The recent growth acceleration for e-commerce is here to stay: even after the pandemic European shoppers will continue to buy significantly more online. This applies to all age groups, in every product category.
Convenience, deals and speed
The recent lockdowns have permanently changed buying behaviour. A more mixed shopping approach, with greater weight given to online shopping, is becoming the new normal for European consumers. The intention of shoppers to do ‘all’ or ‘most’ of their shopping online rises from 10% before the pandemic to 15% after, according to UPS’ new Smart E-Commerce report. The expectation to buy ‘everything’ or ‘most’ in physical stores decreased by 14% from 54% to 40%. Age does not play a role in this: there were large decreases in all age groups. The biggest shift to online shopping is in the categories household products, cosmetics and food.
Not that the physical store is completely out of favour with shoppers: people appreciate the pleasure of physical shopping (41%) and the perception that physical shopping provides a more personal experience (38%). But convenience is by far the most important reason for choosing online shopping, according to almost half (48%) of respondents. Other arguments are finding good deals online (44%) and speed (41%). 38% of respondents believe that products are usually cheaper online.
Large chains versus independent stores
Since the pandemic, do consumers want to buy more from local, independent shops? That is relative. In all retail sectors, large retailers are clearly preferred, with the highest response rates for white goods (63%) and food (62%). The main arguments for buying from independent stores: a desire to help small or local businesses, better customer service and a more personalised customer experience.
Shoppers appreciate brand communication through social media, but purchases through social media marketplaces such as Facebook Marketplace or Instagram Shopping remain limited for now: 14% do it at least once a month. 80% of respondents say they appreciate brands that put their customers and employees first in their communications. As many as 60% think brands communicated too much during the pandemic.
Enduring expectations
Remarkably, free delivery and returns are key to attracting those over 55 – mirroring the experience of buying on the high street. On the other hand, consumers do expect retailers to pay sufficient attention to sustainability, and this also applies to delivery options. Among large retailers, shoppers would like to see environmentally friendly packaging (54%), carbon footprint offset for deliveries (48%), alternative delivery options (47%), electric or low-emission delivery vehicles (47%), a minimum order for free delivery (44%) and minimum delivery charges (42%).
Regarding the brexit, 72% of European consumers expect purchases from the UK to become more expensive and 69% think they will also take longer to arrive. Conversely, 66% of Britons think that goods from the EU will become more expensive in 2021, while 64% believe that orders will take longer to ship due to new customs requirements. Overall, 77% of respondents expect a global recession this year and 57% plan to spend less. In total, the survey questioned more than 10,000 adults in the UK, France, Germany, Italy, Spain, the Netherlands, Belgium and Poland between 7 and 18 January 2021.
