e-shopper barometer ireland report november 2016

25/01/2017

E-shopper barometer

Ireland report – November 2016

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E-shopper barometer – Ireland report November 2016

38%

41%

21%56%

44%

LO

WE

R

UP

PE

R

18-34

35-54

55+

29% 71%Urban

Definitions are based on online purchasing frequency Question A1: “How often do you order this type of goods online?”

For each individual, we calculated the annual average number of goods

purchased online – for all categories – by converting the semantic scale as

follows:

• At least once a week = 52 annual purchases

• 2 or 3 times a month = 30 annual purchases

• Once a month = 12 annual purchases

• Once every 2 or 3 months = 4,8 annual purchases

• At least once or twice a year = 1 annual purchase

• Every 2 years or less often = 0,5 annual purchase

• Non-buyers of the product category = 0 annual purchase

Then we consolidated the data at a country level and determined terciles

corresponding to the 3 segments (small/medium/heavy buyers).In some countries, the split is not exactly 1/3rd per group because of the distribution of the answers.

Small / Medium / Heavy online buyers definition

Heavy online buyers

(≥ 11,8 annual

purchases)

34%

Medium online

buyers

36%

Small online buyers

(≤ 1,5 annual

purchases)

30%

GENDER AGE (Y.-O.) INCOME HABITAT

SAMPLE DESCRIPTION

45%55%

Rural*

(*< 1000 inhabitants)

Millennials*

(*18-34)

2

Methodology

Sample, data collection and fieldwork dates

18+ y.o European e-shoppers that have ordered physical goods online since

January and then, received a parcel (coming from a national 18+

representative sample in terms of gender, age, region and income).

For the consolidated results at European level, a weight was applied to each

country in order to reflect the right proportion of e-shoppers between the 21

European countries studied.

□ Austria: 1,002

□ Belgium: 1,000

□ Croatia: 805

□ Czech Republic: 1,002

□ Estonia: 805

□ France: 1,530

□ Germany: 1,582

□ Hungary: 1,027

□ Ireland: 1,002

□ Latvia: 829

□ Italy: 1,553

□ Lithuania: 802

□ Netherlands: 1,007

□ Poland: 1,500

Conducted from September 19 to October 7, 2016

Sample, data collection and fieldwork dates

Sample

Data collection

Fieldwork dates

□ Portugal: 999

□ Romania: 1,017

□ Slovakia: 1,001

□ Slovenia: 809

□ Spain: 1,519

□ Switzerland: 1,007

□ UK: 1,652

• Online data collection (blind: interviewees do not know who requested the study)

• 23450 interviews across 21 European countries

• Number of interviews achieved per country:


Executive summary (1/2)

1- General market trends

• With 8.1%, Ireland's declared share of online shopping

among total shopping is below the European average

(9.6%).

• The level of connectivity to the Internet does not necessarily

imply a similar level of regular online shopping: Ireland has

a medium level of Internet penetration (81%) vs. the other

Western countries, but nearly two thirds of them regularly

buy online (51% overall, 63% of Irish Internet users).

• The Irish are amongst the most avid online shoppers for

fashion in Europe. They are generally relatively frequent

buyers ('at least once a month') - particularly for groceries

('dry goods') and fashion, books and beauty/healthcare.

• Nevertheless, some Irish e-shoppers declared that they

might stop purchasing certain items online (39%), naming

the need to save money as the main cause (45%).

• Regarding shopping habits, Ireland is in line with the

European average of online shopping habits regarding

websites, with 83% always or regularly buying on the same

websites. Ireland has a high rate of e-shoppers that use

tablets to make their purchases compared to other

countries, but a laptop is still the favourite device to shop

online.

3

2- Cross-border delivery

• A large percentage (75%) of Irish e-shoppers has already

bought at least once from a foreign website, and

unsurprisingly most commonly from the UK.

• The main drivers for buying abroad are the attraction of better

deals and the availability of specific products, whereas the

main barriers are concerns over delivery, return and security.

3- Latest purchases

• The types of goods that Irish e-shoppers spent the largest

average amounts on were high-tech/ electronics and leisure.

• A very high share (81%) of latest purchases, which were

mostly functional ones, were made on websites already used

before, and the majority of e-shoppers went directly on the

website, without going through a search engine (60%).

• Among the websites last purchased on, Amazon was ahead

of other retailers, with twice more visits than eBay.

• Delivery was free for 55% of Irish e-shoppers’ latest

purchases (a fairly low percentage compared to other

European countries) and home was by far the favoured place

of delivery (75%), followed by work (10%).

• 6% of e-shoppers returned their latest purchased purchases,

of which fashion was the type of goods that was returned the

most.


Executive summary (2/2)

• 62% of e-shoppers considered that their latest online

purchase was easy and 96% were satisfied with the

experience, leading 88% of them to say that they would

continue purchasing that item online.

