Findings Show the Rise of the Luxury Brand Buying Consumer, Try-Before-You-Buy Desire and Non-Standard Delivery Options
EL SEGUNDO, Calif. — According to research from MetaPack, the global leader in eCommerce delivery technology, North American consumers are exhibiting a shift in their shopping and delivery behaviors and preferences. The research was conducted with more than 1,000 consumers of varying ages in the U.S. and Canada. Findings included in the 2018 State of eCommerce Delivery Report – North American Insights reveal an increase in the number of consumers purchasing from luxury brands, a growing interest in the option to try-before-you-buy and a preference for non-traditional delivery options.
The Rise of the Luxury Shopper
Following a tentative start, the research findings revealed that there has been a definite uptick in consumers purchasing online goods from a luxury brand in the last 12 months, as these brands – whose names are associated with luxury, high price, or high quality – are now racing to embrace digital commerce.
- 91% of U.S. consumers and 82% of Canadian consumers had purchased online goods from a luxury brand in the last 12 months.
- S. consumers appear highly enthusiastic about engaging with luxury brands online – over a quarter (27%) had shopped with 10 or more luxe brands in the past year.
- Around one-third of consumers (32% U.S., 39% Canada) had shopped online with between four and nine luxury brands.
- Home delivery was the top preference for 38% of U.S. and 32% of Canadian shoppers making a luxury purchase.
- Asked to compare delivery of their luxury item compared to other ordinary online purchases, 72% of U.S. shoppers said it felt more secure; 62% said it was more controllable and trackable; and 56% said there was a greater level of personal care.
- However, 24% of Canadian shoppers said there was no discernible difference and were less impressed with their luxury item deliveries compared to their U.S. counterparts; 45% said it felt more secure; 35% said there was greater control or trackability; and 27% experienced a greater level of personal care.
With luxury eCommerce taking off, the pressure is on smart retailers to provide unique experiences and differentiated delivery options that play well with shoppers.
Try-Before-You-Buy Convenience Entices
Try-before-you-buy plays strongly to consumer desires for a more convenient shopping experience.
- 72% of U.S. and 71% of Canadian consumers surveyed say the convenience of try-before-you-buy is appealing.
- Consumers say that, for them, it’s all about flexible customer service (73% of U.S. and 67% of Canadian shoppers).
- 45% of U.S. and 33% of Canadian consumers note that they anticipate try-before-you-buy would reduce delivery costs on their online orders.
- But while 54% of U.S. consumers say they’d be prepared to pay more for the ease and convenience endowed by a try-before-you-buy service, just 41% of Canadian shoppers indicated any inclination to pay for this privilege.
eCommerce sites that are struggling to streamline their returns process will need to prepare for the increase in demand that will be generated as more consumers look to take advantage of the try-before-you-buy trend.
Non-Standard Delivery Options Grow in Appeal
A growing number of shoppers favor non-traditional shipping options, so while home delivery – for free – retains a strong appeal, consumers are now expecting a range of other options to secure the most expedient time or location to take receipt of their orders.
- 56% of U.S. and 45% of Canadian shoppers collected their purchases in store.
- With regards to a local pick-up point or shop, 23% of U.S. and 27% of Canadian consumers surveyed had used this option. However, 40% of Canadian shoppers plan to take advantage of this, and delivery to a secure box outside their home held a strong appeal for 35% of U.S. respondents, demonstrating an increasing interest in this service.
- Weekend delivery was a chosen option for 27% of U.S. and 17% of Canadian shoppers.
- Over a quarter (26%) of U.S. and 18% of Canadian shoppers had taken advantage of same-day delivery where this option was available to them. Meanwhile, 17% of U.S. respondents say the desire for instant gratification meant they’d made use of a one-hour delivery option to get their goods faster.
- 81% of U.S. and 69% of Canadian shoppers surveyed expect to pay extra for a one-hour, same day, next day or Sunday delivery.
- 20% of consumers in the U.S. and 21% of shoppers in Canada scheduled deliveries to their place of work.
- 30% of U.S. shoppers say they’d be willing to try out futuristic options like delivery by drone, robots or autonomous vehicles.
Findings demonstrate that consumers desire to shop with those eCommerce sites that can best meet growing expectations for delivery experiences that are simple, fast, and – above all – convenient.
“With shifting consumer shopping and delivery behaviors and preferences, it’s clear that eCommerce retailers need to be well prepared to address their evolving desires and requirements – or risk losing business to competitors,” said Bruce Fair, chief revenue officer for MetaPack. “Delivery control is high on the consumer agenda – today’s shoppers actively seek out the most convenient delivery mode for every purchase they make. With a variety of options to meet their needs, including newer services like ship from store, e-tailers can provide differentiators that help drive conversions and customer loyalty.”
To download the full report, please visit http://www.metapack.com/report/2018-state-of-ecommerce-delivery-report-north-american-insights/.
The research was carried out in July 2018 on behalf of MetaPack by Research Now, a global leader in digital data collection. Aged between 18 and 65+, all survey participants had made an online purchase in the last six months, and the survey sample was designed to ensure equal respondent weighting between the U.S. (511) and Canada (511) and the age and gender of the participants.
Founded in 1999, MetaPack helps e-commerce and delivery professionals to meet with the consumer’s growing expectations of delivery, while maintaining and optimizing operational efficiency. MetaPack’s SaaS solution offers a wide range of personalized delivery services, from global order tracking to simplified return procedures, through a catalogue of 470 carriers and 5,000 services available that span every country in the world. Thanks to MetaPack, more than 550 million packages are sent annually by many of the world’s leading e-commerce retailers. MetaPack is a wholly-owned subsidiary of Stamps.com (Nasdaq: STMP).