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Ireland Delivery Matters Understanding online shoppers in Ireland in 2017

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Page 1: Delivery Matters - Ireland 2017 report - Royal Mail › business › system › files › Delivery...Clothing is top of the shopping list, making it the favourite category purchased

Ireland

Delivery Matters

Understanding online shoppers in Ireland in 2017

Page 2: Delivery Matters - Ireland 2017 report - Royal Mail › business › system › files › Delivery...Clothing is top of the shopping list, making it the favourite category purchased

#DeliveryMatters

2

Delivery Mattersfor Ireland

*‘Census 2016 Summary Results’, Apr. 2017

**‘ Information Society Statistics –

Households’, Dec. 2016

***‘ Top Desktop, Tablet & Console Browsers

Per Country’, Jul. 2013

Welcome to Delivery Matters, now

in its ninth year of providing the

latest trends and insights into the UK

and international online shopping

environment. In this edition, we take

our fi rst look at Ireland.

Ireland is an ideal fi rst-step export

market for UK businesses looking to dip

their toes into overseas markets. For a

start, 14% of online shoppers in Ireland

are UK nationals. It’s also in the same

time zone, is English speaking, has a

strong transport infrastructure, and

consumers have a good perception of

British quality.

Unsurprisingly, given how close the

countries are geographically and

culturally, a big percentage of online

shoppers from Ireland buy from UK

websites. That stems from a high

level of trust in the authenticity of

UK products. Interestingly, Ireland’s

shoppers are still cautious about

shopping online overall, and that aff ects

their purchase decisions – even from UK

websites. This is why providing a variety

of delivery options and tracking should

be imperative for UK retailers.

When it comes to how the shopping’s

being done, the report shows that

Ireland’s consumers use their mobiles

more than those in the UK, and a

large majority buy things from online

marketplaces. Clothing is top of the

shopping list, making it the favourite

category purchased online from

UK retailers.

For UK retailers looking to attract online

shoppers in Ireland, there are local

expectations that need to be met.

At Royal Mail we can help deliver on

those. This report will show you how.

Nick LandonManaging Director of Royal Mail Parcels

Contents

Introduction

02 Introduction

03 Online shopping trends

04 Top trends for 2017

05 A snapshot of online shopping habits

06 What’s on the shopping list?

07 Buying is still a bit risky

08 Shopping’s much more mobile

09 Online marketplaces are thriving

10 Which online marketplaces are most popular?

11 Fulfi lment 12 Delivery costs and abandoned carts

13 Sending things back

14 Ireland’s online shoppers like delivery done right

15 How Ireland’s online shoppers feel about free delivery

16 Attitudes towards tracked deliveries

17 Preferred delivery location

19 Ireland and the UK

20 Ireland loves UK brands

21 Popular purchases from UK websites

22 Why do Ireland’s shoppers buy UK?

23 Trust is high

24 Cart abandonment when shopping from UK sites

25 The willingness to wait for delivery

26 How important is international tracking?

27 Barriers to buying from UK websites

28 Delivery satisfaction means more sales

29 In summary

30 Ireland market must-do’s

31 Royal Mail services

32 Services to suit your customers

32 About this research

33 Helping your business deliver to Ireland

Fast Facts:Ireland, Republic of

Capital: Dublin

Population: 4.76 million*

Area: 70,273 sq km

(27,133 sq mi)

Major languages:

Irish, English

Life expectancy: 78 years

(men), 83 years (women)

Currency: Euro

Internet usage: 82%

of the population are

internet users**

Preferred browser:

Google Chrome***

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Online shopping trends

Top trends for 2017 Separated by the North Channel, the Irish Sea, and St George’s

Channel, Ireland is geographically very close to Great Britain.

How close is its online shopping behaviour? While there are

similarities, our report uncovered trends that are surprisingly

unique to the way people shop online in Ireland.

They’re more mobile

Ireland’s online shoppers like to

buy things from their phones and

tablets. Three in five of them have

bought items with a mobile device

– and the proportion of their online

spend represents 73% of their

total spending.

They’re more cautious

Online shoppers in Ireland

abandon their carts more than

the international average. With

nearly one in two of them doing so

frequently, it’s a clear sign they’re

more cautious than most when it

comes to hitting the ‘buy’ button.

