August 22, 2012
Improving the Online Shopping Customer Experience
Susan Kleinman, comScore
David Sisco, UPS
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$42
$53
$67
$82
$102
$123
$130
$130
$142
$162
$87
$30
$40
$51
$61
$69
$77
$84
$80
$85
$94
$54
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011 Q1-Q2
2012
$72
$93
$117
$143
Retail
Travel
+26% +33% +26% +28% +20% +24% +24% +13%$171
$200
+20% +12% +6% +9%Retail e-Commerce spending is up +16% Y/Y, posting $87 billion in
sales through June 2012
$214
0%
-5%
$209
U.S. e-Commerce Dollar Sales Growth ($ Billions)
Source: comScore e-Commerce Measurement
+10% +6%
$228
+16% +9%$141
+29%
+26%
+22%
+19%
+17%
+7%
-2%
+9%
+12%
+13%
$256
+14% +11%4.3%
3.7%
4.0%
4.6%
5.1%
4.3%
4.5%
5.3%
5.9%
5.0%
5.3%
6.4% 6.7%
5.9%
6.3%
7.4% 7.3%
6.5% 6.6%
7.6% 7.7%
6.8%
6.9%
7.7%
8.1%
7.1% 7.1%
8.0%
8.6%
7.7% 7.6%
8.9%
9.4%
8.7%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
The shift of consumer spending to the Internet continues to
accelerate, with the e-Commerce share of spending hitting 8.7% in
Q2, up 1.6 points in only two years
e-Commerce Share of Corresponding Consumer Spending*
Source: comScore for e-Commerce & U.S. Department of Commerce (DOC) for Retail
e
-Comme
rc
e
S
har
e
e-Commerce share peaks in
colder seasons (Q4 & Q1)
Q2 2012 share: +1.6 points
vs. Q2 2010
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All product categories showed at least +10% growth, with digital
content and consumer electronics showing the highest growth
Q2 2012 e-Commerce Sales Growth vs. YA by Retail Category
Source: comScore e-Commerce Measurement
Q2 growth rates of 15% or
higher
Product Category
Q2 2012 Growth
vs. YA
Digital Content and Subscriptions
Very Strong
Consumer Electronics (x PC Peripherals)
Very Strong
Flowers, Greetings & Misc. Gifts
Very Strong
Computers/Peripherals/PDAs
Very Strong
Apparel & Accessories
Very Strong
Event Tickets
Very Strong
Consumer Packaged Goods
Strong
Jewelry & Watches
Strong
Home & Garden
Strong
Books & Magazines
Strong
Sport & Fitness
Strong
Office Supplies
Strong
Video Games, Consoles & Accessories
Strong
Furniture, Appliances & Equipment
Strong
The percent of e-Commerce transactions with free shipping saw a
seasonal pullback to 42%, down from all-time high of 52% in Q4 2011
39%
40%
41%
49%
47%
43%
40%
52%
49%
42%
61%
60%
59%
51%
53%
57%
60%
48%
51%
58%
Q1
2010
Q2
2010
Q3
2010
Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
% Transactions with Paid Shipping
% Transactions with Free Shipping
Percentage of e-Commerce Transactions with
Free Shipping
Source: comScore e-Commerce Measurement
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Nearly 1 in 10 e-Commerce dollars are spent via mobile device
9%
8%
9%
8%
6%
6%
3%
3%
2%
Q2
2012
Q1
2012
Q4
2011
Q3
2011
Q2
2011
Q1
2011
Q4
2010
Q3
2010
Q2
2010
Percentage of Total e-Commerce Dollars Spent via Mobile or Tablet Device
Source: comScore Mobile Measurements
Spike in percentage of
e-commerce sales via
mobile coincides with
surge in tablet ownership
Highlights: The State of the U.S. Online Retail Economy in Q2 2012
The channel shift to online appears to be accelerating: online sales
increased by +15% this quarter, while on a comparable category basis,
offline sales increased only 2%
Mobile and tablets accounted for 9% of all retail e-Commerce sales in Q2
All product categories showed strong (10% or higher) growth in Q2
Leading deal-of-the-day sites are now seeing more visitors from mobile
devices than from the fixed Internet and the value of offers has increased
dramatically
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Study Objectives & Methodology
Help retailers make more money by providing insights into consumers’
online shopping preferences and what shipping and post-purchase
services enhance customer experience.
–
What are most/least important aspects of past online shopping experiences?
–
What leads a site user to return to or recommend a site?
–
What is important to consumers during the check-out process?
–
What shipping services and options do consumers find most valuable?
–
How important is tracking and what other delivery services are preferred?
–
What are consumers’ returns experiences and what aspects are important in a
returns process?
–
How do all of the services offered during and after the online purchasing
experience impact the overall impression of that online retailer?
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Of those, about 1/3 make 1 transaction and half make 1-2
transactions. About a quarter make 3-5 purchases, and the other quarter
makes 6 or more.
