A new report from Whistl on the current health of the e-commerce sector has found that only 3% of consumers are loyal to online retailers and that 83% of decisions will be made on price. In a time of economic pressure on household spending the report finds that online spending will drop by 3% in 2023.
The comprehensive 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%.
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.
Opportunities for business growth include retail subscriptions with 43% of the population open to the idea. Discounts naturally 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. The most often used channel by men was YouTube and Facebook for females.
The report from Whistl also 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.”
The research from Whistl was conducted in Q1 and was made up of a 1000 person UK representative panel.