They’re more demanding

Possibly due to that caution and

need for reassurance, Ireland’s

online shoppers have greater

delivery expectations. From

tracking to delivery speed,

they’re far more demanding than

the international average. These

demands ultimately extend to value

for money, which is a key driver

when shopping with UK retailers. of online shoppers’ total

spend is made online

73%

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5x

While online shopping frequency and spend in Ireland are

lower than the international average, the proportion being

spent online is similar.

In the last three months the average shopper in Ireland has…

A snapshot of online shopping habits

£309

£226

shopped online five times

spent £226 (€255*) online only

(73% of total spending)

spent £309 (€348*)

online and offline

Did you know?Online shoppers in Ireland

are relatively active buyers,

almost equalling the

international average of

purchasing six times in

the last three months.

* Currency exchange rate to British pounds

as at 4 October 2017.

What’s on the shopping list?Like the UK, clothes and books are the two favourite product

purchases for Ireland’s online shoppers. Interestingly, buying

holidays and travel is much more popular for online shoppers

in Ireland than it is in other international markets.

Most popular products to buy online:

of Ireland’s online shoppers

purchase clothes

51%

26%51% 27% 25% 23% 17%45% 27% 19% 21%

Key

Ireland

United Kingdom

Clothes Books Holidays /

travel

Footwear CDs / DVDs

/ records /

computer

games

Online shopping trends

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Buying is still a bit riskyOver half of the audience we surveyed in Ireland told us they

think buying from a website is a risk. Which shows there’s

a need for online retailers to reassure their shoppers.

40%say they’re happy to

buy from websites and

don’t consider it a risk

Expert adviceKeeping shoppers in the

loop about despatch and

delivery times can be a

good way to build trust

and reassurance.

Expert adviceMobile optimisation should

be a given for UK retailers

looking to attract online

shoppers in Ireland.

51%say they’re happy to buy

from websites but

consider it a risk

5%say they’re not happy

to buy from websites and

consider it a risk

Shopping’s much more mobile In Ireland, mobile data is cheaper than anywhere else

in Europe. Which could be a reason why people use their

smartphone or tablet to shop online more than people in

the UK or internationally do.

How people shop online in Ireland:

Key

Ireland

United Kingdom

International

average60% 48% 29%42% 28% 25%50% 42% 21%

Mobile device Smartphone Tablet

Online shopping trends

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Online shopping trends

Online marketplacesare thrivingOnline marketplaces in Ireland are popular spots to visit, with

shoppers using them more frequently than those in the UK.

Percentage of online shoppers who use marketplaces:

Ireland International

average UK

The report also shows that Ireland’s online shoppers are far more heavily

infl uenced by delivery ratings. Eight in ten take these ratings into account when

buying things, which is a lot higher than the UK and international average.

78% 69% 80%

of online shoppers in

Ireland are heavily

infl uenced by marketplace

delivery ratings

vs 54% in the UK

vs 76% international average

79%

Which online marketplaces are most popular? When it comes to using online marketplaces, Ireland’s shoppers

have a clear preference. Just like in the UK, eBay and Amazon

are easily the most popular.

Online marketplace usage in Ireland:Expert adviceWhile eBay is ranking first

in marketplace usage,

Ireland’s online shoppers

show they’re more

motivated by bargains.

Sellers should act on

this by offering value for

money – both on products

and delivery.

eBay

77%

Etsy Gumtree

13% 12%

Amazon

72%

DoneDeal

42%

AliExpress

26%

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Fulfi lment

Delivery costs andabandoned cartsIreland’s online shoppers abandon their carts more frequently than

the international average. We investigated why.

The biggest reason was unhappiness with delivery charges – an

issue that was mentioned more o� en than the international average.

Top reasons for cart abandonment in Ireland:

of shoppers abandon carts frequentlyvs 31% in the UK

vs 38% international

average

43%are unhappy with the

delivery charge

32%changed their mind

after seeing what

they’d spent

47%

he

changed the

afafter seein

ththeye ’d s

41%were just

browsing

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Fulfi lment

Sending things backIn Ireland, return rates are pretty much the same as

the international average. It’s worth noting that a

considerable three in four shoppers would be put off

buying from the same retailer as a result of a diffi cult

return experience.

