Great(er) Expectations:
The Rapid Evolution of
Consumer Demands
in eCommerce
Dotcom Distribution 2018 eCommerce Study
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BUY
BUY
BUY
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Table
of Contents
3 Executive Summary
4 Key Findings
5 Free Outranks Fast
6 Shipping Expectations Rise, But Not
on Customers’ Dime
7 What’s Inside Counts…If It’s of Value
8 Omnichannel is Omnipresent
9 Age Dictates Preferences, Expectations
10 Clothing, Tech, Beauty Remain on Top
11 Conclusion
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F
or the 2018 annual eCommerce study, Dotcom Distribution surveyed more than 1,400
online shoppers to identify their habits, preferences, and expectations in the areas of
online shopping, packaging, shipping, returns, and transparency. The results suggest
that, as eCommerce shopping increases in popularity,
consumers are prioritizing
time, experience, and quality over factors that were more important in previous years,
such as the use of gift-like packaging, the popularity of viewing unboxing videos, or
prioritizing fast delivery over product quality.
Other factors remain true—for example, the indication that free shipping promotes brand loyalty,
or that product quality is what truly drives sales.
The results also indicate that
age matters when it comes to eCommerce trends. Generation
Z (< 22 years old) and Millennial (22-37 years old) respondents have the highest expectations
for speedy delivery; Baby Boomer (54-72 years old) respondents value free returns more than
any other age group. Members of The Silent Generation (> 72 years old) were the only group to
prefer returning online purchases via mail versus in-store.
Just 25 years ago, eCommerce was considered a luxury and convenience for both consumers
and brands alike. Now that it has become a part of the fabric of everyday life for so many, how
do customers decide where to spend their money? Two years ago, the answer was quality
packaging and fast delivery. In 2018, while those factors are still valued,
the opportunity for
brands to reach, retain and extend the lifetime value of customers lies in giving them
what they want, when they want it, and in whatever manner they want to get it.
That’s
how customers are dening value in today’s eCommerce landscape.
Executive Summary
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Key Findings
Results from the Dotcom Distribution 2018 eCommerce Study indicate a shift in how consumers view online
buying and what they expect. Consumers prioritize time, experience, and quality in every step of the online
buying process, from placing an order to returning an item and everything in between.
Free Outranks Fast
More than 90% of respondents place a high value on free
returns and free shipping. They are also positively inuenced
to make future purchases if they receive giveaways, such as
stickers, magnets, and samples.
Shipping Expectations Rise, But Not on
Customers’ Dime
With 44% of respondents doing most of their shopping on
Amazon, the e-retailer has inuenced consumer perception
of normal shipping times. There was a 19% increase in
respondents who used same-day delivery, up from last year’s
survey. This latest data also found that most consumers are no
longer willing to pay more for faster delivery, a big dierence
from two years ago.
What’s Inside Counts...If It’s of Value
Survey respondents are more interested in freebies than high-
end tissue, ribbon, and boxes. Giveaways such as magnets,
stickers, and samples have greater inuence in respondents
making future purchases from a brand.
Omnichannel is Omnipresent
Consumers are drawing a stronger connection between online
and brick-and-mortar. A perfect example is the increased
expectation and use of buying online and returning in-store.
This means brands must have an omnichannel strategy that
seamlessly ties online properties with physical locations.
Age Dictates Expectations, Preferences
The younger a person is, the faster he or she expects to
receive orders and the more apt they are to return in-store.
Older consumers, such as Baby Boomers, are seeking value in
the form of free shipping and returns.
Clothing, Tech, Beauty Remain on Top
For the third consecutive year, survey respondents consistently
purchased clothing and apparel, consumer electronics
or technology, and beauty products more than any other
category. This year, clothing and apparel also topped the list of
items respondents preferred to purchase in-store (58%).
FR EE
SH IPPIN G
91%
of respondents are likely
to buy from a brand that
offers free shipping
62%
of respondents
want free returns
and exchanges
we want
free returns!
+19%
increase in respondents who
tried same-day delivery
93%
of consumers are
greatly or somewhat
impacted by
shipping cost
60%
YES NO
$$$
of Millennials would
recommend a brand based
on receiving a giveaway
giveaways ranked #3 in
influencing respondents
to recommend a brand
of respondents are more likely
to purchase online if they can
return/exchange in-store
74%
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FREE
SHIPPING!
56%
of consumers say free returns
are “very important”
35%
of consumers say free returns
are “important”
91%
of customers
are likely to
make future
purchases
when offered
free shipping
Free shipping...
yes please!
67%
62%
of shoppers would
from a brand that
offers free returns
and exchanges
buy again
spend $50 & receive
free shipping!
of respondents are
likely to add items to
online shopping cart to
receive free shipping
Free Outranks Fast
90% of respondents nd free returns important or very important, and 91% see free shipping as an incentive to
be a repeat buyer. These factors ranked as more important than faster delivery times.
Takeaway
With customers placing increasing importance on free delivery, brands should ensure their 3PL or in-house
fulllment operations team is well-positioned to build and support no-cost or low-cost shipping options for the
end customer. By nding ways to minimize your own shipping costs, you can more feasibly relieve shoppers of
delivery fees, helping to build a positive brand image and keep customers long-term.
