Home » News » UPS study on the consequences of coronavirus: no turning back in online retail – e-commerce, CEP services | News | LOGISTRA

UPS study on the consequences of coronavirus: no turning back in online retail – e-commerce, CEP services | News | LOGISTRA

In a study, the US parcel logistics company and its German subsidiary examined, among other things, the effects of the corona pandemic on the trends, preferences and expectations of online shoppers and also analyzed important purchasing decision factors. From the point of view of Thomas Zeller, Marketing and Strategy Director at UPS Germany, Austria and Switzerland, the pandemic has “accelerated the existing trend towards e-commerce in an unprecedented way”. It is therefore important to understand consumers’ priorities and their expectations of online shopping.

“Since the market for online retailers is becoming more and more competitive, personalized customer service offers the opportunity to stand out from the competition,” said Zeller.

The most important results of the study at a glance:

  • 15% of those surveyed across Europe would like to do all or most of their shopping, including groceries, online, even after the pandemic; before that it was 10%, and 33% during the pandemic.
  • 48% say the most important driver for them to buy more online even after the pandemic is the convenience of having goods delivered.
  • 54% would like sustainable packaging for deliveries from large national and multi-national dealers, 50% also from small companies, 48% would like CO2 emissions compensation for deliveries from large dealers, 30% also from small companies.
  • 67% would like the logistics service provider of their retailer to offer sustainable delivery options.
  • 85% say that the reliability of the delivery partner plays a large or very large role in purchasing decisions.
  • 47% would like alternative delivery options (e.g. parcel stations) from large online retailers, 32% also from small companies.
  • 66% say that it plays a large or very large role in purchasing decisions whether a retailer and his delivery partner advocate equal opportunities – with equality, diversity and inclusion.

The most important results of the study in detail:

Online spending has come to stay: As soon as the corona restrictions on retailing are lifted, 15% of consumers want to do “all” or “most” of their purchases, including groceries, online. Before the corona pandemic, it was 10%, while it was 33%. With over 20%, the preference for post-pandemic online shopping is particularly represented among those over 45 years of age. At the same time, 40% say that they will shop “all” or “mostly” in stores after the restrictions are lifted – a decrease of 26% compared to the time before the pandemic (54% of purchases “all” or “mostly” in the shops).

Respective benefits of online purchases and stores: The joy of shopping in the store (41%) and the more personal experience (38%) are still the main reasons for shopping in person, while convenience (48%) and cheaper prices (38%) are the main reasons for shopping online.

Large Retailers vs. Independent Stores Current Preferences: Large retailers across all product categories are preferred by the majority of consumers over smaller, independent retailers and online marketplaces. However, 50% of consumers said they “want to help small businesses”. Grocery (25%) and clothing / shoes (24%) were the most popular items when shopping at these smaller, independent retailers.

9 decision factors beyond the type of purchase: A retailer’s delivery partner is the most important decision factor for 85% of consumers, with 41% saying it will be an important factor in future purchases. The retailer’s sustainability is important for 75% of those surveyed and is therefore the second most important factor for consumers. Other important factors are dealing with Corona (70%), sustainable delivery options (67%), equal opportunities (66%) and dealing with Brexit (34%), with the latter mainly motivating the British who prefer dealers to deal with Brexit 44% think it is important.

A closer look at sustainability: The majority of consumers expect retailers to use sustainable packaging, with 54% expecting this from big brands and 50% from smaller brands. The demand for sustainable packaging is highest in Spain (64%) and the UK (63%). 48% of respondents would like large retailers to reduce their environmental footprint.

Consumer attitudes towards social media: Three in five respondents (60%) think brands communicated too much during the pandemic. 57% of consumers believe that smaller, independent brands have done a better job when it comes to communicating on social media. The number of consumers who intend to buy through social e-commerce channels could increase by 15% in 2021.

Attitudes of the generations towards online shopping: Unsurprisingly, 25 to 34-year-olds, who are often seen as the first generation of “digital natives”, are more willing to continue shopping “all or most” online after the restrictions are lifted (22%) than those who shop online 55-year-olds (10%). Those over 55 years of age (56%) are also much more likely to buy clothes and / or shoes in shops than the group of 18-24 year olds (34%). Consumers over the age of 55 are also more likely to expect free returns when shopping at larger retailers (62%) compared with 54% of 18-24 year olds. For independent and local stores, that expectation fell to 36% and 39%, respectively.

External factors will affect e-commerce in 2021: When asked about Brexit, 66% of UK consumers surveyed believe that products and goods bought from the EU will be more expensive and 64% believe that new customs requirements will take them longer to arrive. 72% of EU consumers surveyed said that it would become more expensive to buy goods from the UK and 69% believe that it would take longer to ship goods from the UK. Across Europe, 57% of consumers believe they will reduce their total spending in 2021 in response to the effects of the pandemic.

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