INFLUENCERS OF SPEND ONLINE - USA E-commerce Shopper Insights April 2013 1 A Service MALCOLM PINKERTON Research Director Contents 1. Introduction 2. Key Findings & recommendations 3. Setting the scene 4. The influencers of spend online 5. Charts & data tables 6. Methodology 2 1. Introduction 1. Introduction E-commerce shopper assessment: The drivers & influencers of spend We surveyed almost 15,000 shoppers in 10 key e-commerce markets to not only find out about levels of spend online but to get a clear understanding of what drives people to shop online; what influences their purchasing decisions; how they could be encouraged to shop more via the internet; and what is important to them when doing so. This report looks at online shoppers in the USA. What would encourage more online shopping? 4 What is important when deciding where to shop? What do consumers expect from a website? What influences consumers choice of retailer online? 2. Key Findings 2. Key Findings Key Findings: Major drivers and influencers of spend online Encouraging online shopping 62% Better security & protection 56% More mobile friendly websites 53% Easier returns & refunds Important features of a website 59% Easy to use 6 58% Good product information 55% Good quality images Important when decision where to shop 68% Value & price 57% Cost of delivery 32% Range of products Influencing choice of retailer 76% Free delivery & returns 58% 58% Ease of use & quick checkout Discount codes & vouchers 3. Setting the Scene 3. Setting the Scene Entertainment and electricals make up the majority of online spending. Proportion of online spend by category: $26.9bn $24.1bn $12.1bn $8.7bn Home Health & Beauty Digital Media Office Supplies Grocery $8.3bn $27.7bn 7% 5% 4% Clothing & Footwear 13% $34.5bn 15% Consumer Electronics 15% $39.6bn 19% Entertainment 22% 47% of US consumers shop online 2.3 average number of online shopping trips per month $182bn spent online in 2012 8 Source: Planet Retail 4. The Influencers of Spend Online 4. The Influencers of Spend Online Multi-channel fulfilment is now having a significant role in influencing the choice of retailer. Consumers now want greater convenience and the ability to collect their purchases. 37% 24% would be encouraged to use a retailer online if it offered convenient collection points or instore collection 16% 12% 10% collect an item instore after purchasing online use collection points - such as a local store not belonging to the retailer where purchase was made use collection lockers - typically located in malls or stations - to collect their online purchases 9% say that ease of collecting purchases is important when deciding where to shop online 51% would be encouraged to shop online if it was more convenient to get their purchases using selfcollection services such as instore collection 63% of over-55s would be encouraged to use a retailer if they could collect their online purchases from a collection point or instore 53% of 18-34 age group would be encouraged to use a retailer if they could collect their online purchases from a collection point or instore Providing multi-channel fulfilment, such as instore collection, pick-up points, collection lockers, etc. is now essential in appeasing online shoppers, and influences their decision of where to shop online. 10 6. Methodology 6. Methodology E-commerce shopper assessment. We surveyed almost 15,000 shoppers in 10 key e-commerce markets to not only find out about levels of spend online but to get a clear understanding of what drives people to shop online; what influences their purchasing decisions; how they could be encouraged to shop more via the internet; and what is important to them when doing so. The research was conducted using online panels through our trusted partner, the market research agency Research Now. The questionnaire asked about the online shopping behaviour and attitude of consumers across 14 categories, shopping via a computer, mobile and tablet. 14,689 shoppers surveyed 14 shopping categories 12 10 key markets Computer Mobile Tablet used to shop online 6. Methodology E-commerce shopper assessment. An average of 1,500 shoppers in each of the 10 key markets were surveyed. 1,501 UK 1,457 1,504 USA France 1,566 1,526 Russia Germany 1,371 1,378 China Italy 1,313 India 1,548 Brazil 13 1,525 Japan Author MALCOLM PINKERTON Research Director malcolm.pinkerton@4c.planetretail.net Malcolm Pinkerton is a Research Director, based in London, responsible for Planet Retail’s e-commerce coverage. Malcolm has been analysing and researching the industry since 2004, specialising in e-commerce and multi-channel retailing. He has worked for the British Retail Consortium, Verdict Research and most recently the retail research agency ABA Market Research. Malcolm regularly presents Planet Retail’s views to senior industry and professional services audiences as well the media. He holds a Bachelor of Science in industrial systems & business management from the University of Westminster, London. 14 All images ©Planet Retail Ltd unless otherwise stated. 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