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The RomCom of E-Comm (Lite Version) 2016 UNDERSTANDING THE RELATIONSHIP BETWEEN BROWSING AND PURCHASING IN THE E-COMMERCE MARKET ?

The RomCom of E-Comm (Lite Version)static.tumblr.com/jgznmuc/...romcom_of_e-comm_lite.pdf · the romcom of e-comm (lite version) 2016 understanding the relationship between browsing

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Page 1: The RomCom of E-Comm (Lite Version)static.tumblr.com/jgznmuc/...romcom_of_e-comm_lite.pdf · the romcom of e-comm (lite version) 2016 understanding the relationship between browsing

The RomCom of E-Comm (L i te Vers ion)

2016

UNDERSTANDING THE RELATIONSHIP BETWEEN BROWSING AND PURCHASING IN THE E-COMMERCE MARKET

?

Page 2: The RomCom of E-Comm (Lite Version)static.tumblr.com/jgznmuc/...romcom_of_e-comm_lite.pdf · the romcom of e-comm (lite version) 2016 understanding the relationship between browsing

Objective and Methodology

20 minute online survey

Fieldwork conducted Q2 2016

We set out to understand the relationship between browsing and purchasing, mobile conversion and to

breakdown the 5 stages of purchase

A sample of 1,021 who have either

browsed or shopped online in the last 12

months

Page 3: The RomCom of E-Comm (Lite Version)static.tumblr.com/jgznmuc/...romcom_of_e-comm_lite.pdf · the romcom of e-comm (lite version) 2016 understanding the relationship between browsing

64% browse

shopping items online

36% purchase

items online

Source: Yahoo7 Know your Audience 2016

Online browsing and purchasing incidence (% all respondents)

In an average week, 2 in 3 browse shopping items online, of which 56% convert into a purchase

56% $ of those browsing make a purchase

Conversion

Page 4: The RomCom of E-Comm (Lite Version)static.tumblr.com/jgznmuc/...romcom_of_e-comm_lite.pdf · the romcom of e-comm (lite version) 2016 understanding the relationship between browsing

Source: Yahoo7 Insights Series : E-Commerce

Browse online

Purchase online

Music, movies, gaming Women’s clothing Books or mags

Furniture or homeware

Computers and Tablets

Fast Food/Takeaway

Bags Flowers

Children’s clothing

Alcohol

Men’s clothing

Cosmetics, health or beauty

Focus on Information

Source: Yahoo7 Insights Series : E-Commerce

The likelihood to convert online varies significantly by category Browsers vs Purchasers by category (% all respondents)

Home Electronics/ Appliances

Shoes

Groceries

Focus on Up-sell

Categories above the line are more likely to be purchased online

Categories below the line are more likely to be browsed online

Page 5: The RomCom of E-Comm (Lite Version)static.tumblr.com/jgznmuc/...romcom_of_e-comm_lite.pdf · the romcom of e-comm (lite version) 2016 understanding the relationship between browsing

Home Electronics/Appliances

47% browse

shopping items online

18% purchase

items online

Conversion to purchase: 38% Conversion Index: 73

Browse Only Purchaser

Gender

Age

Life stage

All generations All generations

94k HH Income 85k

Browse category monthly

59% 73%

Conversion under-indexes for the home electronics/appliances segment Browsers vs Purchasers by category (% all respondents)

Source: Yahoo7 Insights Series : E-Commerce

Page 6: The RomCom of E-Comm (Lite Version)static.tumblr.com/jgznmuc/...romcom_of_e-comm_lite.pdf · the romcom of e-comm (lite version) 2016 understanding the relationship between browsing

At an overall level, 2 in 3 plan their purchases, this increases amongst Baby Boomers and Males Planned vs Impulse purchasing (% category purchasers)

64% 19%

17% Plan purchases

Neutral

Buy in spur of the moment

66%

61%

58%

64%

72%

Male

Female

Millennial

Gen X

Baby Boomer

Overall: 64%

Source: Yahoo7 Insights Series : E-Commerce

Page 7: The RomCom of E-Comm (Lite Version)static.tumblr.com/jgznmuc/...romcom_of_e-comm_lite.pdf · the romcom of e-comm (lite version) 2016 understanding the relationship between browsing

