The US and Europe are two of the largest markets in the world. But they are not identical. Differences in culture, language and legislation make it difficult to compare these two markets.

In August 2022, Rithum surveyed 1,000 shoppers in the US and 3,000 shoppers in the three biggest European e-commerce markets: the UK, Germany and France. We asked the same questions every time, so now it’s time to take a closer look at the responses and examine what they reveal, especially to those with a global e-commerce presence.

By the end of this article, you’ll see clearly what differentiates shoppers in Europe and the US. And you’ll gain tips to adjust your sales and marketing strategy, including identifying new customers, understanding what makes them tick and maximizing customer acquisition and satisfaction.

1. Popularity of e-commerce categories can vary widely

Europeans and Americans have different preferences when it comes to buying things online. The two regions have different shopping habits and cultures. And those different preferences can make or break your business.

Different e-commerce categories of products do not have the same popularity in the US compared to Europe.

We asked our respondents about which types of products they had purchased online in the last 12 months, and we found a few notable differences.

• Europeans are less likely than Americans to make purchases in these categories online:
  • General Merchandise/Department Stores (40.0% less likely)
  • Automotive/Motors/Marine (-39.5%)
  • Grocery/Gourmet Food (-13.8%)
• However, Europeans were more likely to have purchased within these categories:
  • Sports/Outdoor Equipment (27.1% more likely)
  • Office Products (+20.9%)
  • Tools/Hardware /DIY/Lawn & Garden (+17.6%)

2. Inflation is hurting European e-commerce spending more

Inflation has been an issue of late, but it’s not just about price increases: it also affects how consumers spend their money. As of September 2022, the inflation rate in the US on all items except food and energy was 6.6% year-on-year. Over the same period, the average for France, Germany and the UK was lower, at 4.5%.

But when asked how their online spending compares to 12 months ago, 37.7% of US respondents said they were spending more, compared to just 28.6% of Europeans.

For the upcoming holiday season, 32.4% of US respondents said that in light of inflation, they planned to do more of their spending online than they did in 2021, but just 23.0% of Europeans said the same.

In conclusion, it seems that during this period of inflation, US shoppers are more likely to turn to e-commerce to save on their discretionary spendings.

3. British and French shoppers are more loyal to brands

Brands are important e-commerce players, and they have growing importance with the increasing popularity of direct-to-consumer channels. Here are some key differences between US and European shoppers that brands should consider when planning their international e-commerce strategies:

• Many French and British e-commerce shoppers trust brands’ websites most for accurate product information (31.0% and 40.1% respectively). That’s compared to just 23.7% of Americans.
• 32.8% of French and 35.4% of British e-commerce shoppers plan to use brand websites for most of their holiday shopping, compared to 22.2% of Americans.

4. When it comes to pricing, cultural differences matter

US sellers looking to reach European shoppers will have to deal with different currencies. But more specifically, they will have to understand cultural differences relating to prices. Our research shows that European customers are 7.2% less likely than American customers to compare prices on multiple websites before making a purchase. But they were almost twice (1.95 times) as likely to use a price comparison website.

5. Social commerce isn’t as significant

New e-commerce trends are emerging left and right. But adoption varies locally. In recent years, social media product discoveries have been one. We asked our respondents how they had discovered the products they bought in the last 12 months. Nearly a third (31.2%) of American respondents mentioned social media feeds (e.g., Facebook, Instagram, TikTok), but just 18.5% of Europeans mentioned social media. Similarly, 20.4% of Americans said ads and influencer posts on social media led to product discovery and purchase, but just 12.4% of Europeans did the same.

Europeans were also less likely to have researched products on social media: They were 39.6% less likely to have used Facebook for product research and 26.5% less likely to have used Instagram.

6. Amazon is big in Europe, but not as prominent

Amazon has a very dominant position in the US and is also present in Europe. It has, of course, local versions in France (Amazon.fr), the UK (Amazon.co.uk) and Germany (Amazon.de), but it’s also operating in Italy, Spain, the Netherlands, Sweden and Poland.

In the US, an amazing 52.2% of respondents said they usually begin product searches on Amazon when they want to buy. Just 43.4% of shoppers in Europe start on Amazon. 57.0% of Americans have purchased an item on Amazon after seeing an ad for it on Amazon, but seeing an ad on Amazon led just 44.7% of Europeans to purchase.

