Choice of delivery is key for 18 to 34 year olds, says report

Flexible delivery is the most important factor influencing which retailers younger people buy from online, according to a new report.

The report was a consulting project conducted by MSc Strategic Marketing students from Imperial College Business School for eBay Enterprise. The students surveyed 130 British shoppers between the ages of 18 and 34 and found that almost three in four consider convenience of delivery the most important factor when choosing where to shop online.

Almost two thirds of younger shoppers said they would be more likely to buy from an online retailer that offered convenient delivery over one that did not, underlining the importance of flexible delivery for retailers looking to get ahead of the competition in the run up to Christmas.

The study found that failing to provide a choice of delivery options could lose retailers business, with nearly a quarter of younger shoppers claiming they would not buy from a retailer that does not offer flexible delivery.

The report also revealed that flexible delivery can have a positive impact on the amount people buy, with as many as one in four young shoppers admitting to spending extra to access this option. It also correlates with higher spend, with nearly half of survey respondents revealing they recently spent more with an online retailer because they offered flexible delivery.

Commenting on the report’s findings, Enda Breslin, European Head of Business Development, eBay Enterprise, said: “Our research with MSc Strategic Marketing students from Imperial College Business School shows that retailers that do not offer a choice of delivery options could be leaving money on the table. Millennials’ spending power is increasing every day – by 2025 they will make up seventy-five percent of the global workforce, so retailers should aim to meet their needs now to grow their market share in the medium term.”

The report also explored consumer preference around different types of delivery, finding that next-day delivery is the most frequently used flexible option by younger shoppers in the UK followed by the click-and-collect service.

 Despite flexible options now being expected as standard, customers in this age group remain unwilling to pay extra for it, with nearly half stating they’d be unwilling to pay more for flexible delivery.

The eBay Omnichannel Shopping Behaviour report was compiled by students studying the MSc in Strategic Marketing at Imperial College Business School. The aim of the project was to investigate the factors that influence people’s spending habits and the impact on retailers. The report analysed the purchasing behaviour of younger consumers (18-34 years old) and their use of shopping channels, including online, mobile and in-store purchasing) and the usage of flexible delivery options including home delivery, click and collect, in-store reservation and collection lockers.

Dr Omar Merlo, Programme Director, MSc Strategic Marketing, Imperial College Business School said: “This consulting project with eBay Enterprise enables our students to apply the marketing tools and concepts learned on their degree to a real client brief. The MSc Strategic Marketing is an innovative programme that equips students with the most valuable skills needed in marketing today, in areas such as strategic market management, consumer behaviour, branding, social media and digital marketing.”