According to Radial, simplifying omnichannel commerce technology and operations, 72% of US online shoppers have a membership to an eCommerce marketplace such as Amazon or eBay. Their recent study entitled “Outsmart eCommerce Giants to Win Online Shoppers in 2018” shows that the retail industry dominated headlines throughout 2017 as it underwent a period of significant transformation, from new channels for shopping to industry consolidation, and a string of store closings, the shopping experience has changed substantially from just five years ago.
The survey, conducted by Radial, shows that eCommerce marketplaces are impacting global online shopping trends such as:
The study explores what more than 4,000 consumers across four different regions of the world - United States, United Kingdom, Canada and Australia - value in their online experience, where opportunity exists, and how brands and retailers can execute to ensure that they maintain a competitive position as the industry continues to rapidly transform.
Understanding who your shoppers are and what they are purchasing online is critical for eCommerce success, says the report. While each company must drill into their specific target market and audience at a granular level to understand nuances, there are consistencies that exist across the globe.
Women Are More Frequent Online Shoppers
% Frequent Shoppers
The types of products being purchased online are similar across regions as well:
According to a global study conducted by Euromonitor International, a consumer market research firm, global online food and beverage sales will rise 80% over the next five years. The increase in online grocery is consistent, says the report, with the survey finding that most online shoppers are purchasing lower cost items and generally spend less than $100 per month on goods.
The recent boom of marketplace memberships has set the tone for the greater eCommerce industry and, in the process, made it more difficult for individual brands to satisfy consumers, says the report. This is due to the convenience that marketplaces offer, with such a broad range of products and a “one-stop-shop” that eliminates the need for consumers to subscribe to multiple websites or download multiple apps.
The impact that Amazon (and eBay before it) has had on consumer convenience is substantial, as the majority of consumers who shop online hold a membership to an eCommerce marketplace. Survey results, says the report, found that 20% more American consumers hold memberships than other English-speaking countries at 72.6%, with Canada and the UK even (58.6% and 58.2%, respectively), and Australia close behind at 55.8%.
Among these marketplaces, Amazon is the clear favorite in global markets where it is available, recently displacing eBay. The survey findings prove that major eCommerce marketplaces and industry leaders are setting the tone for consumer expectations. Because Amazon is so prevalent across most English-speaking regions, it is impacting consumer standards when shopping elsewhere. The report addresses these expectations and how retailers meet them:
Lessons Learned, says the report…
The drastic rise of eCommerce has resulted in a re-setting of customer expectations. Retailers should focus on emerging global markets where opportunity to gain a foothold and directly impact the customer experience remains strong.
While retailers work to keep up with market leaders, such as Amazon, in the US and abroad, they should set their sights on cross-border strategies to gain a leg up. Brands that can get ahead of the inevitable commoditization of eCommerce offerings stand a better chance of gaining influence in new regions.
Above all, retailers must understand their customers. Through having a grasp on what their customers are looking for and at what price, retailers will be able to build the ideal experience for their base. Consumers are shopping online for convenience and are interested in purchasing various items. With these underlying motivations in mind, retailers will be better positioned to build eCommerce strategies that highlight and differentiate their offerings.
To read the complete report, please visit here.