaba Group will host its first U.S.
summit, Gateway ’17, in Detroit on June 21. UPS Chairman and CEO
David Abney will be a keynote speaker at the event highlighting the
opportunity for businesses to expand their sales to consumers in
China and other export markets.
Marketplace Muscle
According to the study, avid online shoppers start their
searches at marketplaces more than any other channel (38%). In the
next year, 29 percent of online shoppers plan to research more
frequently using marketplaces and 30 percent plan to purchase more
on marketplaces.
The number one reason online shoppers shop at a marketplace
instead of going directly to a retailer is better prices (65%),
followed by free and discounted shipping (55%), the total cost of
the order including shipping costs and/or taxes (45%), and speed of
delivery (44%).
The Mobile Mindset
Retailer apps are also growing in adoption with eight in 10
consumers using a retailer smartphone app. App users prefer them to
retailer websites due to faster speeds (51%) and better user
experiences (35%).The number of shopping apps a consumer will use,
however, is limited. Online shoppers prefer to limit the number of
retailer apps to three to five on their smart phone to conserve
memory on the device.
Despite the overall growth of m-commerce, consumers are hesitant
to use mobile in-store payment methods. While 59 percent of
smartphone users research on their device, only 28 percent have
used a smartphone to make an in-store purchase.
What’s In Store for Stores?
Providing personalized experiences at stores includes adapting
with new technologies and offers. The average percentage of
purchases made in physical stores by avid online shoppers decreased
from 53 percent in 2014 to 48 percent in 2017. Comparatively,
online sales increased from 47 percent in 2014 to 52 percent in
2017.
New technologies including chatbots and virtual reality are ways
retailers can enhance their consumer experience. While online
shoppers prefer to talk with sales associates when shopping in
stores, when online they prefer self-service options such as email
(55%) and live chat (42%). They are also comfortable using chatbots
to get product information (42%), new product updates (39%), and
completing their order and returning products (39%).
This also includes how shoppers are immersed in the store
experience. Virtual reality is appealing to online shoppers
interested in visualizing furniture and home décor (42%), seeing
products brought to life through product demos (40%), and browsing
through a store
(39%).
“Technology continues to drive change in the retail industry, but
the physical store is still very important. Pure play online
retailers are expanding with physical stores and multichannel
retailers are using their local storefronts as e-commerce
fulfillment centers,” said Gershenhorn. “Online shoppers are
indicating they want technology that enables rewarding,
personalized experiences both online and in store.”
For more study findings, please download the UPS Pulse of the
Online Shopper executive summary and white paper. UPS also offers
information on shipping internationally to countries including
China, Canada, Mexico, the UK and Germany.
About the UPS Pulse of the Online Shopper™The
UPS Pulse of the Online Shopper Study evaluates consumer shopping
habits from pre-purchase to post-delivery. The 2017 study is based
on a comScore survey of more than 5,000 U.S. online shoppers.
About UPSUPS (NYSE: UPS) is a global leader in
logistics, offering a broad range of solutions including
transporting packages and freight; facilitating international
trade, and deploying advanced technology to more efficiently manage
the world of business. Headquartered in Atlanta, UPS serves more
than 220 countries and territories worldwide. The company can be
found on the web at ups.com® and its corporate blog can be found at
longitudes.ups.com. To get UPS news direct, follow @UPS_News on
Twitter.
About comScore comScore, Inc. (OTC: SCOR)
is a leading cross-platform measurement company that precisely
measures audiences, brands and consumer behavior
everywhere. comScore completed its merger with Rentrak
Corporation in January 2016, to create the new model for a dynamic,
cross-platform world. Built on precision and innovation, our
unmatched data footprint combines proprietary digital, TV and movie
intelligence with vast demographic
details to quantify consumers’ multiscreen behavior at
massive scale. This approach helps media companies monetize
their complete audiences and allows marketers to reach these
audiences more effectively. With more than 3,200 clients
and global footprint in more than 75 countries, comScore is
delivering the future of measurement. For more information on
comScore, please visit comscore.com.
Matt O’Connor
404-828-8113
matthewoconnor@ups.com
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