The State of Omni-Channel Retail: How U.S. Consumers Are Buying Online in 2016
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We've partnered with Kelton Global to launch a new study analyzing modern, omni-channel consumer behavior. This data encompasses survey responses from 1,000 U.S. shoppers and uncovers the details on how, when, where and why Americans buy, educating the entire commerce industry on today’s consumer shopping preferences. Learn more: https://www.bigcommerce.com/blog/omni-channel-retail/
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The State of Omni-Channel Retail: How U.S. Consumers Are Buying Online in 2016
- 1. How U.S. Consumers Are Buying Online in 2016 Based on data from more than 1,000 American shoppers
- 2. A quick overview What you’ll learn in this presentation: • Who shops online • Where Americans spend online • What Americans are buying • What influences the American shopper to purchase • How Americans feel about online shopping • How important Americans rank online shopping Get more data: www.BigCommerce.com/blog/omni-channel-retail
- 3. The biggest opportunity is online
- 4. Online shopping is pervasive 96% have purchased online at some point 80% have done so in the past month
- 5. Online is now the preferred way to buy Which is the best way to shop? 51% online 49% in store
- 6. Online purchasers spend a lot of time shopping online 5 hours per week, on average Parent spend more time shopping online than those without children (7 v. 4 hours/week)
- 7. Many Americans can’t live without online shopping Which of the following could you not live without? Online shopping Smartphone GPS Streaming TV Streaming music Food delivery services Wearable fitness trackers Car hailing apps Dating apps 40% 34% 29% 21% 8% 7% 5% 5%
- 8. And yet: Significantly more budget is spent in store 36% Online 64% In-store
- 9. Takeaways Online shopping is now essential to American life If you have a successful brick and mortar retail business, extend it with an online shop Consider targeting shoppers who spend the most time online, like parents Get more data: www.BigCommerce.com/blog/omni-channel-retail
- 10. Where people shop online
- 11. Marketplaces are the most frequent starting point for product discovery 48% of purchasers first shop at mass marketplaces like Amazon, eBay
- 12. But big brand sites are the most common destinations for purchases On which types of online retail sites have you shopped? Large online/offline brand name retailer Mass ecommerce marketplace Small/specialty online retail brands Category-specific online retailer 74% 54% 44% 36%
- 13. Mass marketplace buyers: Highest spenders, careful purchasers Average yearly spend: $488 More likely to research brands before purchasing More likely to take time to find the right deal Where else are they shopping? Large online/offline brand name retailer Small/specialty online retail brands Category-specific online retailer 71% 49% 48%
- 14. Big brand buyers: High spenders, high loyalty Mass ecommerce marketplace Small/specialty online retail brands Category-specific online retailer 52% 47% 40% Average yearly spend: $409 Least likely to research alternative brands Where else are they shopping?
- 15. Small/specialty shop buyers: Lowest spenders, less loyal Large online/offline brand name retailer Mass ecommerce marketplace Category-specific online retailer 80% 61% 56% Average yearly spend: $182 More likely to state that they enjoy shopping Where else are they shopping?
- 16. Category-specific buyers: Loyal to brands, not retailer types Large online/offline brand name retailer Mass ecommerce marketplace Small/specialty online retail brands 83% 72% 68% Average yearly spend: $259 More likely to stick to certain brands More hesitant to make large purchases Where else are they shopping?
- 17. Takeaways On average, Americans visit at least 2 of the 4 shopping destinations Sell across multiple platforms, experiment to find the mix that works best for you Use a platform that enables multi-channel selling Get more data: www.BigCommerce.com/blog/omni-channel-retail
- 19. Mass marketplaces 44% Books, movies and music 43% Clothing, shoes and accessories 34% Computers and electronics 29% Health and beauty products
- 20. Big brands 47% Clothing, shoes and accessories 32% Computers and electronics 28% Books, movies and music 24% Health and beauty products
- 21. Small/specialty shops 27% Clothing, shoes and accessories 18% Health and beauty products 15% Books, movies and music 15% Flowers and gifts
- 22. Category-specific stores 30% Clothing, shoes and accessories 21% Books, movies and music 19% Computers and electronics 19% Flowers and gifts
- 23. Takeaways Know which products will sell best on each channel you use Apparel/accesories are the most-purchased items with big brands, category-specific and small/specialty retailers Books, movies and music top the list for marketplaces Computers and electronics do well on marketplaces, big brands and category-specific retailers Health and beauty products are big sellers for mass marketplaces, big brands and small/specialty retailers Get more data: www.BigCommerce.com/blog/omni-channel-retail
- 24. The rise of social commerce
- 25. 30% of shoppers are willing to buy on social media 20% Facebook Likelihood for purchasing by network: 17% Pinterest 14% Instagram 12% Twitter 10% Snapchat
- 26. Followers are potential customers 21% Featured in a brand’s Facebook post Survey respondents stated their likelihood of purchasing a product: 18% From a brand’s Pinterest board 16% Featured in a brand’s Instagram post 14% A brand has tweeted about 12% In a brand’s Snapchat
- 27. Takeaways Social media has a huge influence on sales Enable social sharing and feature products on your social channels Grow your pool of followers to expand your potential customers Social selling can’t be ignored — it’s only going to grow in popularity BigCommerce enables selling on Facebook and Pinterest, with more channels coming soon Get more data: www.BigCommerce.com/blog/omni-channel-retail
- 28. The perils of online shopping
- 29. Buyer’s remorse 42% of online shoppers have made a purchase they regret 51% Millennials are even more likely to have regret
- 30. Oops purchases 21% of shoppers accidentally bought something they didn’t want
- 31. Overspending 48% of shoppers have spent more than they intended
- 32. Drinking and shopping 10% of shoppers admit to making a purchase after drinking alcohol Men, younger generations and parents are more likely to drink and shop
- 33. Online shopping never sleeps (or takes a restroom break) 43% Bed Office 23% Shoppers have made online purchases from: Bathroom 20% Car 20% Vacation destination 16%
- 34. Takeaways The convenience of online shopping means missteps are bound to happen Offer a strong return policy to foster goodwill and loyalty Consumers buy everywhere — make sure you offer a good mobile experience Get more data: www.BigCommerce.com/blog/omni-channel-retail
- 35. What influences a purchase?
