Physical Touchpoints Give UK Ecommerce a Huge Lift
When shoppers flip between screens and side‑walks, the UK’s online economy grabs a hefty boost – £52 billion out of the 106 billion spent on non‑food goods in 2023 came straight from a mix of digital and real‑world touchpoints. That’s almost half of all online sales, proving that the “online‑only” model isn’t the whole story.
Why the “Omnichannel Tango” Matters
- In‑store Browsing (the classic “feel‑it‑before‑you‑buy”) – Still a major factor, especially when customers compare phones or fashion pieces.
- Easy Returns (back home and back on your tab) – Shops that simplify returns keep customers happy and coming back.
- Social Media Discovery – Instagram reels, TikTok trends, and Pinterest mood boards are now the first place many shoppers notice a product.
- AI in the Mix – From chatbots that answer questions to predictive shipping timelines, AI is cutting friction from the buying journey.
The Big Numbers – 2024 Benchmark Report
The “Ecommerce Delivery Benchmark Report 2024” was a joint effort between Metapack, ShipEngine (via their parent, Auctane), and Retail Economics. They surveyed:
- 8,000 consumers across eight UK regions
- 400 merchants spanning the food‑to‑fashion spectrum
Key takeaway: The mere fact a transaction touches a store, tag, or telephone drives 52 billion pounds of revenue. That’s a clear sign that big brands need to craft a seamless journey that links web to walk.
From the Desk of Al Ko
“The £52 billion figure shows a fascinating evolution in consumer behaviour,” Al Ko, CEO of Auctane (the parent for Metapack & ShipEngine), said. “We’re moving beyond simply ‘online’ or ‘offline’ shopping. Today’s shoppers blend physical touchpoints and social media discovery, and are open to AI-made conveniences like smoother delivery and return processes.”
He added:
“Retailers who weave in-store curiosity, social buzz, and tech‑powered logistics will thrive in 2024.” “It’s not just convenience; it’s a dynamic, personalised journey that nurtures loyalty.”
Bottom Line
Physical touchpoints are no longer a footnote – they’re the headline act. Brands that embrace a true omnichannel rhythm will not only meet shoppers where they are but also make the entire buying saga feel like a well‑planned adventure. And when that adventure earns a nudge of delight, repeat business follows, big‑time.
Social media overtakes websites for product discovery among digital natives
How Gen Z & Millennials Are Turning Their Phones Into Shopping Catalogs
Shockingly, it’s not the slick storefronts we once imagined that are driving purchases — it’s the scroll‑feeds of TikTok and Instagram. Those platforms have become the go‑to places for product inspiration.
Key Numbers That Won’t Pretend
- Almost 40 % of digital natives under 45 trust social media for product research.
- Only about 35 % rely on traditional retailer websites.
That gap? It’s a reality check for any retailer that still thinks a clean checkout page is the way to win hearts and wallets.
What This Means
Retailers must ditch the old playbook and start churning out content on the platforms where these consumers already spend their scrolling time. Think engaging short‑form videos, swipe‑through stories, and influencer shout‑outs that feel organic.
Bottom Line
If you’re still putting your faith in a static website, you’re likely missing out on half the market. Dive into TikTok, Instagram, and whatever next‑gen platform pops up. Your next sale could be just a double‑tap away.
AI: A glimpse into the future of customer convenience
AI to Turn Your Shopping Experience Into a Smooth Ride
Imagine a chatbot that knows every product on your wishlist, tracks your delivery in real‑time, and even offers a hassle‑free return strategy—all while you sip coffee at home. That’s the promise of artificial intelligence in retail.
How UK Consumers are Faring With AI
- About 30% of shoppers surveyed think AI will simplify order and delivery updates. Picture yourself getting a quick ping that your package is on the way—no more guessing games.
- Another 27% believe AI can make returns and exchanges feel like a piece of cake instead of a complicated ordeal.
- Despite the optimism, a few still hold back. The key? Concerns about data privacy and how well the tech will actually deliver.
