THE OMNICHANNELCONSUMERKEY FINDINGS FROM THE DELOITTE REPORT “THE OMNICHANNEL OPPORTUNITY” TO HELP RETAILERS UNLOCK THE POWER OF THE CONNECTED CONSUMER

The internet and mobile devices have revolutionised shopping. The way in which an increasing group of consumers now shop has prompted retailers to begin to seek alternative ways to reach their audience. This new system of retailing - connectingstores, ecommerce, mobile apps and social media - is referred to as omnichannel retailing. By integrating and aligning channels, omnichannel retailing provides a flexible and seamless shopping experience for consumers, regardless of whether the customer walks into a store, browses awebsite or orders via a mobile phone.

Just who are these omnichannel consumers?

eBay has worked with Deloitte to examine the impacts and opportunities of theomnichannel phenomenon across Europe. As part of the survey, Deloitte commissioned Ipsos Mori to survey 1000 adults in each of the UK and Germany on their behaviours and attitudes in relation to omnichannel retailing. This booklet contains a selection of key observations for the UK.

INTRODUCTION

This booklet is written and produced by eBay. Key results and retailer views are taken from the Deloitte report “The Omnichannel Opportunity” supplemented by eBay’s own perspective and other sources. The full report from Deloitte is available here.

UNDERSTANDING THEOMNICHANNEL CONSUMER

Online onlyOffline only

Omnichannel

33%

34% 51%31%of consumers visited a store prior to making a recent online purchase.

of consumers used online channels before or during a recent purchase in-store.

of consumers used additional online resources.

Omnichannel is becoming a reality for retailers

33% of consumers have recently made an omnichannel purchase

of us with regardto offline shopping

That’s That’s

of us with regard to online shopping

of all consumers used multiple channels when making orders over £100.

Frequent shoppers account for up to

Up to

of total retail spending. They’re more likely to use multiple channels too.

to visit a retailer’s website, do an online search, or use price comparison and customer review sites before and during a visit to a store.

Frequent shoppers are almost

ONE IN FIVE

TWO IN FIVE

63%

70%

TWICE AS LIKELYFrequent shoppers are more likely to be omnichannel shoppers, and are defined as consumers who shop for non-grocery products at least once per week, online or offline.They’re not abandoning the high street – they regard the high street and online shopping as complementary, with half of them shopping offline at least once per week.

BEHAVIOURS AND ATTITUDES OF THE OMNICHANNEL CONSUMER

Consumers are using multiple devices tosupport their shopping habits

In addition to seeking information from more sources,consumers are using more devices in these ways:

use the internet to find shoppingrelated information

adults in UK and Germany usecomputers to look for shoppingrelated information

of UK and German adults use tablets in relationto shopping

use mobile phones to find shopping related information

use all 3 of these devicesdo this using at least 2 devices(for example a computer and tablet or smartphone)

86%

82% 23%56%

18%56%www...

High value purchases are more likely to be omnichannel purchases

And the highest value purchases are likely to be completed using a mix of online and offline channels.

A broad presence across multiple channels can help retailers ensure they effectively support higher spending customers at any stage of the shopping process. Easy access to information on quality and value, for instance, can help encourage consumers to spend more on items.

Bought offline Bought online Bought offline,online researchduring purchase

Bought offline,online researchprior to purchase

Bought online,additional online research

Bought online,in-store research

£115 £90 £123£94£81£70

of those who hadn’t purchased via their smartphone had still used it as part of their shopping journey.

of tablet owners have used their tablet for shopping.

OVER 50%

OVER 80%

A majority of consumers now use eithersmartphones or tablets for shopping.

A majority of consumers also use multipledevices for shopping.

Average spend by channel of purchase:

are influenced by customer reviews, and slightly higher by price comparison sites

reported that they were influenced in their shopping by apps

reported that they were influenced by social media and blogs

said that visiting the retail store had a big influence on their shopping

69%

2/3

43% 1/2

Omnichannel consumers are being influenced in their shopping

These findings are based on asking consumers about the information sources used prior to purchase. For each source Deloitte asked the consumer whether the information available influenced their decision to complete the purchase.

There is significant variation across productcategories in the share of omnichannel purchases with electronics and home products the most likely to be bought using multiple channels.

Consumers use multiple channels when purchasing electronics. And they’re more likely to use multiple channels before buying home and garden products, and sports and leisure products – but least likely on clothing items, which suggests they are a more spontaneous purchase.

% of online purchases that involve research using other channels

% of in-store purchases that involve online research

% of online purchases that are preceded by a visit to one or more stores

48% 56% 45%Electronics Electronics Electronics

40%

24%

34%

23%

31%

17%

Home

Clothing

Sports and leisure

Books/ DVDs, etc

All

Groceries

43%

37%

26%

21%

34%

25%

24%32%

37%

18%

24%

Home

Home

Groceries

Groceries

All

Clothing

Clothing

Sports and leisure

Sports and leisure

Books/ DVDs, etc

Books/ DVDs, etc

TODAY’S CONSUMERS AREUSING CONVENTIONAL AND EMERGING CHANNELS

3/4 2/3 1/2of consumers said they were influenced in their shopping by friends and family.

said they were influenced by visiting the store.62% are influenced by visiting other stores.

reported that they were influenced by social mediaand blogs.

Nearly Over

Consumers use new channels but still value stores and positive word-of-mouth

These findings are based on asking consumers about the information sources used prior to purchase. For each source Deloitte asked the consumer whether the information available influenced their decision to complete the purchase.