- 36. The top 3 purchase influencers 87% Price 80% Shipping cost and speed 71% Discount offers
- 37. The aversion to shipping costs 58% of shoppers cite paying for shipping as their least favorite part of online shopping 66% have decided not to buy an item due to shipping costs
- 38. The pain of payment 19% of shoppers say entering payment information is their least favorite part of online shopping
- 39. The power of word of mouth 42% are influenced by recommendations from family/friends 23% are influenced by social media recommendations
- 40. The importance of good design 21% of shoppers say poorly designed sites are their least favorite part of online shopping 49% cite not being able to touch or try a product as their least favorite part
- 41. Takeaways Do your research to make sure your prices are competitive Offer free or discounted shipping and fast, reliable shipping options Figure out how to offer discounts that don’t hurt your bottom line Offer great customer service, return policies and social sharing to bolster word of mouth Invest in good design that makes it easy to navigate your site Offer images, reviews, comparisons and videos to help shoppers make decisions Streamline your payment process Get more data: www.BigCommerce.com/blog/omni-channel-retail
- 42. Read the full report What brands need to know about omni-channel retail and modern consumer shopping habits: • Who shops online • Where Americans spend online • When Americans spend online • What Americans are buying • What influences the American shopper to purchase • How Americans feel about shopping • How important is online shopping? • What this means for U.S. retailers
- 43. Even More: 128 Stats Revealing How Modern Consumers Shop Get the raw statistics and insights from the Kelton Global study of 1,000 American shoppers: • Online shopping • Spending and conversion • Buying frequency • Consumer location at time of purchase • Types of online goods purchased • Influencing factors on conversion • Online shopping in society • Shopper characteristics by channel
- 44. Infographic: The Driving Factors Behind Modern Consumer Behavior in the New Omni-Channel World Grab the code to embed this image on your site, and head to BigCommerce.com/blog for more industry insights and trends.
Editor's Notes
- TROY: I’m enthusiastic about this data. I look at it and I think Wow, what a great time to be selling time. We’re seeing a clear shift in consumer behavior to favor ecommerce, and it’s evident by the answers from more than one thousands shoppers in this research. US consumers are beginning to allocate a significant amount of their budget to online purchases and are willing to give up some of life’s conveniences - Netflix, Spotify, directions and maps on their phones - all for the ability to buy online. If you’re already selling online, that’s great. You’re contributing to one of the greatest changes in commerce that the world has ever seen. If you’re not yet online, and particularly, if you already have a successful brick and mortar business, then now is a great time to start selling online. Getting online is fairly easy these days. Look for a platform that can import your catalog from your existing point of sale and then ongoing keep your inventory synchronized across both channels.
- This data highlights the impact of brand recognition and recall. It also shows that nearly half of consumers have shopped on a small retailer’s site, which is indicative of a broader trend where consumers are increasingly looking for unique goods or to do business with brands that have a message that resonates with them personally. We call this the era of the ‘conscious consumer.’
