Channel Surfing: Adapting your business for the modern shopper

The phrase “times are a-changin” may be a cliché. However, this phrase applies to the e-commerce space. Although the situation appears to be improving, the economic situation remains fragile. Times are tough for both online sellers and shoppers.

But we are optimistic. Consumers continue to shop, but where and how they shop is changing. Needless to say, expectations around shipping and delivery communication are higher than ever. The key is understanding modern shopper behavior from search to purchase. ShipStation’s new research report reveals how to ensure a smooth shopping experience for all your customers.

Important points

• Hybrid retail is no longer an option.
• Unified commerce is the future of e-commerce.
• Out-of-home delivery options are becoming increasingly popular.
• Expectations regarding shipping notifications vary by generation.

evolution of retail

Retailers used to sell products through a single channel. Retailers now need a unified approach across all platforms. in fact, 75% of shoppers have both physical and digital touchpoints. This means that focusing on a single platform is no longer an option.

The past 30 years of e-commerce can be categorized into four major eras. Each of these eras represents a milestone in the world of e-commerce. Therefore, revisiting e-commerce’s past can help it better align with its future.

• Single channel (before 1992): The product was initially sold through only one channel.

• Multichannel (1993 – 2006): Retailers began selling products across multiple channels. This includes both physical and digital spaces.

• omnichannel (2007 – 2022): A seamless shopping experience across devices and platforms.

• Unified Commerce (2023 – present): A consistent shopping experience across platforms and touchpoints. This is an extension of omnichannel.

know your audience

As e-commerce moves towards an integrated approach, knowing your customer base becomes important. Shoppers fall into one of two groups: digital natives and digital adopters. Digital natives are those under the age of 45 and include Gen Z and Millennials. Digital hires are over 45 years old and include baby boomers, Gen Xers, and even older Millennials.

ShipStation created five buyer personas in addition to digital natives and digital adopters. These personas include:

• Online-first flexor (33%): These are shoppers who prefer home delivery and return options. This group is also more likely to shop online than in stores. However, they prefer convenience and a variety of products and services.
• Store-first flexors (21% – typically older consumers): These are shoppers who primarily browse online but prefer to shop in-store.
• Omnichannel Maestro (19% – Young Digital Natives): These are shoppers who shop both online and in-person, and also take advantage of on-the-go and home delivery options.
• Online-only shoppers (16% – Millennials and Gen X): these are shoppers only Shop online. You can also choose return options for courier or carrier pick-up/return.
• Store Loyalists (11% – 65+): these are shopper only They buy products in stores and prefer brick-and-mortar retail.

customer segmentation

Identifying your online consumer base can be difficult. With ShippingEasy you’ll see: When, where and how shoppers buy products. This information is valuable because it helps your business understand the buyer process.

For example, let’s say you realize that most consumers shop from their mobile phones. You can then optimize your website for mobile. Or suppose consumers are buying more products in the morning. You can then send the promo code earlier in the day. A little understanding of shopper behavior goes a long way.

Browse and purchase

Imagine you need to buy a new lamp. Where should you head first? Search engines and social media, right? Consumers are following the same pattern. 57% of digital adopters, 53% of digital natives Use search engines for product research.

However, there are two major differences to note.

• 37% of digital natives said they use social media for product research. Only 10% of digital adopters agreed.
• 7% of digital natives said they use AI/chatbots for product research. Only 1% of digital natives agreed.

These differences demonstrate how important unified commerce is to business growth. Digital natives and digital adopters use different mediums for viewing. This means businesses need to focus on social media and optimization.

Comparison of online browsing and in-store browsing

Where shoppers browse and buy depends on your industry. For example, 34% of consumers primarily browse their DIY and gardening products online. However, 40% say they only purchase the same products primarily in-store.

Compare this to furniture and household items. His 38% of consumers said they primarily view these products online. However, 28% said they only buy furniture and home goods in-store. A further 28% said they primarily purchase these items in stores. However, sometimes they are purchased online. Consider your product when finalizing your sales strategy.

