UPS Pulse of the Online Shopper Study · 2020. 4. 22. · The 2018 UPS Pulse of the Online Shopper™ Global Study, conducted by comScore, provides insight into online shoppers’

UPS Pulse of the Online Shopper™ Study

Brazil and Mexico Study Executive Summary

March 2018

START

2018Brazil and MexicoStudy

©2018 United Parcel Service of America, Inc.UPS Pulse of the Online Shopper™ Study 2

Online shoppers in Brazil and Mexico continue to be the most patient when it comes to shipping and delivery, use more mobile apps, and turn to marketplaces more than ever. Driving these behavioral shifts is a desire to find better prices and unique products with more choices, control and convenience.

The 2018 UPS Pulse of the Online Shopper™ Global Study, conducted by comScore, provides insight into online shoppers’ behaviors and preferences. We have categorized the results of this year’s study into three areas:

Constants: Areas of the retail experience that remain important year over year and influence purchase behavior. These are satisfaction with today’s shopping experience, shipping, and logistics.

Movers: Areas where consumers have shown significant growth over the past few years. These are mobile, international shopping and store engagement.

Emergers: Newer areas of retail that may play a role in the shopping experience of the future. These include alternate delivery locations, marketplaces, and technologies such as chatbots.

Understanding today’s online shopper in Brazil and Mexico and evolving to meet their new demands is critical for retailer success. By focusing on these key areas, retailers have the opportunity to help shape the future of retail while simultaneously increasing customer satisfaction and sales.

Online Shoppers in Brazil and Mexico are Patient, More Mobile and Marketplace-Driven

Introduction

Constants

Movers

Emergers

Key Takeaways

Methodology


Satisfaction with today’s shopping experience, shipping and logistics remain important year over year.

Constants

3©2018 United Parcel Service of America, Inc.UPS Pulse of the Online Shopper™ Study

Introduction

Constants

Movers

Emergers

Key Takeaways

Methodology



Shopping experienceOnline shoppers in Brazil and Mexico are generally satisfied with their online shopping experience, and their satisfaction has grown since 2015. They are most satisfed with shopping on desktops or laptops and least satisfied with shopping in physical stores.

In both countries, searching and purchasing are done via a single channel slightly more than half the time. They make a higher percentage of their purchases via multi-channel shopping methods compared to shoppers in the U.S., Europe and Canada. Retailers should take these shopping considerations into account when developing their channel strategies.

Constants

Desktop or laptop88%

86%

85%

60%

87%

83%

83%

72%Tablet

Smartphone

Satisfaction with the shopping experienceMEXICOBRAZIL

Purchase method (% of purchases)BRAZIL MEXICO

Physical store

Single-channel Net Single-channel NetMulti-channel Net Multi-channel Net53% 54%46%47%

Search in store, buy in store

Search in store, buy in store

Search online, buy online

Search online, buy online40%

13%Search online,

buy in storeSearch online,

buy in store

Search online and in store, buy in store

Search online and in store, buy in store

Search online and in store, buy online

Search online and in store, buy onlineSearch in store, buy online

Search in store, buy online

15%13%

11%13%

11%10% 9%

11%

19%

Introduction

Constants

Movers

Emergers

Key Takeaways

Methodology

Overall online shopping

(up from 81% in 2015)

(up from 81% in 2015)

88% 87%

35%



of online shoppers in Brazil and 56% of online shoppers in Mexico prefer weekend delivery because they are typically home to receive the package.

Importance of various shipping options when checking out online

Constants

Same-day delivery

BRAZIL MEXICO

Same-day delivery

Ability to select delivery location that

is convenient

Ability to tell retailer what day I want my package delivered

Saturday delivery

Ability to choose a store location for

pickup

58%59% 51%

58% 50%59%SAT

66%

Introduction

Constants

Movers

Emergers

Key Takeaways

Methodology

Shipping and deliveryConsumers expect quick fulfillment of online orders and speedy delivery. For online shoppers in Brazil and Mexico, they are also keen on being able to choose the day and location of delivery. Online shoppers find shipping options such as same-day delivery and Saturday delivery as important when checking out online.

Same-day delivery has impacted Brazilian and Mexican consumers’ shopping behaviors in a number of ways. They consider expedited delivery a time savings as they do not have to visit a physical store, which gives them the ability to shop more often.



