British Shoppers Spend £71 A Month Online

The UK online retail market is continuing to grow, with more and more British consumers believing they will find the cheapest deals and best range of choice on the web.

According to a new report by e-commerce expert eCommera, 42.6 percent of UK consumers now shop online at least once a week, with the average shopper spending £71 per month on online goods.

Cheap deals online

Price is the main reason that consumers are turning to online options, with 60.4 percent believing they get a better bargain than on the high street. Just over half of respondents to eCommera’s survey said it was the convenience of having items delivered that motivated them to buy online, while 39.3 percent cited the sheer range of choice.

“Price is an obvious benefit of shopping online as it’s far easier to shop around online for a bargain by visiting multiple retailers’ websites or using price comparison sites,” said Andrew McGregor, CEO of eCommera. “But greater choice, a flexible range of delivery options and the convenience of shopping at any time of day and taking delivery without ever having to queue in-store or seek for a parking space, is also critical and clearly driving growth in online sales.”

More than a third of people surveyed said they had increased the amount of money they spent online over the past year, while only 18.65 percent have reduced the amount. However, it seems that consumers are becoming more critical of their online shopping experience.

Shopping experience

Poor images, product details and descriptions are enough to put off 42.15 percent of consumers, according to eCommera. Meanwhile, difficulty navigating the site is the biggest deterrent for 31.65 percent, and more than a quarter would be put off by finding items out of stock.

The post-purchase experience is also a key influencer, with 41.75 percent of respondents claiming they would not revisit a website if the product doesn’t deliver on expectations or is not as described on the site. Other reasons for not returning include late arrival and poor sales support.

“Retailers must adopt a data driven approach to trading which will enable them to understand the impact of these factors on revenues and profitability,” said McGregor. “This report shows signs of positive growth and I think it will encourage retailers to take their online strategy more seriously.”

One interesting aspect of the report is the relatively small impact of social networking. Only 5.1 percent of respondents said they had shopped with a particular website because of something they had seen on such social networks, according to eCommera. Even direct email marketing has driven more consumers (9.05 percent) to transact online than social media.

This contradicts the findings of a report by analyst group Gartner last month, which claimed that consumers increasingly rely on information gleaned from online social networks to make decisions about new purchases.

Recession

In December 2009 it was reported that the government was coming under pressure from various members of the industry to support online retailers through the recession. Dominic Monkhouse, UK MD at online business hosting provider PEER 1, wrote a letter to former Prime Minister Gordon Brown, citing the potential of this sector to play a key role in Britain’s economic recovery and calling for more to be done to help businesses overcome the impact of the global economic downturn.

According to McGregor, however, online retailers have been thriving during the recession. “The recession has been bad news for the high street but online retailers have seen real growth because of the benefits they offer to consumers,” he said.