Nearly half of UK consumers plan to spend more online in the next 6-12 months

 Mollie has shared the UK findings from its latest European Ecommerce Report. The report highlights how spending and payment behaviour has shifted in light of growing inflation and the cost of living crisis. Despite economic challenges, nearly half of consumers believe the economic situation will improve in the short term and expect to spend more in the next year.

Unsurprisingly, consumers are increasingly drawn to discounted items, with 38 per cent indicating a higher likelihood of purchasing discounted products compared to a year ago. Additionally, 47 per cent of UK consumers are more inclined to make online purchases if they are discounted.

Wider shopping habits are also shifting with only 1 per cent of UK shoppers saying they haven’t changed their buying behaviour in the last year. Social media, in particular, is playing a starring role, with 21 per cent of UK shoppers report being persuaded by content creators to make an online purchase – the highest in Europe. It also revealed that the influence of social media is significant, with only 1 per cent of UK shoppers not using social platforms for product research.

UK consumers shrug off economic pressures

• The economy will worsen: The report discovered that nearly two-thirds (61 per cent) of UK consumers report feeling negative about the country’s current economic situation. However, 46 per cent believe the economic situation will improve in the next 6-12 months.
• Spending will increase online: And there’s even more good news in how UK shoppers will spend, with almost half (49 per cent) saying they plan to spend more online in the next 12 months.
• Increased usage of BNPL: “Buy now, pay later” (BNPL) is on the rise, with 64 per cent of UK users reporting an increase in their BNPL usage over the past 12 months.

The power of social influence

• Social media research: For UK shoppers, YouTube (44 per cent) is the most popular platform to research a product before purchasing. Meta platforms Facebook (43 per cent) and Instagram (38 per cent) rank 2^nd and 3^rd respectively. 22 per cent of consumers report using TikTok for product research.
• Utilising social media buying features: More and more social media platforms are integrating “buy in app” features. 41 per cent of UK consumers have purchased products from Facebook, 32 per cent from YouTube and 30 per cent have purchased from Instagram.

Key capabilities retailers need to offer:

• Free shipping is essential: While 41 per cent of UK shoppers report free shipping being an influential factor, a further 52 per cent reported high shipping fees being a reason to abandon a purchase, the highest in the UK, compared to other regions surveyed.
• Communicating with consumers: Almost half (47 per cent) of UK consumers report discount codes being offered after leaving the site being a contributing factor to completing purchases. Overall, email appears to be a strong platform for communications, with 39 per cent saying receiving an email from a brand they like could influence a purchase.
• Feeling secure: Security is a crucial concern, as 46 per cent of consumers abandon carts due to security worries and 33 per cent due to concerns about third-party data sharing.

How to delight UK shoppers:

• Provide diverse payment methods: A staggering 94 per cent of UK consumers emphasise the importance of retailers offering their preferred payment methods, with 58 per cent considering it “very important”.
• Streamline the checkout experience: Whether you’re checking out as a guest or member, for 40 per cent of UK consumers, streamlining the checkout process is key to driving conversion (compared to a European average of 29 per cent).

“In an era of economic uncertainty, this research underscores the resilience and adaptability of UK consumers, who, despite concerns about the economic climate, are primed to increase their online spending. It’s a clear signal for eCommerce businesses to prioritise payment diversity and optimise the checkout experience,” said Mia Hunter, UK MD & Director of International Expansion at Mollie. “The surge in Buy Now, Pay Later usage and the dominance of social media platforms for product research underscores the need for a comprehensive and flexible approach in the eCommerce space. Navigating the dynamic UK eCommerce landscape calls for a versatile approach that cannot be ignored any longer by merchants.”