Returns of online purchases usage and preferences

70%

72% 73% 72%

49%33%

51%49%58%

46% 42%

ReturnsConsumers in Brazil and Mexico continue to prefer to return items to a physical store when the option is available. However, online shoppers in Brazil actually make more returns by shipping the items back to the retailer. Ease of use and free returns shipping are the top reasons. In fact, 91% of online shoppers in Brazil rate free shipping on returns as important when selecting an online retailer.

The majority of shoppers make a new purchase while processing a return regardless of the method. Over eight in ten shoppers in Brazil who return to a physical store made a new purchase, significantly higher than those in the other regions surveyed.

Constants

Shipped back to retailer

Returned to physical store

38% of online shoppers in Brazil have made a return in the last year, compared

to 22% of those in Mexico.

MEXICOBRAZIL

Returned an item by shipping back

to retailer

Returned an item to a store

Prefer to return an item by shipping back

to retailer

Prefer to return an to a store

made a new purchase online

made a new purchase online

made a new purchase in store

84%made a new

purchase in store

Introduction

Constants

Movers

Emergers

Key Takeaways

Methodology


Mobile, international shopping, and store engagement have shown significant growth over the past few years.

Movers


Introduction

Constants

Movers

Emergers

Key Takeaways

Methodology



MobileOver the years, shopping on smartphones has grown in Latin America. More smartphone users in Brazil (59%) and Mexico (57%) have made a purchase on a smartphone, up from 40% and 39%, respectively.

Mexico and Brazil online shoppers have the highest rate of smarpthone use regionally at 92% and 90%, respectively, compared to Canada (81%) and the U.S. (79%). A significantly higher percentage of smartphone users in Brazil, compared to those in other surveyed

regions, indicate they will shop more on smartphones relative to the previous year (58%).

Retailer smartphone apps are also growing in popularity in Brazil and Mexico with over nine in ten smartphone users using them, compared to roughly six in ten mobile device users saying they did so in 2015. Shoppers also prefer retailer apps to websites due to faster speed.

Movers

Smartphone users who made a purchase on a smartphone

Customer service options (e.g. chat, etc.)

Acceptance of alternative payments like PayPal and

Apple Pay

Product reviews High-quality product images

67% 67% 66% 64%

59%40%

57%39%

2018 20182015 2015

Importance of retailer app features (Top 4)Among retailer app users in Brazil

MEXICOBRAZILIntroduction

Constants

Movers

Emergers

Key Takeaways

Methodology



InternationalRetail has become global as 81% of online shoppers in Brazil and 78% of online shoppers in Mexico have purchased from an international retailer. Among international shoppers in Mexico, 56% expect an expedited international shipping option, and they use it on 31% of their orders. The expectation and use of expedited international shipping among online

shoppers in Mexico is significantly higher compared to those in the U.S., Brazil and Canada.

Better pricing internationally, whether directly or via a domestic marketplace, is the top reason those in Brazil and Mexico make international purchases.

Movers

made an online purchase from an international retailer.

81% 78%When shopping internationally, online shoppers in Mexico tend to purchase from the U.S. (73%), whereas online shoppers in Brazil tend to purchase from China (63%).

The price is better internationally

I found a lower price from an international retailer on

a domestic marketplace

I found a lower price from an international retailer on a domestic

marketplace

The brands or products I like are not available in

Mexico

I want something unique not found in

stores in Brazil

The price is better internationally

60% 51%44% 47%

36% 45%

Top reasons for shopping at an international retailer

MEXICOBRAZIL

Introduction

Constants

Movers

Emergers

Key Takeaways

Methodology



Store engagementThe percent of non-grocery purchases made in store has declined in both Mexico and Brazil since 2015. Consumers in Mexico make more than half of their non-grocery purchases in store and 64% indicate they plan to shop the same amount in store relative to the previous year.

However, there is still room for improving the in-store shopping experience with only 60% of consumers in Brazil and 72% of consumers in Mexico being satisfied with the experience.

Ship-to-store usage is common among online shoppers in Brazil and Mexico. Forty four percent of online shoppers in Brazil and 42% of online shoppers in Mexico have used ship-to-store in the past year with the majority of those saying they plan to use it more often next year (67% and 58%, respectively).