The frequency of returns in Ireland:

• 26% have recently returned an item

(vs 27% international average)

• 21% have recently returned an item bought from a UK site

(vs 21% international average)

• 76% are unlikely to revisit a retailer following

a diffi cult return experience.

What makes shoppers more likely to buy

from a retailer?

89% think it’s important to be able to return items online for free

87% are more likely to shop if there’s a clear returns policy.

29%clothes

9%footwear

6%toiletries

/makeup

6% CDs, DVDs, records

and computer games

8% electrical goods

Items that are returned most:

Ireland’s online shoppers like delivery done rightDelivery satisfaction is a strong driver of repeat purchases for

Ireland’s online shoppers. 94% of them agree they’re more likely

to shop with an online retailer again if they’re satisfi ed with the

delivery. That’s higher than the international average of 91%.

How delivery impacts online shopping:

Expert adviceClear, upfront delivery

information is key to

satisfying online shoppers

in Ireland. If retailers get it

right, they set themselves

up for repeat business.

92% 74%

want clear delivery

information before they

place an order

say it’s important to

be able to specify a

delivery day

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84%are more confident

when ordering online with tracking

How Ireland’s online shoppers feel about free delivery Ireland’s online shoppers are a lot less demanding about free delivery

than the international average. The report shows that only one in

four expect to pay nothing, regardless of the amount they spend.

Free delivery expectations of online shoppers in Ireland:• 25% expect free delivery with no minimum spend

(vs 55% international average, 44% in the UK)

• 30% expect needing to spend over €20

• 23% expect needing to spend over €30

• 19% expect needing to spend over €50.

Interestingly, nearly three quarters of shoppers in Ireland actively look for retail websites that offer free delivery.73% claim to ‘search out websites that off er free delivery’

Did you know?While shoppers in Ireland

seem to have a more

realistic expectation of

paying for delivery, they

still actively look for free

delivery. So offering it

could be used as a strategy

for repeat purchase.

Did you know?In a market where one

in two consider online

shopping to be a risk,

off ering tracked deliveries

can help reassure

customers about making

the purchase.

Fulfi lment

Attitudes towardstracked deliveries The results of our report show that when consumers in Ireland

shop online, they’re in need of reassurance. Tracking clearly helps

provide this, as eight in ten tell us they feel more confi dent about

making a purchase when tracking is available as an option.

Top reasons for offering tracking:

gcking

vs69% UK and

81% international

average

90%consider it important

to receive delivery updates

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Preferred delivery locationJust like the majority of UK online shoppers, those in Ireland prefer

items they’ve bought to be delivered to their home. However, the

number of people who prefer to have items delivered to work is

higher than the international and UK average.

Where do Ireland’s shoppers prefer to have items delivered?

Home 69%

Work 11%Post Office 5%

Fulfi lment

3%69% 11% 5% 4% 3%68% 4% 5% 3%

Key

Ireland

United Kingdom

Home address Work address Post Office Parcel lockers Retailer’s store

Preferred delivery location –UK comparison

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Ireland and the UKU

Ireland loves UK brands Unsurprisingly, given the geographical proximity, the proportion of

Ireland’s shoppers purchasing from UK websites is far higher than

the international average.

81% have purchased from a UK website in the last three months

14% of Ireland’s online shoppers are UK nationals

In the last three months, the average shopper in Ireland purchasing from a UK website has:

• shopped online four times

• spent €174 (£154).*

Saving money with UK post codes

54% of shoppers in Ireland are aware of a service that delivers to Northern

Ireland to take advantage of cheaper delivery costs to a UK postal address.

And over half of those have used it. So UK retailers could off er better value

for money by providing a UK postal address of their own in Northern Ireland.

* Currency exchange rate to British pounds

as at 4 October 2017.

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Ireland and the UK

Popular purchases fromUK websitesClothes and books are the favourite things to buy from UK online

retailers. It’s interesting to note that shoppers in Ireland buy almost

the same things from UK websites as shoppers in the UK do.