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Learn more about shopping behaviors across global marketplaces in our latest report: 2022 Online Consumer Behavior Global Report.

The post The Top 6 Differences Between US and European E-Commerce Shoppers appeared first on Rithum.

The e-commerce market for electronics has seen steady growth in the last few years and is projected to keep growing as overall electronics sales grow, and an increasing proportion of these sales happen online. According to eMarketer, online sales of electronics are projected to grow in the US from $178 billion in 2021 to $263 billion in 2024.

However, many factors will challenge this growth, from ongoing supply chain disruptions to global shortages of semiconductor chips and lithium. In addition, electronics consumers are a unique audience in e-commerce, and there is still much to be learned. To understand more about this population, we included specific questions in our recent global survey of more than 5,000 online shoppers, conducted with research firm Dynata, that addressed the habits and perspectives of buyers of electronics goods. In this article, we share the biggest takeaways from that survey.  

What Are the Characteristics of the Electronics Consumer? 

Online consumers of electronic items are savvy and diligent shoppers. They do their research and aren’t afraid to buy from emerging marketplaces or sellers in other locations. Overall, they’re frequent, thorough, avid online shoppers.  

Bold

The e-commerce activity of online electronics buyers tends to venture further off the beaten path than that of other consumers. Our survey revealed that 50% of electronics buyers had purchased items from foreign sites, compared to 33% of non-electronics buyers. With many electronics consumers early adopters of technology, it’s unsurprising that they would exhibit less hesitation in procuring items sold in other countries.

Active

Electronics buyers like to shop, with or without direct intention to buy. In fact, in our survey, nearly half (47%) of electronics consumers said they frequently browse items online, compared to just over a third (35%) of non-electronics buyers.  

In addition, they visit multiple sites. While just 10% of non-electronics buyers visit five or more sites during their buying journeys, 16% of electronics consumers do visit that many sites. And forty-six percent use three or more online marketplaces regularly. 

Analytical

Impulse buying does not appear to be a hallmark of the online electronics consumer. Research appears to be a top priority amongst this group. .

A key factor in their shopping habits: their e-commerce activity doesn’t cease when they leave home. For example, when shopping in-store, electronics buyers are more likely to research information. They’re 15% more likely to look up online prices often, 15% more likely to check online reviews and 13% more likely to look for additional product information.

What are they researching? Most likely, prices and reviews. Our survey indicated that electronics buyers are 10% more likely to compare prices before buying. 19% are more likely to give up on a purchase if they think they could find a better price elsewhere or later. When choosing between products, 53% of electronics buyers indicated that reviews were “very important” in the decision process. 

Where Are They Shopping?

In a word: Amazon. Although electronics shoppers are known to visit many sites, the marketplace giant appeared as one constant destination in our survey. In the US and Europe (where Amazon’s presence is more prevalent), 74% of electronics shoppers plan to use Amazon for their 2022 holiday/festive shopping, compared to 64% of consumers in other categories. 

All of that browsing also dovetails with high levels of activity on Amazon. For electronics shoppers in the US and Europe, 55% indicated they have purchased an item on Amazon after seeing an ad for that item on Amazon. For shoppers in other categories, this figure is at 45%. Retail media, while important in many verticals, may play an outsized role in gaining visibility for electronics goods sellers.

What Influences Electronics Buyers? 

Digital marketing and advertising appear to have a significant impact on electronics consumers. Once they identify the product they’re looking for at the right price point, they take action. In the last year, 47% have clicked on an online advertisement with the intent to buy a product. And 53% say they have clicked on a sponsored or promoted product, compared to 37% of non-electronics buyers. 

Social media may also play a role in capturing the attention of these buyers. Our survey found that electronics consumers were 1.22 times more likely to have been influenced to purchase an item after seeing it promoted by a brand on social media.

How Should Sellers Respond?

It’s more important than ever to understand the online shopper and anticipate shifting behaviors as technology and e-commerce continue to evolve. Electronics buyers are, by nature, early adopters and they’re more likely to test and explore new options in e-commerce. Retail media engagement is high and will likely strengthen in the future. However, a steady presence, especially in pricing, remains critical for brands and retailers to increase purchasing confidence in these savvy consumers. 

What Are the Best Strategies to Attract Electronics Consumers and Clinch Sales? 

