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#DeliveryMatters
02
Delivery matters for UK online marketplacesWhy are we looking at online
marketplaces? Because their rise
has impacted the way retailers
sell and how shoppers buy
online. They’ve transformed the
relationship that shoppers have
to brands and changed the way
they buy. Choice and variety alone
have added a layer of complexity to
understanding what online shoppers
want and expect. As for retailers,
multi-channel ecommerce is now
the norm for those looking to
maximise or optimise their sales.
An intriguing insight from the
research is that marketplace
shoppers browse regularly – buying
almost twice a month on average.
They tend to buy from the two
major players in the UK – Amazon
and eBay. There are a number of
alternatives, each carving out unique
selling propositions to drive usage,
but shoppers still tend to purchase
from the big two.
Fulfi lment plays an important role in
these purchases. In their search for
good value for money, shoppers tell
us that delivery costs and options
are essential when deciding which
marketplace seller to buy from,
and how o� en they would use them.
If sellers get these wrong, shoppers
won’t hesitate to abandon their cart.
On the other hand, fulfi lment doesn’t
aff ect the choice of marketplace site.
Interestingly, when buying from an
online marketplace, trust in delivery
provider matters more for shoppers.
And the nation still trusts Royal Mail
more than any other delivery provider.
We hope our fi rst look at online
marketplace shoppers in the UK will
uncover valuable trends and insights
to help you take advantage of these
increasingly-popular platforms.
Nick LandonManaging Director of Royal Mail Parcels
Contents
Introduction
02 Introduction
03 Key online trends
04 Top trends in 2017 for UK online marketplaces
05 Marketplace shoppers
06 The mindset of a marketplace shopper
07 Hunting for things to buy
08 How do people visit marketplaces?
09 What marketplace shoppers snap up
10 Does usage match awareness?
11 Marketplace shopping – how o� en and how much?
13 Delivery matters
14 Delivery drives decision-making
15 Getting delivery charges right
16 Shoppers love local delivery
17 Returns aff ect ratings
18 Returns: marketplace sellers vs online retailers
19 So many lonely carts
20 Hitting the ‘buy’ button
21 Picky about delivery
22 Who gets the stamp of approval?
23 In summary
24 Key takeaways from our research
25 Royal Mail services
26 Services to suit your customers
28 About this research
29 We can help your business deliver
#DeliveryMatters
04
Key online trends
Top trends in 2017 forUK online marketplaces Our fi rst online marketplaces report identifi ed a number of
trends refl ecting shopper behaviour in 2017. Let’s take a look
at the most signifi cant.
Online marketplacesare popular The survey shows us that marketplace shoppers are regular shoppers, buying almost twice a month on average. Over the last three months, they’ve spent an average of £174 on marketplace purchases. We also see that male and female shoppers use marketplaces differently. The majority of shoppers are female, however, male shoppers spend a significantly larger amount (£201) than females (£153).
So, where are they spending? The survey reveals that shoppers use a range of marketplaces, but that a clear preference exists. Amazon and eBay are not only front-of-mind in terms of awareness, but are front-runners in terms of usage, with 82% and 70% respectively saying they had purchased from these sites in the last three months.
Expectations are highWhen marketplace shoppers choose a seller, fulfilment ranks amongst the top factors they consider, with the cost of delivery resonating with nine out of ten. It’s interesting to note that these fulfilment expectations don’t affect the choice of marketplace site. Meanwhile, delivery charges remain the most common reason for cart abandonment. Results show that two in five marketplace shoppers abandoned their basket due to what they thought were unreasonable delivery charges.
Trust Royal Mail to deliver Still the most trusted onlinedelivery provider, Royal Mail are also front-of-mind for marketplace deliveries, and have delivered almost two in five of shoppers’ last purchases.
Did you know?Over the last three months, shoppers have spent an average of £174 on
marketplace purchases.
#DeliveryMatters
06
Marketplace shoppers
The choice between online marketplaces is diverse, and shoppers
tell us that they use them for diff ering purposes. This highlights
two key drivers for sellers. Firstly, to better understand audiences
in order to satisfy their demands and expectations. Secondly,
the importance of identifying which marketplaces are best suited
for diff erent audiences and product ranges.
The mindset of amarketplace shopper
would use
Amazon
for the range
of items
available
65%
would visit Gumtree
to find
something
second-hand
39%
would use
eBay
for bargain
hunting
64%
would choose notonthe-
highstreet.
com for personalised items
45%
would opt for
Etsy to find
something
unique
42%
#DeliveryMatters
07 08
Marketplace shoppers
Technology used by marketplace shoppers closely mirrors that
used by all online shoppers. 86% use a laptop or desktop while
combined smartphone and tablet use is 43%.
