The 5 key trends shaping online shopping
With the rise of social commerce and online marketplaces, online shopping is rapidly expanding and transcending borders. Research shows that global e-commerce sales will likely surpass US$3 trillion (€2.76 trillion) in 2024 alone.
In this fast-evolving business landscape, e-tailers that grasp the key drivers of online purchasing behavior gain a competitive edge. Equipped with the latest insights, they can fine-tune their strategies to meet customer expectations and maximize sales.
In early 2024, DHL surveyed more than 12,000 shoppers in 24 key e-commerce markets to understand how purchasing behaviors are evolving and what today’s shoppers expect when they go online. Read on to discover five key insights online retailers must focus on to achieve successful customer journeys, grow their businesses, and lock in loyalty.
More people are shopping via social media platforms
As DHL’s research highlights, sales are no longer just being made on websites. Online marketplaces and social media platforms are rapidly evolving into major shopping destinations. With one in two people worldwide now buying products directly via platforms like Facebook and Instagram, sales through social media are projected to reach US$8.5 trillion (€7.82 trillion) by 2030 – up from an estimated US$700 billion (€643.65 billion) in 2024.
Asia Pacific is at the forefront of this trend. This is not surprising – multiple markets here generate the world’s highest e-commerce revenue, driven by rapidly increasing digital penetration and a growing population of young, digitally savvy consumers. Customers are using social media for browsing inspiration and purchases. DHL found that Thailand leads the top five countries of users to do so at 59 percent, with China following closely at 53 percent, and Malaysia ranking fourth with 46 percent.
DHL also found that smartphones are now the dominant shopping and browsing tool, with 57 percent of online shoppers worldwide using their smartphone as their primary purchasing device. This has clear implications for how e-retailers present their products and online stores. For example, by adopting a streamlined, easy-to-navigate mobile interface, businesses can improve customer navigation, reduce friction in the buying process, and enhance the overall user experience, leading to higher conversion rates.
Cross-border shoppers want free returns and secure payment options
For e-commerce businesses with an international outlook, the good news is that 55 percent of the world’s online shoppers are happy to buy across borders.
Finding lower prices is a major incentive. 53 percent of shoppers globally cite this as their top reason for shopping abroad, while 42 percent say they’re motivated to access a wider choice of products.
49 percent of surveyed shoppers noted fear of fraud as their biggest barrier to buying from abroad. Other significant concerns are long delivery times and paying for returns, with 48 percent of shoppers saying free returns would encourage them to buy from different countries.
“To access this [cross-border] market, it is clear retailers need to offer a few key things: a website in their local language and currency, globally trusted payment options to ease fraud concerns, and from a delivery perspective, not only partnering with a reliable provider for delivery and returns, but also being transparent about transit times and costs,” said Pablo Ciano, CEO, DHL eCommerce.
People care about the environmental impact of their online orders
DHL’s report also uncovered other valuable insights. For example, 52 percent of shoppers across the globe say they buy something online at least once a week, with clothing and footwear topping the list of popular products. That is followed by consumer electronics (34 percent), cosmetics (30 percent), and food and beverages (29 percent).
With sustainability becoming more important to online shoppers, it is also no surprise that more than half (63 percent) of shoppers want transparency about the CO2 emissions involved in cross-border delivery. That increases to 68 percent for shoppers who buy online more frequently – suggesting that the more people buy, the more they care about the environmental impact of their online orders.
This is a particularly significant trend in Asia Pacific. For example, 87 percent of online shoppers in Thailand and 85 percent in India say they would be willing to pay more for green delivery services. That is in line with recent research, which found that while sustainability is rapidly becoming more important to consumers across the region, it carries special weight in fast-growing markets such as Thailand and India, compared to mature markets.
One explanation might be that witnessing the impact of environmental issues firsthand in fast-growing markets makes the threats real and tangible. It also suggests that e-tailers who embrace green delivery solutions to help them embed sustainability into their brand will be in a strong position to differentiate their offerings and gain a competitive advantage.
Shoppers expect affordable, transparent delivery services
DHL’s findings indicate that today’s online shoppers are highly cost-sensitive, especially regarding affordable delivery options. High delivery costs are a significant barrier to purchase, with 41 percent of online shoppers globally abandoning their shopping carts due to expensive delivery fees. Meanwhile, 67 percent say free delivery would improve their online shopping experience.
At the same time, 65 percent of online shoppers stress the significance of knowing the delivery provider before purchasing – a trend especially prominent in Asia Pacific. For example, 86 percent of shoppers in Thailand, 75 percent in India, and 69 percent in Malaysia say it is important that they know who the delivery provider is before placing an order.
In this context, how can e-tailers create a seamless delivery experience? DHL’s research illustrates the importance of businesses offering various options at checkout. 54 percent of cross-border shoppers globally abandon shopping carts due to limited delivery options, emphasizing the need for flexible solutions like parcel lockers, pick-up points, and slower but free delivery.
Consumers also want more control over the delivery process. For example, 37 percent of online shoppers globally say they would like to choose a time slot or be given a more precise delivery time. 43 percent would like the option of real-time tracking.
Improving the returns experience is increasingly important
The ever-growing emphasis on more choice and control is evident in how consumers view the returns process. DHL found that while more than half (53 percent) of online shoppers prefer the collection of returns from home, a growing number also want additional flexibility and convenience.
This is reflected in the rising preference for paperless returns, driven by a growing number of shoppers choosing out-of-home returns. In China, for example, 30 percent of online retailers prefer to scan a QR code at the drop-off point if they need to make a return, rather than have a return label included in their parcel,
The report also estimates that up to 59 percent of returns could be avoided if retailers added more details to their product descriptions. These might include measurements and photographs of the items from various angles to improve customers' shopping experience.
“A recurring theme across [our report] is that the delivery and returns options offered can make or break a sale,” noted Ciano.
Creating seamless customer experiences for successful growth
As DHL’s report makes clear, e-commerce companies that understand customers' fast-evolving preferences in local and global markets have considerable growth opportunities.
Logistics firms with the right expertise in cross-border e-commerce are essential to assist online retailers in understanding customer trends and needs. Support for e-tailers, from converting shopping carts to sales with the right delivery options to managing the complexities of cross-border trade, will help them sell successfully around the world.
“Whether it is social media shopping or cross-border shopping, shoppers' behaviors may differ by country or shopping channel. It’s understanding these differences that makes DHL eCommerce the delivery provider of choice for today’s online retailers – we provide the delivery options your customers prefer,” said Ciano.
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