The rise of omnichannel shoppers has disrupted traditional retail models and created new opportunities for businesses. To understand this evolving landscape, our expert team at Explorer Research developed a Shopper Activation Framework that looks at shoppers from a holistic standpoint, taking into account their motivations and behaviors. More than understanding what we’re seeing, this work helps companies know what to do with these facts. And the first fact to recognize is that omnichannel shopper are a rapidly growing demographic that require up-to-date understanding through dedicated research. We’ve compiled a few of the most compelling recent facts and statistics on how e-commerce continues to evolve the shopper landscape.
Recent statistics show that online retail sales are still growing post-pandemic, with e-commerce projected to make up over 22% of total retail sales in 2023. However, brick-and-mortar stores still play an important role, with shoppers valuing in-store experiences, flexible shipping options, and the ability to return items in person. Social media, particularly Facebook and Instagram, continues to influence purchases both online and in-store, while online videos are increasingly being used by shoppers to make purchase decisions while in-store. By understanding the complex motivations and behaviors of omnichannel shoppers, businesses can better optimize their activation opportunities and drive sales.
Online retail sales in 2023 are still higher than pre-pandemic.
Online retail sales are projected to reach $6.51 trillion in 2023, with e-commerce websites taking up 22.3% of total retail sales.
- Explorer’s recent Shopper Activation Framework of the US market mirrors that proportion of online sales, with baby products, clothing, electronics, exercise/fitness supplies, home and kitchen, and toys and games are more likely to be equally shopped in store & online than other categories, but still skew towards in-store
- Books, magazines, & newspapers are reported to be purchased online the most, with 25% of shoppers reporting they purchase this category mostly or always online.
Despite this growth in online, there’s still a strong role for B&M with 32% of brands saying they’d be establishing or expanding their use of pop-up and in-person experiences in 2022, while 31% said they planned on establishing or expanding their physical retail footprint.
However, since shoppers can compare prices while they shop in person, the primary function of retail stores has shifted from purely transactional to more experiential.
- Enjoying the in-store experience is the main reason 35% of shoppers shop in-store, and another 24% want to interact with products in person before buying.
Brick-and-mortar stores also serve another purpose, reducing shopping costs for shoppers and the retailer by offering buy online pick up in-store (BIPOS).
- And customers like in-store experiences, even if they’re only picking up online orders. A survey conducted by Delighted found that 75% of shoppers said being able to see and try on items were the main reason they shopped in-store.
- 59% of consumers say they’re likely to browse online and buy in-store, and 54% are likely to look at a product in store and then buy it online.
- 58% of shoppers say that flexible shipping options like BOPIS are important to them, and 53% say having flexible shipping options influences their decision to buy online.
Increased shipping costs have trickled down to consumers, especially the rates associated with online returns. Stores are now offering customers the ability to return items in-store for free are also a valuable role for the B&M locations.
- A study by the National Retail Foundation found that 20.8% of all products sold online in 2021 were returned, and in-person experiences that help customers make decisions can reduce that rate.
Explorer’s SAF demonstrates that Facebook and Instagram are top influences on purchases across all trip types, online and brick-and-mortar.
Social media influences online purchases to a greater degree than brick-and-mortar purchases.
But it doesn’t just influence online purchases, according to a study by Google, more than 55% of shoppers globally say they use online video while actually shopping in-store and more than 50% of shoppers say online video has helped them decide which specific brand or product to buy while shopping in store.
The rise of omnichannel shoppers presents both challenges and opportunities for businesses. To stay ahead of the curve, it’s important to understand the evolving shopper landscape through dedicated research and data analysis. By utilizing Explorer Research’s Shopper Activation Framework, businesses can gain a comprehensive understanding of their customers’ motivations and behaviors, and optimize their activation opportunities at both a strategic and tactical level. It’s crucial for businesses to recognize how these trends apply to their specific category and key retailers, and take action to adapt and thrive in the ever-changing retail landscape.
