Brits plan on increasing online shopping despite cost of living crisis

New research from Opinium and Digital River delves into online spending habits, payment trends, and what consumers now demand from online retailers.

2,000 UK consumers were surveyed for this. 17% stated that they are struggling financially and 35% are just ‘getting by’, yet this was found to have a minimal impact on their willingness to shop online.

Only 8% of respondents said that they were looking to shop more in person, with 22% expecting to do so online more frequently in future.

33% of respondents have shopped online more frequently in the past six months, compared to just 9% that have ventured in-store more often.

Although 58% of Brits have reduced their spending on non-essential items in the last six months, 47% continue to make at least one online transaction a week.

A critical factor in the success of e-commerce lies in lower prices and an ability to track and compare price changes.

29% of UK online shoppers state that it is easier to track prices online than in person, while 29% of those planning to shop online more claim that items being cheaper online is driving them to buy this way.

Additionally, payment methods have evolved to meet demand. Now, 15% of UK adults use buy now pay later services for online shopping, with 59% doing so to stretch their budget further.

Two thirds of BNPL users have used this method more in the past six months, with 49% saying this is due to their tighter financial situation. Credit card use has remained steady in comparison, with 60% using this method the same amount as usual.

At the same time, however, 41% of online shoppers state that online purchases would be among the first things to cut if they needed to reduce their spending.

50% want more help from retailers to deal with rising prices. 32% cite delivery pricing as a barrier to online shopping and 48% state that free or cheaper delivery would offer the most help with the cost of living.

Respondents also pointed to more online vouchers (38%) and easier price comparison (31%) as ways for retailers to step up to the plate during the cost of living crisis.

“We’ve seen how inflation has impacted our economy: consumers told us they are decreasing their spending across the board, most notably on special occasions, including holiday shopping and vacations,” says Ted Rogers, Chief Revenue Officer at Digital River.

“However, our research has shown the pace of online spending isn’t expected to slow down despite the squeeze on finances.”

“Brands must ensure they have optimised their digital stores to make the shopping journey as transparent and friction-free as possible, making sure consumers aren’t surprised by any extra costs.”

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