While consumers are generally cutting back their online spendings and adopting cost-saving measures, they are still shopping online – and now increasingly more outside of their domestic markets than ever before, new research suggests.
The survey by global leader in payments services, Worldline, questioned 6,000 respondents across six European countries, who acknowledged that the rising cost of living was their most pressing concern.
Consumers, who are now buying less, are taking more advantage of discounts and coupons, with 43% noting their increased interest in rewards and other shopping incentives.
The hunt for the best bargain is driving cross-border commerce, with around half of consumers shopping outside of their domestic markets regularly, incentivised by lower prices.
Younger shoppers are most likely to go international with their purchases, with 71% of millennials buying cross-border up to several times a year, followed by 60% of Gen Z shoppers.
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The boom in cross-border commerce forces customers to look for international payment methods. The research found that habit and convenience drive payment usage, with 58% of respondents stating that they pay by bank card when shopping online.
Yet, digital wallets are challenging cards’ supremacy along with Newer Alternative Payment Methods (APMs), such as the buy-now-pay-later scheme (BNPL).
A variety of online retailers and a selection of high street retailers, such as ASOS, Homebase, Amazon, and Boots, adopted BNPL as one of the payment options while Frasers Group announced in February it will launch its own BNPL scheme.
While value was a key driver for attracting new customers across all markets and generations, personalisation came a close second. Respondents noted that personalised products based on browsing history or previous purchases along with coupons and discounts help boost loyalty and increase their willingness to buy products.
“These findings confirm the changes in consumer preferences we have been seeing for the past couple of years and further emphasise the importance of personalising the online shopping experience,” Björn Hoffmeyer, head of regional businesses at Worldline, said.
“Consumers have more choice and are savvier than ever thanks to their exposure to technology. Retailers need to know what their potential customers are looking for, and this survey aims to start that conversation with actionable insights.”
The full report ‘Expectations of online shoppers: today, tomorrow and beyond’ can be downloaded here.
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