Do you also abandon the cart before paying?
This survey revealed the leading phenomena in online shopping (Photo: ShutterStock)
Despite inflation, interest rates and uncertainty
Verifone, the fintech giant that provides payment and trading solutions to leading brands in the world, conducted a survey among about a thousand consumers, designed to characterize the expectations and habits of online purchasing and the trends that characterized online purchasing in the last year in Israel and around the world.
The survey shows that despite a complex year of economic slowdown, inflation, rising interest rates and uncertainty, the consumer actually increased the frequency of purchases online.
Against the background of the increasing penetration of the digital worlds since the outbreak of the Corona crisis in 2020, almost half of the consumers who participated in the global survey reported that in 2022 they made more online purchases compared to 2021.
In Israel, about 59% of consumers testify to an increase in online purchases, this is the most significant increase compared to the other countries examined in the survey.
Habits and trends of online shopping among consumers in Israel (Photo: ShutterStock)
What do you mostly buy online?
Also from the recently presented SBA data, a clear trend of increasing Israeli consumption emerges - from which it appears that there is an increase in the spending of Israelis on credit cards during the year 2022, and they amounted to more than 440.8 billion shekels, an increase of about 40 billion shekels and 9.8% Compared to 2021.
Total spending in December was NIS 37.5 billion, an increase of 7.3% compared to last year. Online grew by 10.6% in 2022 and reached NIS 253.25 billion, which is 57.5% of spending on credit cards. Regarding the types of products that consumers tend to
purchase Online the most frequently The survey revealed that at the top of the list are care and beauty products (59%), followed by food and beverages (56%), fashion (55%), electronic devices and household items (50% and 49% respectively) - and finally entertainment (47% ).
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Record use of digital wallets in January 2023
What do you mostly buy online?
Care, food and beverages and fashion (Photo: ShutterStock)
Why online?
Saving time, comparing prices and benefits
According to the survey, the main reason for making online purchases is to save time: about 52% of all respondents answered that they purchase online to save time, and 52% of Israeli consumers also cited this as the main reason for online purchases.
Greater selection, consumer reviews, price comparison, and benefits were also cited as significant reasons among respondents.
When asked which characteristic is necessary for every online purchase, in the first place the consumers indicated the availability of a preferred form of payment, in the second place the availability of a physical place for the purpose of providing service and returning products, and in the third place - consumer opinions.
After that, the list of features also included member events and reward programs, and the possibility to pick up the products in the physical store.
It is interesting to note that among Israelis, information security ranks higher (4) compared to the rest of the world (6).
As for the online purchase process, the survey revealed that the payment experience (check-out) is of crucial importance.
The most important elements of trust in order to lead to a purchase are: social proof for example customer rating/reactions (44%), followed by preferred payment method (41%), and localization (40%).
Among the Israeli respondents, 42% indicated accessibility to support as the most important aspect for them, 41% emphasized the importance of localization in the payment process and about 39% said that for them the most important thing is the availability of their preferred payment method.
Time saving, price comparison and accessibility to a preferred payment method (Photo: ShutterStock)
The phenomenon: abandonment of the "cart" before payment
Additional costs at the checkout stage were found to be the main reason for abandoning the "cart" before completing the purchase.
57% of respondents reported that in the last year they abandoned the purchase process when they discovered high shipping costs.
Other reasons were the unavailability of a product, which was discovered only at the checkout stage (27%), and the lack of possibility to contact the seller for inquiries and questions (22%).
The survey revealed that unvaried payment options and currency conversions are also common reasons for abandoning "carts".
As for the preferred means of payment, credit cards continue to star at the top, but digital wallets are beginning to undermine the almost exclusive status of credit cards.
70% indicated credit cards as the preferred option, while 50% indicated digital wallets.
27% prefer the payment method "buy now, pay later" (which is not yet available in Israel).
Abandoning the "shopping cart" just before payment (Photo: ShutterStock)
Buy online - pick up in store
Against the background of the increase in online purchases, consumers are increasingly accustomed to purchase experiences that combine the physical and the digital, what is called "Omnichannel".
The most preferred combined purchase feature, according to the survey, is "Buy online - pick up the product in store" (49%), followed by "Buy online - pick up at a collection point" (39%), "Buy online - return in store" (39%) , and finally "walk around the store, add to the list of favorites and place the order online" (22%).
The CEO of Verifone Israel, Gabi Band
: "From the survey we conducted, significant insights emerge that can help businesses adapt the purchase processes in online stores to the current demands of today's consumers and thus increase sales.
The findings of the survey illustrate that despite the increase in online commerce, the physical stores will not disappear and there is great importance in creating a personal purchase experience that combines the physical world with the omnichannel digital world."
"Businesses that know how to adapt themselves to consumer expectations - whether it's payment methods or check-out convenience - are the ones that will be able to attract and retain customers"
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