According to a new report on the current health of the e-commerce sector by Whistl, only 3% of consumers are loyal to online retailers and 83% of decisions will be made on price.
The report also found that cost of delivery is now the main priority of consumers (54%) rather than speed (24%) and £5.95 is the highest price point for delivery before it has a negative impact on the ability to convert a sale.
The report guides e-commerce retailers on how to target consumers and increase sales despite the economic challenges. For example, households with an income over £70k are expected to increase spending online by 8%.
Opportunities for business growth include retail subscriptions with 43% of the population open to the idea. Discounts remain very important to entice new customers with 47% of respondents wanting them, followed by free delivery (39%).
When looking at media habits, Facebook was the most frequently used social channel with 61% using it daily.
Whistl is a delivery management company that provides mail, parcels, leaflet advertising, fulfilment, and contact centre services in the UK and internationally. It has an annual revenue of £820m+ and handles in excess of 3.6bn items a year. Its report was conducted in Q1 and was made up of a 1,000 person UK representative panel. It contains unique consumer online profiles based on demographics, online expenditure and attitudes towards spending in 2023. It also provides insights on customer behaviour to returns, delivery, subscriptions, and social media use.
Nick Wells, executive chairman, Whistl, commented: “No doubt that the trading environment in the UK is challenging but it’s important that we help our e-commerce fulfilment customers navigate these times and help them to thrive. Our report includes great insight into the current state of the market but most importantly profiles of what the consumer is thinking, which e-commerce retailers can use to enhance their online retail operations and grow their businesses.”
For a copy of the research (registration required) go to www.whistl.co.uk/continuetothrive