About 75 million people, or 1/3 of the total US internet population, buys
something shippable online over the course of a quarter.
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57%
58%
61%
65%
70%
74%
74%
74%
79%
82%
83%
Flexibility to re-route packages
Flexibility to choose delivery date
Availability of live customer service
Ease of making returns /exchanges
Clear returns policy
Ability to create an account
Number of shipping options offered
Free/discounted shipping
Online tracking ability
Variety of brands/products
Ease of checkout
Base= Total Respondents (n=3,128)
Q10. How satisfied are you with your previous online purchasing experiences overall? /Q11.How satisfied are you with each of the following aspects of online purchasing as they relate to your previous experiences?
Satisfaction with Aspects of Online Shopping Experiences
7 pt. Scale – Top 2 Box
“I am very satisfied with my online shopping
experiences. … All of the items were in stock
and shipping was either free or really low.”
Overall Sat
Top 2 Box
- 86% -
Overall satisfaction with online shopping is high. Online shoppers are
least satisfied with flexibility of shipping and returns.
Ease of checkout
Variety of brands and
products offered
Ability to create an
account to store
purchase history and
personal information
Ease of making
returns/exchanges
Clear and easy to
understand returns
policy
The ability to track
online purchases after
they ship
Availability of free or
discounted shipping
Flexibility to re-route
packages
-0.10
-0.05
0.00
0.05
0.10
0.15
0.20
0.25
0.30
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
Deriv
ed
Importanc
e
W
ei
ght
% Top 2 Box Satisfaction Rating
Quadrant Analysis
Higher Importance/ Higher Satisfaction
Higher Importance/ Lower Satisfaction
Lower Importance/ Lower Satisfaction
Lower Importance/ Higher Satisfaction
A quadrant analysis reveals that the ease of making returns/exchanges is
above average in importance but falls short in terms of satisfaction. Free
shipping is one of the least important drivers of satisfaction.
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Base= Total Respondents (n=3,128)
Q13. Thinking about these aspects of the shopping experience, which of the following would you like to see improved by your favorite retailer? Please select all that apply and the primary aspect.
23%
26%
28%
29%
33%
34%
36%
38%
38%
42%
58%
A carbon neutral shipping option
Ability to create an account
Number of shipping options
Flexibility of delivery options
Clear returns policy
Ease of checkout
Availability of live customer service
Online tracking ability
Variety of brands/products
Ease of returns /exchanges
Free/ discounted shipping
Wanted Aspects to See Improved by Retailer
Online shoppers want to see their favorite retailers improve by offering
free/discounted shipping and easy returns/exchanges.
68%
43%
37%
31%
65%
41%
29%
28%
Free shipping
Receiving my product
when expected
Free returns
Easy returns
and exchanges
Would Lead to Recommendation
Has Led to Recommendation
Recommendation of Online Retailers
- Top 4 Factors -
In addition to free shipping availability, timely arrival of shipments would
most often encourage shoppers to recommend the online retailer.
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26
23
13
13
15
10
Average # of Chips Allocated out of 100
Product price
Shipping charges
Shipping Speed
Consumer/peer reviews
Retailer reputation
Delivery time flexibility
Factors Taken into Consideration when Comparison Shopping
When comparison shopping, consumers take product price and
shipping charges almost equally into consideration.
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26
23
13
11
Average # of Chips Allocated out of 100
Free shipping on every order over $50
Flat rate shipping of $3.99 on all orders
under $50
10% off entire purchase
Save $10 on any purchase over $100
Receive a coupon for 3-5% off your next
purchase
Base= Total Respondents (n=3,128)
Q36. Thinking of various discounts or specials a retailer may offer, which of these types of offers would most likely bring you back to the same retailer? Please distribute 100 points across these offers, allocating more points to offers most likely to bring you back and fewer points to offers least likely to bring you back. Please only consider these offers for the moment.
Discounts/Specials that Bring Customers Back to Retailer
About 60% of online transactions are more than $50
Online shoppers prefer free shipping on orders over $50; while on
orders less than $50, they prefer to pay a flat rate charge.
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Well over half of online shoppers say that an estimated or guaranteed
delivery date is important at check-out.
Base= Total Respondents (n=3,128)
32%
38%
47%
50%
56%
60%
73%
Suggesting other items
Expedited shipping options
Order history
A login to save my purchasing preferences
Variety of payment options
Estimated or guaranteed delivery date
Free shipping options
6%
5%
10%
6%
10%
38%
24%
Estimated Delivery Time Provided
(of those that abandoned their shopping cart)
3 days or less
4 days
5 days
6 days
7 days
8 days or more
Estimated delivery
date not provided
42%
Abandoned
Shopping Cart
Due to
Estimated
Delivery Date
“I have deleted items from my shopping cart
during checkout before. Sometimes the item
won't be available for shipping for a longer
period of time than I am willing to wait for.”
