Online shopping growth will drive product prices down: survey
New research has revealed that Aussie shoppers have developed distinctive habits in their online shopping, that differ markedly from their in-store shopping habits. It’s both good and bad news for e-tailers.
A survey commissioned by CouriersPlease (CP) asked 1000 Australian online shoppers how much they spend per purchase online compared with in store purchases, whether they purchasing cheaper items online, whether they have more control over their shopping spend online, and if they spend more time researching products when shopping online.
CP reveals the 5 habits Aussies have developed when shopping online:
1.4 in 5 shoppers tend to purchase items under $100 online. Shoppers tend to buy lower-priced items online. The survey results found that 2 in 3 shoppers (63 per cent) will tend to purchase more expensive items in-store instead of online. Eighty-three (83) per cent of shoppers do not spend more than $100 per item when shopping online. For 44 per cent, the average price point of items purchased online are $50-100 each. Meanwhile, 39 per cent say the average price point is $50 or less. The majority (94 per cent) of shoppers will not purchase items online that cost more than $200 each.
2.1 in 3 purchase more items when they shop online. Online shopping tends to make a significant proportion of shoppers spend more – and the younger the shopper, the more they’ll spend online. Thirty-five (35) per cent of shoppers say they buy more items from a retailer when they shop online compare with in store, 39 per cent will spend the same, and just 26 per cent will spend less online. The findings also reveal that the younger the age group, the more likely they are to purchase more items when they shop online: 50 per cent of 18-29-year olds compared with 33 per cent of 50-59-year-olds and just 20 per cent of over-60s.
3.2 in 3 shoppers do more product research when shopping online. Most people do more research on a product – including reading product reviews – before they buy a product online compared with in store – 67 per cent, in fact, as revealed by the survey. This was most common among younger age groups – 75 per cent of 18-29-year-olds compared with 60 per cent of over-50s. When shoppers research retailers on product review services, factors are usually based on the product quality, customer service, sizing and whether the product appeared as advertised on the website.
4.Nearly a third of shoppers spend more time comparing prices when shopping online. When shoppers browse for an item online, 63 per cent spend more time comparing prices on the same item across a range of retailers than they do when they shop instore. This is likely due to that fact that the same portal (the internet) enable both the buying and the research, making the research convenient.
CP’s spokesperson, Jessica Ip, says: “It is interesting that people have developed habits that are specific to online shopping, and are very distinct to their instore shopping behaviours. The data reveals that traditional and online shopping have their place, with online shopping seemingly more popular when purchasing lower-cost products and multiple items in the one transaction, while the instore shopping experience is still reserved for more premium, high-cost items.
“These habits of shoppers are particularly important for retailers who want to stay ahead of the industry and seek to tailor their services and offerings to shopping behaviours. At CP, we aim to cater to the demands of Aussies by offering a range of flexible delivery options, as we understand that shoppers aren’t always home to receive their deliveries.”
