The Economic Effects of COVID-19
We explore the economic impact on online shopping. We look at whether changes in shopping habits during the Covid period have continued, and outline how rising inflation may influence users’ decisions about payment and delivery methods.
Online Shopping & Delivery — Part 2
Research into the Hungarian market
In recent years, everyone has experienced how online shopping has changed our lives. The exponential growth of online purchases and the widespread use of online platforms have created new opportunities for businesses, while giving consumers convenient, fast access to a wide range of products and services.
Based on our research into online order delivery, this article series presents users’ expectations and experiences of payment, delivery and communication throughout the online ordering process.
A non-representative online questionnaire, in-depth interviews and desk research preceded this article. Our questionnaire survey included participants aged between 16 and 75.
Online Shopping & Delivery Series
We introduce customers’ preferred payment methods. We explore the criteria they use to make decisions and their attitudes towards increasingly popular virtual card payments.
#2 — The economic effects of COVID-19
We discuss the economic impact on online shopping. We examine whether changes in shopping habits during the Covid period have continued, and outline how rising inflation may influence users’ decisions about payment and delivery methods.
In this article, we look at customer feedback on different delivery methods and preferences. We also discuss how delivery method choices vary by product category, as well as what customers think about environmentally friendly delivery methods.
From the moment an order is placed, the status of ordered products and collection-related communication are crucial. In this article, we focus on the messages and notifications customers consider important.
In this article, we discuss customers’ perceptions of the safety of online shopping, the items they return, and their concerns and expectations when shopping on international websites.
The pandemic reshaped everyday life
For many consumers, the Covid period brought a shift in shopping habits, with contactless and digital solutions taking the lead. Our research aimed to establish whether the methods users tried during this time have become part of their consumer behaviour, or whether they have returned to their previous habits.
During the pandemic, people had to adapt to restrictions, social distancing and lockdowns, which also changed their shopping habits and preferences.
As a result, shoppers wanted to avoid crowded places and social interaction. This led to a surge in online shopping across all sectors, from food and clothing to electronics. Even for groceries, for instance, more and more people chose to order online to minimise the risk of virus transmission.
Demand for disinfectants, masks and other health products also rose significantly, as people became more conscious of hygiene. Consequently, online shopping and contactless collection proved to be excellent alternatives for those wishing to do everything possible to limit the spread of the virus.
As the virus subsided, shopping habits changed again. While some returned to physical shops and reduced their online orders, a considerable number of customers continued shopping online for its convenience, including for smaller purchases. Buying online also remains popular for products that are difficult to find in physical shops.
The effects of Covid-19 on online shopping habits
More than half of respondents reported no significant change in their online shopping habits as a result of the Covid pandemic. Fourteen per cent of respondents returned to their previous ordering habits, while a third continue to maintain the online shopping habits they adopted during the Covid period.
Covid-19 made way for new payment methods
The data shows that, due to Covid, 27% of respondents changed the payment methods they use for online orders in some way and continue to prefer them. Examples include contactless payments, paying when placing an online order, or using payment methods they had not used previously.
We were also interested in whether respondents had adopted new habits as a result of Covid. Our interviews and conversations showed that, since Covid, people shop online and order food more often than they did before the pandemic.
Effect of Covid on delivery methods
Delivery methods also changed as a result of the Covid-19 pandemic. Around 45% of our respondents said their delivery habits had changed. Typically, they order online more often and minimise contact with people in crowded places. They also tend to use less cash, arranging tips for delivery drivers online instead. Of this 45% of respondents, 22% have preferred parcel lockers, 18% home delivery, and 5% delivery to collection points since the start of the pandemic.
Economic impacts
In recent years, shopping habits have been influenced not only by Covid-related restrictions and the consumption patterns associated with them, but also by an uncertain economic climate exacerbated by high inflation.
When we shop in stores or pay our bills, we experience rising prices first-hand. It affects every consumer. While physical retail has typically declined due to steadily rising prices, e-commerce has shifted towards lower-priced products, with no significant decline in the premium market.
Inflation affected the online shopping habits of 43% of respondents. Rising prices also increased awareness and the amount of information sought before making an online purchase.
Economic changes have made people more cautious with their spending, resulting in fewer impulse purchases and greater consideration of whether they really need a particular product. When they do need something, they no longer order the first product they find online, but compare prices across several webshops to find the best overall basket value.
Similar shifts in attitude emerged during the interviews. Respondents said they now compare prices more often and pay closer attention to products nearing their expiry date. These products are not only cheaper because they are close to expiry, but can also support more sustainable choices. In addition, respondents said they were open to buying alternative products instead of their preferred brands to save money, for example when buying cosmetics. Minimising costs has also become a priority for online ordering: 15% of respondents look for cheaper, or even free, payment options when making a purchase. Similarly, 15% said they buy less online because of unfavourable economic conditions. A further 10% even postpone certain online purchases.
Recently, consumers have felt the impact of rising delivery costs and are seeking cost-effective delivery options. Many opt for alternatives such as collection points or in-store collection rather than home delivery. If delivery costs are high for a product they have selected online, consumers are willing to collect it in-store to save money.
Seasonal shopping
End-of-season sales, Black Friday, clearance sales, holiday promotions – the list goes on. Pre-holiday discounts and promotions remain popular with shoppers. 53% of respondents have shopped during these periods, with 26% regularly shopping during discount events. Only 20% said they do not shop before holidays or during sales.
In user interviews, respondents said that they try to shop well in advance of Christmas rather than leaving it to the last minute, as they expect online orders to arrive more slowly at this time of year. Customers are also more accepting of longer delivery times. In these cases, the lack of information is more frustrating than waiting longer for a particular product.