New Research Shows Baby Boomers Will Continue Shopping Online Post-Pandemic, Resulting in Significant Opportunity For Retailers
The COVID-19 pandemic has caused shopping behaviors and consumer expectations to shift rapidly, and many of those behaviors are here to stay, according to our new study. For example, Baby Boomers are embracing e-commerce and are shifting more of their purchases online, which represents a unique opportunity for retailers to pursue.
The research provides insights on how retailers can respond to the opportunities created by the pandemic to acquire new customers, build brand loyalty, and improve the overall customer experience.
We commissioned the study from Hanover Research to survey over 1,000 online shoppers in the US to understand how the pandemic has affected consumer shopping behaviors and expectations. The full research, including takeaways for the e-commerce industry, can be found here.
Key insights from the study include:
Baby Boomers are embracing e-commerce: Baby Boomers, historically more hesitant to shop online, were forced to adapt their behaviors when COVID-19 hit because they weren’t comfortable shopping in stores. The study found this behavior will continue, with nearly half (47%) of Baby Boomers planning to increase their online shopping after the pandemic.
Shipping costs still influence shopping decisions: Low cost or free shipping remains the most important consideration for consumers when shopping online. Despite the increase in online purchases during COVID-19, 26% of surveyed consumers cite expensive shipping as one of the main reasons to not shop more online. Also, 19% of consumers stop shopping at an online retailer due to expensive shipping costs.
The continued need for speed: Gen Z and Millennials have come of age in the digital era and are accustomed to speed and convenience as part of their daily lives. Younger generations are more likely to shop at new retailers if faster delivery is provided when compared to older generations. Forty percent of Gen Z consumers and 37% of Millennials surveyed would increase their probability of shopping at a new retailer if they offered next-day delivery service at an additional cost, a stark contrast to their parents and older generations. More information on the importance of delivery speed in the e-commerce market can be downloaded here.
“The survey results provide retailers with actionable insights into consumer shopping behaviors and delivery expectations accelerated by the pandemic,” said Josh Dinneen, Chief Commercial Officer of LaserShip. “Meeting consumer expectations with free and fast delivery options and improving the end-to-end shopping experience including shipping can help retailers acquire and retain new customers and position themselves for long-term success.”