4- E-shoppers’ behaviour towards e-shopping

• Ireland is less engaged to e-commerce than other European

countries with an E-shopping Engagement Index of 70.2%

which is below the European average (72.1%).

• The more engaged e-shoppers are, the more they use and

are influenced by others’ feedback on social media.

5- Drivers and barriers to further e-commerce development

• Transparent product pricing and delivery costs and clear

return policies are the criteria considered most important

when buying online.

• Features most likely to prevent from buying online are

websites facing technical problems, complicated return

processes and a lack of stock.

4

6- Focus on payment and delivery options

• Paying online by digital wallet (Paypal, Alipay) and Visa/

MasterCard are the preferred payment methods, which is

in line with the payment methods most often indicated as

preferred across the European countries.

• Home delivery is currently the most successful place of

delivery, but the strongest identified growth opportunity for

alternative locations is towards post offices and retail

stores.

• Most of the proposed delivery/ return options, and

particularly next day delivery, would make e-shoppers

more likely to purchase from a website. Heavy buyers are

keener than others on Same day delivery.

• In general, the majority of e-shoppers (74%), and even

more so Heavy buyers, would be more inclined to

purchase from a website/retailer that offers a 1-hour

delivery window/timeslot.

Market trends to exploit


58

66 6772 72 74

76 7780 81 81 82 83

86 87 88 88 8991 93 94

39

52

45

36

56

40

32

42 43

51 4954

35

46 44

53

31

46

29

63

44

Internet penetration and frequency of e-shopping

%

Internet penetration (source: Internet Live Stats July 2016 Estimate)

E-shoppers buying online at least once a month

A1 – How often do you order this type of goods online?Base: All (23450)

LithuaniaLatvia EstoniaRomania HungarySlovenia Czech republicSlovakiaCroatia NetherlandsSwitzerlandPolandPortugalItaly Spain BelgiumAustria FranceIreland Germany UK

The level of connectivity to Internet does not necessarily imply a

similar level of regular online shopping: Ireland has a medium level of Internet penetration (81%) vs. the other Western countries, but nearly

two thirds of them regularly buy online (51% overall, 63% of Irish Internet users)

Internet penetration in Europe : 81,5%

6


The Irish are amongst the most avid online shoppers for fashion

in Europe They are generally relatively frequent buyers ('at least once a month') - particularly for groceries

('dry goods') and fashion, books and beauty/healthcare

Types of goods purchased online…

% - TOP 10 types of goods

21

16

9

12

6

8

6

7

5

12

54

45

39

33

28

26

22

21

18

17

Fashion

Books

Shoes

Beauty/ Health Care

High-tech/ Electronics

DVD/ CD/ Video Games

Toys

Sport

Leisure

Groceries (‘dry goods’)

Average share of online shopping

among total shopping (online + offline)

% - Based on physical goods only

Europeanmean

48

43

40

35

35

28

23

18

25

16

European mean

19,5

18,4

14,1

12,3

14,1

12,2

8,4

6,4

8,3

5,9

A5 – What share does online shopping approximately representon your total shopping for each of the following types of goods?Base: All (1002)

SC2 – Since January, what types of goods have you ordered online? A1 – How often do you order this type of goods online?Base: All (1002) Rq: Several answers allowed

…at least once a month

…since January

20,1

18,8

12,4

10,7

11,2

10,6

7,3

7,4

5,5

5,9

Millennials

Rural

Urban Heavy buyers

Small buyers

Displayed when at least +5 pts vs total

63

53

54

48 38

38

38

35

31

29

35

7


24

17

10

9

8

8

5

C6 – Have you ever bought online from foreign websites? Base: All (1002) D6 – According to you, where was this website based? Base: All, for last purchaseRq: We define a foreign website as a website having a different domain name than your local one and/or a website being in a foreign language.

…and for their last online purchase, it concerns 54% of e-shoppers

75% of e-shoppers have already bought online from foreign websites…

Most common foreign countries for buying online

of which, 69% in neighbouring countries

83% in Europe

75% in other part of the world

Types of goods bought from foreign websites on

last online purchase

Fashion

Books

High-tech/ Electronics

DVD/ CD/ Video Games

Beauty/ Health Care

Shoes

Sport

Europeanmean

19

10

14

8

8

9

5

TOP3 countries:

69% in the UK

53% in the USA

43% in China

Millennials

Rural

Urban Heavy buyers

Small buyers


A large percentage (75%) of Irish e-shoppers has already bought

at least once from a foreign website, and unsurprisingly most commonly from the UK. This share is in line with the ones of most countries

that, like Ireland, have a developing domestic e-commerce offer.

33

C7 – From which countries?Base: People that have already bought online from foreign websites (752)

Neighbouring countries: The UK

8


Devices used to shop online

%

Average numberof devices

used to order

Europeanmean

63%

53%

35%

24%

1.71.8

70

43

38

31

45

38

17

Use an

App

Use

both

Use an

Internet browser

Millennials

Rural

Urban Heavy buyers

Small buyers


Ireland has a high rate of e-shoppers that use tablets compared

to other countries, but a laptop is still the favourite device to shop online, especially for Millennials. When e-shoppers

order via tablet and/or smartphone, they prefer to use an Internet browser than an app.

