Juphy’s Weekly E-Commerce News Express – 16-20 September 2024
Ceyda Duz
This week’s e-commerce and AI roundup is packed with must-know updates! Discover key insights from the latest “The Future Shopper” report, explore this year’s top shipping and delivery trends, and get the scoop on exciting new product launches from industry giants like Shopify, PayPal, Google, and Humanz. Stay ahead with the latest trends and innovations transforming retail, online shopping, and AI!
Key Insights from “The Future Shopper” Report
The 8th edition of “The Future Shopper” report provides a detailed look at how consumer shopping behaviors have transformed over recent decades. Here are the standout findings:
Demand for Speed
Modern consumers are driven by instant gratification. A striking 31% now expect their online orders to be delivered within two hours. Beyond fast delivery, 63% of shoppers also demand a swift transition from inspiration to purchase, emphasizing the need for a streamlined, efficient shopping experience from start to finish.
Shifting Online Spending Trends
Online spending remains significant at 53% of total retail, but this figure has dipped from 58% last year. This shift suggests a move towards a more balanced retail experience, with physical stores regaining popularity. In fact, 64% of consumers prefer brands that combine both online and in-store shopping options.
Elevated Shopper Expectations
Consumers are setting higher standards for their online shopping experiences. They are not only seeking the best value and rapid delivery but also precise delivery times. Surprisingly, 64% of shoppers are dissatisfied with the current digital shopping environment and desire more engaging and enjoyable online interactions. Additionally, 57% are now prioritizing spending on memorable “bucket list” experiences over physical products.
Marketplace Dominance
Despite a slight decline, online marketplaces remain a top choice for consumers. Currently, 29% of shoppers prefer major platforms like Amazon and Alibaba. These marketplaces continue to outperform branded and retailer websites in terms of service, pricing, returns, and delivery options, solidifying their essential role in the retail sector.
Emergence of Social Commerce
Social commerce is poised for significant growth. Although only 7% of global purchases occur through social media, 73% of shoppers have made at least one purchase via these platforms, and 62% plan to increase their social media shopping in the future. Brands should be ready to capitalize on this trend, especially through popular platforms like TikTok Shop.
As the retail landscape evolves rapidly, both consumers and retailers face new challenges and opportunities. The need for adaptability and innovation remains critical as the pace of change speeds up.
2024 Shipping and Delivery Trends: What Consumers Want
As we move through 2024, the latest data from Digital Commerce 360 and Bizrate Insights underlines that free and fast shipping remains vital for online shoppers. Here’s a breakdown of what today’s consumers prioritize when it comes to receiving their online orders:
Free Shipping Takes the Lead
Almost 81% of consumers rate free shipping as their top priority. This overwhelming preference highlights that cost-free delivery is a major factor in their purchasing decisions. Fast shipping comes in a strong second, with around 68% of shoppers valuing speed. The demand for quick fulfillment extends beyond just delivery, as approximately 56% of consumers expect retailers to maintain stock levels and ensure items are ready to ship promptly.
Desire for Free and Flexible Returns
Consumers’ expectations extend to returns as well. Over half (53.11%) want free return shipping, while about 26% prefer flexible return policies. Additionally, almost 18% value having a physical store option for returns. When free shipping isn’t an option, roughly 36% look for reasonable shipping fees, underlining the importance of cost-effective delivery solutions.
Speed Preferences: Same-Day vs. Next-Day
Regarding delivery speed, around 24% of consumers prioritize same-day shipping, while roughly 28% opt for next-day delivery. There’s also a growing interest in alternative pickup options, with almost 10% preferring locker pickup and 6% seeking omnichannel pickup solutions like buy online, pick up in-store (BOPIS), and curbside pickup. Sustainable delivery practices are less critical, with only 5% of consumers considering them a priority.
Current Consumer Trends in Delivery
Recent trends show that roughly 73% of consumers used free shipping for their online orders in the past six months, compared to 44% who paid for shipping and just 13% who paid for expedited shipping. Amazon remains a major player, with about 42% of consumers using it for same-day delivery, while 25% chose same-day options from retailers with physical stores. However, 25% are willing to accept longer delivery times if it means improving shipment sustainability.
