2

THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE

CONTENTS

5

EXECUTIVESUMMARY

6

10

INTRODUCTION

INSPIRATION

16

SEARCH

22

PURCHASE&LOYALTY

28

THEAMAZONEFFECT

34

40

FUTURESHOPPERINSIGHTS

TODAY’SSHOPPER

METHODOLOGY

45

47

ABOUTWUNDERMANTHOMPSONCOMMERCE

SERVICESTOSUPPORTBRANDS&RETAILERS

48

Commerce

THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE3

4

THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE

HELLO

Thisyear’sFutureShopperReportlooksatthecurrentcommercelandscapethroughthelensofthemodernshoppingjourney.Thepathtopurchasetodaymaybemorecomplicatedthanever,buteveryonestilllooksforinspirationforsomethingtobuy,searchestofindthebestoption,andchoosesaplacetopurchase.Thosethreephasesformthecoreelementsofthisreport.

Thisstudyrevealsthattheinspirationphaseistrulyomnichannel.It’sawide,wideworldwherediscoverycomesfromallangles.Andwhileit’simperativeformarketerstohavetheirproductstopofmindduringthisphase,theyshouldalsounderstandwhereandwhenbrandshavetheopportunitytomakeanimpactasshopperstransitiontosearch.Onceshoppersbeginactivelysearchingforspecificproducts,thefieldnarrowsintothreekeyareas:retail,brandwebsites,andonlinemarketplaceslikeAmazon.Nosinglechanneldominatesinsearch,andbrandsmustbepresenttobeintheconsiderationset.This

iswheremediaspendmustincrease.Then,asconsumersmovetowardstheendofthe

shoppingjourney,brandsneedtobelaser-focusedonprovidingagoldstandardoftherightprice,productinstock,andspeedofdelivery.

Ofcourse,today’sjourneyscanbecomplexandcompletelyunrecognizablefromthoseofevenafewyearsago.Buttherearepartnersatallstagestohelpyoumanagethecomplexity.Youmaynotbeabletofindgreatprospectsinthedigitallandscapeonyourown—buttherearethosewhocan.

YOUMAYNOTKNOWHOWTOMAKEYOURPRODUCTSHOWUPFIRSTINANAMAZONSEARCH,BUTWEDO.ABOVEALL,WECANHELPYOUUNDERSTANDWHEREPEOPLEARESHOPPING,WHATTHEY’REBUYING,ANDHOWYOUCANENGAGEWITHTHEM.

THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE5

INTRODUCTION

COMMERCEHASBECOMEIMMEDIATE,UNIVERSAL,ANDUBIQUITOUS.WECANSHOPANYWHERE.WECANASSIGNMACHINESTHETASKOFORDERING.WECANALLOWSOMEONEELSETOSELECTTHEITEMSTHATAREDELIVEREDTOOURHOUSE.

6

THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE

InthefirsteCommercerevolution,ourdigitalshelvesbecamelonger,ourshoppingoptionsmoreconvenient,andproductinformationmuchmoretransparent.Peoplebecameaccustomedtoreadingpeer-to-peerreviews,takingsocialrecommendationsfromdistantfriends,andlookingtonewinfluencersforinformationonwhattobuy.Attheendoftheday,however,thewayweboughtwaslargelythesame:ashoppingcart.

Alsonewinthisyear’sreport,weoutlinedifferencesbetweentheshoppinghabitsofAmazonPrimemembersandthegeneralpopulation—adivisionthatisstark.Aswe’llsee,AmazonPrimemembersinalldemographicsareleadingthechargeintonewkindsofcommerce—includingsocial,voice,subscription,andProgrammaticCommerce?.

Whileit’stemptingtothinkofchangeaslinear—withconsumersincreasinglychoosingdigitalchannelsoverphysical—therealityismorecomplex.Peoplearenotsimplytradingbricksforclicks.Instead,theyareundergoingacomprehensiveshiftinhowtheyengagewithcommerce.

Inthepastfiveyears,thishasbeguntochange.Commercehasbecomeimmediate,universal,andubiquitous.Wecanshopanywhere.Wecanassignmachinesthetaskofordering—aprocessknownasProgrammaticCommerce?.Wecanallowsomeoneelsetoselecttheitemsthataredeliveredtoourhouse.AndsomeofuscanreciteashoppinglisttoafictitiousAIassistantnamedAlexaandhaveitdeliveredin24hours.Theactofshoppingisfundamentallydifferentfromhowanyoneenvisioneditonlyafewyearsago.

