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Transparency and Personalization are the Next Frontiers for Online Retailers, UPS Study Finds

Aug 07, 2019   13:50 IST 
Mumbai, Maharashtra, India
  • Indian shoppers are most quality conscious – two-thirds of international purchases are made for quality considerations

  • Online shoppers want transparency on fees, control over the delivery process, easy returns and loyalty rewards

  • 96% of online shoppers have used a marketplace

  • 56% track the status of deliveries

  • 36% returned an item in the last three months – Indian shoppers have the highest return rate at 68%

 

A glitzy website or a modern app aren’t enough to satisfy today’s savvy online shoppers. They demand upfront transparency on fees, control over the delivery process, a clearly-stated returns policy and loyalty rewards, according to new research from the 2019 UPS (NYSE:UPS) Pulse of the Online ShopperTM study.

 

The 2019 UPS Pulse of the Online Shopper study captured evolving trends, preferences and expectations of online shoppers in 15 countries and regions, including the U.S., Asia, Europe, Canada, Mexico, Brazil and, for the first time, India. The study reveals interesting insights about shoppers in India. Indian shoppers are most quality conscious, most active in returning products and are also more likely to voice complaints.

 

Quality matters most in India (shoppers make 66% of international purchases for that reason), followed by cost of delivery (41%), speed of delivery (39%) and trust in the international seller (39%). Shoppers in India led in returns – 68% of Indian online shoppers send an item back to the seller/retailer. They were also most vocal about voicing complaints about the retailer. At 53%, Indian shoppers led the study in terms of registering complaints about the retailer as compared to their global counterparts and 30% posted a negative review on social media followed by 25% in Asia Pacific and 22% in the Americas.

 

This latest Pulse examined the generational impact that Baby Boomers, Gen Xers, Millennials, and Gen Zers are having on retail trends, offering retailers, wholesalers and manufacturers intelligence that can help them grow and complete globally.

 

For seven years, the UPS Pulse of the Online Shopper has spotted emerging e-commerce trends before they became mainstream,” said Kevin Warren, UPS Chief Marketing Officer. “This proprietary research is just one way UPS continues to offer valuable insights that help retailers and shippers make strategic decisions to meet changing global consumer needs.”

 

India’s e-commerce market is poised for a significant leap. According to the report by WorldPay, by the year 2034, it will overtake the U.S. to become the second largest in the world,” added Rachid Fergati, Managing Director Indian Sub-Continent. “As is evident from the UPS Pulse of the Online Shopper Study, consumers in India are the most demanding and vocal about service quality expectations. As a result, online retailers have to adapt their supply chains to this consumer trend, a shift reflected in faster and efficient fulfillment experiences with full-service returns policy.”

 

Key themes pulled from this year’s study include:

 

1. The critical customer experience begins with research. Ninety percent of customers research items before purchasing them online, while younger generations are most likely to be influenced by customer reviews. Ninety-five percent of all buyers expect to see all shipping fees and taxes totaled before they’ll complete the purchase.

 

2. Online shoppers want to feel valued and be rewarded. As a result, about one in five (19%) of consumers have more than five loyalty memberships. Reasons given for joining include free shipping, members-only discounts and rewards points.

 

Meanwhile, online marketplaces remain popular: Ninety six percent of online shoppers have used a marketplace, while 36% of consumers worldwide intend to purchase more on marketplaces in the next 12 months. Worldwide, 48% of consumers buy items impulsively on marketplaces.

 

3. Shoppers want still want choice and convenience, but they’d rather not pay for it. Respondents like next-day deliveries, but they will consider other options - such as lower fees or incentives - for slower shipping. Millennial shoppers are more likely to choose accelerated delivery options than other age groups. Generally, though, online shoppers show a very low appetite for paying for shipping. That’s why they’ll take various actions to obtain free shipping, including adding items to the cart (36%), choosing the slowest transit time (32%) and searching online for a promo code (32%).

 

Fifty-six percent of online shoppers track deliveries, with Americans the most likely to be active trackers. (When it comes to offering visibility and tracking solutions UPS offers consumers UPS My Choice and the recently launched UPS My Choice for Business, designed for small and medium-sized businesses.)

 

4. Returns remain key to return customers. Returning merchandise remains a key demand for online shoppers, with 73% of surveyed consumers responding that the returns experience affected whether they would continue shopping with a retailer. Globally, 36% of online shoppers returned an item in the previous three months.

 

Globally, about two-out-of-three shoppers (63%) ship returns back to sellers/retailers. This method is the most popular in Europe and Asia-Pacific (APAC), where 67% of shoppers ship their returns. Meanwhile, the main reason cited for a poor returns experience is delay in getting a refund (25%). Having to pay for a return annoys a significant percentage of consumers (24%), as does a delay in receiving an exchange or a replacement item (21%).

 

For more information, download the full 2019 UPS Pulse of the Online Shopper research report here.

 

About the UPS Pulse of the Online Shopper study

The UPS Pulse of the Online Shopper study evaluates consumer shopping habits from pre-purchase to post-delivery. The study was conducted in early 2019 and is based on a PwC survey of more than 18,000 online shoppers worldwide. Respondents made at least two online purchase in a typical three-month period.

 

About UPS

UPS (NYSE:UPS) is a global leader in logistics, offering a broad range of solutions including transporting packages and freight; facilitating international trade, and deploying advanced technology to more efficiently manage the world of business. Headquartered in Atlanta, UPS serves more than 220 countries and territories worldwide. UPS was awarded America’s Best Customer Service company for Shipping and Delivery services by Newsweek magazine; Forbes Most Valuable Brand in Transportation; and top rankings on the JUST 100 list for social responsibility, the Dow Jones Sustainability World Index, and the Harris Poll Reputation Quotient, among other prestigious rankings and awards. The company can be found on the web at ups.com or pressroom.ups.com and its corporate blog can be found at longitudes.ups.com. The company’s sustainability eNewsletter, UPS Horizons, can be found at ups.com/sustainabilitynewsletter. To get UPS news direct, follow @UPS_News on Twitter. To ship with UPS, please visit ups.com/ship.

 

 
 
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