2015 ups pulse of the online shopper™ sheet...are shopping at small, local and global retailers...

A Customer Experience Study Conducted by comScore

2015 UPS Pulse of the Online Shopper™

IntroductionThe retail industry is quickly changing, and consumers are leading the charge. Today’s shoppers are more empowered than ever, raising expectations for retailers. Shoppers are shifting between multiple channels to research products and make purchases, and all channels are important, including the store. They are shopping at small, local and global retailers and are seeking value at every stage of the online shopping experience, looking for perks and deals.

Now in its fourth year, the 2015 UPS Pulse of the Online Shopper™ Study reveals changes in consumer shopping preferences and behaviors and provides insight into how retailers can evolve to meet new demands.

Study findings reveal trends that will continue to shape the future of retail, including the rise of alternative delivery options, the role of social media in driving purchasing decisions, the continued evolution of omnichannel and the changing role of the store.

TABLE OF CONTENTS

3-5 State of Online Shopping

6-7 Channel Shifts

8-9 Mobile

10 Social Media

11 Free Shipping

12-13 Alternate Delivery

14 Returns

15 Role of the Store

16 What’s Next in Retail

INTRODUCTION STATE OF ONLINE CHANNEL MOBILE SOCIAL FREE ALTERNATE RETURNS ROLE OF WHAT’S NEXT SHOPPING SHIFTS MEDIA SHIPPING DELIVERY THE STORE IN RETAIL

Tablet Smartphone Physical Store

SATISFACTION WITH SHOPPING CHANNELS

84% 74% 65% 62%

Desktop/Laptop


State of Online ShoppingSatisfaction with the overall online shopping experience is highat 83%, but satisfaction levels drop when consumers are asked

about shopping in store and on a smartphone.


REASONS FOR SHOPPING AT SMALL VS. LARGE RETAILERS

REASONS TO SHOP FROM INTERNATIONAL RETAILERS

State of Online ShoppingConsumers shop at small, local and international retailers as well as larger retailers and have different reasons for shopping at one versus another. More than half of them shop

at small retailers because they offer unique products. Better prices, unique or hard-to-find items are the top reasons for purchasing from international retailers.

They offer unique product

I couldn’t find what I needed from traditional sources

I want to support the community or small businesses

I like to try new retailers

They feature a broader assortment

They provide innovative shopping experiences

The price is better internationally

The brands or products I like are not available in the U.S.

I wanted something unique not found in stores in the U.S.

The quality is better internationally

I like the status that comes with shopping internationally

I want to purchase products found while traveling or living abroad

40%have purchased from an

international online retailer

61%

49%43%

35%20%

11%10%

49%40%

29%26%

24%

93%buy at small retailers

State of Online ShoppingDesktops and laptops dominate as the preferred channel for researching and

purchasing products online. At the same time, consumers are increasingly using smartphones for online shopping.


DEVICES USED FOR RESEARCH AND PURCHASE IN LAST 3 MONTHS

PROJECTED SHOPPING FREQUENCY COMPARED TO PAST YEAR

Research Purchase

Same

More

Less

91%

91%

41%

30%

32%

26%

Tablet

Smartphone

Desktop/Laptop

73%

10%

17%

68%

22%

10%

65%

30%

5%

67%

24%

9%

SmartphoneIn Store Desktop/LaptopTablet


RESEARCH & PURCHASE METHOD

SingleChannel

Search in store,buy in store

Omnichannel

42%

64%

36%

14%

7% 7%

8%

22%Search online,

buy online

Search online,buy in store

Research online and in store, buy online

Research online and in store, buy in store

Search in store,buy online

Channel ShiftsConsumers continue to cross channels when

researching and purchasing items.


REASONS FOR PURCHASING ONLINE AFTER RESEARCHING IN STORE

Channel ShiftsConsumers search extensively for the best prices and product selection—the top

two reasons for purchasing items online after researching them in store.

57%

49%

46% 45%

40%

39%

33%The price was better online

with a different retailer

The selection was better online with the

same retailer

The selection was better online with a different retailer

I wanted to do additional research before purchasing

The store didn’t have the size/color/model I wanted

I wanted to go to the store to touch and feel the product before purchasing online

I was not ready to purchase the day I visited the store

MobileOnline shoppers are experiencing barriers to shopping on their mobile

devices, leading them to use their desktop and/or laptop.


REASONS FOR SHOPPING ON DESKTOP/LAPTOP VS. MOBILE DEVICE

vs.