Movers

Ship-to-store

of those, made an additional purchase while in store for pickup

of those, plan to use it more often next year

58%

67%

65%

58%have shipped to store for pickup

44% 42%

Satisfaction with in-store shopping experience

60%72%

MEXICOBRAZIL

MEXICOBRAZIL

Introduction

Constants

Movers

Emergers

Key Takeaways

Methodology


Alternate delivery locations, marketplaces, and technologies, such as chatbots, may play a larger role in the shopping experience of the future.

Emergers


Introduction

Constants

Movers

Emergers

Key Takeaways

Methodology



Alternate delivery locationsConsumers are increasingly using alternate delivery locations. On average, online shoppers in Brazil and Mexico would send more than half of their packages to an alternate delivery location. This preference has grown since 2015, increasing for Brazil from 26% in 2015 to 55% in 2018 and for Mexico from 44% in 2015 to 52% in 2018.

Compared to online shoppers in the U.S., Canada and Mexico, online shoppers in Brazil have a significantly higher percentage of their orders delivered to an alternate delivery location.

Emergers

Preference for and usage of alternate delivery locations

(% of orders)

55% 46%52% 41%

Preference Use

Interested in shipping to an alternate delivery location with extended hours for reduced fees.

MEXICOBRAZIL

79% 74%

Introduction

Constants

Movers

Emergers

Key Takeaways

Methodology



Top reasons for purchasing at a marketplace instead of a retailer

MarketplacesShopping on marketplaces is universal. Almost all online shoppers in Mexico have purchased from a marketplace (99%), and more than seven in ten say they are likely to research and purchase more on marketplaces in the next year, which is the highest of all regions surveyed.

Better prices and free or discounted shipping are the top two reasons for choosing to shop at a marketplace.

Emergers

Better prices63%

Intended marketplace behavior

Research more on a marketplace

Purchase more on a marketplace

71%

74%

Speed of delivery44%Total cost of the order

including shipping costs and/or taxes

46%

Free and discounted shipping

57% FREE

Wider range of categories in a single

location

38%

Among online shoppers in Mexico


Introduction

Constants

Movers

Emergers

Key Takeaways

Methodology



Retail technologiesTechnology is playing a growing role in retail. Most online shoppers in Mexico are comfortable using chatbots for various shopping experiences. They are most comfortable with using chatbots for getting product information and completing steps for processing orders.

Retailers should consider implementing chat functionality throughout the path to purchase in order improve the customer experience.

Emergers

Comfort level with using chatbots for various shopping experiences

Getting product information

Suggesting products

Ordering products

61%65%Completing

my order

63%

New product updates

62%


62%

Introduction

Constants

Movers

Emergers

Key Takeaways

Methodology


©2018 United Parcel Service of America, Inc.UPS Pulse of the Online Shopper™ Study

The following insights will help retailers successfully address the dynamic online shopping experience for consumers in Brazil and Mexico and their future shopping demands:

Deliver a Consistent Experience

Guarantee parity across all retail channels to provide brand consistency and build customer satisfaction.

Offer Flexible Delivery Options

Include in-store pickup, alternate delivery locations, expedited delivery, flexible hours and weekends to meet consumers’ growing preferences for delivery options.

Elevate the In-Store Experience

Make sure your physical store remains relevant by providing an inspiring and effective shopping experience.

Empower the Shopper

Provide convenient resources for consumers to get details on products through in-store technologies and a robust mobile shopping experience.

Test the Marketplace Waters

Consumers in Mexico have the highest percentage of making a purchase on a marketplace. Explore selling on marketplaces after closely evaluating the scope of opportunity for your business.

Key Takeaways


Introduction

Constants

Movers

Emergers

Key Takeaways

Methodology



The UPS Pulse of the Online Shopper™ Global Study evaluates consumer shopping habits from pre-purchase to post-delivery. The 2018 study was fielded in Q1, Q2 and Q3 2017 and is based on a comScore survey of more than 18,000 online shoppers worldwide, which includes roughly 2,200 respondents from Latin America (Brazil and Mexico). Respondents made at least two online purchases in a typical three-month period.

Methodology

Shopping Frequency In a Typical Three-Month Period

MADE 7+

PURCHASES

MADE 4-6

PURCHASES

MADE 2-3

PURCHASES

40% 40% 20%

Introduction

Constants

Movers

Emergers

Key Takeaways

Methodology

Documents

UPS Pulse of the Online Shopper Study · 2020. 4. 22. · The 2018 UPS Pulse of the Online Shopper™ Global Study, conducted by comScore, provides insight into online shoppers’