5 Key Takeaways From 'Future Of Retail 2016'
A research paper by Walker Sands has highlighted some key trends in the area of online retail. Its Future Of Retail 2016 report points out some interesting points for any online retailer to take note of.
WHICH OF THE FOLLOWING WOULD MAKE YOU MORE LIKELY TO SHOP ONLINE?
Its research into purchase drivers has found that 9 out of 10 people rank 'Free Shipping' as the number one incentive for their online shopping. Same-day shipping and free returns come in as next biggest drivers for online purchases.
The survey of 1400 consumers also uncovered the dominance of Free Shipping as a driver, shown by no statisical difference between the frequency of online shopping.
SLOW UPTAKE OF MOBILE PAYMENTS
Another area of research found uncovered the reality that despite the hype around mobile payments, many consumers are still yet to fully adopt the payment method.
Among the top barriers to increased use are, 'security concerns' and 'privacy concerns'. However the reasons 'Not accepted widely enough' and 'Retailers not prepared' suggest there is room for improvement on the part of retailers to help make mobile payments more widely used.
MILLENNIALS DRIVING GROWTH IN LUXURY E-COMMERCE SALES
The report notes that until now the purchase of luxury goods online has been until now relatively low. The trend however is upward and is being driven by Millennials. As a consumer group they are more comfortable with ordering a range of items online. The report suggests that with the aid of new virtual reality technology, online retailers would be able to replicate the in store experience which could help consumers make a purchase decision.
ONLINE DELIVERY BY DRONE
The practice of drone delivery is potentially on the horizon with the likes of Amazon Prime Air currently testing its service. The report highlights that the delvery option would be popular with 40% of people surveyed saying they would be very likely use the service.
The main concerns for those consumers who didn't trust drones to be able to to deliver were theft and damage of products.
IN STORE BEACONS REQUIRE INCENTIVES
Beacons have the ability to combine online and in store elements to create a richer customer experience. We covered this in our post on The Physical Web where beacons help by pushing notifications to customers at the right time in the right place.
The report mentions that the uptake of beacons hasn't been as much as anticipated but highlights some key drivers that could help incentivise people to use them. So while 30% of respondents felt no incentives would work for them, others felt that discounts and loyalty rewards would entice them to use the in store tracking notifications.