- Online shoppers are more mobile, global and
marketplace driven
- Avid online shoppers purchasing on marketplaces up 12
points to 97 per cent
- Nearly half (47 per cent) bought from international
retailers and Canadian retailers ranked third at 15 per
cent
- 48 per cent of smartphone users purchased on their
device, up 4 points from 2016
MISSISSAUGA, ON, June 13, 2017 /CNW/ -
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 per cent 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
per cent were driven by lower prices on U.S. marketplaces and 36
per cent 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, 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 per cent made additional purchases in store, and 41 per cent
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
per cent from 2015 to 2020 compared to 15 per cent 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 per cent 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 per cent of online shoppers plan to research more
frequently using marketplaces and 30 per cent 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 per cent
of smartphone users research on their device, only 28 per cent 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 per cent in 2014 to 48 per cent in 2017.
Comparatively, online sales increased from 47 per cent in 2014 to
52 per cent 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. This fall, UPS
Canada will be releasing the results from the 2017 UPS Pulse of the
Online Shopper study on Canada
consumer purchasing habits. UPS Canada also offers information on
shipping internationally to countries including
China,
U.S., India and
Mexico.
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 UPS
UPS (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, visit
pressroom.ups.com/RSS or 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.
SOURCE UPS Canada Ltd.