Decoding Consumer Behavior and E-Commerce Growth
As a frequent (probably too frequent) user of TikTok and Instagram, I have impulsively bought everything from tinted moisturizer to a Dutch oven thanks to targeted ads. On these apps, there's something so relatable about watching someone my age who either looks like me or is also in college telling me I “have to have” the best fitting pair of jeans or an ice machine that will somehow convince me to drink more water and quit my Diet Coke habit.
The amount of online shopping I've done over the years has increased. As I was flipping through Quirk’s Magazine, a feature on online shopping not only caught my eye but made me feel a bit better about myself―and my Amazon wish list.
The article explains the rise in online shopping and describes why consumers are more drawn to online rather than in-store. For me personally, I can say convenience and variety are what convinces me and this is also one of the top reasons reported in the article’s survey. More than fifty percent of responders stated that a diverse selection was most important when shopping online along with price comparisons to find the best deal.
Based on the trends reported, companies can start to ask (and answer)…
How can we win a shopper’s business?
Large variety of payment methods, including buy now pay later options
Proximity of the store’s physical locations (for returns and questions about products)
Easily accessible product reviews on the website
How do we lose a shopper’s business?
Extra fees (shipping, package insurance, etc.)
Product availability of items in cart
Website is not user-friendly
From here, online businesses can improve their website by making it as accommodating to customers as possible. There is also an opportunity for social media sites to improve the functionality of the integrated marketing attached to their platform.
For example, Instagram could offer a wider variety of payment options like Afterpay or Klarna within their “shop” tab to better serve a greater number of potential customers. There are so many possibilities, especially in the age of influencer marketing, to integrate online businesses with the posts on their platforms. Either way, it seems online shopping is not going away so companies should strive to make their site as user-friendly as possible to enhance the upward trend.