In a recent report from leading delivery management company Whistl, the challenging state of the e-commerce industry is laid bare. The study reveals that merely 3% of consumers display loyalty to online retailers, with a dominant 83% of purchasing decisions influenced by price.

As the current economic squeeze pinches household spending, Whistl predicts a 3% decline in online expenditure this year. The report, however, isn't just about bleak forecasts. It provides e-commerce merchants with strategic insights to engage consumers and bolster sales amidst the economic headwinds.

The study shows that affluent households, those with an income exceeding £70,000, are set to buck the trend and ramp up online spending by 8%.

Notably, the research underscores a shift in consumer priorities, with delivery costs (54%) taking precedence over speed (24%). It points out that a £5.95 delivery charge is the tipping point that could dissuade consumers and hamper sale conversions.

For retailers seeking growth avenues, the report highlights retail subscriptions, a prospect welcomed by 43% of the population. Equally crucial are discounts, with 47% of participants favouring these as an inducement to purchase, followed closely by free delivery, which is preferred by 39%.

The Whistl study also delves into the media consumption habits of consumers. Facebook emerges as the most widely used social channel, accessed daily by 61% of the survey respondents. Gender-based preferences were evident with men predominantly favouring YouTube and women leaning towards Facebook.

The report is rich in insights, offering distinctive consumer online profiles based on demographic data, online spending and projected attitudes towards spending in 2023. It examines customer behaviour pertaining to returns, delivery, subscriptions, and social media use.

Nick Wells, Whistl's executive chairman, highlights the intent of the research, saying, "No doubt that the trading environment in the UK is challenging but it’s important that we help our e-commerce fulfilment customers navigate these times and help them to thrive. Our report includes great insight into the current state of the market but most importantly profiles of what the consumer is thinking, which e-commerce retailers can use to enhance their online retail operations and grow their businesses.”

Whistl's report, based on a representative panel of 1,000 UK consumers surveyed in Q1, is a vital resource for anyone looking to understand the nuances of the e-commerce sector in these challenging times. The full research can be accessed at: https://www.whistl.co.uk/continuetothrive.

Sources: https://retailtimes.co.uk/whistl-finds-only-3-of-consumers-are-loyal-to-an-online-retailer/