Tips to avoid cart abandonment

Browsing allows your business to reach more shoppers. The problem is that the shopper needs to complete the purchase. Here are some tips to avoid cart abandonment.

• Offer multiple delivery options.
• Make the website easier to navigate.
• offer free shipping Exceeds a certain threshold.
• Please clarify any additional charges in advance.
• Include clear and concise content Return policy For shoppers.
• Simplify and Number of clicks/number of screens in the checkout process.
• Adding a FAQ section to your website eliminates the need for shoppers to contact support.

Meet your customers where they are (literally)

2024 is all about meeting your customers where they are, whether online or in a physical space. And let’s be honest, your business needs both a physical presence and a digital presence. Consumers are browsing products both online and in stores. That’s why having both a store and an online marketplace is essential.

Retail is moving to a hybrid experience. Additionally, retailers are reporting a “halo effect” when opening new stores. The halo effect is the increase in online sales when a retailer opens a new store in an area.Therefore, brick-and-mortar stores are worth investing in

Alternatives to renting or buying a store

We understand that store purchases or rentals may not be available. The past few years have been turbulent for e-commerce retailers. It’s okay to be cautiously optimistic. While having physical space is important, there are other ways to incorporate hybrid retail.

If you can’t afford a storefront, you can display your products in the following locations:

• fair
• market
• bazaar
• special events
• Stores with multiple retail stores

Additionally, some stores and service businesses will be able to install small displays within their spaces. You can also connect with other businesses in your area online. Use this opportunity to see if they’re interested in sharing the cost of the space. Splitting your store costs is cheaper and still gives you a hybrid retail option.

Shipping options matter

When it comes to delivery, courier services are still the norm. In fact, 77% of consumers say they want non-food items delivered to their home. However, there are still geographic and generational factors to consider.

86% of baby boomers prefer home delivery, while only 60% of Gen Z prefer home delivery. Another important factor is location. 79% of people living in rural areas prefer home delivery. However, 67% of people living in major cities prefer home delivery.

Home delivery options like Amazon Lockers are also gaining popularity. Home delivery is especially convenient for those living in big cities and towns. Shoppers can easily pick up their packages while running errands or during their lunch break. This ensures that the package is not left unattended and exposed to the following hazards: pouch piracy.

shipping insurance

Whether it’s a home delivery or on the go, extra security is always good. Most carrier services offer insurance or declared value. However, more expensive items require more coverage.That’s why ShippingEasy ship insurance.

Shipsurance provides up to $10,000 in additional coverage for eligible shipments. Simply select the coverage you need when you create your shipping label. ShippingEasy customers do not need to create a separate login account. There are also simpler options for boat insurance. Claim procedure. All invoices will also be paid within 7-14 business days.

Real-time communication is key

There is a disconnect between shoppers and online retailers when it comes to shipping updates. His 42% of online retailers believe that updates should only be sent after the package has shipped. However, 42% of shoppers said they wanted regular updates, and 38% said they wanted daily updates. Changing your communication strategy is an easy way to beat your competitors.

Shoppers also reveal their notification settings. His 44% of consumers want real-time notifications about their orders. Surprisingly, all four generations say email notifications are their preferred method of communication.

brand tracking

Shoppers prefer real-time email shipping notifications. We may not always be able to provide real-time updates. However, you can provide your customers with customized tracking links. This allows you to track your package while it is in transit.

brand tracking Send automatic emails to customers whenever a package:

• Confirmed
• If an estimated delivery date is specified
• I’m out on delivery
• Completed delivery

Consumers can also click on the link included in the email for additional updates.

moreover, SMS brand tracking Domestic shipping is possible. Similar to brand tracking, consumers will receive text notifications if their package:

• If an estimated delivery date is specified
• I’m out on delivery
• Completed delivery

The e-commerce landscape is constantly evolving, and customer expectations are higher than ever. However, you can ensure your business provides a great customer experience. Understanding the history of retail and your audience will help you meet them where they are.

This report provides the insights and strategies you need to succeed in 2024. Don’t be left behind. Instead, let us reveal the secret to e-commerce success. Download the full 2024 Ecommerce Delivery Benchmark report now.