IAB research confirms online shopping uptick with increased consumer expectations

IAB

• The Australian Ecommerce Report 2021 was conducted in June this year

New research released by IAB Australia and Pureprofile has found that marketers will need to shift gears into 2022 to ensure they provide satisfying omnichannel shopping experience amidst escalating consumer expectations.  

The Australian Ecommerce Report 2021, which was conducted in June this year at a time when most of Australia was out of lockdown and people had resumed some of their pre-covid lifestyle, also flagged local, sustainable and ethical brands as the biggest winners in the year ahead, particularly for direct-to-consumer brand shoppers.

Based on research conducted with 1,000 Australian online shoppers examining the consumer attitudes, behaviours and influences driving ecommerce in Australia, the Australian Ecommerce Report 2021 found that there has been a fundamental shift in consumer shopping behaviour driven by COVID-19 and Australian retailers have adapted with investments in digital transformation that have resulted in extraordinary growth in ecommerce expenditure. 

The Report also found that while convenience was named by 76% of online shoppers as the biggest driver of online shopping and one that was worth paying a premium for, it’s no longer a strong differentiator for brands to simply be online and offer choice.  Marketers will now need to ensure they are consistently reviewing the entire buying journey they offer their customers, from the research phase through to delivery of the goods purchased. 

While most shoppers during COVID in 2020 were not new to online shopping, 84% of those who increased online shopping during covid have sustained this increase or purchased even more frequently so far in 2021.  In June this year, 76% of online shoppers indicated they were buying online at least once a month.

Online search was identified as the most popular source by consumer for inspiration and discovering brands when buying something online, while social played a significant role for millennial shoppers, with half indicating social media is now an important part of how they find products to buy.  Retailer marketing channels were also found to play an important role in communicating to online shoppers with 59% often reading content produced and distributed by retailers via retailer websites, emails, catalogues etc.

Gai Le Roy, CEO of IAB Australia commented: “It is no surprise that the pandemic has changed retail habits and sped up the adoption of ecommerce for brands and consumers, but we felt it was important to not only provide the market with industry data on shopping habits and future intentions but to explore drivers for brand selection, sources for inspiration and discovery. For a nation that has been in lockdown for most of the last 12 months, it seems like many of us have made comfortable additions to our wardrobe with clothing being the #1 shopping category with 72% of online shoppers making a clothing purchase online over the last year.”

Martin Filz, CEO of Pureprofile commented: “The great migration to online retail has accelerated during the COVID-19 pandemic, and this research suggests an evolution in how consumers are finding and connecting with brands. In an increasingly saturated online retail marketplace, consumers are seeking recommendations through search and social, looking for easily contactable customer service, and placing a premium on fast local delivery. To thrive in this new environment, marketers must adapt and upgrade the buyer journey to reflect these new shopper expectations and behaviours.”

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