Proportion of online shopping spend increases to 80%

786
online retail spend

The proportion of money being spent online has increased year-on-year, as shoppers tighten their belts and search the web for the best prices.

According to a survey commissioned by Royal Mail, 54 per cent and 53 per cent of respondents said choice and price comparison respectively were the key reasons they go online instead  of in-store.

Meanwhile, 49 per cent said convenience was the key reason, and older shoppers were in particular more price and convenience driven.

The study asked 1500 UK online shoppers about their shopping habits and preferences.

It found that over a period of three months, online shoppers claimed to make 80 per cent of purchases – excluding groceries – online, up from the 74 per cent in the previous survey.

Royal Mail said that as online shopping has grown, the cost and speed of delivery has become a key battleground for retailers.

It found that 84 per cent of survey participants considered a seller’s delivery rating as a crucial factor when choosing where to buy.

In addition, a quarter of online shoppers now pay for delivery subscriptions, which allow unlimited next day delivery on all orders within a pre-paid period – with a just over three-quarters of those surveyed saying they have a subscription with Amazon.

The study also found the average online clothes shopper spends £40 a month, with 55 per cent of female shoppers purchasing clothes online, compared to a 33 per cent of male shoppers.

Royal Mail also said  Amazon and Ebay were the popular online clothing outlets – at 32 per cent and 22 per cent respectively.

M&S and Next followed suit, tying at 11 per cent although the two retailers were the best performing from the high street.

“Despite consumers tightening their purse strings, online shopping continues to grow,” Royal Mail Parcels managing director Nick Landon said.

“How you deliver is as important as what you sell and a quarter of shoppers are now paying an upfront fee for unlimited delivery.

“Businesses of all sizes need to make sure they respond to this demand or risk being left behind.

“By selecting high quality services from Royal Mail, online sellers can ensure they set themselves up for success.”

Click here to sign up to Retail Gazette‘s free daily email newsletter