Ecommerce woes continue as online loyalty evaporates

Fresh evidence has emerged on the fragile state of the online shopping sector, with claims that only 3% of consumers are now loyal to ecommerce retailers and 83% of decisions are made on price.

Yesterday, it was revealed that online shopping sales have crashed to their lowest levels since before the pandemic and now a new report from Whistl has found that, in a time of economic pressure on household spending, online spending will drop by 3% in 2023.

The report is designed to guide ecommerce retailers on how to target consumers and increase sales despite the economic challenges, for example households with an income over £70,000 are expected to increase spending online by 8%.

Cost of delivery is now the main priority of consumers (54%) rather than speed (24%) and £5.95 is the highest price point for delivery before it has a negative impact on the ability to convert a sale.

Opportunities for business growth include retail subscriptions, with 43% of the population open to the idea. Discounts naturally remain very important to entice new customers with 47% of respondents wanting them, followed by free delivery (39%).

When looking at media habits, Facebook was the most frequently used social channel, with 61% logging on every day. The most often used channel by men was YouTube and Facebook for females.

The report from Whistl also contains consumer online profiles based on demographics, online expenditure and attitudes towards spending in 2023, as well as insights on customer behaviour to returns, delivery, subscriptions, and social media use.

Whistl executive chairman Nick Wells said: “No doubt that the trading environment in the UK is challenging but it’s important that we help our ecommerce 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.”