E-shopper barometer report 2017 - DPDgroup

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E-shopper barometer report 2017 - DPDgroup
E-shopper
barometer report
2017

         1
E-shopper barometer report 2017 - DPDgroup
Summary
E-shopping has become a well-established practice in Europe. As the 2017
DPDgroup E-shopper barometer* report shows, trends and behaviours
may vary from country to country, but European e-shoppers in general are
becoming more confident, are buying more online, and are willing to shop
further afield. They appreciate new technologies and value convenience
and flexibility at every step of the process. Perhaps most importantly, the
overwhelming majority claim that their last experience was both positive
and easy.

1  Market overview
                                                                                                                  Market overview
                                  3
     Share of online
     shopping in Europe            4
     Purchase volume               5
     Product categories            6

                                                                                                                  This section focuses on the        shoppers) drive the market       trust, regardless of product
2   Shopping habits
     Payment methods
                                   7
                                   8
                                                                                                                  state of e-shopping among
                                                                                                                  Europeans in 2017. In Europe,
                                                                                                                                                     as they account for 86% of all
                                                                                                                                                     e-purchases. While multiple
                                                                                                                                                                                      category. Most of those who
                                                                                                                                                                                      have recently made an online
     Delivery                      9
     Devices used to order        10
                                              *The 2017 DPDgroup E-shopper barometer report was                   54% of e-shoppers currently        devices are used to shop         purchase are satisfied with the
     Choice of e-tailer           12
                                              conducted by Kantar TNS from 1 June to 3 July 2017. The data        buy online at least once a         online, smartphones are an       experience: 80% consider it to
                                              were gathered through blind (blind: interviewees are unaware
                                                                                                                  month, a growing trend in          increasingly frequent choice,    be positive, and the number
                                              of who requested the study), online interviews with 24,871
                                              participants across 21 European countries (Austria, Belgium,        nearly every country. As a         especially among heavy           of shoppers who are willing
3  Cross-border trends
     Key cross-border facts
                                  13
                                  14
                                              Croatia, Czech Republic, Estonia, France, Germany, Hungary,
                                              Ireland, Latvia, Italy, Lithuania, Netherlands, Poland, Portugal,
                                                                                                                  whole, e-shoppers make
                                                                                                                  11.3% of their purchases on
                                                                                                                                                     buyers and millennials (ages
                                                                                                                                                     18-34). Today’s e-shoppers
                                                                                                                                                                                      to stop buying online has
                                                                                                                                                                                      dropped by 3% vs. 2016.
     Countries of origin          15
                                              Romania, Slovakia, Slovenia, Spain, Switzerland, UK) and

                                                                                                                                                                                                   1
     Cross-border buyer profile   16                                                                              the internet. Heavy buyers         are loyal and tend to choose
                                              Russia. Between 800 and 1,582 participants were interviewed
     Cross-border potential       17          per country.                                                        (the top one third of all online   e-tailers they know and
                                              All participants, aged 18 or over, had placed at least one
     Key take-aways               18          order for physical goods online since January 2017 and then
                                              received a parcel. For the consolidated results at European
     About DPDgroup               19
                                              level, weighted statistics were applied to each country to
                                              reflect the correct proportion of e-shoppers among the
                                              various countries studied. As a new participant in the study vs.
                                              2016, Russia has not been included in the consolidated results
                                              for accurate comparison between 2016 and 2017.
                                              The full report is available online at dpdgroup.com

                                          2                                                                                                                        3
E-shopper barometer report 2017 - DPDgroup
Market overview

       Share of online                                                                                                                                                Purchase volume
       shopping in Europe
                                                                                                    Heavy buyers drive the e-commerce market,
                                                                                                    while opportunity lies in small buyers.