Forexample,manyofthemajormarketplaces—Amazon,eBay,andsoon—originatedintheUSandspreadtoEuropeandbeyond.Asaresult,theUSandUK,whichweretheinitialpointsofexpansion,havelargelyhomogenizedplayingfieldswithrelativelyfewmajormarketplacesandsocialnetworks.Thatresultsinacrowdedadvertisingmarketandalandscapeinwhichbrandsmustmakedifficultdecisionsaroundcooperation

orcompetitionwithAmazon.Bycontrast,theNetherlandsmarkethasnonativeAmazonpresence,butahealthynativemarketplaceinBol.com.Thiscomplicatesthetaskofcommerce,butopensupopportunitiestoo.

Sinceitsinception,TheFutureShopperReporthastriedtocapturetheessenceofthisongoingrevolution.Asthepaceofchangehasquickened,thescopeofthisstudyhassteadilyexpanded.Whenwelaunchedthereportthreeyearsago,weaskedUKshoppershowtheyfelt

aboutProgrammaticCommerce?.Ayearlater,weexpandedthestudytotheUSandlookedathowcustomerloyaltywasshiftingawayfrombrandtoservices.Lastyear,wesawatippingpointintheUSandUKasmorethanhalfofallcommercejourneyswerestartingonline—withpriceandconvenientdeliverybecomingthedominantfactorsinpurchasingdecisions.

Wealsoseeadifferenceinhowpeoplesearchforproducts.IncountriesliketheUSandGermany,whereAmazonhaslonghadapresence,searchesbeginonthatplatform79%ofthetime.Acrossallmarkets,AmazonPrimemembersarealsotwiceaslikelytostarttheirsearchesonAmazonasthosewhodonothavetheservice.ButinCzechia,wherepeopleaccessAmazonviaGermany,thenumberdropsto4%.ThismakesacompellingcaseforbrandsandretailersinCzechiatoimprovetheirservicestomatchtheinevitablearrivaloftheAmericanbehemoth.

Thisyear,ourreportgoesevenfurther.Forthefirsttime,wegobeyondtheUSandUKandexaminehowcommerceisdevelopinginsixrepresentativecountriesinEurope:Spain,France,Belgium,theNetherlands,Germany,andCzechia(thegeographicnamefortheCzechRepublic).Overall,thisenablesustogetamuchmorenuancedlookathowcommerceischanging—andwhatthatunevenpacelookslike.

THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE7

Overall,weasked15,188peoplein8countrieshowtheyareshoppingtodayandhowtheyexpecttodosotomorrow.Welookedatwhattheyratehighly,whattheydon’tcareabout,andhow,ofcourse,theyfeelaboutAmazon.Theresultsbothconfirmedongoingtrends,revealednewinsights,andoutlinedsuccessstrategiesforarapidlychangingworld.

HEADLINEDATA

62%

AREEXCITEDABOUTORDERINGALLOFTHEIRGOODSTHROUGHONERETAILER

(e.g.Amazon,eBay,etc.)

64%

96%

CHECKPRICESONAMAZONWHILEIN-STORE

SAYPRICEISTHEMOSTIMPORTANTFACTORINTHEIRPURCHASINGDECISIONS

84%

50%

AREMOTIVATEDBYFASTERDELIVERY

SAYTHEYWISHBRANDSANDRETAILERSWEREMOREINNOVATIVE

8

THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE

TTHHEEFFUUTTUURREESSHHOOPPPPEERRWWUUNNDDEERRMMAANNTTHHOOMMPPSOONNCCOOMMMMEERRCCEE9

INSPIRATION

10THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE

KEYSTATS

WheredoIlookforinspiration?

51%

SEARCHENGINES

33%

32%

BRANDWEBSITES

SOCIALCHANNELS

27%

PHYSICALSTORES

THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE11

INSPIRATION:THINKOMNICHANNEL

Whenitcomestoshopping,inspirationabounds—fromsearchandsocialmedia,toinnovationanddemographics.Intheinspirationphase,shoppersbecomeawareof,andinterestedin,makingapurchase.Wetendtothinkofthisintermsofahigh-touchprocess,butitneednotbe.PeopleareinspiredtobuyDoritos,justastheyareinspiredtobuyawashingmachine.Theyareinspiredtogoouttoeat,justastheyareinspiredtobuyacar.