The domestic and international mix varies by category, with entertainment a stand out category for international purchases

Australian vs International purchases (% purchase category)

Fast Food/Takeaway Alcohol

Groceries Flowers

Furniture and Homeware Home electronics/appliances

Computer and Tablets Children's clothing

Cosmetics, health or beauty products Shoes Bags

Men's clothing or accessories Women's clothing

Music, Movies, Gaming Books or magazines

Mostly Australian Mix of AU and Int'l Mostly International

Source: Yahoo7 Insights Series : E-Commerce

Page 8: The RomCom of E-Comm (Lite Version)static.tumblr.com/jgznmuc/...romcom_of_e-comm_lite.pdf · the romcom of e-comm (lite version) 2016 understanding the relationship between browsing

75% of store shoppers use their mobile while

shopping in store

Source: In Reality ‘Reality of retail’ report

Page 9: The RomCom of E-Comm (Lite Version)static.tumblr.com/jgznmuc/...romcom_of_e-comm_lite.pdf · the romcom of e-comm (lite version) 2016 understanding the relationship between browsing

55% 47%

40% 37%

36% 36%

31% 27%

26% 23%

21% 19%

17% 16%

14%

Fast food/Takeaway

Children's clothing

Women's clothing

Men's clothing and accessories

Cosmetics, health and beauty

Flowers

Books or magazines

Music, Movies, Gaming

Groceries

Alcohol

Computers and tablets

Bags

Furniture and Homeware

Shoes

Home electronics and appliances

Category conversion (% all category browsers/purchasers)

Source: Yahoo7 Insights Series : E-Commerce

Mobile category conversion varies significantly, with fast food most successfully translating browsing to purchase

Conversion is lower by category than overall as there are some categories where people are more likely to browse than purchase and vice a versa

Average within category

conversion:

30%

Page 10: The RomCom of E-Comm (Lite Version)static.tumblr.com/jgznmuc/...romcom_of_e-comm_lite.pdf · the romcom of e-comm (lite version) 2016 understanding the relationship between browsing

52%

41%

32%

29%

24%

22%

24%

23%

22%

20%

Fast, efficient and easy purchase process

Shop/transact anywhere

Is trustworthy/secure

Internet connection is stable

Sufficient product information

Discounts, points, rewards

A really good mobile experience

Cheaper prices on mobile

Product images that are clear/large enough

Timely shipping schedule

Source: Yahoo7 Insights Series : E-Commerce

Motivations to purchase via mobile (% purchased on mobile)

Fast and easy purchase process is the key motivation to mobile conversion, followed by ability to shop anywhere

are more concerned than other generations with

an easy purchase process

Millennials

Gen X ability to shop anywhere

is more important

Page 11: The RomCom of E-Comm (Lite Version)static.tumblr.com/jgznmuc/...romcom_of_e-comm_lite.pdf · the romcom of e-comm (lite version) 2016 understanding the relationship between browsing

21% 20% 20%

18% 17%

16% 14%

13% 10%

8% 5%

High delivery costs

Hard to be sure of product quality before buying

It is not secure

Technical issues when trying to pay

It is easier to buy things in actual stores

I want the product straight away

If it is not cheaper to buy online

Hard to be sure brand is genuine before buying

Process of buying online is too complex

Poor availability online

Delivery not convenient for my lifestyle

Source: Yahoo7 Insights Series : E-Commerce

Barriers to purchase via mobile (% category purchasers)

There is no one stand out barrier, with concerns varying from delivery costs to uncertainty around quality

security is a greater concern (25%)

are more likely to be unsure of product quality (27%) and

concerned with technical issues (26%)

Gen X

Millennials

Page 12: The RomCom of E-Comm (Lite Version)static.tumblr.com/jgznmuc/...romcom_of_e-comm_lite.pdf · the romcom of e-comm (lite version) 2016 understanding the relationship between browsing

For more information please contact your Yahoo7 representative or email [email protected]