                                                                                                    The survey divided e-shoppers                       e-tailers would do well to focus on    purchases per year on average
                                                                                                    into three categories, weighted                     attracting repeat customers.           include Estonia (12 purchases),
                                                                                                    for each country: heavy buyers,                     Heavy buyers from countries such       the Czech Republic, Slovenia,
                                                                                                    medium buyers, and small buyers,                    as the UK, Poland, Russia, and Italy   Lithuania, and Croatia (13 purchases),
                                                                                                    each accounting for one third of all                make the most orders per year, with    and Slovakia (14 purchases).
                                                                                                    European e-shoppers. In 2017, heavy                 UK shoppers at around 47 purchases     In general, millennials do a higher
                                                                                                    buyers, the third who self-report as                per year1, followed by Poles at 34     proportion of their total shopping
                                                                                                    making the most purchases online,                   purchases, Russians at 31 purchases,   online in almost every product
                                                                                                    represented the vast majority (86%) of              and then Italians at 30 purchases.     category.
                                                                                                    all online purchases, suggesting that               Heavy shoppers who make fewer

                                                                                                      Annual number of purchases (median) by category
                                                                                                    1 

                                                                                                                       Heavy buyers from these countries
                                                                                                                       make the most orders per year

                                                                                                           47 34 31 30
E-shopping has become a well-established practice                                                              UK                   Poland                  Russia               Italy
in Europe and is growing in most countries.

E-shoppers in Europe make 11.3%
of their total purchases online. Over
half of them (54%) are regular buyers,
meaning they buy online at least once
                                           overall share, the UK is the leading
                                           e-shopping market in Europe, as well
                                           as one of its fastest-growing.
                                           E-shoppers are generally satisfied,
                                                                                   80           %
                                                                                                    E-shoppers tend to buy from websites they have
                                                                                   E-shoppers       already used, regardless of product category,
per month. In most countries, the          with 80% of them considering their
share of regular buyers is increasing.     most recent online purchasing           satisfied        because they trust them. In light of this, the first
This means that as e-shoppers gain         experience to be positive and 74%                        experience is key.
trust in the online buying experience,     saying it was easy. In 2017, 3% fewer

                                                                                   74           %
they tend to purchase more often.          shoppers declared themselves
However, not all countries are             willing to stop buying online
adopting this new way of shopping          compared to 2016.
at the same rate: Italy, Spain, Austria,
and Russia are embracing it faster
than countries such as Latvia and                                                  saying it
Estonia. Accounting for 13.7%                                                      was easy

                                                             4                                                                                                            5
E-shopper barometer report 2017 - DPDgroup
Market overview

      Product categories

Fashion, books, and shoes top all e-shopper purchases.

Fashion remains the leading product        degree of maturity varies according to     home appliances) show the best
category that e-shoppers order:            country: leisure purchases are highest     chances of attracting new online
20% of purchases are made online.          in Austria, car equipment purchases        buyers. Interestingly, buyers of a
While fashion, books, and shoes are        lead in Poland, and fresh food and         given category are likely to buy from a
the main products chosen, their            beverage purchases are particularly        similar one (e.g.: medicine and beauty/
growth is less intense than that of        developed in the UK.                       health care are often purchased by
other categories due to maturity           In terms of growth potential, books,       the same buyers).
(they are well-established with little     high-tech/electronics, and household
room to progress). Each category’s         products (e.g. small furniture and

       Around

      14%
                                  of all e-shoppers have ordered fresh food and beverages online. Most of them
                                  (11%) buy from this product category regularly, at least once per month. The UK is

                                                                                                                                Shopping habits
                                  a particularly active market in this respect, with 27% of e-shoppers having already
                                  made at least one purchase from the fresh food and beverage category.

                                                                                                                                This section addresses the         essential factor in making        Therefore, in order to develop
                                                                                                                                behaviour of online shoppers       online purchases. Social media    e-commerce and meet
                                                                                                                                in 2017 and the various, related   use by e-shoppers is on the       customer expectations,
                                                                                                                                trends. Most online purchases      rise, amplifying the persuasive   e-tailers need to think local
                                                                                                                                are still made on a laptop or      power of internet advertising     to maximise opportunities.
                                                                                                                                desktop computer. E-shoppers       and influencers.                  Flexibility is also key: most
                                                                                                                                buy from multiple devices,         Each European country             e-shoppers say next-day
                                                                                                                                increasingly from smartphones.     has its own specific habits,      delivery, real-time tracking, and
                                                                                                                                Of those surveyed, 43% said        with delivery and payment         the option to reschedule are

                                                                                                                                                                                                           2
                                                                                                                                that they consider a mobile-       preferences varying widely        likely to incite them to purchase.
                                                                                                                                friendly website to be an          from one place to the next.

