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UPS Smart E-commerce Report: What Drives Us to Shop Online?

UPS, the American international shipping company, interviewed over 10,000 consumers, showing us their purchasing habits before and after the pandemic.

To further help retailers navigate this constantly evolving environment, in January 2021 UPS commissioned a survey of over 10,000 consumers across eight key European markets: the United Kingdom, France, Germany, Italy, Spain, the Netherlands, Belgium, and Poland.

The UPS Smart E-commerce Report gave us an exclusive insight into the challenges online merchants have to face and the potential opportunities offered by the transformation of consumer habits.

Here are some interesting insights:

What are the reasons why we buy from small and independent retailers?

50%

To help small and local businesses

40%

Customer service is better and more personal when dealing with smaller or local retailers

37%

The experience is more personal when buying from small retailers

25%

Small, independent retailers sell more special and innovative products

18%

Buying from small independent or local retailers is more convenient

9%

For loyalty/rewards programs

7%

Products from independent retailers have lower prices

There are several factors that influence online purchases:

Attitude towards social media

Consumers appreciate brand communications on social media, and they show a connection with purchasing preference: 52% of the European consumers surveyed said they are more likely to buy from a brand whose social media activity they consider trustworthy.

Generational attitudes

The report also highlights how attitudes towards shopping differ depending on generation. The key finding, which will probably come as no surprise, is that people aged 25 to 34, often considered the first generation of “digital natives”, are more likely to continue buying “all or almost all” online even after restrictions are eased (23%) compared to those over 55 (10%).

Ecology and sustainability

Younger respondents require a range of sustainable or alternative delivery options: this is an important element for 55% of respondents aged 18 to 24 and for 43% of those over 55 years old.
The use of sustainable packaging is the most requested measure by consumers
in both categories: 54% request it from large retailers and 50% from small ones.

External factors influencing e-commerce

The common view among the consumers surveyed is that Brexit will affect the e-commerce sector, and everyone will have to adapt to the new relationship between the United Kingdom and the EU. With the additional turbulence caused by the coronavirus pandemic and economic instability affecting job security, the consumer sentiment revealed by our survey indicates that 2021 will probably be a more difficult year for retailers without e-commerce.

Conclusions

The survey data indicates that online shopping habits will remain in line with pre-lockdown trends and are showing some signs of growth.

There are significant opportunities for online retailers of every size to acquire new customers.

For this purpose, based on our experience and the results of this report, we suggest that retailers focus on personalizing the experience and offering simple, convenient solutions, especially when it comes to returns. Since sustainability will remain a key factor for consumers in the years to come, greater attention to zero-waste initiatives and the introduction of recyclable packaging will be very useful for converting and retaining new customers. This applies regardless of the size or scope of your business, as expectations on these issues are universally high, even more so for established brands, and are expected to grow further.

Furthermore, customers’ choices remain influenced by multiple external factors, from the brand’s response to the pandemic to the tone and frequency of social media posts. Brand loyalty is rare and easy to lose, as a single negative experience can make customers give up on future purchases. Consumers consider the retailer’s choice of delivery partner essential, and for those who want to improve their customers’ experience, this aspect is more vital than ever.

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