Holiday online shopping hit a new high in 2014 says a new US/UK report, driven by three factors: greater convenience, better prices and ease of use. However, shipping remains the “Achilles’ heel” of online shopping.
According to research by Wipro Digital 71% of surveyed consumers in UK and 61% in US, reported doing more than half their 2014 holiday shopping online. This is a significant increase from 2013, when 45% in UK and 36% in US reported doing the majority of their shopping online.
This trend is set to continue with half of the surveyed consumers in US and UK saying that they plan to do more shopping, online in the 2015 holiday season, as compared to just 6% in UK and 4% in US who plan to increase their in-store shopping.
The research also found that consumers are spending more online than in-store when it comes to holiday shopping. UK consumers spent an average of £292 online compared to £179 in-store this holiday season. In the US, online purchases averaged $400 and in-store $302.
Online pure play retailers are the big winners of this shift. 44% of UK and 47% of US shoppers report doing more than half their online shopping on such sites. A quarter of the shoppers are not even considering bricks and mortar retailers’ websites while more than half are not visiting manufacturers’ ‘direct-to-consumer’ websites either.
However, shipping costs associated with online shopping are a concern for consumers, according to the research. Nearly half of the consumers hope not to pay shipping charges next year – the most important change consumers expect in the 2015 holiday season. In addition, 16% of UK and 11% of US online shoppers did not receive their purchases in time for the holiday.
Even when consumers browse both online and in a store, many choose to go back online to make their purchase. 34% of UK consumers and 33% of US consumers reported this multi-channel experience.
Meanwhile, 39% of UK consumers and 40% of US consumers reported doing part of their shopping from a smartphone or tablet device. Of those who did, 78% of UK and 81% of US consumers used a mobile website, 76% of UK and 74% of US consumers used a full-site version and 50% of both UK and US consumers used a native app. With respect to mobile payments, only 3% of UK and 4% of US consumers reported using any form of mobile payment.
To counter the trend of consumers increasing their shopping with pure play online retailers, bricks and mortar retailers must focus on customer interactions and the benefits of the physical store.
Wipro is a leading information technology, consulting and business process services company that delivers solutions to enable its clients do business better. Wipro has a workforce of over 150,000, serving clients in 175+ cities across 6 continents.
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