Nomatterwhatyousell,youneedtobevisibleatthiscriticalpointintheshoppingjourney.Ifpeoplecannotseeyourproduct,anditdoesn’tshow

upwherethey’relooking,it’sgoingtomissthe

considerationset—andmightaswellnotexist.

Aboveall,TheFutureShopperdatasuggeststhatwhilesearchoncedominatedinspiration,anomnichannelinspirationstrategywilllikelyservebrandsbesttoday.Searchenginesmaystillleadinthefirstmileofshopping,butnearlyeverychannelhasenoughtractionwithconsumersthatnoneshouldbeignored.

12THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE

THEENDOFSEARCHENGINEDOMINANCE

SOCIALSOARING

Ifindinspirationonsocialmedia:

Foryears,searchengineshavebeenshoppers’go-toforinspiration.WhileourdatashowsthatGoogleanditspeersarestillstrong,theirtraditionaldominanceisunderthreat.Theirgreateststrengthcomeswitholderconsumers,butagegroupbyagegroup,theironceirongripontheprocessslips.BythetimewereachGenZ,only36%ofshoppersusethemasasourceofinspiration.

49%

43%

OFPEOPLE16-24Y/O

OFPEOPLE25-34Y/O

37%

37%

37%

OFWOMEN

OFPEOPLE

OFAMAZONPRIMEMEMBERSVS.28%NON-PRIME

Ilookforinspirationonsearchengines:

VS.25%OF

US&

MEN

FRANCE

59%

Thefastestrisingavenueforinspirationtodayissocialmedia—andit’sdividedsharplyalonggenerationalanddemographiclines.Whilehalfofpeopleaged16-24lookforinspirationonsocial,only12%ofpeopleovertheageof55doso.Womenalsooutpacemenonsocial37%to25%.Andsocialistheoverwhelmingchoiceforinspirationfortheyoung.Thisstronglysuggeststhatorganizationsshouldstarttakingitseriouslyassomethingotherthanjustavisualmarketingtool.Firstmoversinthegamearestealingamarchontheircompetitorswhenitcomestocommerce,aswellasbranding.

58%

55+Y/O

55%

45-54Y/O

35-44Y/O

46%

25-34Y/O

36%

16-24Y/O

Thewinnerinthegame?Socialmedia.Among16-24-year-olds,itleapfrogstofirstplaceforinspirationwitha49%share.Sociallargelyrisesintimewitheachagegroupaswell.Thisstronglysuggestsaglobaltrendawayfromsearchandtowardsocialforinspiration—withGenZleadingtheway.Theendofsearchdominanceasweknowitmaybeheresoonerratherthanlater.

TheFutureShoppersurveyalsocollecteddataonconsumerswhoshareproductsonsocialmediaandonmessagingapps:38%ofconsumerssaidtheydothis,withthenumber

jumpingto49%ofthoseaged16-24and46%ofthoseaged25-34.SpainandFranceledthewaywithroughly50%ofallpeoplesharingsocially,whileAmazonPrimemembers,notsurprisingly,outpacedgeneralconsumersat47%.

Brandsseekingoutyoungerconsumersmayneedtorethinktheirlong-termmediastrategiesinlightofaconsumerbasethatmayslowlybeshiftingawayfromacrowdedtraditionalmediamarket.Theoverwhelmingpreferenceforsearchoncemadeittoughandexpensivetobreakthroughintheinspirationphase.Themorebalancedmixofoptionssuggestthatomnichanneleffortswithastrongleanintosocialmaybethebetterstrategy.

Thisonlyreinforcesthefactthatbrandsneedtoprepareforaworldinwhichmediabuyingstrategiesmustconsidertheincreasingroleofsocialmediainfindinginspiration—andbesurethoseeffortsmoveconsumersintochannelswherethey’researchingforandpurchasingproducts.

THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE13

THESTOREHASNOTCLOSEDITSDOORS

Youmightthinkthatthemoredigitally-enabledamarketis,thelesslikelypeoplearetofindinspirationinaphysicalstore.Afterall,it’snosecretthatmanywell-known,big-boxretailersclosedtheirdoorsin2018.However,thedata

showssomethingdifferent:intheUKandtheUS,whereeCommerceisaheadofthecurve,sotooisin-storebrowsing.Thirty-twopercentofpeopleintheUKand28%intheUSlookforinspirationinastoreagainstaglobalaverageof27%.What’smore,48%ofconsumersprefertoshopwithabrandthathasaphysicalstore.

