Clothing and fashion lead with 69.9%, closely followed by the food and drink category at 63.8%, which has seen significant growth due to increased take-out deliveries and expanded online grocery shopping options from major retailers nationwide.
“Although online shopping has been a significant part of retail sales for many years, the landscape is continuously evolving,” says Otto Williams, SVP, regional head and general manager, Middle East and Africa, PayPal. “Advancements in AI, shifting economic conditions, and dynamic consumer expectations require business owners to keep their finger on the pulse of changes, ideally ahead of the curve and at the very least, adaptable, in order to ensure sustained growth.”
The most noticeable and interesting trends emerged in areas such as convenience, personalisation, and information and assistance. Here are some key insights that separate fact from fiction and are set to enhance business strategies to better meet customer needs:
Online shoppers are constantly multi-tasking. Only 12.6% of survey shoppers set out dedicated time for online shopping – most shoppers weave it into their everyday lives, most often during moments of relaxation; 69.9% shop from their comfort of their bed at the end of the day, 60% while at work or when working from home, and 58.4% whilst watching TV.
“How and where shopping is done provide important clues into the shopper’s state of mind. Individuals who shop online during hours of work are less likely to be tolerant of cumbersome check out steps and could easily switch to a competitor if search functionality does not deliver their desired results swiftly,” notes Williams.
Convenience correlates directly to the shopping experience. Quick search and filter options were listed by 84.7% as the most the most important factor and the ability to create a wish list and save it for later ranked second by 55.9% of the respondents. Multiple payment options, guest check-out and the ability to save payment information are also seen as useful by most respondents.
Despite its widespread adoption and the likelihood that online bots will become more precise and sophisticated, only 29.6% of respondents find value in using AI bots to handle customer service queries. Respondents showed a clear preference towards the value AI provides when searching for the best prices (71%) and tracking delivery updates (51.5%).
Close to 95% of respondents note that secure payment processing is the most useful online shopping security feature, suggesting that they know how to check if a site and its payment methods are secure.
There are basics of establishing secure sites such as checking for the padlock in the URL but what provides shoppers with an added layer of security is working through locally and internationally trusted payment platforms such as PayPal.
“Secure payment processing is the first and most basic requirement when making an online purchase. The benefits of selecting the right payment option, however, are plentiful,” says Williams. PayPal offers both the seller and the buyer protection – a valuable benefit in an era where fraud is rife.
Nearly 60% of respondents noted delivery costs as a hurdle they face when shopping online. Careful consideration should be given to delivery fees and pricing and delivery times should always be done within the indicated timeframe and as effortlessly as possible. The ability to offer free delivery is reliant on various factors including the product type, price sensitivity, and the competitor landscape. Keep in mind that delivery can be used both a promotional tool, if indicated separately or free when certain criteria is met, since it could increase the perceived value. Building delivery fees into pricing reduces the flexibility for the seller to adapt based on weight and distance to delivery location.
A staggering 90.1% of respondents indicated that a low star rating or negative reviews will deter them from making a purchase. Reviews and ratings are also seen as the most useful info and assistance features on a website or an app.
Negative reviews can be turned around and since it has a high impact on decision making, the customer service teams of stores should go through extra lengths to respond directly to negative reviews. Feedback should acknowledge customer sentiment and aim to find a solution.
As businesses strive to meet the needs of online shoppers, the value of gathering customer feedback and partnering with service providers such as your payment provider to obtain insights, should never be underestimated. Launching your own surveys or using feedback on customer service channels to impact decision making can provide immense value and help your business to stay ahead of the pack and attuned to changing customer needs in a dynamic retail landscape.
