Making E-Commerce work for you
Why your business needs e-commerce
The UK, by far has the most developed e-commerce market in Europe and, overall, sits third worldwide behind the US and China. Considering the relative population sizes, that's some achievement! The online shopping purchase rate in the British Isles is currently nearing the 85% mark of our entire population in 2025. For context, the European average is a little under 50%. Over three quarters (77%) of UK shoppers say they have purchased more products online since the start of the pandemic. As a comparison to that in store shopping has dropped by 26%. The main appeal of shopping online is being able to find a bargain. Consumers are automatically drawn to the internet to find competitive prices and deals. Also, with the continued rise of social networking and mobile internet access, businesses are expected to increase their investments in e-commerce through social media marketing.
The scale and growth of ecommerce activity, pre and post pandemic
Online sales across all industries saw a ten-fold increase in sales between November 2006 and February 2020 (i.e. before pandemic restrictions were implemented). However, during 2020 online sales increased by a staggering 74%. To be fair a significant reason behind this was due to store closures and lockdown affecting consumers behaviour. But it set a precedent. 88% of consumers say they spend more time shopping online since the pandemic. Of that 88%, 64% say that online shopping is a permanent feature for them now.
Total retail e-commerce revenue in the United Kingdom 2017-2029
The UK’s e-commerce revenue is expected to increase further over the next four years. According to the forecast on Statista, in 2029 the revenue will have increased for the sixth consecutive year to £141,159,447,000! A hundred and forty one BILLION with a few hundred million in loose change! Now who wouldn’t want a part of that revenue?! You can see more about e-commerce growth in the UK HERE.
Other reasons for the shift to online shopping
57% of consumers indicate that they choose to use ecommerce sites (vs shopping in store) as it is simply easier, quicker and more convenient. However, a large number are also influenced by price and special offers. 44% of consumers indicated that it’s easier to find good deals and sales items online, 38% saying it is cheaper, and 37% arguing there is a better range on offer when shopping online.
So, what do UK consumers like to shop for most online?
When asked what types of product consumers had bought most online in the past year, clothing and food shops were by far the most common answer. 60% of online consumers bought at least one item of clothing in the last year and, whilst clothes, footwear and foodstuffs were the most favoured of categories shoppers searched out all kinds of products. The next closest percentages are for electronics, cosmetics, furniture, books, games and household items. Consumers, prior to any purchase are drawn to the internet to research competitive prices and attractive deals and found customer reviews played another important part in their selections.
E-commerce & Smaller independent businesses/SME’s
In the UK, SMEs (Small and Medium-sized Enterprises) constitute 99.9% of the business population - that’s MASSIVE! More importantly, a trend that consumers are preferring to continue with is to shop with smaller, more local retailers. This is particularly pronounced for groceries (25%), fashion (24%), Cosmetics (23%) and electrical items (12%). 50% of consumers express a desire to help small or local businesses. 40% also believe that customer service is better and more personal with small, independent and / or local retailers. A further 23% believe that small, independent or local retailers provide a more sustainable / eco-friendly option than larger retailers. This means that there is still a very real, very large and viable market for small businesses to tap into.
Almost all UK residents of the 25 to 34 year old age group have made a purchase online!
The demographics of your e-commerce customers
The 25 to 34 year old age group is the most prolific online shopper, with almost all UK residents of this age making a purchase online. 16 to 24-year-olds weren’t far behind with an online purchasing rate of 96%. And 95% of both 35-44 and 45–54-year-olds also shopped online in the last 12 months. UK residents over 65 years old are least likely to shop online although even 65% of this demographic made ecommerce purchases. In a further difference between age groups, 23% of those aged 25 – 34 indicated they were likely to continue shopping “all or mostly” online, compared with only 10% of those aged over 55. Although there were significant differences between age groups, the same cannot be said about gender, with 87% of both men and women making online purchases.
