Convenience still king for online shoppers

By AdNews | 5 September 2023

Just over two thirds (67%) of consumers report that convenience is still the number one reason for purchasing online, according to the Australian Ecommerce Report 2023 which was released today by IAB Australia and Pureprofile.  

According to the report, loyalty programs are providing increasingly important with 62% of online shoppers increasing their usage as they look to enhance their shopping experience while saving money. Nine in 10 online shoppers remain signed up to at least one shopper rewards program with 44% of those signed up to a rewards programs have 4 or more cards.

Half (52%) of online shoppers pay a fee to subscribe to a retail loyalty program such as Amazon Prime, eBay Plus, Wesfarmers OnePass, Woolworths Delivery Unlimited or Costco Membership.

Concern with how retailers use shopper data increased over the last year with 60% reporting some level of concern about how data collected via loyalty cards (up from 51% in 2022) and 60% concerned about data collected via transactions (up from 55% in 2022).

62% of online shoppers have increased the amount of time they spend shopping around doing research, while search remains key to 64% of shoppers in their process of discovering brands when shopping online.

Social media and influencers are key to millennial and gen Z online shoppers with 52% agreeing social media is an important part in how they find products they buy, and 41% identifying influencers as a useful source to discover new products.

Half of online shoppers are aware of shoppable advertising, and 16% have purchased this way (26% of 18-29’s).

Retailers’ own stores and communications are also key to shoppers discovering products and brands. 60% of online shoppers often read content produced by retailers.

Gai Le Roy, CEO of IAB Australia, said Australian consumers are increasingly enjoying a mix of online and in-store shopping, but its clear retailers face a new set of challenges with shoppers who are price sensitive seeking value for money in their brand choice.

"We know that constant discounting and undercutting competitors is not a long-term strategy, but retailers will need to consider how to offer a clearly articulated value exchange for consumers," she said.

Martin Filz, CEO of Pureprofile, said pandemic behaviour shifts have become sustained habits for consumers with personalisation and relevance now the expectation, along with increased convenience and faster delivery.  

"However, it’s good news for retailers with online retail holding stable as consumers maintain the same frequency of purchase as a year ago, even if they are more cautious," he said.

The Australian Ecommerce Report 2023, which is now in its third year, is based on research conducted with 1,000 Australian online shoppers during July 2023.  It examines the consumer attitudes, behaviours and influences driving ecommerce in Australia.

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