The e-commerce space has evolved tremendously during the three decades since it’s been around, and one of the many transformations it has experienced is represented by the integration of social media into retailers’ strategies. With people spending an increasing amount of time on social media platforms like Facebook, Instagram and YouTube, e-commerce shops and platforms have started taking advantage of this phenomenon, incorporating these channels into their marketing strategy and using them to meet customers where they are. As a result, using social media as a way to increase online sales has become a common practice nowadays, influencing consumer behaviours and altering shopping habits.
However, the role that social media plays in people’s online shopping journeys is often overestimated. Just because social networks have seeped into the e-commerce realm doesn’t mean that everyone is now making their purchases on Instagram or TikTok. At least, that’s what the 2024 Elusive Consumer Survey by Capterra seems to indicate. The report offers some interesting insights into the current trends shaping the UK’s e-commerce industry and the forces behind them.
Search engines reign supreme as e-commerce gateways
Although e-commerce companies in the UK have been through some rough patches this year, with certain sectors registering revenues well below expected values during the first quarter, e-commerce spending is estimated to increase significantly this holiday season all across the country, pushing projections for online sales in 2024 to a record £177.11 billion.
This raises questions about the mediums and strategies that might facilitate this surge and how they can impact e-commerce businesses and the entire online shopping experience. We already know that speed and precision are key components in offering a great customer experience, and meeting these expectations can help companies win more business. This prompts many online sellers to work with third-party logistic providers like Monta to ensure a more streamlined and efficient delivery process. But there are other elements that influence customers’ journey and the way they approach and interact with brands.
The 2024 Elusive Consumer Survey, which was conducted on 499 online shoppers (multiple responses allowed) in the United Kingdom, can provide some clarification in this respect. The study reveals that although consumers follow different paths while making online purchases, the majority resort to two different venues as main starting points: 75% of respondents begin their online quest for products and services on search engines, while 55% prefer to go directly to retailers’ websites or apps to scour through their offering.
The large number of consumers who use search engines as the primary gateway for online purchases emphasizes the need for e-commerce businesses to invest in SEO, so they can boost their visibility in the online space and thus increase their chances of attracting new customers and their revenue.
Social media is used to find old favourites and make new discoveries
The report also shows that only 21% of customers start their e-commerce experience on social networks, and less than 7% finalise their orders via these channels. If people predominantly use search engines, websites and apps to do their online shopping, where do social media platforms fit into the equation?
Even though social media’s influence in online retail is not as strong as it was initially believed, it does contribute to some degree to the development of the e-commerce sector. According to the survey’s findings, there are several reasons why people head to social media platforms when looking to initiate the shopping process: 73% of respondents go to social networks to find products they’re interested in, 61% use it to hunt for discounts and promotions that could help them score better deals, while 58% hope to discover new brands. Reading trustworthy reviews (52%) and discovering small or local businesses (46%) are also among the core motivations for accessing these channels. Instagram, Facebook and TikTok seem to be the favourite platforms in this respect.
Although social media is often thought of as a venue that connects brands and consumers and strengthens the relationship between the two parties, the study shows that only 23% of consumers engage with businesses through these channels. Moreover, 33% of respondents stated they don’t interact with brands on social media at all.
At the same time, 31% of those who use social media to buy goods and services online said they would likely spend more on purchases via these mediums next year.
Affordability and discounts matter the most to consumers
It’s also important to understand what motivates shoppers to choose one brand or product over another. In a time when the cost of living crisis has made it harder for the average UK consumer to afford basic goods and services, it comes as no surprise that pricing and discounts are the factors that influence people’s purchase decisions the most, being cited by 66% respectively 61% of respondents as the main drivers. User reviews and brand trust also have a say in the decisions making process.
In order to build trust with their audiences, online sellers have to focus on aspects such as establishing a clear brand and vision, collecting feedback from existing clients and using it to improve service and operations, delivering great customer service consistently and creating secure and easy-to-navigate sites that ensure excellent UX.
It’s just as crucial for online shops and platforms to stay on top of their logistics, from proper inventory management to choosing the right fulfilment centre and everything in between. Customers these days expect a smooth delivery experience and want to have their items at the door in record times. This calls for extra caution when setting up the order fulfilment process or selecting fulfilment partners that can carry on the necessary tasks for the e-commerce company.
The wind of change is constantly blowing through the e-commerce landscape, bringing new trends and shifting practices, dynamics and behaviours. This means that providers need to remain alert and adapt to the new direction and demands in the market if they want to maintain their competitiveness in the long run. With so many online providers fighting for a spot in the industry, capturing consumers’ attention is definitely not an easy job. In the current context, the findings provided by these types of studies prove extremely valuable to market players.