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Shipping Expectations Rise, But Not on
Customer’s Dime
Almost half of survey participants (44%) reported doing a majority of their online
shopping on Amazon. The “Amazon Eect” simply cannot be ignored, and has
consumers trending more towards fast delivery and shipping options rather than
unboxing and brand experiences. Proof: respondents who had tried same-day
delivery rose 19% compared to 2017 (42% vs. 23%).
In 2018, only 25% of respondents indicated that they
are willing to pay extra for faster shipping. This is in
sharp contrast to two years ago, when the study found
47% would pay as much as $9 more for faster delivery.
This may indicate a shift towards an expectation for fast
shipping, and being less willing to pay for it.
Takeaway
While same-day shipping is increasing in popularity, consumers are more interested in free shipping and on-time
delivery. With consumers so inuenced by shipping fees and delays, brands should have reliable and ecient
fulllment operations in place to maintain customer loyalty.
77%
of respondents' decisions to
make a future purchase from an
e-tailer would be influenced by the
delayed arrival of an online order
Delivery
Order #335
will be
delivered
today!
+19% increase in respondents'
who have tried same-day delivery
yaassss!
65%
of respondents
expect delivery
within 2-4 days
ships in
2-4 days
overnight
$25.00
2-4 Days
$14.00
5-8 Days
FREE
93%
of consumers are
greatly or somewhat
impacted by the
shipping cost
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What’s Inside Counts…
If It’s of Value
In 2015 and 2016, unboxing was a key
component of the eCommerce experience.
The data from this year’s survey shows that
experience is less important. Consumers prefer
value – such as a magnet or other giveaway
– over fancy tissue or scented boxes. In fact,
giveaways were the third most inuential amenity
to spur customers to recommend a brand to
others. This is especially true as it relates to
Millennials and Gen Z.
Additionally, the survey revealed nearly twice as
many respondents (43% vs. 23%) would be more
likely to make future purchases with a brand that
included a free giveaway in their order.
Takeaway
What’s inside the box matters, as long
as it is something the customer can use
after they’ve opened the package. Brands
targeting Millennials and Generation Z
should take note that surprise giveaways
are more eective among these age groups,
so they should include branded items such
as stickers, magnets, and coupons when
shipping to them.
of Gen Z respondents
would recommend a
brand based on receiving
a free giveaway
Top three amenities influencing
shoppers to recommend a brand:
75% 23%
Product
quality
Company
incentive
Surprise
giveaway inside
37%
Positive impact of surprise branded
giveaways by generation
of Millennials would
be more likely to
make a repeat
purchase based
on receiving a
free giveaway
60%
36%
of Millennials would
recommend a brand based
on receiving giveaway
Look at the free
giveaway I got
with my order!
You have to try
this brand!!
of Gen Z respondents
would be more likely to
make a repeat purchase
if given a free giveaway
75%
44%
I'll check
it out!!
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Omnichannel is Omnipresent
While eCommerce continues its rise in popularity, there’s still value in a brick-and-mortar presence. This study
shows that 32% of respondents prefer to buy online, yet consumers prefer having a connected experience
between all their shopping channels and touchpoints. For example, survey results indicate that consumers who
buy online prefer to make returns in-store. In fact, when our 2018 survey respondents were asked what a brand
can oer that would result in them making future purchases with that brand, 31% cited the option to buy online,
return in-store—the fourth highest ranked incentive. Further, 74% of respondents stated they would be more
likely to make an online purchase if given the option to return or exchange any unwanted items in-store.
Takeaway
Consumers may be buying more online, but they see brick-and-mortar locations as a complement to their
online experience, making it an important part of the overall retail business model. To meet demand, brands
must have a clear omnichannel strategy that ts the needs of their customers. As more retailers adopt
omnichannel strategies, the methods they use to engage and interact with their customers will become more
reliant upon physical locations. We see this now in the form of the Bonobos Guideshop and Nordstrom Local.
Brands looking to put an omnichannel strategy in place can start small, with things like buy online/ return in
store, order online/pickup in store, buy in store/ ship to home, buy online/ship to store, honoring online coupons
and rewards in-store, or honoring in-store coupons and rewards online.
of respondents are more likely
to purchase online if they can
return/exchange in-store
74%
+12%
difference between
respondents who
prefer to return
in-store vs. by mail
31%
of respondents' said
buying online and
returning in-store would
result in them making
future purchases
with a brand
in-store 41%
mail 29%
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Age Dictates eCommerce Preferences, Expectations
What consumers expect from their eCommerce experiences depends on their age. The study indicates younger
buyers desire convenience – exibility of returning in-store and faster delivery. Older consumers are looking for
value – low-cost or free shipping and free returns.
57%
of consumers feel a free
return policy is very important
(more than any other group)
Gen Z
(< 22)
baby
boomers
(54-72)
of respondents named same-day
delivery as a top influence in future
purchase decisions
(higher than any other group)
sa me
da y
de liv ery
87%
of consumers are
more likely to
make an online
purchase if they
can return items
in-store
buy online,
return
in-store...
yes please!
