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The 2014 UPS Pulse of the Online Shopper™ Study reveals how numerous factors ranging from mobile and social media to shipping and delivery options to security and post-purchase activities have an impact on the online customer experience as well as on purchasing decisions for today’s “flex” shoppers. Consumers are increasingly looking for omnichannel options, and the role of the store is evolving. Mobile is growing yet barriers to mobile purchasing remain. These and other findings are explored in the following pages of this executive summary. Conducted by comScore, the 2014 study analyzes data from 5,800 U.S. online shoppers. All shoppers surveyed make at least 2 online purchases in a typical 3-month period
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Home
Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
2014 UPS Pulse of the Online Shopper™
The 3rd annual study delivers insights into shopping preferences. It also explores current levels of satisfaction with online and
omnichannel shopping.
A Customer Experience Study conducted by comScore
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Home
Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
2
Introduction
The 2014 UPS Pulse of the Online Shopper™ Study reveals how numerous factors – ranging from mobile and social media to shipping and delivery options to security and post-purchase activities – have an impact on the online customer experience as well as on purchasing decisions for today’s “flex” shoppers. Consumers are increasingly looking for omnichannel options, and the role of the store is evolving. Mobile is growing yet
barriers to mobile purchasing remain. These and other findings are explored in the following pages of this executive summary.
Conducted by comScore, the 2014 study analyzes data from 5,800 U.S. online shoppers. All shoppers surveyed make at least
2 online purchases in a typical 3-month period.
Today’s online shopping experienceWhile overall consumer satisfaction with online shopping continues to be high,
there are still areas for improvement, particularly around customer service, online customer profiles and ability to checkout as a guest.
Ability to see the expected delivery
dates of the products
Ability to see the inventory status of products selected
Ease of checkout(1 or 2 clicks)
Ability to checkout as a guest
Number of shipping options
Ability to have your customer profilepre-populated for
time savings
Alternative payment options
Availability of free shipping
Access to customer service information within the checkout
experience
Satisfaction With Aspects of Purchase Experience
72%
62%
68%
58%
65%
57%
64% 63%
53%
3
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Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
FREE
Today’s online shopping experienceDespite the continued growth of m-commerce, consumers prefer to research and
purchase products on their desktop or laptop computers.
Researching Products Purchasing Products
Preferred Method of Access to Multichannel Retailers
4
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Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
11%
10%
5%
Online via my desktop or laptop computer
Online via tablet(Internet browser or application)
Online via smartphone (Internet browser or application)
Through a catalog (by calling or ordering through the mail)
In a physical store
61%
13%
4%
4%
7%
41%
44%
Mobile
Reasons for Shopping on Computer vs. Mobile Device
Can’t get clear or large enough image of the product
Product information cannot be easily viewed
Hard to compare products
Concerns about giving my credit card information over a mobile connection
5
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Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
43%
34%31% 30%
Online shoppers love their smartphones but often struggle withmatching the desktop experience.
Mobile
Online shoppers use their mobile devices for several different pre- and post-purchase functions. Tracking deliveries and research occur most often.
28%
25%
22% 22%
6
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Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
Frequency of Mobile Activities – Weekly
Tracked delivery
Researched products on your mobile device prior to visiting a store
Researched products and alternativeson a mobile device during a store visit
Located stores or checked inventory
Despite the challenges with purchasing on mobile devices, consumers usetheir smartphones for several other activities.
OmnichannelOnline shoppers complete their purchases in a variety of ways when
interacting with multichannel retailers.
Percentage of Time Each Method is Used
Search online Buy online
39% 21%
Search in store Buy in store
7% 6% 13%
Search in store Buy online Buy online Pick up in store Search online Buy in store
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Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
7% 7%
Buy in storeResearch online and in store
Buy online Research online and in store
SINGLE CHANNEL (60%)
OMNICHANNEL (40%)
OmnichannelAmong those who researched in store but decided to buy online, the top four reasons given
were not being ready to make the purchase, wanting to do additional research, not wanting to carry the item home and buying a gift that the consumer wanted to ship online.
Frequency of Reasons Influencing Consumers to Purchase an Item Online Instead of In Store
I was not ready to purchase the day I visited the store
I wanted to do additional research before purchasing
I didn’t want to carry it home
I was buying a gift and wanted to ship
it online
The store didn’t have the size/
color/model that I wanted
Wanted to touch/feel the product
before purchasing online
The selection was better online
The price was better online
64%
62%
61%
60%55%
55%
54%
51%
8
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Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
Role of the StoreMany consumers, especially millennials, are interested in enhancing their in-store
shopping experience through new digital capabilities.
Appeal of Shopping Conveniences to Millennials
9
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Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
An in-store kiosk that allowsyou to order products that areeither out of stock in store or
not sold in stores
A touch screen or voice activated sign to interact with to receive information, make purchase or arrange delivery
41%
35%
Electronic receipts sent to me via email or text
Ability to purchase items in a window display for
same-day delivery
In store mobile notifications or messages
43%
36%
37%
33%
41%
33%
Electronic shelf labels I can scan to learn more about the product, check availability or
make a purchase
Roaming checkout from an associate with a phone
or tablet
Mobile checkout with my own phone or tablet while
in store
Role of the StoreMore than half of online shoppers have chosen “ship-to-store” with
4 in 10 making an additional purchase while in the store.
