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Keeping up with the ever-changing retail landscape can feel like walking on a treadmill that keeps increasing its pace without warning. Understanding consumers’ online shopping habits while making sense of their attitudes towards physical stores is a tall order.

The United Parcel Service of America released a three-part study in 2017 that explores how consumers are using different channels, the digital evolution that is happening and how mobile devices factor into the shopping experience.

We are unpacking the UPS Pulse of the Online Shopper studies in a two-part series. Part 1 examines physical stores, online marketplaces and what role social media plays. Part 2 explores smartphones, apps and device usage.

When a customer is ready, willing and able to spend money, what makes them shop at a physical store or an online marketplace? What role does social media play? All the data cited in this entry is from the study’s third and first installments.

The Power of Physical Stores

Brick and mortar stores still have a place, even though the average percentage of purchases made in physical stores has decreased in the past 4 years.

Top 5 reasons to visit a physical store:

• 59% touch/feel product

• 54% solve immediate problems

• 52% superior customer service

• 44% unique products

• 29% innovative shopping environment

Why shoppers return to physical stores:

• 42% in-store remains part of shopping routine

• 35% like to browse online & visit store to physically interact with product (webrooming)

• 33% only when something is urgently needed

• 33% unique shopping experience at physical store

What makes a physical store better than an online marketplace:

• 45% better sales

• 37% known product quality

• 30% unique products

• 29% favorite store

In-store associates make a big impact on the in-store experience. The most important interactions with employees include:

• 65% fast & accurate checkout

• 57% inventory knowledge

• 57% willingness to help

• 56% processing returns

• 48% number employees available to assist shoppers

• 36% search inventory with mobile scanners

Online Stores are On the Rise

There is an increase in the number of online marketplace purchases. About 97% of all consumers have purchased from an online marketplace.

Top reasons for purchasing at a marketplace rather than retailer:

• 65% better prices

• 55% free/discounted shipping

• 45% total cost

• 44% delivery speed

There was a 5% increase in the number of online shoppers from 2014 to 2017. Although many point to Millennials as the segment driving online shopping, the most growth in the number of online purchases made in the last three months from 2014 to 2017 was from non-Millennials. Millennials increased the number of purchases 2% whereas all other age groups increased 8% in the same time span.

Social Media is Influential

How much impact does social media really have and which channels are shoppers using?

Social media plays a growing role in its influence on shoppers. Social media influenced 3 in 10 shoppers’ purchases in 2017, which is 10%  more than in 2016.

35% of shoppers follow retailers’ social media accounts and 19% of consumers have purchased a product on a social media network.

Top factors influencing purchases on social media:

• 69% free shipping

• 61% unique product

• 55% daily deal product

• 50% referral from a friend

• 50% social media-exclusive discount

• 49% product receives numerous “likes”

• 44% inspiring content

• 43% product recommendation from blogger/celebrity

Top social media platforms:

• 69% Facebook

• 42% follow to receive holiday promotions

• 42% look for retail coupons

• 39% click through to retailer’s website

• 26% purchase products

• 53% YouTube

• 36% Pinterest

• 51% look for inspiration

• 34% Instagram

• 30% LinkedIn

• 25% Snapchat