Today’s screed is mostly about shopping (or selling, I suppose). I read some results from a research report and I think you’ll probably share my thinking about what the data shows: more of what we already know.
In a recent study UPS and ComScore released a U.S. study revealing changes in consumer shopping preferences and buying behavior. A total of 5,000 U.S. consumers were surveyed. The results indicate consumers plan to research and purchase more frequently using their mobile devices, they are influenced by social media, and free shipping continues to drive purchasing decisions.
No real shockers, but as with any study there are some nuances to the findings that are instructive. Nearly everyone (93%) shops at small retailers and 40% of them wanted to support the small business community by doing so. 49% couldn’t find what they needed from traditional stores so they turn to more niche retail outlets. Better prices (57%) and selection (49%) are the top reasons for purchasing online after researching an item in-store, which to me smells like an opportunity for bricks and mortar. After all, while there’s no doubt online sellers don’t have the same cost structure as offline, they have other challenges that can level the playing field.
One thing is returns. When a purchase is made online from a retailer that has an online and physical store, 39% of consumers who make returns prefer to ship the product back while 61% prefer to return the item to the store. When making an in-store return, 70% purchase an additional item compared to only 42% who make a new purchase while processing an online return. I suspect that this “ease of returns” is a selling point for pure physical retailers. According to the report, only 62% of consumers are satisfied with the online returns process: 67% review a retailer’s return policy before making a purchase, 66% want free return shipping, 58% want a hassle-free “no questions asked” return policy, and 47% want an easy-to-print return label.
The study provides insight to help retailers increase sales. 48% of online shoppers said they ship items to the store, with 45% of those saying they made additional purchases when picking up their orders. Free shipping remains the most important option during checkout according to 77% of online shoppers. More than half (60%) have added items to their cart to qualify for free shipping.
Most of the above seems fairly intuitive, but it never hurts to have our own intuition supported by facts, does it?
Consult Keith 