The old adage of “you can’t please all of the people all of the time” appears to be alive and kicking in the online shopping world with retailers struggling to meet rising consumer expectations worldwide, with the younger the customer, the harder they are to please.
So says the 2024 Online Retail Trends Report from Celigo, which is based on a survey of more than 1,500 US and UK consumers, which quizzed them about their recent online shopping experiences, as well as preferences, habits and purchasing plans for 2024.
It found that 85% of UK shoppers said that online retailers had failed to meet their expectations at least once in the past year, citing increased pricing, late deliveries and excessive shipping costs as their primary frustrations.
Just as concerning for retailers, inflation and higher prices remain the number one concern for consumers, with almost half (44%) of UK respondents planning to shop less online because they need to tighten their budgets.
As is often the case, there was a significant difference in online shopping sentiment across generations. While one-third of Baby Boomers reported flawless online shopping experiences in 2023, Gen Z, which will hold more than a quarter of global income by 2030 and emerge as the most dominant shopping demographic, reported the greatest dissatisfaction with online shopping.
Interestingly enough, more than a third (34%) of Baby Boomers said they buy their products in physical retail stores compared to 8% of Gen Z. However, retailers must account for the needs and perceptions of the demographic that will drive sales for the years to come.
While survey respondents use various tools to inform online purchasing decisions, product reviews continue to trump all else.
Some 60% of consumers rely heavily on product reviews found on retailers’ websites when making their final purchasing decision, while 40% turn to third-party review sites. Discerning shoppers are scouring the Internet for the best deals and products, with 35% saying they research multiple retailers and more than 20% turning to marketplaces such as Amazon or eBay to compare pricing options.
While every demographic spends time researching the best product and personalised deal opportunity before making their purchase, the shift from traditional methods is well underway.
While UK Baby Boomers and Gen X conduct their research primarily on search engines, marketplaces, and in physical stores, Millennials and Gen Z seek out information on social media in much greater numbers.
More than nine out of ten (935) Gen Z respondents said they research products on social media, including 43% turning to TikTok as their primary means of insight. Some 75% of Millennials leverage search engines for product information, but 62% open their preferred social media app before using Google or a marketplace.
Celigo vice-president of strategy Mark Simon said: “Shoppers expect more from online retailers, demanding free guaranteed on-time shipping and deeper price deals and discounts – or else they will purchase elsewhere.
“To fulfil these raised expectations, online retailers must improve ecommerce operations, back-office integration and omnichannel selling strategies well before the holiday 2024 season begins.”
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