                                                                                Fashion
               Fashion, books, and                                Books

               shoes top all e-shopper                                                           Shoes

               purchases

                                                              6                                                                                                                   7
E-shopper barometer report 2017 - DPDgroup
Shopping habits

       Payment methods                                                                                                                                                                                                      Delivery
                                                                                                                        A positive delivery experience is key to retaining e-shoppers
                                                                    ROMANIA                     BELGIUM                 looking for choice, convenience, and flexibility.
                                                                    SLOVENIA                          Mister
                                                                                                      Cash
                                          CASH-ON-DELIVERY          SLOVAKIA                                            E-shoppers want flexible, trustworthy,         e-mail), flexible delivery times
                                                                                                                                                                       (evenings, Sundays) and the ability to
                                                                                                                                                                                                                     convenience, and transit time. In
                                                                                                                                                                                                                     order to develop online transactions,
                                                                                                                        and above all convenient delivery
                                                                                                                        methods. While home remains by far             plan or reschedule deliveries. Around         the returns process must be easy
                                         AUSTRIA                                                POLAND                  the most frequently chosen delivery            79% of e-shoppers claim that being            and clearly explained in advance,
                                                                                                                        location (81%), interest is rising in          able to choose the day and exact              especially for categories like fashion,
                                         SWITZERLAND                                                                    alternative locations such as parcel           1-hour timeslot of delivery would             shoes, and heavy furniture.
 NETHERLANDS                             PAY BY INVOICE                                                                 shops and retailer stores.                     make them more likely to purchase.            Finally, as with payment methods,
                                                                                                                        There is a growing appetite among              Having no hidden fees added to                each country has its own behaviours
                                                                                                                        e-shoppers for innovative delivery             the final product price is also very          and preferences. E-tailers must adapt

PAYMENT
                                                                                                                        options and services, particularly             important.                                    to local markets and offer multiple
                                                                                                                        in terms of transit time (next-day             Shoppers want to choose the mix               delivery options.
                                                                                                                        delivery), real-time tracking (SMS,            that best suits them among flexibility,

METHODS
         EUROPE                          E-TAILERS CLEARLY MUST OFFER A LARGE
                                         SET OF PAYMENT OPTIONS AND ANALYSE
                                         LOCAL TRENDS IN ORDER TO MEET CUSTOMER
                                         EXPECTATIONS AND INCREASE SALES.

E-shoppers have very different habits related to payment methods.
                                                                                                                             Growth potential
In Europe, digital wallets like PayPal     Hungary, the Netherlands, and             methods, among them iDeal
and AliPay are the preferred means         Portugal rarely use credit/debit cards;   in the Netherlands, Mister Cash

                                                                                                                                 39% 84%                                         80% 97%                                    58% 93%
                                                                                                                                                      Czech Republic                                  Estonia                                    France
of payment for online shopping,            cash-on-delivery is a very important      in Belgium, and Payu in Poland.
followed by Visa, Mastercard and           way to pay in Romania, Slovenia, and      E-shoppers tend to have                     have used retailer                              have used retailer                         have used retailer
other credit/debit cards. However,         Slovakia; Austria and Switzerland         well-established habits; half of              parcel shops
                                                                                                                                                      ready to use
                                                                                                                                                                                   parcel lockers
                                                                                                                                                                                                      ready to use
                                                                                                                                                                                                                              parcel shops
                                                                                                                                                                                                                                                 ready to use
each country has its own unique            prefer to pay by invoice. Certain         them only have one preferred
habits and preferences: Germany,           countries opt for local payment           payment method.

                                                              8                                                                                                                               9
Shopping habits

       Devices used to order

Smartphones play a prominent role in the latest
e-shopping trends.

Smartphone use for e-shopping               dedicated app, an internet browser,     be an important factor in their
is on the rise; 39% of the survey           or both. Because few e-shoppers buy     choice of e-tailer. Nonetheless,
participants reported using their           exclusively through an application      laptop and desktop computers
device to buy online (5% more than          (27% among those who use                remain the primary devices used to
in 2016). Heavy buyers (51%) and            smartphones to shop online), offering   purchase online (61% use laptop and
millennials (55%) are particularly likely   a mobile-friendly website is a must.    52% use desktop), meaning that an
to reach for their smartphone to            Indeed, 43% of European e-shoppers      easy-to-navigate website is also
make an online purchase, through a          consider a mobile-friendly website to   critical.

