Home UK & Ireland Grocery News Ecommerce

Inflation To Benefit Amazon’s Marketplace Over DTC

New research suggests that only 19% of shoppers in the UK expect to make a purchase on a brand’s direct-to-consumer (DTC) site in 2022, instead planning to shop more in-store (63%) or online via retailer sites or marketplaces such as Amazon (61%).

This is according to data from commerce experience management technology specialist Salsify. Its new Consumer Research 2022: How to Meet the Demand of Omnichannel Shoppers report shows almost half (47%) of British consumers will make the final purchase on a retailer or marketplace site. This is compared to 5% of respondents who said they were most likely to buy on a brand’s own DTC site, notably paling by comparison to in-store, where a quarter said they are likely to make the final purchase, suggesting consumers are comfortable returning to old habits post-Covid.

The Salsify data reveals that UK shopping habits in 2022 are being driven primarily by price, with 29% of those surveyed stating that low prices were the biggest deciding factor for choosing where they shop, whether in-store or online. This was closely followed by delivery speed (21%) and delivery options (21%).

Moreover, in the last three months, 63% of shoppers have compared prices online across several retailer or marketplace websites, while 54% have checked for digital coupon codes.

However, when asked what would drive a shopper to purchase a higher-priced item, nearly half (47%) said the biggest deciding factor would be buying from a brand they trust. This is closely followed by the higher-priced item having quicker delivery (36%) and reduced shipping cost (31%). Only 6% said they would buy the highest purchased item because it was the first product listed.

The report also explores shopping preferences across a number of sectors:

  • Grocery consumers were found to ultimately want low prices, familiar brands and same-day delivery, but 83% of British shoppers will buy supermarket own-label groceries online; 22% said great product images are important when shopping for groceries and 13% stated that it is important to know a grocery brand matches their values.
  • Fashion and apparel shoppers want a well-reviewed deal and 56% are willing to go with a retailer’s own-label items. Moreover, 17% of shoppers said they prefer retailers that offer multiple fashion and apparel brands, whilst 9% suggested they want the ability to buy clothing second hand.
  • Home improvement shoppers primarily use comparison charts and project tutorials when shopping online. 21% of shoppers said great product images are important when shopping for tools and hardware, 12% want comparison charts of other tools when buying and 9% want example projects or tutorials on how to use the tools they buy.

Vijayanta Gupta, Senior VP of Growth Strategy at Salsify, commented: “Given the rising concerns around inflation in the UK, it is pretty evident that price is now one of the biggest deciding factors for making a purchase. What is interesting is that shoppers are more willing to shop around for the best prices and would rather do this across retailers and marketplaces, rather than go directly to brands.

“In addition to low prices, fast shipping is crucial for shoppers so it is essential that merchants ensure they are exploring a full range of delivery options available. Consumers also value a brand’s reputation and are more likely to make a higher-priced purchase for a brand they trust. Merchants should therefore incorporate aspects of their company’s success and customer testimonials in order to demonstrate their value to consumers.”