New UPS® Study Reveals Canadian Online Shopping Habits

CA 09/24/19

Mississauga, ON

Key insights from the 2019 UPS (NYSE:UPS) Pulse of the Online Shopper indicate Canadian online shoppers research and purchase from online marketplaces, and prefer lower costs and easy returns. The study, which is based on a PwC survey of more than 18,000 online shoppers worldwide, evaluates consumer shopping habits from pre-purchase to post-delivery.

Research is a significant part of the purchasing journey and according to the study, 62 per cent of Canadian consumers conduct their research on an online marketplace, mostly using Amazon as their go-to research source (57%). Product price and discounts (88%), delivery options (71%) and product details (48%) are the most important research topics before making a purchasing decision.

Online marketplaces continue to command global purchasing power, the channel through which over 90 per cent of participants living in the Americas, Europe, India and the Asia-Pacific, make their purchases. In Canada, 68 per cent of consumers indicated lower prices as the leading reason for shopping on a marketplace, (followed by free shipping, better stock availability, wider range of products and product reviews).

Cost and choice can be aligned with brand loyalty – online shoppers show a low appetite for paying for shipping. Sixty-two per cent of Canadians will consider cheaper, yet slower shipping and 96 per cent consider it important to have visibility of various shipping option prices.  Abandoned carts are often due to a lack of transparency and almost half of Canadians abandoned an online purchase because the cost of delivery was higher than expected.

“Empower and engage your shoppers: provide them with control over their personal experience by owning the decision between cost and speed of delivery,” says Paul Gaspar, director of small business at UPS Canada. “It’s also a good idea to incorporate visibility in your online platform and integrate flexible shipping and tracking options.”

When purchasing online, Canadian consumers and businesses alike are looking for flexible return policies and shipment options, it’s one of the key factors when making a purchasing decision and encouraging repeat customers. Much like delivery options, Canadian consumers want upfront return policies, 57 per cent of whom indicated they look for a retailer’s return policy before purchasing an item. Seventy-two per cent of Canadian consumers claimed their returns experience with an online retailer impacts their likelihood to become a repeat customer. Most Canadian businesses and consumers actively track packages and consider it a part of a positive returns experience.

“Shipping costs, delivery times and returns can be managed efficiently to ensure great service, while improving a business’s bottom line,” adds Gaspar.  To grow in the competitive online space, it is important to understand all of the options available to give consumers what they want, in order for them to place their order.”

For more study findings, please download the UPS Pulse of the Online Shopper executive summary here.

About the UPS Pulse of the Online Shopper study

The UPS Pulse of the Online Shopper study evaluates consumer shopping habits from pre-purchase to post-delivery. The study was conducted in early 2019 and is based on a PwC survey of more than 18,000 online shoppers worldwide. Respondents made at least two online purchase in a typical three-month period.

About UPS

UPS (NYSE: UPS), one of the world’s largest package delivery companies with 2019 revenue of $74 billion, provides a broad range of integrated logistics solutions for customers in more than 220 countries and territories. The company’s more than 500,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to being a steward of the environment and positively contributing to the communities we serve around the world. UPS also takes a strong and unwavering stance in support of diversity, equity and inclusion. The company can be found on the Internet at www.ups.com, with more information at www.pressroom.ups.com and www.investors.ups.com.

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