Online shoppers look for price comparison and convenience

Consumers are looking for lower prices and added value. The recently released Nielsen Global Connected Commerce Survey reveals that just over half of all local online shoppers use the Internet to verify whether they’re getting the best possible value before they make a purchasing decision. And more than 40% use price saving apps or deal websites when they plan their grocery shopping. Convenience is a driving factor for growing online shopping; 46% of respondents say it saves them time.

Harsh Sarda, MD of Nielsen Africa Retailer Services and E-Commerce, says the insights revealed by the report suggest that the prevailing view of a shopping outing in a physical store needs to be revisited.

Consumers are including digital touchpoints throughout the path to purchase – reviewing products online, doing price comparisons at home and using their smartphones in store. It’s no longer about picking up what you need at your nearest store; today’s consumers live a life that demands online convenience, and this can create opportunities for physical retailers.

Noted in the survey was the fact that not all categories offer equal advantages online. The majority of online shopping takes place in the categories of books, music, travel and event ticket purchases. Overall, consumers tend to shop online less for consumable goods than they do for durable goods. Sarda says this will change once initial adoption rates increase and retailers manage to overcome the challenges around quality and delivery.

An ideal online payment gateway has two characteristics, says Sarda: it is secure and allows consumers to pay using the method that suits them best. But education is needed to build consumers’ trust in online transactions. Retailers need to prove they are protecting personal information and look to providing better experiences than customers would have had in a physical store.

Thanks to technology, consumers have access to many new products. Cross-border e-commerce is a growing trend in South Africa. Half of the South African respondents who have purchased online in the last six months report that they bought items from foreign retailers. Sarda says the middle classes are starting to trade up, seeking a wider assortment of products than those that are locally available. In addition, often they are able to purchase directly from foreign retailers at a lower price than would be possible locally.

Despite the growth in online shopping, barriers still exist. Consumers are put off by the fact that they can’t inspect goods, which is particularly important when it comes to the purchase of consumables. Brands need to be transparent and show the origins of seasonal locally produced goods and how they are transported. Return policies and concerns about not being home to receive deliveries are also concerns.

What the survey has shown is that consumers no longer perceive in-store and online shopping as separate. Retailers need to create a seamless experience on several channels, focusing more on shoppers’ needs, personalisation and investment into mobile solutions and digital incorporation into the in-store environment.

The big take-out: Online shoppers in South Africa use digital means for price comparisons and are attracted by the convenience of online shopping. They no longer view the physical store and online shopping as separate and therefore retailers must create a seamless omnichannel experience.