UPS Smart E-commerce report: what drives us to buy online?

UPS, an American international shipping company, surveyed over 10,000 consumers to analyze their purchasing habits before and after the pandemic.

In January 2021, to further assist retailers in navigating this constantly evolving environment, UPS commissioned a survey of over 10,000 consumers across eight key European markets: the UK, France, Germany, Italy, Spain, the Netherlands, Belgium, and Poland.

The UPS Smart E-commerce Report offered exclusive insights into the challenges online retailers face and the potential opportunities arising from changing consumer habits.

Here are some interesting takeaways:

Why do we choose to buy from small and independent retailers?

50%

To support small and local businesses.

40%

Customer service is better and more personal with smaller or local retailers.

37%

The experience is more personal when buying from small retailers.

25%

Small, independent retailers sell more unique and innovative products.

18%

Shopping from small, independent or local retailers is more convenient.

For loyalty/reward programs.

Products from independent retailers are priced lower.

Factors influencing online purchases:

Attitudes toward social media

Brand communication on social media is appreciated by consumers and correlates with purchase preference. In fact, 52% of European consumers surveyed said they are more likely to buy from a brand they find trustworthy based on its social media activity.

Generational attitudes

The report also highlighted how shopping attitudes vary by generation. Unsurprisingly, individuals aged 25-34, often considered the first generation of “digital natives,” are more likely to continue buying “everything or almost everything” online even after restrictions ease (23%) compared to those aged over 55 (10%).

Ecology and sustainability

Younger respondents demand a range of sustainable or alternative delivery options: this is important for 55% of those aged 18-24 and for 43% of those over 55.
The use of sustainable packaging is the most requested measure among consumers in both categories: 54% demand it from large retailers and 50% from small ones.

External factors impacting e-commerce

The surveyed consumers shared a common view that Brexit would affect the e-commerce sector, requiring everyone to adapt to the new UK-EU relationship. Combined with the additional challenges posed by the COVID-19 pandemic and economic instability affecting job security, consumer sentiment from our survey suggests that 2021 will likely be a more challenging year for retailers without an e-commerce presence.

Conclusions

The survey data indicates that online shopping habits will remain aligned with pre-lockdown trends, with some signs of growth.
There are significant opportunities for online retailers of all sizes to acquire new customers.
To achieve this, based on our experience and the findings of this report, we suggest that retailers focus on personalizing the shopping experience and offering simple, convenient solutions, particularly when it comes to returns. Since sustainability will remain a key factor for consumers in the coming years, increased attention to zero-waste initiatives and the adoption of recyclable packaging will be invaluable for attracting and retaining new customers. This applies regardless of the size or reach of your business, as expectations on these topics are universally high, even more so for established brands, and are expected to grow further.

Additionally, customer choices remain influenced by multiple external factors, ranging from the brand’s response to the pandemic to the tone and frequency of its social media posts. Brand loyalty is rare and easily lost, as even a single negative experience can deter future purchases. Consumers see the retailer’s choice of delivery partner as essential; for those seeking to improve customer experience, this aspect is now more critical than ever.

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