1 A Service INFLUENCERS OF SPEND ONLINE - USA E-commerce Shopper Insights April 2013 MALCOLM PINKERTON Research Director

2 1.Introduction 2.Key Findings & recommendations 3.Setting the scene 4.The influencers of spend online 5.Charts & data tables 6.Methodology Contents

1. Introduction

4 E-commerce shopper assessment: The drivers & influencers of spend We surveyed almost 15,000 shoppers in 10 key e-commerce markets to not only find out about levels of spend online but to get a clear understanding of what drives people to shop online; what influences their purchasing decisions; how they could be encouraged to shop more via the internet; and what is important to them when doing so. This report looks at online shoppers in the USA. What would encourage more online shopping? What is important when deciding where to shop? What influences consumers choice of retailer online? What do consumers expect from a website?

2. Key Findings

6 Key Findings: Major drivers and influencers of spend online Encouraging online shopping 62% Better security & protection 56% More mobile friendly websites 53% Easier returns & refunds Influencing choice of retailer 76% Free delivery & returns 58% Ease of use & quick checkout 58% Discount codes & vouchers Important when decision where to shop 68% Value & price 57% Cost of delivery 32% Range of products Important features of a website 59% Easy to use 58% Good product information 55% Good quality images

3. Setting the Scene

88 Entertainment and electricals make up the majority of online spending. Source: Planet Retail 4% $8.3bn $39.6bn$34.5bn$27.7bn 22%19%15% Entertainment 5% $8.7bn 15% $26.9bn 13% $24.1bn 7% Grocery Consumer Electronics Clothing & Footwear Office SuppliesHome Health & Beauty Digital Media $12.1bn spent online in 2012 Proportion of online spend by category: 47% of US consumers shop online 2.3 average number of online shopping trips per month

4.The Influencers of Spend Online

10  Providing multi-channel fulfilment, such as instore collection, pick-up points, collection lockers, etc. is now essential in appeasing online shoppers, and influences their decision of where to shop online. Consumers now want greater convenience and the ability to collect their purchases. Multi-channel fulfilment is now having a significant role in influencing the choice of retailer. 24% 37% would be encouraged to use a retailer online if it offered convenient collection points or instore collection 16% collect an item instore after purchasing online use collection points - such as a local store not belonging to the retailer where purchase was made 12% 10% use collection lockers - typically located in malls or stations - to collect their online purchases 9% say that ease of collecting purchases is important when deciding where to shop online 63% of over-55s would be encouraged to use a retailer if they could collect their online purchases from a collection point or instore 53% of age group would be encouraged to use a retailer if they could collect their online purchases from a collection point or instore 51% would be encouraged to shop online if it was more convenient to get their purchases using self- collection services such as instore collection

6. Methodology

12 E-commerce shopper assessment. We surveyed almost 15,000 shoppers in 10 key e-commerce markets to not only find out about levels of spend online but to get a clear understanding of what drives people to shop online; what influences their purchasing decisions; how they could be encouraged to shop more via the internet; and what is important to them when doing so. The research was conducted using online panels through our trusted partner, the market research agency Research Now. The questionnaire asked about the online shopping behaviour and attitude of consumers across 14 categories, shopping via a computer, mobile and tablet. 14,689 shoppers surveyed 10 key markets 14 shopping categories Computer Mobile Tablet used to shop online

13 E-commerce shopper assessment. An average of 1,500 shoppers in each of the 10 key markets were surveyed. USAUKItalyBrazilFranceIndiaRussiaChinaJapan

14 Malcolm Pinkerton is a Research Director, based in London, responsible for Planet Retail’s e-commerce coverage. Malcolm has been analysing and researching the industry since 2004, specialising in e-commerce and multi-channel retailing. He has worked for the British Retail Consortium, Verdict Research and most recently the retail research agency ABA Market Research. Malcolm regularly presents Planet Retail’s views to senior industry and professional services audiences as well the media. He holds a Bachelor of Science in industrial systems & business management from the University of Westminster, London. All images ©Planet Retail Ltd unless otherwise stated. Author MALCOLM PINKERTON Research Director

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