Easier to use a keyboard and mouse vs. a touch

screen or keypad

51%

Can’t get a clear or large enough image of the product

on my mobile device

38%

Product information cannot be easily viewed on my

mobile device

32%

Concerns about giving my credit card information over

a mobile connection

32%Hard to compare products

on my mobile device

30%

Difficult to quickly/easily find the product on retailer’s

mobile site or app

23%

Takes me too long to buy on my mobile device

21%

Checking out via mobile devices is too difficult

20%


SMARTPHONE USAGE IN STORE

Look up product reviews

Read product details

Compare prices at other online or physical stores

Search for specific products and alternatives

Search for a different online retailer

Look for other locations for the same retailer

Place an order to be shipped to you

Check in-stock status at another location or on the retailer’s website

Contact friends/family to request feedback on a product

Scan a QR or barcode

Upload a picture of a product

Share an image of a product you would like a retailer to locate

30%

29%

29%

23%

23%

22%

22%

22%

21%

19%

18%

18%

MobileWhen shopping in store, consumers use their smartphones as a research

tool and confidence booster for making purchasing decisions.


SOCIAL MEDIA INFLUENCE

Social MediaSocial media has a growing influence on purchasing decisions,

and Facebook is the most influential channel.

I follow retailers on this site

FACEBOOK

TWITTER

PINTEREST

INSTAGRAM

YOUTUBE

This site influences my purchase decisions

23%

11%

8%

5%

7%

8%

7%8%

7%

5%

report social networking sites influence purchasing

decisions

25%


DAYS WILLING TO WAIT FOR PURCHASES

Free ShippingWhen paying for shipping, online shoppers expect to receive

their items faster than if the shipping was free.

Paying for Shipping

Shoppers are willing to wait an average of 6 days for paid shipping and 8 days for

free shipping

When shipping is free, 85% of shoppers are willing to wait 5 days or more for their delivery, while 66% will wait that long when they have to pay for shipping

Free Shipping

3DAYS

2DAYS

1DAY

4DAYS

5DAYS

6DAYS

7DAYS

8-10DAYS

16%7%

28%

2%2%

21%

9%9% 6% 4%4%

21%

3%1%

29%20%

11+DAYS

6%12%

Alternate DeliveryCompared to last year, consumers are more open to having packages

delivered to locations other than their homes.


PREFERRED DELIVERY LOCATION 2014 VS. 2015 INTEREST IN SHIPPING TO ALTERNATE LOCATION WITH EXTENDED HOURS

To my home/residence

Retailer’s store Another retail location such as a grocery store or convenience store

Friend or family member

Packagedelivery locker

Another authorized pickup location

My workplace

8% 4% 3%

2%

74%

5%4%

5%

7%

6% 4%

6% 5%

67%

52%

24%24%

YES

NONOTSURE

20152014


APPEALING DELIVERY SERVICE OPTIONS WHEN NOT HOME TO SIGN FOR A PACKAGE

Alternate DeliveryWhen not at home to sign for a package, consumers are becoming

more open to alternate delivery service options.

If out of town, tell the carrier to hold the package until I will be

home to receive it

Instruct the carrier to leave package with a neighbor, at the backdoor, in the

garage, on the porch/patio, etc.

Ship to a carrier’s location(e.g., The UPS Store®) near my home

for pickup at my convenience

Ship to another location, such as my office or another address

of my choice

Ship to a local retail location authorized to hold packages for

pickup at my convenience

Leave package at a delivery locker near my home for pickup at my

convenience

51%

36%

50%

32%

36%

27%


PREFERRED METHOD OF RETURN VS. MOST OFTEN SELECTED

NEW PURCHASES MADE WHILE RETURNING ITEMS

ReturnsShoppers prefer to return items to a store even though more consumers

have shipped items back to retailers versus returning them to a store. Shoppers have made more new purchases when returning an item to

a store than they have when processing an online return.

Ship an item back to the retailer

Return an item to store

Made new purchase in store

Made new purchase online

Returned an item using this format

Prefer to return items in this format

69%

70% 42%52%

61%

39%

41%SHIP

45%


Role of the StoreThe store continues to play a critical role in the online shopping experience.

Nearly half of consumers have selected ship-to-store for pickup and 45% of those have made additional purchases while in store.

SHIP-TO-STORE HABITS

of those made additional purchases while in store

of these users expect to select this option more in the next year

48%have shipped

to store for pickup


What’s Next in RetailMobile and in-store technologies are changing the face of retail, and online shoppers

are embracing these new shopping conveniences and capabilities.

WILLINGNESS TO USE NEW SHOPPING CAPABILITIES

Electronic receipts sent to you via email or text

The ablity to track your driver using GPS

Roaming checkout from an associate with a phone or tablet

Electronic shelf labels you can scan to learn more about the product, check

availability, or make a purchase

comScore, Inc. surveyed 5,118 online shoppers in January 2015. Respondents had to make at least 2 purchases in a typical 3-month period.

METHODOLOGY

A touch screen or voice-activated digital sign to receive information, make a purchase or arrange delivery

Curbside pickups and returns

Mobile checkout with your own phone or tablet while in store

The ability to purchase items for same day delivery

41% 27%

33%

33% 33%

29%

27%38%

2015 ups pulse of the online shopper™ sheet...are shopping at small, local and global retailers...

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