7/1/13
Retail e-commerce reached $186 billion in 2012, accounting for 10% of all discretionary spending, according to UPS. The in-depth survey of online shoppers finds:
- Retailers need to communicate clear expectations on package delivery timing;
- Retailers need to offer flexible shipping options, including retail store pick-up;
- Retailers need to improve the return process and clearly state returns policies; and
- Shoppers want the ability to shop online but return in-store.
Nine in 10 online shoppers have recommended an online retailer to others, with free shipping and receiving the product when expected as the key drivers. Meanwhile, shoppers are also likely to mention poor customer experiences, with their top detractor being a shipping cost that is too high based on the product price.
Online shoppers view “ship to store” offers as a way to avoid shipping costs, but, among the 51% of online shoppers who have used this purchase avenue, 38% purchased other items while in the store.
Nearly nine in 10 online shoppers (88%) have placed items in a shopping cart and left the site without making a purchase, with shipping costs as their most-cited reason. At the same time, 75% have added items to their shopping carts to qualify for free shipping.
It’s not an understatement to say shipping and delivery drive the experience. On average, consumers are willing to wait 7.2 days to receive their online purchases. Men are less patient than women and are more likely to abandon a cart if the shipping time is more than four days.
Some 8% of online shoppers are classified as “speeders,” those unwilling to wait longer than three days to receive their shipments. These speeders are typically millennial parents who often have products delivered somewhere other than home.
Still, 76% say free shipping options are the most important considerations when it comes to checking out. Other critical factors include providing an estimated delivery date and total cost of shipping early in the process (53%), offering guaranteed delivery dates (49%), providing a variety of payment options in addition to a credit card (49%), and retaining personal information so shoppers don’t have to rekey information (42%).
Online shoppers expect multiple delivery options, with 66% expecting both economy and ground, 58% expecting a two- or three-day option, and 46% expecting a next-day option. Online shoppers select the most economical shipping options three-quarters of the time, and the fastest option only 1% of the time.
Nearly two in three online shoppers (62%) have returned a product purchased online and think the best policies are ones that allow returns both in-store and online using a prepaid label. An automatic refund is also important.
More than four in 10 online shoppers (46%) who use a retailer’s mobile app are less likely to comparison shop when using an app versus a browser. The majority of online shoppers (84%) use at least one social media site, most commonly Facebook. One in two online shoppers (50%) say tracking information is essential.
SOURCE: “UPS Pulse of the Online Shopper: A Customer Experience Study,” UPS, Melanie Alavi, 55 Glenlake Pkwy., NE, Atlanta, GA 30328; 404-828-7374; malavi@ups.com; www.ups.com.
© 2013 Business Valuation Resources, LLC (BVR). May not be reproduced without written consent of publisher.