Last Updated on: 21st November 2023, 11:00 pm
Whistl has released a new report shedding light on the current state of the e-commerce sector, highlighting that a mere 3% of consumers exhibit loyalty towards online retailers. The study further indicates that 83% of purchasing decisions are primarily influenced by price. Against the backdrop of economic pressures on household budgets, the report predicts a 3% decline in online spending in 2023.
Despite these economic challenges, the comprehensive report offers valuable guidance to e-commerce retailers on how to effectively target consumers and drive sales. Notably, households with an annual income exceeding £70k are projected to increase their online spending by 8%.
Interestingly, the report highlights that cost of delivery has surpassed speed as the main priority for consumers, with 54% prioritising affordable delivery options compared to 24% who prioritise speedy delivery. Additionally, the report identifies £5.95 as the maximum acceptable price point for delivery before it negatively impacts the conversion of a sale.
The report identifies various opportunities for business growth, including retail subscriptions, with 43% of the population expressing openness to the idea. Discounts remain crucial in attracting new customers, as 47% of respondents expressed a desire for them, closely followed by free delivery (39%).
Regarding media habits, Facebook emerged as the most frequently used social channel, with 61% of respondents using it daily. Men predominantly favored YouTube, while females leaned towards Facebook.
Whistl’s report also offers unique consumer online profiles based on demographics, online expenditure, and attitudes towards spending in 2023. Furthermore, it provides insights into customer behavior regarding returns, delivery preferences, subscriptions, and social media usage.
Nick Wells, Executive Chairman of Whistl, emphasised the importance of supporting e-commerce fulfillment customers during these challenging times. He stated, “The trading environment in the UK is undoubtedly challenging, but it’s crucial that we assist e-commerce retailers in navigating these circumstances and enabling their growth. Our report not only offers valuable insights into the current market landscape but also provides consumer profiles that online retailers can leverage to enhance their operations and expand their businesses.”
The research conducted by Whistl took place in Q1 and involved a representative panel of 1,000 individuals in the UK. For those interested in accessing the full research, it is available at: https://www.whistl.co.uk/continuetothrive