“…there has been a few times that I
have not placed an order. The item was
going to take too long for it to get to
us. It was three weeks for shipping.”
“Anything more then 10 days
for shipping I wont order,
unless it is something that is
hard to find or something I
really have to have.”
Of online shoppers that have abandoned their cart due to delivery date,
a quarter indicated that no estimated delivery was shown.
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Base= Total Respondents (n=3,128)
Q40. What is the number of days that you are willing to wait for most of your online purchases to be delivered?
5%
14%
29%
29%
23%
Days Willing to Wait for Most Purchases
Next day
2-3 days
4-5 days
6-7 days
8 or more
“If I have not gotten my item in
more than 7-10 days that bothers
me. Generally I get them in 4-5
days and I like that”
“A reasonable wait time
is 7 business days from
the purchase date.”
“I am willing to wait
about 2 weeks for
an item from an
online retailer. If I
have to wait a
month or more I
usually will cancel
my order…”
“… I feel a standard 3-5 days is very
acceptable. Anything purchased in
the U.S. should be able to get to you
in that time without paying extra for
rush delivery.”
Online shoppers are typically willing to wait 4-7 days to receive most of
their purchases.
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78%
60%
43%
30%
Economy
Ground
(5-7 days)
Ground
(3-5 days for a
nominal fee)
2-3 day air
(for a nominal
fee)
Next-day
(for a nominal
fee)
Shipping Options Expected
Base= Total Respondents (n=3,128)
Q38.When shopping online, which of the following shipping options do you expect online retailers to offer? Choose all that apply. / Q39.When shopping online, which shipping option do you choose most often?
67%
25%
6%
2%
Economy Ground (5-7 days)
Ground (3-5 days for a nominal fee)
Two- or three-day air (for a nominal fee)
Next-day (for a nominal fee)
Option Actually Chosen Most
Online shoppers expect a variety of shipping options to be available.
One-third choose an option that has a nominal fee.
75%
24%
0%
Completely Agree (Top 2 Box)
Neither Agree or Disagree (Neutral)
Completely Disagree (Bottom 2 Box)
4%
4%
6%
10%
31%
45%
Tracking is not essential to
give me a great customer
experience
An easy-to-find customer
service number I can call to
ask
The ability to track my
shipment with my mobile
device
A text message alerting me my
shipment will be delivered
The ability to track my
shipment directly on the
retailer`s website
E-mail or text notifications with
a tracking number
Most Important Shipment Tracking Service
“Giving me tracking information for
my packages is an important
service every retailer should offer”
Most online shoppers agree that tracking information is important. Tracking
directly on the site or email/text notifications are the most important services.
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After, if I
need to
return an
item, 20%
Not at all,
17%
Both before
and after,
30%
Before I
purchase an
item, 33%
Look for an online retailer’s returns policy…
The majority of online shoppers look for the returns policy before
placing an order .
“I don't look at the returns
policy until i need it. Its so
rare that i have to return
something that reading a big
long explanation isnt a good
use of time.”
“Once I find something I
am interested in and think I
will purchase I check the
return policy. I want to
know I will find what I need
but not get too far into the
process before knowing..”
“If it's something that will
be hard to return I would
look before I placed my
order.”
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Base= Respondents that have made a return (n=1,719)
Q58. Thinking of the best returns experience that you have had, what elements were included as a part of this experience?
62%
61%
57%
47%
38%
30%
A return label right in
the box
An easy-to-print
returns label
Automatic refund
An easy-to-follow
procedure
Ability to return to a
store
Flexibility on how I can
ship return to retailer
Elements of the Best Returns Experience
“It was such an easy experience. The gift
came with a pre-paid shipping label. All I
had to do was fill out a for an exchange …”
51% of online shoppers returned a product purchased online for a refund/exchange
Online shoppers that have made returns prefer to have a return label in their
original package or access to an easy-to-print label. An automatic refund is
also important.
32%
35%
48%
48%
Focus less on prices and more on
their quality of service
Drop another retailer with a less easy
returns process
Recommend the retailer to a friend
Shop more often with that retailer
If an online retailer offers a lenient, easy-to-understand returns policy, I will …
Agreement (Top 2 Box)
“Return policy has to be
clear, easy and up front.”
“[If] I cannot find the return policy
or it is unclear I will never purchase
or return to that site again”
A lenient and clear returns policy is likely to lead to recommendations
and repeat business from online shoppers.
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In a few words…
Shipping promotions can be used to attract, retain, and reward shoppers
–
Promotion doesn’t mean free shipping – consumers understand that a
minimum spend may be required to qualify for free shipping
–
One-third of shoppers say they most often choose a nominal fee shipping
option for faster delivery
Ease of making returns and exchanges should be an area of focus for
retailers
–
The returns policy should be easy to find
–
Customers want a return label included or easily available to print from the
retailer site
Estimated delivery time must be provided at check-out
–
Receiving product when expected leads customers to recommend a retailer
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