Avid online shoppers, who make two or more purchases online in a
typical three-month period, are leading a retail revolution. These
consumers are shopping more with their smartphones and demanding a
more seamless experience between virtual and physical stores,
according to the fifth annual UPS Pulse of the Online Shopper™
study.
This is the first time in the study’s five-year history that
more than 50 percent (51%) of all purchases made by respondents are
made online, up from 48 percent in 2015.
“Consumers are skilled at using technology to their advantage
and thrive on gathering information when shopping,” said Teresa
Finley, Chief Marketing Officer at UPS. “This year’s UPS study
revealed that 45 percent of online shoppers love the thrill of
hunting for and finding great deals, and that physical stores
continue to play an important role in that experience. The
challenge is how to best engage with shoppers to fulfill their
desires.”
Evolved Shoppers
The shift from traditional in-store shopping to
shopping with multiple channels continues. Seventeen percent of
consumers plan to shop less in store, shifting time to their
electronic devices.
The use of smartphones is up 10 points (to 77%) over the past
two years, and retailers are responding. Online shoppers report a
better mobile experience with satisfaction up eight points (to 73%)
since last year.
Social media’s influence on purchasing
decisions is up nine points (to 34%) in the last year with nearly a
quarter of respondents (23%) having made purchases through social
media sites.
Shiny New Objects
Some traditional online retailers are experimenting with
showrooms without inventory to provide consumers
with the opportunity to examine products at a physical location
before buying them online. One in six shoppers say they have
visited such retailers. These locations are finding some initial
success with millennials, women and urban shoppers.
While marketplaces such as Amazon and eBay are
well-established shopping resources, consumers are turning to them
earlier to find the best deals. Thirty-five percent of online
shoppers now begin their searches at marketplaces.
Reimagining the Store
Cross-channel transactions, which refer to purchases using
in-store and at least one online channel, now account for 38
percent of all purchases (up 2 points). Store-only searches and
purchases declined by two points (to 20%). Retailers must create
seamless experiences that resonate with how their customers want to
shop. Providing detailed product information with good photography,
professional and peer reviews, and online access to store
inventory (58% find it important) are critical.
Online sales drive significant in-store traffic. Half of
shoppers who buy online, ship to a physical store.
Of these, 46 percent make additional purchases while picking up
their items. A majority of shoppers (60%) also prefer to return
items to a store, at which time 70 percent of them make
additional purchases. Yet only 36 percent of shoppers say
they experience helpful associates when returning items to a
store.
“Cost, control and convenience are shoppers’ primary drivers,”
said Finley. “Shoppers may be buying more online, but they still
value the physical store. Providing an exceptional in-store
experience can position the retailer to convert more sales and
enhance loyalty when customers pick up and return items.”
Online shoppers report they are using their smartphones
in-store for a full range of actions. Nearly 30 percent of
shoppers look up product reviews (29%), read product details (28%),
compare prices (27%), and access coupons for in-store redemption
(27%) regularly (often or most of the time). Just 31 percent of
shoppers are aware of in-store beacons. A quarter (26%) of
smartphone users are receptive to in-store mobile messaging with
Urban shoppers (37%) and millennials (36%) being even more
receptive. However, more than four in ten smartphone users
are neutral toward the idea of in-store mobile messaging.
“We know shoppers use their smartphones while in-store, so if
retailers can tie together mobile messaging with valuable features
in their apps, this can be a winning combination,” said Louis
DeJianne, UPS director for retail and consumer products.
The Ready Retailer
Free shipping continues to be
the most important factor driving customer satisfaction when
checking out online (73%), although consumers are willing
to pay a premium for faster delivery. Half of shoppers
(50%) would pay for faster shipping for personal reasons, such as
birthdays and holidays.
Home delivery is still the preferred location to receive
packages, although more consumers are embracing alternate
delivery locations. Preference for alternate delivery
locations grew nine points (to 35%) in the last two years. More
than half of shoppers are interested in an alternate delivery
location with extended hours and lower fees.
“These are exciting and challenging times for retailers,” said
Finley. “The industry is changing at an incredibly fast rate.
Listening closely to what shoppers want and boldly trying new
techniques can give retailers a competitive advantage in this very
competitive industry. UPS is working with shoppers and retailers to
provide a seamless, engaging experience that everyone will
enjoy.”
UPS offers technology-driven services that help retailers
deliver the experience shoppers are desire, including:
- UPS Quantum View Manage® provides
manufacturers and retailers with shipment tracking, customs
brokerage and inbound-outbound scheduling;
- UPS i-parcel™ enables consumers around the
world to shop online with U.S. and UK retailers as if they were
shopping in their own country;
- UPS My Choice® provides convenient delivery
options that fit busy lifestyles. More than 25 million consumers
worldwide use the service to manage when and where their packages
arrive, and reschedule or reroute packages to other locations;
and
- UPS Access Point™ locations offer secure,
convenient delivery through more than 24,000 local retailers,
secure lockers, and The UPS Store® locations in North America and
Europe.
For more study findings, which is conducted by comScore, Inc.
(NASDAQ: SCOR) on behalf of UPS, please download our white paper,
infographic and executive summary.
About UPS Pulse of the Online Shopper™
The UPS Pulse of the Online Shopper Study evaluates consumer
shopping habits from pre-purchase to post-delivery. The 2016 study
is based on a comScore survey of more than 5,000 U.S. online
shoppers.
About UPS
UPS (NYSE: UPS) is a global leader in logistics, offering a
broad range of solutions including transporting packages and
freight; facilitating international trade, and deploying advanced
technology to more efficiently manage the world of business.
Headquartered in Atlanta, UPS serves more than 220 countries and
territories worldwide. The company can be found on the web at
ups.com® and its corporate blog can be found at longitudes.ups.com.
To get UPS news direct, visit pressroom.ups.com/RSS or follow
@UPS_News.
About comScore
comScore, Inc. (NASDAQ: SCOR) is a leading cross-platform
measurement company that precisely measures audiences, brands and
consumer behavior everywhere. comScore completed its merger
with Rentrak Corporation in January 2016, to create the new model
for a dynamic, cross-platform world. Built on precision and
innovation, our unmatched data footprint combines proprietary
digital, TV and movie intelligence with vast demographic
details to quantify consumers’ multiscreen behavior at
massive scale. This approach helps media companies monetize
their complete audiences and allows marketers to reach these
audiences more effectively. With more than 3,200 clients
and global footprint in more than 75 countries, comScore is
delivering the future of measurement. For more information on
comScore, please visit comscore.com.
Matt O’Connor
404-828-8113
matthewoconnor@ups.com
United Parcel Service (NYSE:UPS)
Historical Stock Chart
From Mar 2024 to Apr 2024
United Parcel Service (NYSE:UPS)
Historical Stock Chart
From Apr 2023 to Apr 2024