It’s interesting to note that marketplace apps seem to be driving up
smartphone usage as the user experience becomes better, making
them more convenient to use on the move. In fact, shoppers now use
a smartphone or tablet more than a laptop or desktop for shopping
on Facebook and Etsy.
Hunting for things to buyThe journey towards fi nding an item usually begins with one of
two actions. Shoppers either use a search engine such as Google,
or head straight to the marketplace to have a rummage around.
For marketplace sellers, this highlights some vital considerations.
For general searches, the importance of search engine optimisation and
paid advertising (in particular Google shopping). For marketplace searches,
the importance of accurate product terms and descriptions.
58% of online marketplace shoppers used a search engine, and of those:
How do people visitmarketplaces?
also carried out their
research directly on the
online marketplace.
57%
43%86%
use a laptop or desktop use a smartphone or tablet
Did you know?Younger audiences are
behind the rise in mobile
shopping, attracted by the
convenience and ease-of-
use of marketplace apps
and mobile sites. They shop
on-the-go at work, while
travelling or in-store.
15%used image search
functionality
50%used Google Shopping (or something similar)
22%clicked on a
sponsored link
#DeliveryMatters
09 10
4%
Marketplace shoppers
What marketplaceshoppers snap up Clothes are the most commonly purchased item from online
marketplaces, closely followed by books. Overall, the popularity
of these categories mirror that of online retailers in general.
What are the most purchased items?
32% buy clothes
31% buy books
24% buy CDs/DVDs/records/video games
The report shows that marketplace shoppers are most likely to buy
books, music, personalised items (such as name-engraved jewellery)
and second-hand clothes from marketplace sellers – rather than from
general online retailers.
Items more likely to be bought through a marketplace seller than an online retailer
28% – books
25% – CDs/DVDs/records/video games
18% – personalised items
17% – second hand clothes
Does usage match awareness?If shoppers know about an online marketplace, does it mean
they’re likely to shop there? The report shows us that when it
comes to awareness versus usage, the diff erences within the
marketplace landscape are glaring. While knowledge of many
marketplaces is widespread, the big two – Amazon and eBay –
are where shoppers usually go to make their purchases.
Who do people know and use?
Table key People who know
of the marketplace
People who
know of and shop
on the marketplace
31%buy books
24%buy CDs/DVDs/
records/
video games
32%buy clothes
97% 97% 83% 67% 48% 41% 26%82% 70% 4% 4%7% 6%
#DeliveryMatters
11 12
Marketplace shoppers
Marketplace shopping – how often and how much?
Marketplace shopping – how often and how much?
On average per month, marketplace shoppers:
As a clear gauge of their popularity, the majority of Amazon and eBay shoppers purchase from these marketplaces monthly
• 80% of Amazon shoppers buy at least monthly
(with 17% doing so weekly)
• 76% of eBay shoppers purchase from the marketplace at least monthly
(with 16% doing so weekly)
Meanwhile, Facebook and ASOS have more polarised usage.
We see from the survey that a relatively large proportion of their users make purchases every week, but many others buy rarely.
Shopping frequency amongst those who have bought from these platforms:
Make two purchases Spend £58
£58A helping handClick & Drop, launched at
the beginning of 2015, is
an online postage solution
designed to simplify
parcel shipping for online
marketplace sellers using
Royal Mail. See more
on page 28.
Percentage who shop weekly Percentage who shop monthly Percentage who shop less o� en
Table key
28% 34% 38%32% 24% 45%
#DeliveryMatters
14
Delivery matters
Delivery drivesdecision-making The results of the survey show that delivery options are key when
shoppers choose between marketplace sellers. Interestingly,
they’re not so important when choosing which site to use.
As the fi gures below reveal, low prices are the main infl uencer
of marketplace choice, followed by the product range.
Key factors in choosing an online marketplace
76% – low price/deals
70% – range of products available
When it comes to delivery expectations for items purchased on online
marketplaces, we see that they’re significantly high. 75% of shoppers expect
delivery times to be the same when ordering from an online marketplace as
when they order from an online retailer.
Key factors in choosing an online marketplace over an online retailer
60% because they can find better deals
51% because they can find items they can’t find elsewhere
38% because there’s more variety of the item they’re looking for
choose an online
marketplace because
of low price/deals.
76%
Did you know?Marketplace shoppers
prioritise value for money
just like general online
shoppers do in our UK
Online Shoppers report.
#DeliveryMatters
15 16
Delivery matters
Shoppers love local deliveryWhen shoppers need to have purchases delivered to an
alternative location, nearly one in two choose a seller that off ers
delivery to a local Post Offi ce® or Enquiry Offi ce using a Local
Collect service. The convenience of Click & Collect services
means that two in fi ve marketplace shoppers have chosen to
use one. It’s worth noting that of these shoppers, home delivery
is still more popular.
