A new report announced today by eCommera, leading provider of intelligent ecommerce trading solutions, adds weight to the latest IMRG Capgemini e-Retail Sales Index which shows growth for the British online retail market is continuing to climb. This latest report shows that 42.6 percent are now shopping online at least once per week and the average shopper is now spending £71 per month on online goods.
Andrew McGregor, CEO of ecommerce expert eCommera, said: “The recession has been bad news for the high street but online retailers have seen real growth because of the benefits they offer to consumers. Price is an obvious benefit of shopping online as it's far easier to shop around online for a bargain by visiting multiple retailers' websites or using price comparison sites. But greater choice, a flexible range of delivery options and the convenience of shopping at any time of day and taking delivery without ever having to queue in-store or seek for a parking space, is also critical and clearly driving growth in online sales.”
Online Retail Update: Key findings
More than a third (36.25 percent) of respondents said they have increased the amount of money they are spending online over the past year. Less than a fifth (18.65%) have reduced the amount they spend online.
- Brits spend an average of £71 each per month online.
- Price is the top reason consumers are shopping online, with 60.4 percent believing they get a better bargain than on the high street. In second place with 50.8 percent is the convenience of having items delivered and in third place with 39.3 percent, is the sheer range of choice available online.
- Poor images, product details and descriptions are the biggest put off for 42.15 percent of respondents. Difficult sites to navigate came in second place with 31.65 percent followed by finding items out of stock (26.10 percent).
- The biggest reason for not revisiting a website following a purchase is when a product doesn’t deliver on expectations or is not as described on the site (41.75 percent). Next in line is if a product arrived late (19.15 percent) and in third place if the after sales support was poor (18.05 percent).
- Just 9.3 percent of online shoppers have yet to break the £50 barrier, suggesting a strong market for luxury goods, designer clothing, jewellery and even items such as cars are driving up the average spend.
- Only 5.1 percent of respondents said they had shopped with a particular website because of something they had seen on such social networks. Even direct email marketing has driven more consumers (9.05 per cent) to transact online than social media.
- The recommendation of friends and family remain of great importance with 70.9 percent citing that as a factor in making a purchase.
“The findings show that while price is critical, it’s the fundamentals of product, proposition and delivering on promises that are most important to the customers experience and satisfaction. The operational aspects (stock, availability and delivery) of a retailer’s online business have a big impact on customers. Repeat visits are driven by a good experience, on spec products, delivery as expected and great after sales support. This, in turn, will see the customer recommending the service to others. Retailers must adopt a data driven approach to trading which will enable them to understand the impact of these factors on revenues and profitability,” concludes McGregor. “This report shows signs of positive growth and I think it will encourage retailers to take their online strategy more seriously. They need to have measures in place to monitor and manage critical elements and decide how to optimise their sites. For most retailers repeat purchase is the engine of profitable growth.”