Did you know?Online shoppers in Ireland

are particulary interested

in buying UK fashion,

such as clothes, shoes

and accessories.

41% 23% 16% 15% 13% 10%

Clothes Books Footwear CDs/DVDs/

Records/

Computer

Games

Accessories

(e.g. handbags)

Sportswear/

sports

equipment

Why do Ireland’s shoppersbuy UK?Two key reasons drive Ireland’s online shoppers to purchase

from UK websites. The fi rst one is price, followed closely

by availability.

Why shoppers in Ireland buy from UK websites:

49% of Ireland’s shoppers are likely to choose a UK online retailer while they

shop generally, compared to 34% who seek out a specifi c website.

Search engines and word of mouth are the key channels that shoppers

in Ireland use to discover UK websites.

How Ireland’s shoppers fi nd UK websites:

48% via a search engine

37% from a friend/family recommendation

29% through advertising

said they’re cheaper said the item was only

available in the UK

said the item was better

quality from the UK

45% 42%%% 16%%

Expert adviceOne in ten online shoppers

in Ireland are initially

unaware they’re purchasing

on a UK website. So it’s

important for UK retailers

to prioritise Search Engine

Optimisation (SEO) and

mobile advertising.

of Ireland’s shoppers fi nd UK

websites via a search engine

48%

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Ireland’s online shoppers were asked about their attitudes

towards shopping from UK websites. Trust in the authenticity

of UK products scored highest – signifi cantly more than the

international average.

Although shoppers are still cautious

Even among Ireland’s online shoppers who already buy from UK websites,

concerns about risks such as delivery costs or hidden charges are high.

In fact, they’re similar to those who don’t buy from UK websites.

40% of shoppers are

happy to buy from UK

websites, but consider

it a risk.

40% of shoppers who

already buy from UK

websites are happy to do

so, but consider it a risk.

41% of shoppers who

don’t buy from UK

websites would

consider it a risk.

82%trust items purchased from UK websites not

to be counterfeit

66%find UK items to be much cheaper than

they are locally

Ireland and the UK

Trust is high

autious

trrusu tfroom

tto

bee ann

y

75%buy from UK

websites when products are not

available locally

Cart abandonment whenshopping from UK sites43% of shoppers in Ireland o� en abandon their UK website cart

– compared to the international average of 37%. Reasons for

this vary. International delivery cost is the most common, with

browsing behaviour and items being out of stock also in the top fi ve.

Reasons for abandoning a UK

shopping cart:

22%They didn’t have what

I wanted in stock

35%The international delivery

cost was too expensive

35%I wasn’t happy with the

delivery charge

23%I found a better deal

elsewhere

33%I was just browsing

Expert adviceUK retailers should offer

the best value delivery

they can to help curb cart

abandonment and build

repeat business from

Ireland’s online shoppers.

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25 26

Ireland and the UK

The willingness to wait for delivery When buying from UK websites, most shoppers in Ireland

expect their delivery to take four days or longer. The average

time they expect to wait is fi ve days, just short of the

international average of six days.

Expected delivery time from UK websites:

Did you know?80% of Ireland’s shoppers

expect UK deliveries to take

four days or longer.

21% 48% 21% 9% 2%

1-3 days 4-5 days 6-7 days 8-10 days 11+ days

How important is international tracking?It’s vital to online shoppers in Ireland. 87% of them consider it

essential to receive updates about the progress of their deliveries

from the UK – which is identical to the international average.

At what stage of delivery are updates most important?

From despatch to delivery – 40%

Confirmation of despatch – 20%

Delay notification – 16%

Confirmation of delivery – 12%

Delivery attempt information – 12%

In a further sign that tracking offers peace of mind to online shoppers

in Ireland, 81% told us they would feel more confident when ordering

online with tracking, while 73% would track every item they order if the

service was available.

Fuss-free returnsRather than speedy delivery, online shoppers in Ireland tell us

they’re more interested in free, straightforward returns from

UK retailers.

• 86% would be more likely to shop if there’s a clear returns policy

(vs 85% international average).

of shoppers say it’s

most important to

receive updates from

despatch to delivery

consider it important

to be able to return

items for free (vs 86%

international average)

40%

86%

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Barriers to buying from UK websitesOnline shoppers in Ireland tend to look for value for money.

