UK consumers spend five-times more online

ecommerceWhat are the most recent ecommerce trends?

In UK, shoppers will spend about five times more shopping for groceries when they shop online than they would if they were shopping in a store. It is a trend that retailers should see as an opportunity rather than a threat. According to Kantar Worldpanel, the rise of ecommerce should not be perceived as a threat but as a way to increase revenues. The findings were published in a report that highlights the problems traditional retailers are facing as digitization takes over.

Why are consumer spending more online?

According to this report, UK consumers are spending more online because they are making repeat purchases. In the same survey on ecommerce carried out in other countries, it emerged that online shoppers spent at least double what they spend online compared to what they would spend if they went out to shop in a store. British consumers are at the top of the tier with their tendency to shop not twice as much but 4.8 times as much online.

It is a trend that retailers can make the most of by encouraging online shopping. In countries where retailers have embraced online shopping and established online presence, it has worked for them. In China, more than 50% of all online purchases are added revenue for different brands and retailers who have gone online.

In addition, online shoppers tend to be more loyal shoppers than those who shop in stores. For instance, those who shop online on Tesco, UK’s largest retailer have been found to do 46% of all their shopping amount with the retailer. The average falls to 29% for shoppers who physically shop at the store.

From the findings, Kantar foresees a situation where the sale of packaged items online will go up by 47% by 2016. This will add up to $53b in sales worldwide which is equivalent to a 3.7% increase from 5.2%

While UK has the highest number of online grocery shoppers in Europe, it seems that the French will take over the top spot by 2016. This projection is based on the country’s ‘Drive’ model where shoppers buy online but drive to a store to pick up the purchases.

How to maximize ecommerce sales?

Retailers can make the most of online shopping to maximize revenue by making it an experience that is fun and easy. They can certainly make the most of the tendency to shop on impulse and can make it an attractive option to clients by offering same-day delivery. By doing so, they could grab a share of the take-away market as they can get their groceries together with their ready-to-eat meals shortly after ordering. Another option would be to provide click and collect service which is becoming increasingly popular amongst online shoppers.

In a different report, Rabobank sounds a warning to food producers about the need to change their strategies if they want their products to stand out in the vast cyber world. This is because consumers tend to have shopping habits that are different when they are shopping online and when they are shopping in a store. Rabobank’s senior analyst, John David Roeg notes that food processors are in danger of being pushed back by the online retailer. Changing packaging or formulations will not cut it, he warns.

How can we help?

Adeo Groups specializes in ecommerce, mobile commerce, responsive web design and Sage Integrations. Our team can help you to create efficient ecommerce shopping experience for your customers and design bespoke website reflecting your brand’s identity. Contact us today and see how we can help.

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