A new report from Whistl on the current health of the ecommerce sector has found that the 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 study also highlighted the lack of consumer loyalty currently, with only 3% of consumers stating they are loyal to online retailers while 83% of decisions will be made on price. In a time of economic pressure on household spending, the report found that the ecommerce share will drop by 3% this year.
There were some positives in the findings with opportunities for business growth including 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%).
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 ecommerce 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 ecommerce retailers can use to enhance their online retail operations and grow their businesses.”
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 research from Whistl was conducted in Q1 and was made up of a 1,000 person UK representative panel. It aimed to provide unique consumer online profiles based on demographics, online expenditure and attitudes towards spending in 2023. It also included insights on customer behaviour to returns.