That extends to delivery. And even though delivery costs are a

lot lower than the international average, they’re still the main

reasons why shoppers hesitate to buy from UK websites.

Key reasons for not shopping from UK websites:

41%because international delivery

is too expensive 34%because of fear of

hidden charges

A helping handLearn about Royal Mail

International Standard,

our most economical way

of sending parcels abroad,

on page 32.

liveryy

36%because of customs

charges (even though there

are none within the EU)

Delivery satisfaction means more sales The vast majority of online shoppers in Ireland tell us that

the key to them buying more from UK websites lies in

delivery satisfaction.

• 93% would shop online more from UK websites if they were satisfied

with their deliveries

• 88% believe it is important to have clear delivery information before

they place their order on a UK website

• 74% search out UK websites that offer free delivery

• 72% would shop online more from UK websites if there were a wider

range of delivery options.

A tried and trusted delivery provider

Anpost is the key partner of Royal Mail in Ireland and is the trusted

delivery provider for almost nine in ten online shoppers.

How Ireland’s shoppers rate Anpost:

Trust: 89%

Awareness: 89%

would shop online more

from UK websites if they

were satisfied with their

deliveries.

would shop online moreul

w

93%

of Ireland’s shoppers

trust Anpost (key

partner of Royal Mail)

89%

Ireland and the UK

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30

In summary

Ireland market must-do’sGo mobile

Make mobile optimisation a top priority if you want to target online

shoppers in Ireland. They use their smartphones far more than any other

device and more than any other countries in Europe.

Value is vital

Matching shoppers’ expectations of value for money is a top priority.

Aff ordability and good value are pillars of the purchase decision. Crucially,

as cart abandonment levels show, this extends to delivery charges.

Focus on delivery

UK online retailers should offer Ireland’s shoppers free delivery and

returns wherever possible, along with tracking. These are pivotal in

building shopper confidence and encouraging repeat business.

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31 32

Royal Mail services

Royal MailInternational Tracked

Total peace of mind with a fully

tracked service and signature

option to most destinations.

• Ideal for sending important

or valuable goods

• Tracking at fi ve points

a� er despatch

• Online confi rmation of delivery

Royal Mail International Standard

An economical way to send

parcels abroad with a choice

of sorting requirements.

• Delivery to Europe in

3 to 5 working days

• Compensation included

• Free returns for

undelivered goods

Services to suit your customers

About this research

Royal Mail offers delivery to over 230 destinations worldwide,

using the local postal provider in that country. Services include:

Independently conducted by Trinity McQueen, this research was

based on a sample group of 1,503 online shoppers in Ireland

who had purchased items on the internet in the last three

months (other than groceries).

They completed a 17-minute survey, optimised for mobile and

tablet devices, between 30 April and 13 May 2017. This research

is representative of online shoppers in Ireland.

87%

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33 34

Royal Mail services

Helping your business deliver to IrelandThank you for reading Delivery Matters for Ireland 2017 – we hope you found it

useful. If you’d like to fi nd out more about how we can help with your deliveries,

get in touch with your Royal Mail account manager, or call us on 08457 950 950*.

If you’d like to find out more about our research, or download the rest of our

series, visit royalmail.com/deliverymatters

2017

2015

2016

* Calls may be recorded, monitored

and used for training and compliance

purposes. Calls cost 5p per minute

plus your telephone company’s

network access charge.

United KingdomU it d Ki d Online MarketplacesO li M k t lChinaChi

IrelandI l d Returns USA Germany Australia FranceR tSwedenS d

Canada

Italy

Russia

India

Japan

l

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For more information on our products or services,

please call Business Sales on 08457 950 950.

Textphone users can dial direct on 03456 000 606

and we welcome Typetalk calls.

Calls may be recorded, monitored and used for training and compliance

purposes. Calls cost 5p per minute plus your telephone company’s

network access charge.

Royal Mail, the cruciform and all marks indicated with ® are registered

trademarks of Royal Mail Group Ltd. Delivery Matters 2017© Royal Mail

Group Ltd 2017. All rights reserved.