                                                                                                Smartphone use
                                                                                                for e-shopping

                                                                                                   Hungary

                                                                                                   51            %
                                                                                                   (+10 points vs. 2016)

                                                                                                   Romania

                                                                                                   67%
                                                                                                   (+7 points vs. 2016)

                                                                                                   Switzerland

                                                                                                   47%
                                                                                                   (+10 points vs. 2016)

                                                             10                                                            11
Shopping habits

        Choice of e-tailer

Trust and loyalty are powerful factors in deciding where to shop online.

E-shoppers tend to buy from                Small and novice buyers are more       a major factor in choosing websites
websites they know and trust,              open to new e-shopping experiences,    from which to purchase, followed
regardless of product category. In         and in light of e-shoppers’ loyalty,   by word-of-mouth and online
2017, 82% of e-shoppers made their         this category of buyer represents      advertising. The growing persuasive
most recent purchase from an e-tailer      undeniable potential. Because few      power of social media influencers
they had previously tried. Offering a      e-shoppers are likely to try new       further demonstrates the heightened
good first impression and a smooth         websites, ensuring a satisfactory      presence of e-shoppers on social
purchasing process are both key to         experience for those who do is         media sites and underscores the
recruiting and retaining a solid base of   critical.                              necessity for e-tailers to have an
customers who are likely to provide        After previous experience,             effective social media strategy.
repeat business.                           recommendation on social media is

82                   %                                                                                                  Cross-border trends
                              of e-shoppers in 2017 made
                              their most recent purchase from
                              an e-tailer they had previously
                              tried.
                                                                                                                        This section examines the         and 67% buy from websites         e-shoppers express interest
                                                                                                                        growing tendency of European      outside Europe. Among those       in starting to buy from foreign
                                                                                                                        e-shoppers to visit               purchasing outside Europe,        websites in the near future.
                                                                                                                        foreign-based websites for        China leads, followed by the      Those surveyed said their
                                                                                                                        their product selection and       US. Despite some reticence on     primary reason was to find a
                                                                                                                        attractive prices. Cross-border   the part of certain countries     better deal (60%), followed by
                                                                                                                        online purchases continue         to engage in cross-border         obtaining products or brands
                                                                                                                        to develop, as over half of       shopping, the experience          unavailable locally (45%).
                                                                                                                        e-shoppers currently buy          remains an essentially positive

                                                                                                                                                                                                 3
                                                                                                                        abroad: 67% of them buy           one with large growth potential
                                                                                                                        from websites within Europe,      in Europe: nearly one third of

                                                             14
                                                            12                                                                                                          13
                                                             12
Cross-border trends

      Key cross-border facts                                                                                                                                    Countries of origin

In 2017, 54% of e-shoppers purchased from cross-border                                                          Most European e-shoppers buy from websites within                            Willingness to
websites, a 2-point increase compared to 2016.                                                                  Europe.                                                                      buy from Chinese
                                                                                                                                                                                             websites in the
Among e-shoppers who have already       Equally 67% of cross-border e-shoppers                                  Among e-shoppers who purchased        However, other e-shoppers are          most mature
bought from foreign websites, around    have bought from foreign websites
                                                                                 The percentage of              from foreign-based websites in        willing to venture further afield:     countries
1 out of every 5 purchases on average   located outside of Europe.                                              2017, 67% chose websites located      67% chose websites located outside
is made on a foreign website.                                                    e-shoppers who                 within Europe. Of those purchasing    Europe. For those purchasing outside
                                                                                                                                                                                             Spain

                                                                                 have ordered from
                                                                                 cross-border websites
                                                                                                                within Europe, 39% bought from
                                                                                                                neighbouring countries, especially
                                                                                                                from the UK (31%).
                                                                                                                                                      Europe, 44% bought from China,
                                                                                                                                                      while 31% bought from the US.          54%
                                                                                 by country                                                                                                  Netherlands