Retailers—It’s Time to Talk Straight
Before rolling out AI, shops need to:
- Be clear about what data the bot collects and why it’s needed.
- Show that results are responsible—no glitches, no over‑promising.
- Build trust by letting customers choose how much they want the AI to intervene.
If they do it right, AI can be the secret sauce that turns ordinary shoppers into regular fans—plus they’ll feel a bit less nervous about their data. The future is here; all it takes is a little honesty and a sprinkle of tech that真的 cares about the customer.
Cost-conscious consumers: Striking a balance in delivery
Why Delivery Fees Are the Real Gatekeepers of UK Online Shopping
The Cost Factor on the Frontline
Even as people trade touching products with click‑and‑pay clicks, delivery costs stay the top worry for shoppers across the UK. A full 42% press the money‑boxed door before they even look at the product.
How High Shippers Crash Sales
- 65% of buyers say they’ll ditch a brand if the shipping tag looms too high.
- 50% of respondents aren’t ready to shell out extra bucks for a fast‑track delivery.
Retailers’ Tightrope: Cost vs. Delight
The coming year is a juggling act. Brands need to trim the shipping bill while keeping customers smiling. Think of it as walking a runway of price‑sensitivity plus customer joy.
Takeaway Tips
- Offer free standard shipping once a threshold’s hit.
- Introduce clear “no‑surprise” fees before checkout.
- Use humor in marketing to lighten the cost narrative.
Balancing those two forces will decide who wins the digital shopping race.
Returns: From friction point to loyalty catalyst
Out‑of‑home returns are catching up!
It’s no secret that online shopping is still the king, but the return game is getting a facelift. 30% of UK shoppers say they’d rather swap an item in a store, while 25% point to PUDO (pick‑up/drop‑off) spots as their sweet spot.
Gen Z leads the return parade
- Across the board, Gen Z drags a 19% return rate—think more than a wardrobe change.
- They’re the data‑loving trendsetters when it comes to sending things back.
Free returns: still a darling, but with a twist
About two thirds (67%) of UK shoppers expect no‑cost returns. The kink? That expectation has dipped by 13% this year, my guess: shoppers are finally realizing the hidden tag‑on the price of convenience.
Pay‑for‑a‑fast‑return’s new age‑stride
- Half of Gen Z say they’d splurge just to make the return process a breeze.
- That willingness is three times higher than the Boomers (65+), who still prefer the classic “just keep it” approach.
Why returns can bite (and how to bite back)
About 42% of UK shoppers pin an awkward return policy as a red‑flag that could keep them from buying again. That’s a massive churn leak!
Retailers can turn the tide by:
- Opening more in‑person drop‑off points—the “take‑it‑back, no hassle” vibe.
- Building a delivery ecosystem that turns returns into a loop circuit—think get‑package‑in‑a‑day swaps.
- Keeping policies transparent and dead‑simple, so customers never feel like they’re playing a guessing game.
Bottom line: a smooth return button can keep customers loyal—just make the button cool!
Beyond inflation: Navigating retailer challenges in 2024
Retail Outlook 2024: Overhead, Demand, and Competition
Even though inflation is cooling down, merchants are still worried about three things that could bite them by 2024:
- Rising overhead costs – 37% say their costs are climbing.
- Weak customer demand – 31% panic over shoppers pulling back.
- Intense competition – 27% feel the heat from rivals.
In this fast‑moving scene, crushing the competition means giving customers a friction‑free journey from the first touch to the last click.
Richard Lim, CEO of Retail Economics, weighs in
“The 2024 retail landscape is all about a solid omnichannel strategy. With £52 billion of online sales riding on physical touchpoints, it’s clear shoppers are hunting for convenience and value no matter the channel,” he says.
“From product discovery and delivery to returns, shoppers won’t tolerate any friction along the way.”
“The winners? Brands that deliver seamless, consistent experiences wherever and however people shop—whether online, in‑store, or a mix of both. A pure‑online or single‑channel approach is a recipe for irrelevance in today’s omnichannel jungle,” Lim adds.
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