Report: E-Commerce Pure-Plays Win the Holidays, But Shipping Could be ‘Achilles Heel’
Feb. 5, 2015
This holiday season, consumers in the U.S. and U.K. increased the amount of shopping they did online, though shipping costs could temper that growth, according to recent research from Wipro Digital. The consultancy found 71 percent of British consumers and 61 percent of American consumers did more than half their holiday shopping online compared with 45 percent and 36 percent respectively in 2013. The study also found pure-play e-commerce retailers are reaping the most benefits of the move online, said Avinash Rao, global head of Wipro Digital.
“Consumers continue their steady march online, finding few reasons to shop in-store rather than online for their holiday shopping,” Rao said. “But even online, omnichannel retailers are losing customers to internet pure-plays. Bricks-and-mortar retailers are having difficulty delivering on the benefits of omnichannel retailing.”
Rao warned pure-plays not to become complacent, however. Shipping costs and hiccups around the holidays (16 percent of U.K. shoppers and 11 percent of U.S. consumers didn’t get an online order in time for Christmas) remains online retailers’ “Achilles Heel,” he said, and it’s a vulnerability omnichannel retailers could exploit with in-store pickup.