- TROY: So it’s pretty clear from this data that we now live in this omni-channel world, where consumers expect to be able to buy anywhere. They’re actively and passively searching for products across a variety of channels and now have the expectation that it’s easy to buy wherever and whenever they discover that perfect item. The more channels your products appear, the higher opportunity for consumers discover them and buy. In this environment, brands should consider how they position themselves to shoppers and their journeys to discover products. As a merchant it’s important to get your products in as many channels as it makes sense for you. For example, if you are not currently selling on leading marketplaces, your products are absent from roughly half of all product-related searches on the web. The first thing is to make sure you work with a platform that gives you this opportunity - that enables you to list your products in as many channels as possible like social networks, marketplaces, etc. With some platforms, you can install add-on apps like Channel Advisor, Sellbrite, and Channel Unity. And some platforms have channel management built-in. When you’re looking at omni-channel solutions, make sure you look at how inventory is sync’ed across these channels (ideally it’s sync’ed automatically in real-time to prevent overselling), what sort of analytics it has for measuring channel success, and how it manages listings. For example, when you create listings with channels like Amazon which are very price sensitive, you’ll want sophisticated repricing tools.
- TROY: Experiment to see which channels are most impactful for your business. In addition to the notes on the slides. Consider things like the the price of your products or how suited they are for impulse buying. For example, lower value products are great impulse buys on social networks, so try your products on Facebook and Twitter. Do you sell products which typically cause shoppers to do a fair bit of research before buying? If so, then we’ve found Pinterest is a great channel because shoppers use Pinterest to a tool to do their research before buying. Do you sell unique products? If so, there’s a tonne of demand for unique products which aren’t traditionally found in marketplaces, so try marketplaces. JY Comments… In recent years there has been a considerable amount of discussion about multichannel strategies, but this data highlights why they are important and why each retailer needs to think about their channel mix. For example, consumer shopping behaviors on social networks — such as with Facebook and Pinterest — isn’t as established as shopping behaviors on marketplaces. What is clear is that specific product types and categories tend to perform better on some third-party sales channels, so retailers need to consider where they will see the greatest returns. Additionally, this further reinforces why centrally managing off-site listings and inventory management is incredible valuable. As the barriers to selling on social networks and marketplaces are removed, it becomes easier for retailers to test and refine their multichannel strategies without introducing complexity or unintended consequences like overselling. Some platforms now offer these integrations natively.
- TROY: I’m a big fan of social commerce and the reason I love it is because it’s fundamentally changing the way we shop. You see we’re at the advent of what I call “contextual commerce”, or shopping where consumers are already engaged. Branded online storefronts are great but they still suffer the challenge of having to get a shopper to your site and then find the products that they’re interested in. Essentially, it’s a mirror of offline retail but in the digital world. The promise of contextual commerce is that removes a lot of that friction and path to discovery. Social commerce is one aspect of this trend. A few platforms are working closely to bring selling on social networks to merchants now; today, you can sell on Pinterest, Facebook through BigCommerce with other channels coming soon. Many of these channels are already experimenting with branded content and advertising, and it won’t be long until all of these platforms enable purchases. Snapchat just announced its first commerce-enabled ads (http://www.marketingdive.com/news/snapchat-launches-first-shoppable-ads-for-brands-1/418466/), and we can only expect these social networks to grow in maturity and understanding of how to enable commerce for their users.
- TROY: Well, I think this data further validates what I was saying earlier about contextual commerce. Increasingly, consumers are buying while they are engaged in a wide range of experiences so think about how you can enable the buying experience in non traditional channels like social. And of course, optimizing your site for mobile is essential. That includes making sure it’s responsive and renders well on phones and tablets, and remove friction during checkout by offering payment solutions like PayPal and Amazon Payments which make it super easy to check out on mobile. JY Comments: Suggest not mentioning Amazon Payments due to partner sensitivities.
- TROY: A couple of comments here: Shipping is the number one reason (both costs and delivery times) that shoppers abandon carts so I can recommend a few strategies. a) Where possible offer free shipping. Experiment with including it in the product price. Running free shipping promotions to see how that impacts sales. b) Many merchants quote high prices in their checkouts because they don’t have sophisticated ways to get accurate quotes in their checkout. So look for a platform that offers sophisticated shipping rules - things like dimensional shipping where it uses algorithms to figure out how best to pack boxes or rules for least cost routing if you’re using multiple warehouse. Importantly, make sure your products have accurate weights and dimensions. c) Offer express delivery services and even try courier services d) Offer customer-focused return policy to minimize any hesitation the shopper may have. With an online business, you have a single moment to make a lasting impact on shoppers and that is with the look and feel of your site. If the shopper isn’t standing in your physical retail store or experiencing your brand in an immersive way, they may lose the connection they once felt towards your business. Spend time customizing your business to share your brand’s unique story. This can be done by selecting a responsive, modern theme or working closely with a design agency to bring your brand’s story to life through custom development. Lots of great insights in this section so I touch on a couple: Shipping is the Shoppers want a more immersive online experience. One of the easiest and most impactful things you can do is ensure you have high quality product images and you allow your shoppers to zoom in on images. The other really big thing, and you see this on literally every successful brand’s site, is to take the time to tell your brand store. It’s not enough to just present your product catalog. You have to tell your brand story and bring your products to life with videos and other content. Use Facebook adn Twitter feeds to show image of your customers using your product.