Rithum has over 20 years of e-commerce experience, helping thousands of brands and retailers across the world navigate the changing e-commerce landscape. If you’d like to view a demo of our platform or talk to an e-commerce consultant about your current strategies, reach out here.

The post E-Commerce & Electronics Consumers: How and Where They Shop appeared first on Rithum.

Our annual consumer survey has become a tradition since we first started it shortly after the beginning of the pandemic. E-commerce trends changed greatly that year, and since then, we’ve seen consumer habits start to stabilize — but not necessarily revert to the shopping preferences previously held. 

We recently revealed the results of our 2022 consumer shopping trends survey in a webinar, Navigating Online Consumer Behavior: 2022 E-Commerce Shopping Trends, featuring Rithum experts from around the globe. In partnership with Dynata, our research of more than 5,000 online consumers — aged 18 to 65 across five countries — revealed some important findings for brands and retailers related to:

• The impact of inflation
• Marketplace popularity and growth
• The prevalence of digital touchpoints
• BOPIS/click-and-collect offerings
• Retail media in marketplaces

The Global Trends Shaping E-Commerce in 2022

The survey data revealed five major trends for e-commerce across the past 12 months:

• Consumers are still shopping online despite inflation.

Compared to their habits 12 months prior, 77% of consumers say they’re spending the same or more online today despite rising costs. German consumers were among the most likely to say they’re spending the same or more today compared to shoppers in other regions like the UK, US, Australia and France.  

Does this mean inflation isn’t playing a role in consumers’ spending habits? Not necessarily. It could just represent a shift from in-person retail sales to online sales. Or it may simply indicate there are other, more influential factors affecting e-commerce spending. It will be important to watch this trend over the coming months, as it may be a constantly changing metric.

• Marketplace popularity is still growing.

Marketplace shopping is certainly not a fad. In fact, 76% of global consumers say they regularly use not one, but multiple marketplaces for browsing, shopping or buying. This is especially true among younger consumers (ages 18-45).

Many consumers even look beyond well-known global marketplaces to emerging and international marketplaces. This is especially true in Australia, where 50% of survey respondents across all age groups acknowledged purchasing from a foreign marketplace in the past year. 

This is why having a presence on marketplaces is crucial. Otherwise, potential new audiences may not be able to find you. And because younger consumers are leading the charge toward marketplace-heavy e-commerce, future generations will expect the same.

• Most shoppers check multiple sites before purchasing.

The number of digital touchpoints before shoppers make a purchase is on the rise. Our survey data shows that on average, 70% of consumers visit between two and four websites before actually clicking “buy.” This includes search engines, marketplaces, brand websites and any other digital environment that leads to purchase.

This doesn’t mean you should stop attempting to provide a one-stop shopping experience for consumers where they can discover, research and buy from the same platform. But you may consider diversifying your approach so other channels can provide supportive customer experiences for any stage of the buyer journey, as in the case of social selling

• Pick-up options are here to stay.

Buy online, pick-up in-store (BOPIS) options (or “click and collect” in Europe) came to light during the pandemic when shoppers wanted to receive their orders the same day without coming into direct contact with others. Despite consumers’ return to in-store shopping over the past year, BOPIS shows no signs of slowing down, as 44% of survey respondents said they made an order for pick-up in the last 12 months.

This option is especially popular among American (57%) and Australian (54%) buyers who are even more likely to take advantage if they are between ages 26 and 35 (71% and 66%, respectively). This demonstrates consumers’ desire for more options to receive their purchases, whether in store, curbside or two-day shipping.

• Retail media ads make a difference.

Our data shows that consumers not only see your ads, but make purchases as a result. In their lifetimes, 57% of US consumers and 45% of European consumers have purchased an item on Amazon after seeing an ad. Amazon has also led the way for other marketplaces and channels through retail media: 42% of global consumers have clicked on Sponsored or Promoted Product ads on a marketplace or retail site. 

Our 2022 consumer survey data goes into more detail about product discovery, holiday buying and future buying to help you make better marketing decisions in the coming months:

Watch the full Navigating Online Consumer Behavior: 2022 E-Commerce Shopping Trends webinar on demand to hear our experts analyze these results with additional context.

The post [Infographic] Trust the Data: How Consumer Trends Are Shaping E-Commerce in 2022 appeared first on Rithum.