Ship-to-Store Behaviors
43%54%made additional
purchases in storeof online shoppers have had
items shipped to a store in the past at some point
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Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
Security & Privacy
Trust in Online Shopping in the Past Year
Despite recent security issues, more consumers have gained trust in online shopping than have lost trust in the past year.
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Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
69%
18% 13%
Trust stayed the same
Trust increased Trust decreased
Security & Privacy
Influence of Values on Likelihood to Shop with a Retailer
Privacy protection and fraud prevention are the top non-product-related influencers in consumers’ likelihood to shop with a retailer.
12
Protecting your personal information
Their track record on fraud
prevention
Focus on Made in USA
products
Commitment to providing sustainable products or packaging
Commitment to corporate social responsibility
Focus on local sourcing
Using sustainable materials in their stores or buildings
Using your personal information to send
you offers
Commitment to providing organic
products74%
54%
45% 29%
28%
25%
25%
31%35%
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Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
Checkout & DeliveryFree shipping continues to be the most preferred option when checking out online,
however it is not the only valued option. Seeing the estimated delivery date and shipping costs early in the process are also important.
Importance of Options When Checking Out Online
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Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
Free shipping options
Provide estimated delivery date and shipping costs early in the process (for convenience)
Estimated or guaranteed delivery date
Having a variety of payment options: PayPal, Google Checkout, credit card
Remember me - save my shopping cart items and order information
Personal login to save purchasing preferences
Order history, so I can see everything I’ve bought
81%
63% 62%
54%51% 51% 50%
Checkout & DeliveryNinety-three percent of online shoppers have taken action in order to qualify for free shipping.
Among those shoppers, below are the specific actions they have taken.
Actions Taken to Qualify For Free Shipping
Choose slowest transit time offered on a retailer’s site
because it’s free
Delay making my purchase to wait for a
free shipping offer
50%
30%
Add more items to a cart to qualify for free
shipping
Join a loyalty program to qualify for free shipping
Choose ship-to-store
Purchase an alternative product that was priced above the retailer’s free
shipping threshold
58%
31%
35%
16%
47%
Search online for a promo code for free
shipping
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Home
Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
Checkout & DeliveryDelivery preferences are evolving. While consumers still prefer to have most of their orders
delivered to their home, there is a growing trend for alternate delivery locations.
Preference in Delivery Location
To my home/residence
Delivery locker
74%
3%
2%
15
To the retailer’s store from which I purchased the product online
Friend or family member
To my workplace
To another authorized pickup location
(ie. The UPS Store)
Another retail location such as a grocery or convenience store
7%
5%
5%4%
Home
Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
Checkout & DeliveryOnline shoppers want to see total purchase information at checkout, including shipping costs, and
the majority prefer to see the expected arrival date rather than the number of days to arrive.
Preference in Seeing the Expected
Delivery Arrival Date
Reasons for Abandoning Shopping Cart
Shipping costs made the total purchase cost more than expected
My preferred payment option (i.e. bank transfer, debit card, PayPal, Google
Checkout) was not offered
I didn’t want to register/create account just to
make a purchase
The estimatedshipping time was too long for the amount
I wanted to pay
Shipping and handling costs were listed
too late during the checkout process
My order value wasn’t large
enough to qualify for free shipping
I was not ready to purchase, wanted to save the cart for later
I was not ready to purchase but wanted to get an idea of the
total cost with shipping for comparison against
other sites
58%
57%
55%
50%
56% 24%
37%
28%
28%
The expected dateof arrival
The number of daysto arrive
(i.e. 5 business days)
16
JUN
WEDNESDAY
vs.
25%
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Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
% of Consumers Willing to Wait by Number of Days
% of Consumers Willing to Wait Additional Days for Free Shipping
Checkout & DeliveryConsumers are surprisingly patient and willing to wait for purchases to be
delivered, and will wait even longer in exchange for free shipping.
17
1 2 3 4 5+DAY DAYS DAYS DAYS DAYS
90%
83%
57%
39%
33%
2 3 4 5 6 7 8+DAYS DAYS DAYS DAYS DAYS DAYS DAYS
100%97%
91%85%
60%
57%
28%
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Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
Returns
When Consumers Review a Retailer’s Return Policy
Compared to 2012, more consumers are looking at retailers’ return policies before making a purchase, emphasizing the increasing
role of returns in driving purchasing decisions.
18
2012 2014
33%
39%
2012 2014
20% 22%
2012 2014
30%
27%
2012 2014
17%
12%
Before I purchase an item
After, if I need to return an item
Both Not at all
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Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
Returns
A Return Policy’s Impact on Purchase Intent
Returns options heavily influence consumers’ likelihood to complete a sale, with restocking and shipping fees being the most impactful deterrents.
19
Return in store OR ship back for free using
prepaid label provided
Likely to Complete Sale Neutral Unlikely to Complete Sale
Return not accepted in store BUT ship back for free using prepaid
label provided
Return in store OR buyer pays return
shipping
Return in store OR ship back for free
using prepaid label provided BUT there is
restocking fee
Return not accepted in store AND buyer
pays return shipping
82%
14%
20%
31%
35%
29%67%
45%33%
20%
4%
13%24%
32%
51%
Home
Introduction
Today’sOnline ShoppingExperience
Mobile
Omnichannel
Role of the Store
Security & Privacy
Checkout & Delivery
Returns