Order Pickup and Returns Preferences
The flexibility of order pickup and return methods continues to grow. More than a third of consumers (24.28%) used in-store pickup for non-grocery items, while almost 30% opted for curbside pickup. In terms of returns, most consumers preferred returning items in-store (16.98%) or keeping them for credit (16.88%). Other return methods include collection points (15.6%), Amazon facilities (15%), and package delivery lockers (9.18%).
As shipping and delivery expectations continue to shape e-commerce, retailers must adapt to these demands for free, fast, and flexible solutions. Staying ahead of these trends will be essential for meeting consumer needs and enhancing the overall shopping experience while driving sales and building a loyal customer base.
PayPal Expands Partnership with Shopify Payments in the U.S.
PayPal is strengthening its collaboration with Shopify in the U.S., adding PayPal Complete Payments as an additional credit and debit card processor for Shopify Payments. This integration brings PayPal wallet transactions directly into Shopify Payments, streamlining essential processes such as order management, payouts, reporting, and chargeback handling. For merchants, this enhancement provides a seamless, unified experience, simplifies operations, and offers greater flexibility in payment processing.
Google Introduces Virtual Try-On for Dresses in AI Shopping Tool
Google is enhancing its AI-powered shopping experience by adding dresses to its virtual try-on feature. Shoppers can now visualize dresses from hundreds of brands directly through Google’s Shopping Graph. By searching for dresses and selecting styles with a “try-on” badge, users can see how clothes look on a diverse range of real models. Once they’ve found their perfect fit, they can click through to the retailer’s site to make a purchase.
Humanz’s AI-Powered Influencer Marketing Platform in the U.S.
Humanz, a collaborative AI-powered marketing platform for creators and brands, has launched in the U.S., partnering with global beauty and fashion influencer Valeria Lipovetsky, who has over 6 million followers. The platform offers creators real-time, data-driven insights to optimize their campaigns and make informed decisions. With its transparent approach, Humanz aims to empower influencers and brands to enhance their content and maximize campaign performance.
Transform Your Shopify Store with Juphy AI: Your Ultimate Sales Assistant
In today’s fast-paced world, customers expect quick responses and efficient service. Balancing the demands of managing your online store by providing top customer support can be overwhelming. Expanding your Shopify team might seem costly, but there’s a smarter solution: integrating Juphy’s ChatGPT-powered Shopping Assistant. With just a simple click, you can add a virtual sales representative to your Shopify store that has the power of an excellent sales representative team. Juphy AI functions like a dedicated sales assistant, available around the clock to assist, guide, and educate your customers. From offering personalized product recommendations to handling common queries about returns, shipping, exchanges, and more, Juphy AI ensures your customers receive prompt and accurate responses. Boost your sales up to 10x and elevate your Shopify store into a must-visit shopping destination. Experience the magic of Juphy AI and see the difference it makes. Try it now: apps.shopify.com/juphy
Key Takeaways
Insights from “The Future Shopper” Report: The 8th edition of “The Future Shopper” report reveals that 31% of consumers expect deliveries within two hours, and 63% want a swift purchase process. Elevated shopper expectations are driving demand for more engaging digital experiences, and 73% of shoppers are using social media for purchases.
2024 Shipping and Delivery Trends: Free shipping is a top priority for 81% of consumers, with fast shipping close behind at 68%. Many also expect free returns and flexible policies. Speed preferences include same-day (24%) and next-day delivery (28%). Trends show that 73% recently used free shipping.
PayPal Expands Partnership with Shopify: PayPal enhances its partnership with Shopify by integrating PayPal Complete Payments into Shopify Payments. This addition streamlines order management, payouts, and reporting, offering a seamless experience for merchants.
Google’s Virtual Try-On for Dresses: Google’s new feature allows users to visualize dresses on real models through its Shopping Graph. Shoppers can try on clothes virtually and purchase directly from retailers.
Humanz’s AI Influencer Marketing Platform: Humanz, now in the U.S., partners with influencer Valeria Lipovetsky to offer AI-driven insights for optimizing marketing campaigns. The platform aims to enhance content and campaign performance for both brands and creators.