BRANDEDWEBSITES:ASTRONGCASEFORDTC

Brandwebsites—especiallywhencoupledwithagreatdirect-to-consumer(DTC)experience—

remainavitalpartofthemixwhenconsumersarelookingforinspiration.

Ilookforinspirationonbrandwebsites(i.e.,Nike,Dyson,Clinique,Apple,etc.):

47%

OFPEOPLEINSPAIN

Ilookforinspirationin-store:

34%

33%

32%

OF16-24

30%

OFALLPEOPLE

Y/O

28%

28%

28%

27%

OFPEOPLEINTHEUK

OFWOMEN

OFPEOPLEINTHEUS

OF16-24

OFAMAZONPRIMEMEMBERSVS.27%NONPRIME

OFALLPEOPLE

Y/O

TheriseofAmazonandothermarketplaceshasfrequentlyledmanyorganizationstoquestionwhytheyshouldbotherwithdirect-to-consumer.ThegoodnewsisthatbrandsandorganizationsthreatenedbytheAmazonshoppingexperience,whichislargelytransactionalandemotion-less,areattractingconsumerswithamoreexperientialapproach.

Thedemiseofmanylargechainstoresmaynotberepresentativeofashiftawayfromstoresingeneral,butarejectionofapproachestophysicalretailthatnolongermatchcustomers’desires.Therealquestionmightnotbeifabrandorretailershouldhaveastore,butratherwhatkindofstoretheyshouldhave.

Brands,likeSears,thatoperatedlargelyastheydidinthepast,withdisorganizedshelvesandscantstaff,arebeingsweptaway.ButWalmartoffersagreatexampleofalargeretailerthathasadaptedandinnovatedtoensurethatitremainsrelevantinadigitallyenabledworld.Onlineshoppingexperiencesmayscorewellintermsofconvenience,butgreatstoreexperiencesopenupwaystoprovideexcellentservice,haverealconversationswithconsumers,andamassthefirst-partydatathatcanbecriticaltosuccessineverychannel.

14THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE

GENZ:TAKINGSOCIALBYSTORM

Foralongtime,thetableshaveseemedstackedinfavorofmarketplaces,especiallyAmazon.Buttheyouthmovementsuggestsshoppersmaybeturningbacktotraditionalbrandedexperiences.Fifty-threepercentofpeopleaged16-24prefertoshopwithabrandorretailerthathasaphysicalstore,wellabovethesurveyaverageof48%.

GenZbynumbers:

53%

49%

PREFERTOSHOPWITHBRANDORRETAILERWITHPHYSICALSTORE

USESOCIALMEDIA

36%

34%

USESEARCHENGINES

USEBRANDWEBSITES

Youngpeoplearealsomoreopenthanmosttofindinginspirationinsocialbuyingand,

surprisingly,printpublications.TheyarealsomostskepticalofAmazon,andmostlikelytobeswayedbyethicalandenvironmentalconcerns.Inotherwords,cracksarestartingtoappearinAmazon’sofferings,andtheWACD(WhatAmazonCan’tDo)movementisinfullswingwithGenZ.

THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE15

KEYTAKEAWAYS

Searchenginedominanceisdyingintheinspirationphase.Reviewyourmediastrategytoensurethatyouappearwhereyourcustomersarelooking.

Socialinspirationisvitalforbrandsandorganizations,especiallywiththeimminentarrivalofsocialcommerce.

Physicalstoreswillnotdie—solongastheyprovideanomnichanneldata-basedexperienceworthvisiting.

DTCisavitalcomponentofabalancedeCommercestrategy,butbrandsmustworkhardtomoveconsumersfrominspirationtotransaction.

SEARCH

ACHANGEINFOCUS

Aswe’veseen,whenlookingforinspiration,consumerstakeanomnichannelapproach.Oncetheybegintosearchforproducts,however,theirfocusnarrows.Theystoptryingtodecideiftheywanttobuy—andstartthinkingofexactlywhatandwheretheywillbuy.Atthispoint,theyincreasinglyfocusonAmazonandsearch

enginesattheexpenseofsocialmediaandbrandwebsites.

