According to a recent survey conducted by NPR and Marist College, 69% of U.S. adults make purchases online, compared to 71% two years ago. Yet, as the prices of e-commerce products have increased, the average price of those goods has declined. Last year, retailers surveyed by the National Retail Federation reported that consumers spent nearly $7 billion less on e-commerce products than they did two years prior.
View a breakdown of e-commerce prices.
In the survey, consumers were asked to report whether they think their e-commerce prices were too high, too low, or about right. The answers indicated that prices on e-commerce products are generally about right, specially since they’re able to find great offers on websites like https://www.raise.com/coupons/target. Consumers who currently use digital media like smartphones and tablets thought that prices on e-commerce products were reasonable, while those who relied primarily on paperless retailers were more likely to say the same.
How much more do digital costs vary from other types of purchases?
While online prices have declined, those costs are still significantly higher than other types of goods. What do consumers think when they think about the cost of other types of purchases? Although prices vary, consumers still think that online retailers charge more than brick-and-mortar stores. E-commerce retailers, however, are generally more likely to charge less than online retailers that sell their products in-store.
How much do shoppers think costs vary between stores?
That’s a question marketers have been struggling with, too. As the cost of building out a digital inventory has grown, so have the costs of fulfillment and building marketing and advertising campaigns. When we look at the average cost of online marketing and advertising, it’s 10 to 20 times what brick-and-mortar retailers are charging for their digital content. This means that marketers are spending money to advertise online products they have little to no intention of selling.
In addition to focusing on the percentage of sales each platform represents, can marketers target their digital products by location?
Vancouver-based entrepreneurs Bill and Heather Bencze, who own grocery delivery service Get Food On, make it their business to help Canadians shop local by connecting shoppers with their local food system. When it comes to their food delivery services, they consider the five other issues that make grocery shopping easy: packaging, transportation, production and storage, driving it, and payment. They also pay attention to what other potential customers are buying at the same time and what these buys involve. By looking at how people spend their money and the overall shopping experience, they’re able to plan the way their service will be optimized.
According to the couple, based on their research, customers in “food deserts” those without regular access to grocery stores are more likely to buy online. People in food deserts feel like the products they purchase from online grocery retailers aren’t as nutritious as the products they can find in supermarkets. Plus, online consumers don’t necessarily use bulk items as much, which decreases grocery bills.