Retail-Tech Landscape: Online Shopper Convenience

While shoppers are returning to retail stores, this does not undermine the significance of e-commerce channel stickiness among many consumers. US e-commerce sales accounted for around one-fifth (19.9%) of total retail sales in 2021 totaling $896 billion, up 14.5% from 2019, according to Coresight Research analysis of US Census Bureau data. We expect growth momentum to continue, with e-commerce sales surpassing $1 trillion by the end of 2023, we estimate. As retailers continue to strengthen their omnichannel capabilities, we believe delivering convenience will be paramount to success. This Retail-Tech Landscape covers selected startups globally whose technology solutions support brands and retailers in providing online convenience to shoppers. We have identified 30 startups across the following categories:

• Virtual try-on
• Product discovery and recommendations
• Returns
• Order fulfillment
• Payments and financing

Convenience Trends in Retail Below, we highlight two key industry trends for online convenience. 1. Shoppers Are Interested in Tailored Shopping Experiences With the proliferation of shopping channels, it is vital that retailers provide a convenient experience that suits each shopper as far as possible. As such, convenience fuels shopper expectations around personalization and tailored experiences: The ability to find the right product easily is the most influential factor in demand for tailored online experiences, according to an April 2022 survey conducted by e-commerce data analysis firm PYMNTS.com. When thinking about a tailored online experience, personalization is not enough; shoppers are also thinking of convenience—from easy product discovery to fast delivery.

---

Figure 1. Top Factors Influencing Shopper Preference Towards Tailored Online Experiences [caption id="attachment_153745" align="aligncenter" width="700"] Source: PYMNTS.com[/caption]   2. Convenience Translates to Satisfying Online Shopping Experiences One of the most important factors supporting long-term e-commerce growth is shopper satisfaction regarding online purchases and the likelihood of recurring purchases. Most US shoppers are generally satisfied with their recent online shopping experience, according to January 2022 survey conducted by advertising technology company Epsilon:

• 74% of shoppers described their experience of ordering products online as either “good” or “very good”
• 73% of shoppers cited their experience of the actual products as either “good” or “very good”

Of those respondents, around three-quarters stated that ease of using the website as the reason for their satisfaction, while almost half respondents cited the ability to use their preferred payment method as their reasoning. A such, an easy-to-use website substantially contributes to overall online shopper satisfaction. We believe that added convenience across all touch points, will enhance shopper experiences and ultimately translate to higher check out rates.

Retail-Tech Landscape: Online Convenience—Infographic

 

Retail-Tech Landscape: Online Convenience, by Category

Virtual Try-On: Companies offering virtual reality (VR) try-on experiences to shoppers and allowing users to view products in their own environments [wpdatatable id=2191]   Product Discovery and Recommendations: Companies leveraging artificial intelligence (AI) to support product discovery and personalized recommendations [wpdatatable id=2192]   Returns: Companies working to remove friction from online returns, deliver a wide range of returns options and provide quicker refunds [wpdatatable id=2193]   Order Fulfillment: Companies enabling seamless physical delivery of products purchased online [wpdatatable id=2194]   Payments and Financing: Companies enabling shoppers to make online purchases without paying the entire amount upfront through flexible repayment plans [wpdatatable id=2195]