Research from Metapack, ShipEngine and Retail Economics has found that £52bn (US$65.7bn) of UK online non-food sales in 2023 interacted with physical touchpoints, highlighting the growing importance of omnichannel strategies to blend online and offline experiences.
The Ecommerce Delivery Benchmark Report 2024 surveyed 8,000 consumers and 400 merchants across eight markets. While familiar aspects like in-store browsing and returns play a critical role in the omnichannel experience, the research delves deeper, revealing the rising influence of social media and AI in the shopping journey.
Al Ko, CEO of Auctane (Metapack and ShipEngine’s parent company), commented, “The £52bn figure reveals a fascinating evolution in consumer behavior, and a major opportunity for brands. We’re moving beyond simply ‘online’ or ‘offline’ shopping. Today’s consumers seamlessly blend physical touchpoints, like stores, with social media discovery. They’re even showing openness to new innovations like AI for streamlining the most tedious parts of the shopping process, like delivery and returns.
“Retailers who excel at crafting this omnichannel experience – where browsing trends on social media inspire in-store visits and technology streamlines logistics – will be well-positioned for success in 2024. It’s not just about convenience, it’s about fostering a dynamic, personalized journey that builds lasting brand loyalty.”
According to the report, social media platforms such as TikTok and Instagram were most popular for finding products among younger generations, with nearly 40% of digital natives (under 45) relying on social media for inspiration and product research, compared to just 35% who use retail websites. This emphasizes the need for retailers to adapt their strategies and reach these audiences on their preferred platforms.
The rise of artificial intelligence (AI) also promises to revolutionize shopping, with 30% of UK shoppers surveyed seeing AI as valuable for streamlining order and delivery updates, and 27% believing it can simplify returns and exchanges. This suggests a growing openness to AI’s potential for enhancing the shopping experience. However, for retailers, clear communication and responsible implementation are crucial for building trust and ensuring AI is used effectively.
Other key findings include:
- Cost sensitivity remains paramount, especially around delivery – 42% state the cost of delivery is the most important factor to them when shopping online; 65% of surveyed UK consumers are less likely to shop with a brand due to high shipping costs; and 50% are unwilling to pay for premium deliveries.
- Out-of-home returns are gaining momentum – 30% of surveyed UK consumers report a preference for in-store returns and 25% favor PUDO locations.
- Debate around free returns persists – 67% of surveyed UK consumers expect them; however, this is a 13% decrease year-on-year, suggesting a growing understanding of the associated costs.
Richard Lim, CEO of Retail Economics, commented, “The retail landscape in 2024 demands a robust omnichannel strategy, more so than ever. With £52bn of online sales hinging on physical touchpoints, it’s clear that the customer journey is dynamic and increasingly complex. From product discovery to delivery and returns, shoppers demand convenience and value across all channels, and they won’t tolerate friction along the way.
“Successful retailers are those that can provide seamless and consistent experiences that meet customer needs wherever and however they want to shop – whether online, in-store, or a mix of both. A pure-online or single-channel approach will struggle for relevance in today’s omnichannel environment.”