Thanks to all the advantages of buying products online, more and more people say they prefer online shopping than in-store shopping.
In 1999, e-commerce sales contributed for 0.2% of the total retail sales. In 2015, this number went up to 7.2%. E-commerce sales have been growing nine times faster than physical retail in 15 years.
After some research, I have highlighted, and explained bellow the 5 main reason that makes people buy online:
1- Convenience reason :
The most disruptive force that e-commerce has brought in the real world is the convenience. Convenience to buy anything from anywhere and knowing exactly what day it is going to get delivered and where. 7 shoppers out of 10 judge the fact of getting their order within 1 day is a strong asset for an online platform.
When buying a product online, consumers also want to have a very convenient return mechanic system, when a product is not fitting them. 75% of consumers thinks that that free returns and exchanges are more likely to make them spend their money online that in a traditional retail shop.
2- Cost Reason
Without any hesitation, the price of a product is the most important factor that affects online shopper behavior. 90% of the consumers compare prices on the different online platform before buying a product, and 65% decide if they are going to buy online of in-store based on which one has the cheapest price.
The only thing that makes people not buy online even if they are ready to do so, is the shipping cost. 1 consumer out of 2 have left a basket because the price of the shipping cost was making their purchase not worth it anymore. More and more ecommerce platform have understood this restraint, and are starting to set up free delivery mechanic in order for their shoppers to buy.
3- Feeling Acquainted
Even if price is the most important factor, it is not the only concern that an online shopper has in mind. Since e-commerce consumer cannot touch the product directly on a website, shoppers wants to learn as much as possible about the product there are ready to buy before actually buying it. 8 shoppers out of 10 confirm that the detail of the product and all the information of it are essential before proceeding to the payment, and 59% of them would like to see different product shot of the item took under different angle. Also, 98% of the consumers who are shopping online says they leave the website on which they were planning to buy if there is a lack of information. To sum up, in their online journey, the 3 most important things consumers care about is the convenience of the website, the easiness of finding the products that they want in special categories as well as the information about the product. An online platform who owns these assets will perform 2.5 times better than a normal e-commerce website.
It’s a fact. People like to know what other people think about the other products, principally when they are about to buy a product they never had before. This is the big advantages of online platforms toward the traditional in-store retailers where, other than a salesman, no one can give you advices and trustworthy opinion about the item. Almost 70% of the online shoppers read the review about the product before buying it. Online reviews have a big impact on the shopper’s point of view about the product.
Online retailers must display the product reviews noticeable so that shoppers can feel confident about making purchases. Companies should not hide the bad reviews about the products, otherwise, shoppers are not going to trust a platform which only display great reviews.
5- Having Personalized guidance
Due to the huge number of products available online, consumers can sometimes be lost in the online world, which is the reason why 40% of the shoppers say that they quit an e-commerce website to go buy the same product on another one because they felt bad having too many choices that did not correspond to their needs.
The solution of this problem is to target what people really want. Most of the people already know what they want to buy when they reach an online platform. If personalized guidance are offered to a shopper based on his previous purchases, he will be more likely to spend more, and the most important, to come back for his next purchase.
Approximately 8 shoppers out of 10 say having been guided by personalized promotions online. Most important thing is that more than the half of consumers say they are more chances that they are going to buy from a brand or an e-tailer that is going to send them some personalized EDM. Of course, once again it is logical. People love when they receives personalized email with their name on it, guiding them to buy a specific product.
According to the graph bellow coming from KPMG and dating from 2017 and explaining the reasons why consumers shop online instead of in-store, we can see that the Top 2 reasons are convenience and price related. Of course, the ranking of these reasons might change according to the culture, age, and lots of other factors, but still, convenience and price are from far the most important factors.