The UK can claim many things – among them being one of the world’s most advanced countries when it comes to e-commerce. UK shoppers make 13.5% of their purchases online, versus 7.1% per cent in Germany and the US (Source: FT)
Propelled by a number of consumer lifestyle trends as well as technology advancements, online shopping will continue to grab a bigger and bigger piece of consumer spend.
A number of factors will continue to contribute to this rise:
– Better/More Extensive Information: Online shopping offers more product information than often is typically available in store. Consumers also have the benefit of research, consumer comments and reviews, and other factors helping them to make informed decisions.
– Convenience: Rather than going to the store, shopping online offers the opportunity to shop from the home, office, or on the go via mobile. With Smartphone usage constantly rising, people will be able to shop from the bus, train or literally anywhere. In grocery, a set weekly shopping list can be pulled up for instant order of regular items. Ease of returns reinforces convenience.
– I Want That: While e-tailers are improving their content to be more magazine-like, magazines like Vogue will have e-commerce on their site, offering consumers the opportunity to buy clothing, shoes and accessories straight off of editorial. Amazon Flow will enable consumers to take a picture of any item they see, and Amazon will find it and sell it to them.
– Love of Travel: Brits love to travel – airline and train tickets, as well as hotel rooms, are typically booked online these days. With timetables, prices and consumer reviews available online, travel is a leading driver of online sales.
– Gifting: Sending gifts to friends, family and other will increase online. With easy of searching by price and recipient, finding the perfect gift is often easier online. With soon-to-be introduced Facebook Gifts, something can be gifted and unwrapped by the recipient online – the recipient then enters her address and the gift is shipped.
– Better Websites & New Technologies for Viewing: E-tailers are constantly upgrading their website usability, including improving search functions, product display, and easy transactions. By offering consumers the ability to zoom in on product details, change colours, upload their own pictures, consumers are gaining the confidence to order.
– Retailers Rewarding Loyalty: Retailers are learning to reward loyal online shoppers with free shipping, VIP programmes and discounts. Consumers will be online VIPs with access to exclusive merchandise and special privileges from online retailers.
– Safe Payment: With significant improvements in website security and fraud protection offered by credit card companies, SCB’s research indicates that consumers no longer have qualms about inputting credit card information on websites. PayPal has only increased payment options, and mobile payment options will continue to be introduced.
Consumers will continue to seek personal, interactive experiences in physical retail and will look to convenience options for immediate purchase of tangible goods; however, the internet is an increasingly compelling way to shop, and will continue to gain share of the UK consumer’s spend across categories – from travel to grocery to fashion and more.
