UPS: Online, mobile shopping trends continue to accelerate

Retailers have to adapt to new consumer shopping habits and expectations in which smartphones are playing an integral role in purchasing decisions, according to a survey of online shopping trends conducted by Comscore for UPS.    Avid online shoppers, those who make two or more purchases online in a typical three-month period, are changing the retail landscape, according to a survey of online shopping trends conducted by Comscore for parcel carrier UPS Inc.
   These consumers are shopping more with their smartphones and demanding a more seamless experience between virtual and physical stores, the study found.
   For the first time in the study’s five-year history, more than half (51 percent) of all purchases made by respondents were made online, up from 48 percent in 2015.
   “Consumers are skilled at using technology to their advantage and thrive on gathering information when shopping,” Teresa Finley, chief marketing officer at UPS, said of the report. “This year’s UPS study revealed that 45 percent of online shoppers love the thrill of hunting for and finding great deals, and that physical stores continue to play an important role in that experience.
   “The challenge is how to best engage with shoppers to fulfill their desires,” she added.
   Shoppers increasingly are using multiple channels to shop rather than simply relying on physical stores. Seventeen percent of consumers said they plan to shop less in store, shifting time to their electronic devices. The use of smartphones was up 10 points (to 77 percent) over the past two years, and retailers are responding, the UPS study said. Online shoppers reported a better overall mobile experience, with satisfaction up eight points (to 73 percent) compared with last year.
   Social media’s influence on purchasing decisions is up nine points (to 34 percent) in the last year with nearly a quarter of respondents (23 percent) having made purchases through social media sites.
   Some traditional online retailers are experimenting with showrooms without inventory to provide consumers with the opportunity to examine products at a physical location before buying them online, and one in six shoppers say they have visited such retailers. These locations are finding some initial success with millennials, women and urban shoppers.
   While marketplaces such as Amazon and eBay are well-established shopping resources, consumers are turning to them earlier to find the best deals. Thirty-five percent of online shoppers now begin their searches at marketplaces.
   Cross-channel transactions, which refer to purchases using in-store and at least one online channel, now account for 38 percent of all purchases (up 2 points). Store-only searches and purchases declined by two points (to 20 percent).
   As such, retailers must create seamless experiences that resonate with how their customers want to shop, UPS said. Providing detailed product information with good photography, professional and peer reviews, and online access to store inventory are critical – 58 percent of respondents said such services are important to them.

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Source: UPS
   Online sales drive significant in-store traffic. Half of shoppers who buy online, ship to a physical store. Of these, 46 percent make additional purchases while picking up their items. A majority of shoppers (60 percent) also prefer to return items to a store, at which time 70 percent of them make additional purchases.
   Even with that, only 36 percent of shoppers said they experience helpful associates when returning items to a store, something that can drive decision-making with regard to where consumers chooses to spend their money.
   “Cost, control and convenience are shoppers’ primary drivers,” Finley said. “Shoppers may be buying more online, but they still value the physical store. Providing an exceptional in-store experience can position the retailer to convert more sales and enhance loyalty when customers pick up and return items.”
   Online shoppers report they are using their smartphones in-store for a full range of actions. Nearly 30 percent of shoppers look up product reviews (29 percent), read product details (28 percent), compare prices (27 percent), and access coupons for in-store redemption (27 percent) either “often” or “most of the time.” Just 31 percent of shoppers are aware of in-store beacons.
   A quarter of smartphone users are receptive to in-store mobile messaging with urban shoppers (37 percent) and millennials (36 percent) being even more receptive. However, more than four in ten smartphone users are neutral toward the idea of in-store mobile messaging.
   “We know shoppers use their smartphones while in-store, so if retailers can tie together mobile messaging with valuable features in their apps, this can be a winning combination,” said Louis DeJianne, UPS director for retail and consumer products.
   Free shipping continues to be the most important factor driving customer satisfaction when checking out online (73 percent), although consumers are willing to pay a premium for faster delivery. Half of shoppers would pay for faster shipping for personal reasons, such as birthdays and holidays.
   Home delivery is still the preferred location to receive packages, although more consumers are embracing alternate delivery locations. Preference for alternate delivery locations grew nine points (to 35 percent) in the last two years. More than half of shoppers are interested in an alternate delivery location with extended hours and lower fees.
   As a major provider of business-to-consumer package deliveries resulting from online orders, UPS closely monitors consumption trends in e-commerce.