                                                                                                                                                                                             49%
                                                                                 2016 vs. 2017

                                                                                    Latvia           86% +4
                                                                                    Portugal         83%   +2
                                                                                                                    E-shoppers buying from foreign websites within
                                                                                                                    European neighbouring countries
                             TOP 5                                                  Croatia          81%   +2                                                                                Poland

                                                                                    Switzerland
                                                                                    Lithuania
                                                                                                     80%
                                                                                                     79%
                                                                                                           +1
                                                                                                           +4
                                                                                                                    Austria     Belgium      France   Ireland     Slovakia    Switzerland
                                                                                                                                                                                             44%
                                                                                     Slovenia        78%   0
                                                                                                                    77% 44% 36% 73% 57% 63%                                                  Italy

   The top 5 product categories purchased on
                                                                                    Estonia
                                                                                    Ireland
                                                                                                     77%
                                                                                                     77%
                                                                                                           +6
                                                                                                           +2
                                                                                                                    Germany    Netherlands

                                                                                                                                43% 35%			 32%
                                                                                                                                               UK       UK       Czech Rep.     Germany
                                                                                                                                                                                             42%
   cross-border websites during the last purchase                                   Belgium          75%   +4
                                                                                                                                 France      Germany			                          France
                                                                                                                                                                                             France

                                                                                                                                                                                             41 %
                                                                                    Austria          74%   +4
                                                                                    Hungary          74%   +4

   Fashion
                            20%         including 25% for millennials
                                        and 23% for heavy buyers
                                                                                    Russia
                                                                                    Slovakia
                                                                                                     69% N/A
                                                                                                     65% +4
                                                                                                                    E-shoppers buying from foreign websites outside
                                                                                                                    of Europe                                                                Germany

   High-tech/
   Electronics              13%         including 18% for heavy
                                        buyers
                                                                                    Spain
                                                                                    Italy
                                                                                                     64%
                                                                                                     60% +3
                                                                                                           -2
                                                                                                                    Russian e-shoppers                86%                                    39%
                                                                                    Netherlands      60%   +1
                                                                                                                    Czech e-shoppers                  70%
                                                                                                                                                      70%
   Beauty/
   Healthcare               9%                                                      Romania
                                                                                    Czech Republic
                                                                                                     55%
                                                                                                     51%
                                                                                                           -2
                                                                                                           0
                                                                                                                    Hungarian e-shoppers
                                                                                                                    Latvian e-shoppers                67%                     China
                                                                                                                    Lithuanian e-shoppers             67%
   Shoes                    8%                                                      France
                                                                                    Poland
                                                                                                     49%
                                                                                                     45%
                                                                                                           0
                                                                                                           +2       Croatian e-shoppers               65%
                                                                                    UK               43%   +1       Estonian e-shoppers               65%
   Leisure
                            8%                                                      Germany          42%   +2

                                                         14                                                                                                            15
Cross-border trends

      Cross-border buyer profile                                                                                                   Cross-border potential

For some e-shoppers, the world is their marketplace.                                                                         With around one third of e-shoppers expressing interest in starting to
                                                                                                                             buy abroad in the near future, cross-border e-shopping has clear growth
E-shoppers like a good deal, which is    the local offering remains limited.       important for e-shoppers who have         potential in Europe.
the primary motivating factor in their   Even if many cross-border buyers          never purchased from a foreign
decision to shop abroad. They also       are unafraid to purchase from             website before. For those who have
know what they want and are not          foreign websites, others are more         purchased abroad, deliveries and          Room remains for cross-border             e-shoppers who have never bought           Despite their preference for local
afraid to look beyond their country’s    hesitant. Transaction security must be    returns must be flawless to retain        e-shopping to grow. A comparison of       from a foreign website before are          alternatives, some e-shoppers in
borders to find products and brands      guaranteed, as uncertainty in this area   their business: a difficult or lengthy    e-shoppers who have already bought        thinking about starting to do so. This     countries such as Germany, France,
unavailable locally. This trend is       is the most frequently cited reason       delivery process is the primary           from foreign websites versus those        is particularly the case in countries      and the UK are also willing to look
particularly clear in countries where    for avoiding cross-border websites.       reason given for ceasing to buy from      who are likely to do so in the near       like Lithuania and Russia (76%), Croatia   abroad. In fact, given their population
delivery and immaterial payment          Transparency regarding extra fees         cross-border websites.                    future reveals large areas of potential   (69%), and Portugal (63%). Also worth      size, these three markets have the
methods are not fully developed and      and/or taxes is also particularly                                                   growth, especially in places such         noting is Ireland, where interest in       potential to grow more than any
                                                                                                                             as Romania, Poland, and the Czech         shopping abroad has grown by 11% vs.       others in Europe in the near future.
                                                                                                                             Republic. Around 31% of all European      2016.