If an online marketplace seller off ered the choice of free home
delivery or a free Click & Collect service, 62% would opt for
home delivery, while 29% would prefer free Click & Collect.
Getting delivery charges right When UK online marketplace shoppers consider which seller
to buy from, delivery costs and options are very important.
In their assessment, shoppers told us that the cost of delivery,
and transparency about these costs, are key. So much so,
that they feature as two of the top three factors in choosing
a specifi c seller.
When buying from marketplaces, how important are the following factors?
Given that fulfilment is a driving force behind the choice of seller, it is
imperative that online marketplace sellers use delivery options strategically.
To do so can be a point of differentiation from competitors within this space.
62% 29%
prefer free
home delivery
prefer free
Click & Collect
Did you know?Online marketplace
shoppers are particularly
savvy. If they’re not offered
value, they’ll go elsewhere.
Expert adviceEven if home is the most
popular delivery location,
Click & Collect offers a
convenient and flexible
alternative, and should
be offered by ‘pure player’
marketplace sellers as part
of their delivery options.
A helping handRoyal Mail Local Collect® provides the largest retail network of collection
points. See page 28.
a driving force bbehehinindd ththe choice of seller
89%transparent information
about delivery charges
92%detailed product
description
90%cost of delivery
#DeliveryMatters
17 18
Delivery matters
Returns: online marketplacesellers vs online retailers
Returns affect ratings
For shoppers, the returns process is equally important whether
buying through an online marketplace seller or online retailer.
78% expect the returns process with an online marketplace
seller to be similar or easier than with online retailers.
Shoppers also accept that there are risks associated with
purchasing from marketplaces. This makes them either more
or less likely to return items.
Those shoppers more likely to
return items believe purchases from
online marketplaces are riskier than
from online retailers.
Those less likely to return an item
bought from an online marketplace
say they expect a seller’s returns
procedure to be less clear.
While a relatively small number of marketplace shoppers actually
return items, it’s clear that having a positive and easy returns
experience helps infl uence consumers.
• 16% of marketplace shoppers have returned an item in the past
three months
• 59% say the returns experience will impact the rating given to the seller
• 62% would be unlikely to shop with a seller again after a difficult
returns experience
What’s getting sent back?
While online marketplace shoppers return items from a range of categories,
two really stand out: clothes and footwear. expect the returns process
with an online marketplace
seller to be similar or easier
than with online retailers.
22%
9%have returned clothes
have returned
footwear
Did you know?The easier it is for
shoppers to return an item,
the more likely they are
to trust the seller and buy
from them again.
(Unlike online retailers),
sometimes online marketplace
sellers do not give honest
descriptions of their goods.
Sometimes it’s not worth the hassle
for the low price charged.
78%
#DeliveryMatters
19 20
Delivery matters
So many lonely carts93% of UK online marketplace shoppers have abandoned a cart
at checkout. The most common reason for doing so is that the
customer is unwilling to pay the delivery cost.
How often do shoppers abandon online marketplace carts?
Hitting the ‘buy’ button Shoppers were asked what would make them choose a
marketplace seller more o� en. Around half told us that price
and delivery factors would encourage them to bump up their
buying frequency.
Key reasons that make shoppers hit ‘buy’ more
38%
55%if the seller offers
the lowest price
48%if the seller has
free delivery
on all items
43%if the seller has a
free returns policy
Did you know?38% abandon their cart
because they are unhappy
with the delivery charge.
Did you know?Offering good value
delivery can help reduce
cart abandonment and
increase repeat business.
do so frequently do so infrequently have never done so
28% 65% 7%
#DeliveryMatters
21 22
The importance of trust
Picky about deliveryWe asked shoppers whether the choice of delivery provider is
more or less important when buying from an online marketplace
seller compared with a regular online retailer. Their answers
show that the choice of delivery provider is crucial:
Who gets the stamp of approval?The report shows that Royal Mail has the highest brand
awareness amongst delivery companies, and they delivered
almost two in fi ve of shoppers’ most recent online
marketplace purchases.
In addition, 43% of marketplace shoppers say the choice of delivery provider
is important to them.
And in a clear opportunity for increased sales, 77% are more likely to choose
a seller using Royal Mail for deliveries.
92% 38%
Royal Mail
brand awareness
Royal Mail delivered
last purchase
52%
13%consider it more
important
consider it less
important
of marketplace shoppers
are more likely to choose
a seller using Royal Mail
for deliveries.
77%
Did you know?More than three in four
consumers are more likely
to shop with a marketplace
seller if Royal Mail is the
delivery provider.
Expert adviceBeing offered a trusted,
reliable delivery provider
seems to be crucial in
helping online shoppers to
build trust with a particular
marketplace seller.
#DeliveryMatters
24
Key takeaways from our researchUnderstand marketplace purchase motivations
Shoppers like to visit online marketplaces for different reasons. It’s vital
that sellers understand these so they can satisfy demands and expectations.