Thisisimportantbecausemoreandmoreorganizationsaretryingtoshortenthetimeframeandactivitiesbetweensearchandpurchase.Theirmainchallenge,ofcourse,istoensurethattheirproductsandservicesarevisibleintherelevantchannelsandbecomepartoftheconsiderationset.

Ourdatapointstotwomajoropportunitiestoimprove:brandwebsitesandsocialchannels.ManyorganizationstodayarecreatingDTCecosystemsofproductsandservicesthatencouragecustomerstostay.AndtheadventofsocialbuyingonInstagramopensanintriguingnewchannelfordiscoveryandpurchase.

16THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE

AMAZONTAKESCHARGE

Whiletakenasawhole,productsearchseemsroughlysplitbetweenAmazonandsearchengines,therealityismorenuanced.IncountrieswhereAmazonhasanativepresence,itdominates.ConsumersinSpain(80%),theUS(79%),andGermany(79%)arethemostlikelytostarttheirsearchonAmazon,while,perhapsunsurprisingly,itisnotpopularatallintheNetherlands(13%),andCzechia(4%),bothofwhichorderfromAmazonthroughGermany.

Thispresentsbrandsandretailerswithsplitpossibilities.IncountriesliketheNetherlandsandCzechia,whereAmazonisstillrelativelyweak,it’stimetogetmoving.Amazonhasupendedsearchpatternsinmanycountries,andunlessyouhaveastronglocalcompetitorofferingthesamelevelofselectionandserviceorbetter—asinChina—youhavetogetready(See:“WhattoDoWhenAmazonRidesintoTown,”onpage35).

Inothermarkets,thepreferenceforAmazonnecessitatesafriend-and-foestrategy.WhetherornottooptimizeAmazonisnolongeraquestion.Theonlyissueishowbrandscanstartconvertingtheirsuccessintheinspirationphaseintobettersearchandpurchaseexperiencesforconsumers.

WhereIstartsearchingforproducts:

56%

AMAZON

49%

SEARCHENGINES

34%

OTHERMARKET-PLACES

29%

BRAND

WEBSITES 27%

RETAILERS

9%

SOCIALMEDIA

THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE17

SEARCHINGFORANSWERS

Iusesearchenginestosearchforproducts:

60%

58%

54%

OFPEOPLEINCZECHIA

52%

OFPEOPLEINGERMANY

OFPEOPLEINTHE

NETHERLANDS

OFNON-PRIMEMEMBERSVS.45%AMAZONPRIME

44%

OFPEOPLE16-24Y/0

SimplybecausemostconsumersstartalotofsearchesonAmazondoesnotmeanaone-

platform-and-donestrategyisagoodidea.NearlyhalfofpeoplealsobeginsearchesonGoogleanditspeers,anumberthatrisesto58%inGermanyandhoversat47%intheUS.InCzechia—wherethenumbersresemblethoseoflargeEuropeaneconomiesfromafewyearsago—searchstandsat60%.

Obviously,searchenginesremainavitaloptionforconsumers,andmakingsureyourmediastrategymakesyourproducthighlyvisibleandavailableremainsakeypillarforsuccess.

18THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE

GOINGDIRECT

Isearchonwebsitesofbrands(e.g.Nike,Dyson,Clinique):

39%

37%

16-24

Y/O

34%

OFPEOPLEINSPAIN

OFPEOPLEINFRANCE

30%

29%

25-34Y/O

OVERALL

FutureShopperdatathisyearrevealsinterestingnewsforbrandwebsites.Duringtheinspirationstage,consumersflocktobrandedcontent(33%overalland47%inSpain).Asconsumersmovetosearch,however,thenumbersdropconsiderablyto29%,withthefallmoreprecipitousinlargermarkets.InGermany,forexample,brandwebsitescapture29%ofconsumers’inspiration,butonly18%forsearch.IntheUS,it’s31%to23%.

Thisdemonstratesthatwhilebrandedexperiencesarecapturingcustomersinthefirstmileofshopping,they’rethenlosingtheminthesecond.Asaresult,brandsareinvestinginequitytoattractcustomersandthenservingthemuponasilverplattertomarketplaceslikeAmazon.

Tocombatthissituation,organizationsmust

uptheirgameintheirDTCefforts.Ratherthanabandoningtheircustomersinsearch,theyhaveanopportunitytocapturethemduringinspirationandkeepthemallthewaythroughpurchase—nettingnotmerelyagreaterpartofsales,butoftheinvaluabledatathatcomeswiththem.

THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE19

SOCIAL:THENEXTFRONTIER?

Thebiggestdifferencebetweeninspirationandsearchisthedisappearingactplayedbysocialmedia.Ifbrandwebsitesfalterinsearch,socialfallsoffacliff.Only9%ofallsearchesbeginonsocialmedia,anumberthatdropstoapaltry4%inGermanyand5%intheUnitedStates.

InadditiontotherecentintegrationofshoppingonInstagram,socialmergeappearstobeonthevergeofcausingdisruptivechange.ThescarythoughtformanyisthatsocialsiteslikeInstagram,Facebook,andSnapchathavethepotentialtoevolveintothenextgenerationofsuperretailers.

Isearchforproductsonsocial:

15%

13%

OFPEOPLE16-24Y/O

11%

OFPEOPLEINBELGIUM

9%

OFPEOPLEINTHEUK

OVERALL

4%

OFPEOPLEINGERMANY

Partofthisdoubtlessreflectsthefactthatit’sdifficulttosearchforproductsonsocial—that’snothowtheplatformsarebuilt.Butaswesawwithinspiration,everysuccessiveagegroupusessocialmediainthisphasemoreandmoreastheygetyounger.Fifteenpercentofpeopleaged16-24useitforsearch,whileonly4%ofpeopleovertheageof55doso.Thisstronglysuggestsatrendtowardssocialcommercethatshouldincreaseovertime.TheorganizationsthatarereadyforthisalreadystandtobenefitfromtheGenZcustomerswhoarealreadythere.

20THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE

KEYTAKEAWAYS

Whenitcomestoproductsearchesonline—Amazondominates.

Brandsarealltoofrequentlybuildingbrandequityanddrivingcustomerstotheirsites,onlytoofferthemanunderwhelmingexperiencethatencouragesthemtoshopwithmarketplaces.

Whenthinkingaboutsearch,socialmedia’seCommerceimmaturityisapparent—butthestepfrominspirationtotransactionwillberapid.Getreadynow.

THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE21

PURCHASE&LOYALTY

22THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE

Whenitcomestowhereconsumersbuy,FutureShopperdatashowsthattheywantitall:lowprices,productsinstock,fastdelivery,andmuchmore.Buttogetherthesealsoshowsomethingelse:purchasingisonitswaytobecomingthenewphaseofloyalty.Consumersexpectandrewardgreatserviceateverypointintheprocess.

Wherethepurchaseusedtobeafairlystraightforwardtransactionbothonlineandoffline,today,wehavepurchasingexperiences.It’snotmerelyaboutwherewebuyandhowwebuy.

Instead,buyingrunsthewidegamutfromdeliveryandreturnstoconvenience,rewards,andevenconcernsabouttheenvironment.TopbrandslikeAmazonandUberhavesetnewstandardsforcommerce,andeveryonenowmustembracethemandfocusondeliveringthatsamelevelofservice.

ALLCOUNTRIES

BRANDWEBSITES

AMAZONOTHERMARKETPLACES

RETAILERSITES

OTHER

WHEREDOCUSTOMERSSPENDTHEIRONLINEDOLLARSBYPERCENTAGE?

Whenitcomestoonlinepurchasing,thetrendswesawinsearchcarryover.Customersnarrowtheplayingfieldtojustafewplayers:Amazon,brandwebsites,andonlinesitesofretailers:

52

15

9

18

36

22

52

48

47

45

38

33

29

24

22

22

2221

22

19

19

19

1416

18

18

16

1616

17

13

14

12

11

11

11

10

10

9

8

7

7

5

4

3

BELGIUM

CZECHIA

GERMANY

SPAIN

FRANCE

NETHERLANDS

UK

US

THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE23

WHATPEOPLEWANT:THEIMPORTANCEOFPERFECTION

Iammotivatedby:

Whatdopeoplewantfromapurchase?Unsurprisingly,pricewasthenumber-oneconcernforconsumers,with96%sayingitwasmostimportantintheirpurchasedecisions.Butotherelementsoftheshoppingexperiencewerealsostronglyimportant:speed,selection,availability,andaccuracyofproductdescription.

