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It is undeniable that online shopping has become an unignorable aspect of the global retail scene. Even in New Zealand, the total spending of online shoppers grew by nearly 31% year-on-year between Q1 2021 to Q2 2022, from NZ$4168 billion to NZ$2.2 billion, according to NZ Post’s latest Spotlight report.
Many point toward the COVID-19 pandemic as the reason behind why online shopping has become so much more popular. Though not entirely incorrect – the COVID-19 pandemic did indeed expedite e-commerce growth – it would be short-sighted to say that it is solely responsible for the rise of online shopping.
Lockdown regulations and safe-distancing measures have already been significantly loosened globally. Yet, growth of the e-commerce sector shows no signs of stopping. It is clear that – aside from the pandemic – there are several other reasons underlying why online shopping is becoming more popular.
Here are the three key factors driving the popularity of online shopping:
There are countless online shopping benefits that make shopping online an attractive alternative to traditional retail consumption.
First, the convenience entailed by shopping from an online store is unparalleled. No longer do consumers have to queue for purchases or deal with crowded parking lots. Consumers today can casually browse for products they are looking for from the comforts of their very own bed, 24/7.
The unprecedented product diversity presented by online shopping is another benefit that many consumers enjoy. Online shoppers can find just about any brand or item they are looking for, from any part of the world. Also, due to the nature of online retailing, unavailability of stock is something that consumers can worry less about when e-shopping.
Finally, there’s also the ease of price comparison as an advantage of buying online. Comparing and researching products and their prices are a lot easier with abundant online consumer reviews. Cheaper deals and better prices are also more available and accessible, since most online shopping is done without a middleman, directly from the manufacturer. The absence of sales tax is yet another plus.
The increasing digital literacy worldwide and in New Zealand is the second key factor behind why online shopping is becoming more popular. With numerous initiatives to impart digital literacy to the elderly and Māori population in New Zealand, more and more New Zealanders have become accustomed to the digital world, along with the pleasures and aforementioned advantages of online shopping for customers.
Improved broadband speeds also mean that online shopping experiences are a lot smoother than they previously were. Novel experiences, such as live video shopping, also attracts millions worldwide and offers a fresh touch to shopping experiences that e-shoppers evidently appreciate.
Furthermore, sophisticated behavioral analytics running on artificial intelligence also help online shoppers enjoy more streamlined shopping experiences – another benefit that may be hard to replicate in traditional brick-and-mortar retailers.
Issues to do with logistics and supply chain management were previously abundant and difficult to overcome. Though the former still exists, e-commerce businesses today often partner with leading logistics service providers, like DHL Express, to give customers worldwide faster shipping and delivery options.
According to Oberlo, eliminating prolonged periods of waiting before receiving a product has encouraged many to further engage in e-shopping, allowing for online shopping to become more popular than ever. In fact, next-day delivery is included in their 2023 list of Top Reasons People Shop Online, making up 27.6% of the collected responses.
DHL Express empowers e-commerce businesses with fast shipping and delivery options all across the world. We also offer logistic solutions and sector-specific expertise to help businesses grow.
Create a business account with DHL Express today.