Delivery and returns with e-commerce need to be free, speedy and convenient
Recently, delivery in e-commerce has become a higher priority for consumers. In the United Kingdom, free and fast delivery options are essential as well as, ideally, not having to pay for returns. British consumers are avid online shoppers but they will simply abandon their shopping carts if delivery is longer than expected or it includes unexpected costs. UK online shoppers are fairly traditional when it comes to delivery with the majority of consumers preferring postal delivery over other options. Further growth in online shopping depends on businesses ensuring that the online shopping journey is as easy, cost-effective and pleasant as possible.
Most common devices for online purchases in the UK
As you would expect smartphones and laptops are the main devices used for online shopping with 69% and 43% of consumers using them to make online purchases. This means that, no matter what, your website needs to be multi device friendly.
Security and payment options for e-commerce
In the United Kingdom, heightened awareness of online identity theft has led consumers to prioritize secure financial transactions. Nearly all online businesses in the country now accept credit and debit card payments with Mastercard and Visa being the most widely accepted. Additionally, many websites utilise online payment systems such as PayPal, Revolut, Stripe etc.
The role that your packaging plays in ecommerce
Whilst many may overlook the packaging that their ecommerce orders are delivered in, this is in fact one of the most crucial areas for online businesses. Packaging has a huge initial impact on brand perception. Imagine if your packaging is dull, oversized or difficult to dispose of. The fallout from poor packaging can affect the likelihood of repeat business. Although it can be the first (and potentially only) physical interaction that a customer has with a brand, half of consumers said the “unboxing experience” provided by e-commerce packaging was underwhelming. This short video highlights the importance of e-commerce packaging and how to make the most of it.
A third also said that the packaging they received would discourage them from purchasing from the same retailer again. In contrast 52% of online shoppers that receive orders in customised packaging are more likely to shop with that company again in the future. Another statistic that indicates that businesses may be overlooking their ecommerce packaging is that searches on Google for “unboxing experience” have dropped by 22% year on year. It typically takes less than 7 seconds for a consumer to establish their first impression of a brand. This makes ecommerce packaging an essential tool for customer loyalty and brand perception. Other research shows that a similar number of consumers consider their ecommerce packaging as important as the brand of the retailer they are buying from (10% vs 12%). Many consumers assume this is in fact the same thing. And finally, businesses that pay attention to their packaging and the unboxing experience typically report a 30% increase in consumer interest.
So, in short, what have we learned from this?
If your business pertains to clothing, food, drinks, electronics, cosmetics and household items your e-commerce and online shop needs to be a focus of your marketing strategy.
Make sure that your website is multi device friendly.
Ensure that your SEO is up to date. Consumers research the products they want first - so make sure that it’s you that they find!
Encourage reviews of your product from purchasers.
Ensure that, as well as card payments customers can utilise online payment systems to make purchases on your site.
Make sure your delivery service is free, speedy and uncomplicated.
Your packaging reflects your brand - make it stand out.
How to achieve optimum returns in e-commerce
With a Squarespace website you can sell anything. Squarespace and, by association, Mark at Wight Square empowers entrepreneurs and businesses to succeed. Whether you’re just getting started or an established business, a Wight Square site provides a powerful and effective platform to launch and sell your product.
Ok, but what does it do? What do I get?
First and foremost we need to make your online store stand out so, with the right design expertise, construction and wording we’ll showcase and bring your products to life with the richest in merchandising tools. These tools will give shoppers the best browsing experience with attractive product descriptions, embedded videos and images for each product variant. These tools can then encourage customers to explore your store further by helping them find what they’re after and suggesting alternative and similar products.
There’s also an inventory management tool. This can collate your merchandise, organise and manage your products with tags, categories etc and a drag-and-drop sorting tool. This can also, when it identifies that you're lower on stock, create limited availability labels. This will then create a sense of urgency for potential buyers to purchase the item, which is running low or part of a limited edition. This also applies to something like an exercise or professional class that is running out of spaces.
It’ll also catalogue your product. The products you sell are automatically put into a catalogue making it easier to share in blog posts and other advertising campaigns. And, lastly, it’s mobile and device optimised so your store will look and perform at its best on ANY device, EVERY time.
To learn more about Squarespace you can sneak a peek here:
SOURCES USED - retailgazette.co.uk, statista, mordorintelligence.com, gwp.co.uk
