Clear shipping prices most important factor for US online shoppers purchasing abroad

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UPS’s annual Pulse of the Online Shopper study has found that nearly half of online shoppers in the USA bought items from international retailers, demonstrating the need for retailers to offer more personalized services as a way to compete against lower prices.

The report found that 47% of respondents had purchased from an international retailer, and of those respondents, 43% were driven by lower prices on US marketplaces and 36% wanted unique products not found from US retailers.

Alan Gershenhorn, chief commercial officer for UPS, said, “The lines that separate domestic and international retailers continue to disappear. Retailers are now competing across the globe. In order to win, retailers can distinguish themselves by providing value through personalized experiences.”

Personalized experiences includes the physical store. Many online shoppers find stores important to touch and feel products (59%), solve immediate problems (54%), receive superior customer service (52%), and participate in rewards/loyalty programs (52%). Half of shoppers (50%) have used ship-to-store this year, of whom 44% made additional purchases in store, and 41% plan to use ship to store more often in the next year.

The top considerations that online shoppers make when purchasing from international retailers include clearly stating the total cost of the order including duties and fees (77%), stating all prices in the shopper’s native currency (76%), the retailer being reputable (74%), and reasonable speed of delivery (66%).

“Online shoppers are able to shop the world’s boutiques and bazaars with ease,” said Gershenhorn. “We’re witnessing a glimpse of the future, when retailers and their customers will be defined less by geographic location and more by how they connect with each other. The challenge is to best provide shoppers with the choice, control and convenience they desire.”

The use of smartphones continues to be an increasingly important part of the shopping experience online and in physical stores. 80% of online shoppers use retailer apps, often preferring apps to websites because of faster speed and a better user experience.

The convenience factor is key as ‘on the go’ mobile shoppers seek efficiency at every turn. Mobile coupons (50%) and high-quality product images (50%) are two of the most important app features.

To download the UPS Pulse of the Online Shopper survey, click here.

June 9, 2017

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Dan originally joined Parcel and Postal Technology International in 2014 having spent the early years of his career in the recruitment industry. As online editor, he now produces daily content for the website and supports the editor with the publication of each exciting new issue. When he’s not reporting on the latest technological developments, Dan can be found on the golf course or apprehensively planning his next DIY project.

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