MOBILE IS PROPELLINGOMNICHANNEL

Across the population, laptops are still the device most often used for shopping but mobile is gaining ground, and younger consumers are far more likely to use smartphones for shopping.

Tablet ownership rates remain lower, at about one fifth of adults, but tablets are becoming a popular channel for shopping related activities across age groups.

Consumers are making use of mobile-specific technologies. This includes newer features such as barcode scanning, location recognition and contactless payment.

Retailers could obtain a strategic advantage by being quick to adapt their stores and online resources to make the most of these tech features.

35%

34%

23%

23%

Take a picture of a product to retrieve information on the product =

Scan barcodes in order to access additionalinformation =

Find nearby stores =

Recognise their location and provideinformation on local offers =

Percentage of smartphone owners who have used their phone to...

HOW CAN RETAILERS SUPPORT THE OMNICHANNEL CONSUMER

A majority of consumers use

Through the 3 eBay Inc companies

we can help support a seamless shopper experience, placing the retailer at any stage of the shopper journey, whatever the channel.

EBAY, PAYPAL &EBAY ENTERPRISE

have been downloaded more than 220 million times in 190 countries and in 8 languages. At any time, shoppers can browse over 550 million listed items on eBay by mobile. We also know that 40% of all purchases on eBay are ‘touched’ by mobile.*

WHAT WE’VE FOUND WHAT RETAILERS SHOULD CONSIDER HOW EBAY CAN HELP

for shopping

are more likely to be used for research than purchase

MULTIPLE DEVICES

TABLETS AND SMARTPHONES

OMNICHANNEL STRATEGY

APPS & MOBILE OR TABLETOPTIMISED WEBSITES

EBAY APPS

INTEGRATED CHANNELSMULTIPLE

An integrated

Retailers can use

The use of

can help ensure that these consumers seamlessly experience the full range of a retailer’s resources through any device.

to appeal to omnichannel consumers as they gather information.

can allow retailers to build brand loyalty and create social engagement with their brand.

*Source: eBay research 2012-13

eBay provides one of the world’s largest online marketplaces to customers via any connected device. By making its items available on ebay.co.uk,

A RETAILER CAN ACCESS OVER 18.5 MILLION VISITORS.* eBay is not just a checkout – it’s a vital part of the shopper journey too.

PROMOTIONS, ADVERTISING AND VARIOUS OTHER SERVICES.

NEW CLICK & COLLECT SERVICE

eBay offers various attractive delivery services including its

plus FAST & FREE which increases listing conversion by an average 3%.**

eBay supports retailers with branded storefronts that mirror the brand experience across other channels and keep the retailer in control.This is supported by

WHAT WE’VE FOUND WHAT RETAILERS SHOULD CONSIDER HOW EBAY CAN HELP

that bought online said they could not find the product in a local store.

don’t like to wait for delivery or pay for it

Consumers buying online are also likely to visit the websites of

Roughly

prefer the convenience of online shopping

1 IN 4 CONSUMERS

1 IN 5 SHOPPERS

NEARLY 1 IN 3

OTHER RETAILERS’ WEBSITES

ONLINE PRESENCE

BROAD RANGE OF ONLINE RESOURCES.

SAME-DAY DELIVERY OR CLICK & COLLECT

Retailers can appeal to theseconsumers via an

Retailers should seek to ensure that they have a presence across a

Retailers should offer a range of fulfillment options, such as

and making available a broad range- if not all - of their items online.

services that offer more flexibility.

*Source: eBay research Jan-Dec. 2012 **Based on test on ebay.co.uk Feb-Mar 2013, in which 40% of buyers were exposed to listings with the FAST & FREE logo. Individual seller results may vary.

www

Retailers should make better use of

These sources are less likely to be viewed as important - or used frequently - by them.

In addition to its highly popular apps, eBay is making shopping

for omnichannel consumers, via personalised feeds and community engagement.

eBay is used as a

by today’s shoppers.And with 70% of items listed being new and 73% fixed price*, these consumers are going to eBay for their brand fix.

eBay appreciates the point well since

drives our

APPS ANDSOCIAL MEDIA. PERSONAL AND

INSPIRING

VALUE BENCHMARK

POSITIVE FEEDBACK

SELLERS’ SUCCESS.

RANGE OF ONLINE RESOURCES.

IN-STORE EXPERIENCE AND POSITIVEWORD-OF-MOUTH.

Consumers are influenced by a

This suggests that retailers need to work on their entire web presence, not just their own site.

Technology needs to be backed up by good customer service.

Consumers value

43% 50%

69% 72%

66% 68%63% 65%

Apps Blogs andsocial media

Retailer’swebsites

Otherretailers’websites

Customerreviews

Pricecompari-sonsites

Visitingthe store

Friends andfamily

Percentage of users who reported that they were influenced by...

www www

*Source: eBay research 2013

WHAT RETAILERS SHOULD CONSIDER HOW EBAY CAN HELP

This is the first of 3 observation guides based on thereport “The Omnichannel Opportunity”. This Deloitte reportand the other 2 guides can be downloaded here.

©2014 eBay. All rights reserved. eBay and the eBay logo are registered trademarks of eBay. Designated trademarks and brands are the property of their respective owners.

For more information, or to discuss the omnichannel opportunity with eBay, please contact your account manager or email us at merchantdevelopmentuk@ebay.com