Online consumer shopping behaviour: Digital wallets taking over

Worldline has published a research report which highlights the latest insights in online shopping and digital wallets. The findings show that convenience, payment options, price and ethical concerns are some of the key considerations customers make when shopping online.

The pandemic, as we all know, resulted in a seismic shift to online shopping and the trend is set to continue.  The survey found that over half (51%) of consumers plan to shop in-store less often in the future, with only 3.5% having a strong preference for shopping in-store.

Safety first

The research found that consumers are increasingly aware of the risks associated with e-commerce.  Nearly two thirds (62%) described themselves as ‘data-conscious’. Over half (54%) of the respondents feel safer when merchants use two-factor authentication when completing a payment.

Two thirds (61%) stated that seeing visible security measures and data protection accreditation on websites gave them a stronger sense of security.

Price is paramount

When it comes to price, although customers want a seamless purchase experience, they are not willing to pay a higher cost for goods.

Three quarters (75%) of customers would describe themselves as being ‘price orientated’. This is further supported by the findings which showed that 9 in 10 of those asked (91%) consider free shipping to be important whilst almost the same number (86%) say the same for free returns.

With more choice and access to products than ever before, today’s consumers respond well to incentives such as loyalty discounts, with 80% noting them ‘important’ when shopping.

Payment choice

The British consumers are also embracing new technologies that place payment methods at their fingertips. Over a third (38%) said that they are using digital wallets, such as Apple Pay and PayPal, more often.

Consumers are progressively looking for a seamless experience, at a time when shopping online and these payment methods are clearly giving any retailer a competitive advantage.

Buy Now, Pay Later (BNPL) services are also rising in demand with a quarter (25%) of customers using them more often. Much of this growth is attributed to younger demographics with a third (33.5%) of 25-34 year olds  using BNPL services compared to just over one in ten (11.3%) of 55-65 year olds.

Ethical considerations

The ethical impact of consumerism is another growing topic of concern for shoppers, particularly the younger generation. Over three quarters (76%) of Gem Z shoppers prefer to buy from companies that have eco-friendly products.

They also appear to have particularly strong views when it comes to organic or fair-trade products – Gen Z (77%) vs Baby Boomers (55%).

These findings are a clear indication that merchants should consider carefully how they source products, their carbon footprint and the ethical policies that underpin their business.

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