For example, eBay attracts more bargain hunters while Etsy is used to find
something unique.
Deliver on expectations
In the competitive environment of UK online marketplaces, satisfying shopper
expectations is vital for sellers. They should start by minimising delivery
charges, as these are a key reason for shoppers abandoning their cart.
Trust is a must
Shoppers accept that marketplaces are riskier to purchase from than online
retailers in general. To help instill trust and attract business, sellers should
provide a choice of delivery options and offer delivery with a trusted provider.
One of those should be Royal Mail, which is the most trusted marketplace
delivery provider in the UK.
In summary
#DeliveryMatters
26
Services to suit your customers Royal Mail Special Delivery Guaranteed by 9am or by 1pm
Guaranteed next day timed delivery
for urgent or valuable items.
Full tracking, compensation and
proof of delivery with the option
to request Saturday delivery for
an additional fee.
The by 9am service provides £50
inclusive compensation and the
by 1pm service provides £750
inclusive compensation. This can
be enhanced up to £2,500 and
consequential loss coverage
of up to £10,000 is available too.
Royal Mail Tracked 24® and Tracked 48
Tracked delivery allows your
customers to self-serve for
extra peace of mind.
You can now track your parcels from
the point that they are despatched
through to delivery at your customer’s
doorstep with Royal Mail Tracked 24®
and Royal Mail Tracked 48®.
Your customers will receive a text
or email notifi cation on the day of
delivery, so they’ll know their parcel
is on its way.
You can opt for a signature on
delivery and all tracked products
provide up to £100 compensation
as standard.
Local Collect® is also included at
no additional cost with Royal Mail
Tracked services.
Royal Mail 24® and 48
A cost-eff ective delivery service
with large volume discounts.
Great everyday value on next day
or two-day parcel delivery.
Online Delivery Confi rmation is
now available for customers who
have barcoded their parcels.
Royal Mail services
#DeliveryMatters
27 28
Royal Mail services
Services to suit your customers Royal Mail Returns
With 11,500 Post Offi ce® branches to
choose from, it’s easy for customers
to return their items with Royal Mail.
Next day by 1pm with Special Delivery
Guaranteed Returns or Tracked next
day or two-day returns.
Royal Mail Tracked Returns off er up
to £100 compensation as standard.
Off er your customers free returns
by including a unique barcoded
returns label in every parcel, or by
letting them print their own label
from our online returns portal.
Royal Mail Local Collect
Perfect for customers wanting to collect
their deliveries when it suits them.
With Local Collect® they can choose to
pick up their items at a convenient local
Post Offi ce® or Royal Mail Customer
Service Point (Enquiry Offi ce).
This service is available for
Special Delivery Guaranteed by 9am
and Special Delivery Guaranteed
by 1pm, Royal Mail Tracked 24®
and Royal Mail Tracked 48®.
Click & Drop
Click & Drop is our quick and
easy shipping platform. Designed
for marketplace sellers, it easily
integrates with eBay, Amazon
and many other key e-commerce
platforms. Simply log-in to the
web-based portal and print individual
or batches of barcoded labels of our
UK and international services.
About this researchIndependently conducted by Trinity McQueen, the research
was based on a sample group of 1,000 UK online marketplace
shoppers who had bought an item from an online marketplace
in the previous three months.
Shoppers completed a 19-minute survey, optimised for mobile
and tablet devices, between the 9th and 18th of May 2017.
87%
#DeliveryMatters
29 30
Royal Mail services
We can help your business deliverThanks for reading Delivery Matters for UK online marketplaces – we hope
you found it useful. If you’d like to fi nd out more about how we can help with
your deliveries, get in touch with your Royal Mail account manager,
or call us on 08457 950 950*.
If you’d like to fi nd out more about our research, or download the rest
of our series, visit royalmail.com/deliverymatters.
2017
2015
2016
* Calls may be recorded, monitored
and used for training and compliance
purposes. Calls cost 5p per minute
plus your telephone company’s
network access charge.
United KingdomU it dd Ki dd Online MarketplacesO lli M kk t llChinaChhi
IrelandI l d Returns USA Germany Australia FranceR tSwedenS d
Canada
Italy
Russia
India
Japan
USA G A li F
For more information on our products or services,
please call Business Sales on 08457 950 950.
Textphone users can dial direct on 03456 000 606
and we welcome Typetalk calls.
Calls may be recorded, monitored and used for training and compliance
purposes. Calls cost 5p per minute plus your telephone company’s
network access charge.
Royal Mail, the cruciform and all marks indicated with ® are registered
trademarks of Royal Mail Group Ltd. Delivery Matters 2017© Royal Mail
Group Ltd 2017. All rights reserved.
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