Inotherwords,consumerswanteverything.It’snotenoughtohaveagreatproductanymore.Onlineshoppersareusingmanydifferentcriteriatomakeinformeddecisions.Companiesmayinvestincreatingpositiveequityaroundtheirbrands,onlytoloseoutwithpoordata,badcontent,andalackoftherightcontenttoconvert.

96%

92%

PRICE

91%

Theseareas,aswe’llsee,alsoopenupopportunitiesforbrands.Forexample,61%ofconsumerswouldshiftpurchasesawayfromAmazonifapricewaslower,and23%ifithadbetterdeliveryoptions—aninterestingdatapointconsideringthatAmazonissettingagoldstandardforserviceinmostgeographies.Asaresult,brandshavetwotasksinfrontofthem:Theymustbalancelowerpricestrategieswiththeneedsoftheirchannelpartners.Andtheymustimplementefficientfulfilmentanddeliverycapabilitiesthatmayrequiresignificantorganizationalchange.

90%

90%

ACCURATEPRODUCTDESCRIP-TIONS

THEITEMBEING

INSTOCK

FREE

EASY-TO-

DELIVERY

FIND

PRODUCTS

84%

SPEEDOFDELIVERY

24THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE

WHERETOGOBUTUP?

Iwillincreasemyuseofdigitalshoppingchannelsin2019:

69%

67%

67%

OFAMAZONPRIMEMEMBERS

OFGENZ

MILLENNIALS

62%

DELIVERY

Abigpartofhowyoubuyishowtheproductreachesyou.Inaneradefinedbyanincreasingpaceoflife,animpatientconsumeristhenorm.Thisyear’sshopperreportshowsthatconsumersarenotlettingretailersoffthehookwhenitcomestogettinggoodsfast.Instead,timeistheirnewcurrency.

OVERALL

48%

PEOPLE55+

Y/O

Notsurprisingly,consumersaresettoincreasetheirdigitalspendingandarerevvedupaboutitspotential.Theonesmostlikelytouptheirspending?YoungerpeopleandthosewithAmazonPrime.Asaresult,weareseeingAmazoninvestheavilytoextenditsPrimeservicewith

attractivenewofferings,suchasoriginalcontent,freebooks,in-cardelivery,andmore.

87%

84%

AMAZONPRIMEMEMBERSCONSIDERSPEEDVERYIMPORTANT

SPEEDOF

DELIVERY

54%

WAS

IMPORTANTPARTOFPURCHASING

41%

EXPECTDELIVERYIN2-3DAYS

OF

NETHERLANDSEXPECTDELIVERY

INLESSTHAN

26% 24HRS

OFUKEXPECTDELIVERY

INLESSTHAN24HRS

8%

16-24Y/OWANTDELIVERYWITHIN

3-12HRS

THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE25

REPLENISHMENTONTHERISE

However,it’smovedintomainstreamwiththings

likemealkits,clothingboxes,autoorderingofprintcartridges,andsoon.ProgrammaticCommerce?,inwhichmachinesusedataandAItoautomaticallyorderandsendproducts,isalsomovingmainstream(See:TheRiseofProgrammaticCommerce?,page38).

36%

OFBELGIANCONSUMERSWERETHEMOSTCOMFORTABLETOUSEMACHINESTOREORDER

33%

OFAMAZONPRIMEMEMBERSUSEORPLANTOUSE

25%

OFCONSUMERSUSEORPLANTOUSEMACHINES

CustomersarealsoexcitedaboutsubscriptionandProgrammaticCommerce?—bothofwhichenabletheautomaticorderingandreplenishmentofgoods.ManyhavebeenintroducedtosubscriptionthroughnicheretailerssuchastheDollarShaveCluborNespresso,whereitremovedaconsiderablepainpointinthebuyingprocess.

26THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE

KEYTAKEAWAYS

TheUSandUKmarketsmaybereachingAmazonmaturity.Amazon’sdominanceinthesekeyeCommercemarketsremainsstrong—buttheUShasremainedstaticsincelastyear,andtheUKincreasedbyonly2%.

ECommercecannotrelyondigitalalone.Successrequiresthefullsupportofthebusinessinordertogiveconsumerstheend-to-endexperiencetheydemand,supportedbythedataneededtomakethebestdecisions.

FastdeliveryiskeytoasuccessfuleCommerceexperience.

THEFUTURESHOPPERWUNDERMANTHOMPSONCOMMERCE27

THEAMAZONEFFECT

TheFutureShopperisoneofthefewinternationals