C3 – What devices do you use to order? Base: All (1002)C4 – And how do you usually order on the following device(s)? Base: People using smartphones and/or tablets to shop online (686)Rq: Several answers allowed

75

50 46

Laptop

Desktop

Smartphone

Tablet

9

The latest e-shopping experience


45 38 13 21

32 33 23 7 4

62% of e-shoppers

consider that making their

last online purchase

was easyAnd 42%, extremely easy

Rating of latest online purchase experience

%

Excellent Very good Good Fair Poor

consider that their last online

purchase experience

was good

96%

Keep shopping online vs physical store

%

Extremely strongly Very strongly Strongly Only slightly No preference

88% STRONGLY

62% of e-shoppers considered that their latest online purchase was easy and 96% were satisfied with the experience, leading 88% of them to say that they would continue

purchasing that item online

50 52

30 1239 40

PERF3. All things considered, how do you rate your last online purchase experience?

PREF3. Based on your last online purchase experience, for this type of item/purchase how

strongly would you keep shopping online rather than in a physical store?

Base: All (1002)

Millennials

Rural

Urban Heavy buyers

Small buyers


D13 – How much effort did you have to put into making your last online purchase?

Base: All (1002)

11

Levers to further e-commerce development

Note text ###


Importance of criteria when buying online

% - TOP 12 of criteria mentioned as a driver when

buying online

B1 – You will now see a list of criteria which might be or not important for you when buying online. Which criteria are important for you? Base: All (1002)Rq: Several answers allowed

No adverts slowing down browsing

No hidden fees adding up to the

final product price

Transparent and complete delivery

costs

Clear return policy

Free delivery

Detailed description of the product (fabric,

functionalities...)

Free returnTransparent and

complete return costs

Efficient search engine and filters

Possibility to make changes at any time of the purchase

process

Ability to pay with credit card

Choice in the speed of delivery (same day, next day, weekend...)

Millennials

Rural

Urban Heavy buyers

Small buyers


Important drivers when buying online revolve around transparency regarding product prices and delivery costs, as well as clear return policies

72 94

91

90

89

89

8989

82

82

78

73

13

How to improve websites’ conversion rates

with the most relevant payment & delivery

options


46

44

30

16

6

6

4

4

3

1

Preferred payment methods

%

C5 – Several payment methods exist when it’s time to pay online. What is your preferred one?Base: All (1002)Rq: Several answers allowed

Digital wallet (Paypal, Alipay)

Stored value cards/ Virtual cards/ e-money

Domestic bank credit card/ debit card

Direct debit

Other cards (American Express)

Cash-on-Delivery (COD)

Bank transfer

Mobile payment app

Visa/ Mastercard

Millennials

Rural

Urban Heavy buyers

Small buyers


Paying online by digital wallet (Paypal, Alipay) and Visa/ MasterCard

are the preferred payment methods, which is in line with the payment methods most often indicated as preferred across the European

countries

Virtual Currencies (Bitcoin)

27

11

9

15


Usual delivery places & their growth potential

%

At home

To a post office

To the retailer store

To a parcel shop

To an alternative address (different from

home or work)

At your neighbour's home

To a parcel locker station

To a safe place agreed with the carrier

To a central collection depot

At work

84

11

9

4

7

7

7

6

2

20

0

0

97

80

73

62

63

59

58

58

47

55

C14 – Where do you usually have your parcels delivered to?Base: All (1002)C15 – Are you willing to have your parcel delivered to…? Base varies according to each itemRq: Several answers allowed

Have already use it

Would like to use it (among those who usually do not use it)

Millennials

Rural

Urban Heavy buyers

Small buyers


Home delivery is currently the most successful place of delivery, but the strongest identified growth opportunity for alternative locations is towards post offices

and retail stores, especially for Millennials and Heavy buyers on the latter

67

78 77

67

70

64

64

65

54

61

71

16


Most of the proposed delivery/ return options, and particularly

next day delivery, would make e-shoppers more likely to purchase from a website. Heavy buyers are keener than

others on Same day delivery.

Would the following delivery/ return options make you more likely to purchase from a website/ retailer?

%

Next day delivery

Possibility to reschedule delivery

Advanced notifications with a 1-hour time window

Real-time information on delivery process

Saturday/ Sunday delivery

Evening delivery

Several delivery options

2-hour window delivery in the evening

Same day delivery

2-hour window delivery in the afternoon

Delivery based on geolocalisation

88

84

83

83

83

83

82

81

81

78

75

YES NO

C16 – Would the following delivery/return options make you more likely to purchase from a website/retailer?Base: All (1002)

Millennials

Rural

Urban Heavy buyers

Small buyers


86

17

10/03/2017Note text ###

e-shopper barometer ireland report november 2016

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