49%
of respondents increased their
online purchases in the past year
(more than any other group)
75% of respondents are
more likely to be repeat
customers if online order
came with a giveaway
43%
of consumers are
excited to
receive
and open branded/
gift-like package
Millennials
(23-37)
i
technology
spend $50 & receive
free shipping!
76%
of onsumers would
add items to online
shopping carts to
qualify for free
shipping
35%
79%
of respondents are
less likely to buy again
from e-tailer who
delays delivery
Status:
delayed
60%
of consumers are more
likely to purchase from a
retailer again if online order
came with a free giveaway
39%
of respondents have
shared an unboxing
video/image
<1%
of respondents expect
one-day delivery
(lowest expectations
for shipping speed)
overnight
$25.00
2-4 Days
$14.00
5-8 Days
FREE
free
returns
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36%
no rush
delivery
(more than any other group)
(highest percentage of
any age group)
95%
of respondents'
purchase
decisions are
"somewhat" or
"greatly" influenced
by shipping costs
(more than any
other group)
prefer buying online
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Clothing, Tech, Beauty Remain on Top
For the third consecutive year, the items purchased most often online were clothing and apparel (77% of
respondents), consumer electronics or technology (52%) and beauty products (41%). Interestingly, clothing and
apparel also topped the list of items respondents preferred to purchase in-store, whereas consumer
electronics dropped to 8
th
and beauty products fell to 6
th
.
Takeaway
Our survey data has been consistent over the years with regard to the types of products consumers
purchase online. What will be interesting to track in the coming years is the
revenue growth within popular
eCommerce verticals.
77% Clothing & appare
l
21% luxury goods
27% speciality foods
33% home goods
41% Beauty products
38% household good
s
52% Consumer electronics/technology
22% sporting goods
32% tools/home improvement
28% othe
r
100%
80%
65%
40%
20%
0%
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A
s online purchasing continues its rapid growth in popularity, consumer expectations
seem to shift just as quickly.
Free shipping, surprise giveaways, and fast and
reliable delivery have become key inuencers in a consumer’s trust and
opinion of a brand.
Elaborate unboxing experiences and branded packaging,
while wildly popular just three-four years ago, seem to be declining in importance for today’s
eCommerce consumer.
Given the trends observed since our 2017 study, and the aforementioned “Amazon Eect,”
it’s
likely that consumer expectations around shipping will evolve into fast shipping and
same-day delivery becoming the norm. Unlike previous years, however, consumers
no longer want to pay extra for these once premium services.
Such a consumer mindset
will place more pressure on brands to have a highly ecient logistics strategy or risk losing
customers.
How consumers view and use brick-and-mortar locations is still changing.
Physical locations
will evolve into experience-based touchpoints for brands to immerse and engage their
customers.
Brands need to recognize this and ensure their omnichannel strategy creates a
seamless connection between online properties and physical locations.
When it comes to consumers, younger shoppers want speedy delivery and convenience.
They are the biggest proponent of same-day delivery and shop online, return in-store.
Millennials and Generation Z are also more inuenced by giveaways (positively) and
delayed delivery (negatively)
than elaborate unboxing experiences. Brands targeting these
demographics must recognize this shift and adjust their strategies accordingly.
Although the trends we observed in the 2017 study remain very similar and on the same
trajectory in 2018, we are able to make denitive recommendations based upon this year’s
results:
get your product into the hands of the customer quickly, build brand equity by
throwing a branded freebie into the box, and start seriously thinking about how you will
use your physical presence to create experiences for your customers that will keep them
loyal to you, and coming back for more.
Conclusion
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Methodology
Dotcom Distribution surveyed 1,420 online shoppers about their habits, preferences, and expectations in the
areas of online shopping, packaging, shipping, returns, and transparency during May 2018. This survey was
implemented on behalf of Dotcom Distribution through SurveyMonkey. The age, gender and location breakdown
of the respondents is as follows:
Answer options
18-21
22-37
38-53
54-72
73 or older
Response percent
4.73%
29.89%
24.03%
32.44%
8.90%
Age
18-21
22-37
38-53
54-72
73 or older
0% 10% 20% 30% 40%
Answer options
Male
Female
Prefer not to
identify/other
Response percent
41.55%
57.11%
1.34%
Gender
Female
Male
prefer not
to identify
Other
(please
specify)
0% 10% 20% 30% 40% 50% 60%
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Region
Answer options
New England
Middle Atlantic
East North Central
West North Central
South Atlantic
East South Central
West South Central
Mountain
Pacic
Response percent
7.26%
12.49%
15.10%
5.23%
17.91%
4.74%
8.03%
9%
20.23%
New England
Middle Atlantic
East North Central
West North Central
South Atlantic
East South Central
West South Central
Mountain
Pacific
0% 10% 20% 30%
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Dotcom Distribution specializes in eCommerce
fulllment, kitting & assembly, retail & wholesale
(B2B) fulllment, and transportation/freight analysis
& optimization. If you’ve got fulllment questions or
a fulllment need, call us at (732) 287-5989.
Excitement. Trust. Opportunity.
dotcomdist.com
[email protected]