Finding show shoppers made more purchases online than in stores for the first time ever.
The fulcrum has tipped. For the first time, a new survey demonstrated that consumers bought more of their purchases online than in stores. The fifth annual UPS Pulse of the Online Shopper found that 51 percent of all purchases made by respondents were made online, an increase from 48 percent in 2015. It also found that tech-savvy shoppers are taking more control with smartphones and that technology is driving retailers to redefine the store to capture customers.
“Consumers are skilled at using technology to their advantage and thrive on gathering information when shopping,” explained Teresa Finley, Chief Marketing Officer at UPS, in a press statement. “This year’s UPS study revealed that 45 percent of online shoppers love the thrill of hunting for and finding great deals, and that physical stores continue to play an important role in that experience. The challenge is how to best engage with shoppers to fulfill their desires.”
The shoppers reported that only 20 percent of their purchases were made in a store the conventional way -- going to a store, browsing there and buying -- down from 22 percent a year ago. Forty-two percent chose to search and buy entirely online, while the rest said their purchases were made by combining online and in-store shopping and browsing, according to the Wall Street Journal.
Mobile shopping also saw a significant increase, from 41 percent in 2015 to 44 percent in 2016 of smartphone users reporting using their device to make purchases.
The survey polled 5,000 consumers who make at least two non-grocery online purchases over a three-month period.
“There’s been a dramatic shift,” says Steve Osburn, who advises retailers on supply-chain issues for Kurt Salmon. “Over time, people are getting more and more comfortable” shopping online, he says. That has hit retailers hard.
And what has been dubbed the “Amazon effect” is palpable. No longer just about low prices and the ability for people to search for what they wanted easily on Amazon, now it is more about its Prime benefits and delivery services.
“Amazon’s changing the paradigm,” John Haber, CEO of supply chain consultancy Spend Management Experts, told the Wall Street Journal. “They’re changing customers’ expectations because they’re giving them the low-cost shipping along with the speed. And then you change the mentality of the consumer…Now it’s the expectation.”