                                         4
                                                 PARCELS RECEIVED

                                                                                                                                            31              %
                                                 THE MONTH PRIOR TO                                                                                                    of all European e-shoppers
           61       %                            BEING INTERVIEWED
                                                                                               66%                                                                     who have never bought from
                                                                                                                                                                       a foreign website before are

                                         7     %
OFTEN ORDER                                            RETURNED THE                                                                                                    thinking about starting to do so.
                                                       LAST ITEM THEY
PHYSICAL GOODS                                         BOUGHT ONLINE
ONLINE                                                 ABROAD                                  of Belgian e-shoppers buy
                                                                                               abroad to find better deals

CROSS-BORDER BUYER

PROFILE                                                                                        73%                           76%
                                                                                                                             of Lithuanians

                                                                                               of Romanian e-shoppers
                                                                                                                             and Russians            Show
                                                                                               buy abroad because                                    interest
                                                                                                                             69%
                                                                                               products/brands are not
                                                                                               available locally                                     in buying
                                                                                                                                                     from a

              69            %
                                         73         %                                                                        of Croatians

WERE PROVIDED                            CONSIDER THAT MAKING
                                                                                               78%                           63%
                                                                                                                                                     foreign
                                                                                                                                                     website.
WITH FREE DELIVERY                       THEIR ONLINE PURCHASE                                                               of the Portuguese
THE LAST TIME THEY                       ABROAD WAS EASY                                       of Russian e-shoppers buy
ORDERED ABROAD                                                                                 abroad to find better deals

                                                           16                                                                                                                             17
Key take-aways                                                                        About DPDgroup

                                                                                      DPDgroup is the second largest international
                                                                                      parcel delivery network in Europe. DPDgroup

                                                                   60,000
                                                                                      combines innovative technology and local
    Delivery locations: the home is still by far the most used                        knowledge to provide a flexible and
    delivery choice, while interest for alternative locations is                      user-friendly service for both shippers and
                                                                   Delivery experts
    growing, e.g. parcel shops, retailer stores, and lockers.                         shoppers. With its industry-leading Predict
                                                                                      service, DPDgroup is setting a new standard
                                                                                      for convenience by keeping customers closely
                                                                                      in touch with their delivery.
    M-commerce: smartphones are increasingly used
    to make online purchases, especially among heavy buyers
    and millennials.
                                                                   4M                 With 60,000 people and a network of 28,000
                                                                                      local Pickup parcel shops, DPDgroup delivers
                                                                   Parcels per day    4 million parcels to over 230 countries each
                                                                                      day through its commercial brands: DPD,
                                                                                      Chronopost and SEUR.
    Cross-border e-shopping: cross-border purchases are
    growing significantly, especially for products originating                        DPDgroup is the parcel delivery network of
    from China. There is still room for strong growth as one
    third of e-shoppers are willing to start purchasing abroad.
                                                                   800                GeoPost, which posted sales of €6.2 billion in
                                                                                      2016. GeoPost is a holding company owned by
                                                                   Hubs & depots      Le Groupe La Poste.

    Local strategies: delivery and payment preferences vary
    widely from one country to the next. To meet customers’
    expectations and further develop e-commerce activities,
    e-tailers must think local to maximise opportunities.

    Experience: the vast majority of e-shoppers consider their
    most recent online purchasing experience as ‘very positive’
    and found their experience ‘easy’.

                             18                                                                    19
Parcel delivery network of
                                                                                       www.dpdgroup.com

    01/2018 - Texts: Text 100 - Design/production: Art’Gest - Credit photo: DPDgroup
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