Older generations on par with millennials as online shoppers

While Australian millennials are driving online shopping, older generations are not far behind, according to a Pitney Bowes global online shopping study.

The study surveyed approximately 13,000 adults across 13 countries regarding their perceptions, habits and preferences for making online purchases.

At 96%, millennials form the largest portion of online shoppers, but 92% of survey respondents between the ages of 35 and 44 indicated that they had also shopped online. Meanwhile, 87% of 45- to 54-year-olds and 81% of the over-55s have engaged in online shopping.

“The 2016 Global Online Shopping Study highlights the transition towards new behaviours and trends for Australian shoppers and retailers,” said David Hope, vice president and managing director for Asia Pacific Software Solutions and Global eCommerce at Pitney Bowes.

“As we enter into the peak holiday season, retailers and marketplaces alike should be looking for ways to capitalise on the shifts in consumer behaviour that are inevitably opening up new opportunities for brands and retailers on both a local and international level.”

The survey results suggest that Australia is a global leader when it comes to shopping from an online store based outside Australia. Second only to Singapore, 86% of Australians now shop cross-border.

Almost half of the Australian respondents said they make domestic online purchases on a monthly basis, and close to one-fifth of Australians make daily or weekly purchases online.

What also drives cross-border shopping is the union between physical stores and online platforms. Globally, 63% of surveyed cross-border shoppers also make in-store purchases during their international travels and then follow up with online purchases from that same cross-border retailer at home.

Conversely, 72% of Australians claim shipping costs to be the main deterrent to shopping cross-border, along with a lack of trust in online international retailers.

Compared to a global average of 24%, almost half of Australian consumers favour individual retailers over marketplaces when making domestic online purchases. Respondents cited brand loyalty, trust and personalisation as the top reasons for staying true to Australian online retailers. The study suggests retailers should consider a broad presence and multiple channels to reach global shoppers.

Mobile devices are playing an increasingly pivotal role in online shopping. More than a third of Australian consumers indicated they are likely to use a mobile device, including tablets and phones, when browsing for products locally online. When it comes to purchasing, 29% of surveyed Australians use their mobile device.

The need for choice was also evident with regard to payment types. For preferred payments selection on international purchases, over half the Australian respondents choose e-wallet options over credit card payments, which allow multiple payment accounts to be stored in one place. Breadth of choice proved critical, as limiting options for payment alienates a significant number of would-be consumers.

When asked about holiday shopping, one-third of Australian consumers say they experienced shipping and returns challenges when shopping online for the 2015 holiday season. Basic elements of the customer experience such as shipping the right item, accuracy in address and tracking, a transparent returns policy and proper duty and tax were all cited as challenges.

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