E-commerce in the UK vs. USA: Unveiling the Lesser-Known Differences

Key Points for online shoppers

1. Popularity of E-commerce Categories: – Europeans are less likely than Americans to make purchases in categories such as General Merchandise/Department Stores, Automotive/Motors/Marine, and Grocery/Gourmet Food. – On the other hand, Europeans are more likely to purchase products in categories like Sports/Outdoor Equipment, Office Products, and Tools/Hardware/DIY/Lawn & Garden.
2. Inflation and E-commerce Spending: – Inflation has a greater impact on European e-commerce spending compared to the US. – US shoppers are more likely to turn to e-commerce to save on discretionary spending during periods of inflation.
3. Brand Loyalty: – French and British e-commerce shoppers exhibit higher brand loyalty compared to Americans. – French and British shoppers trust brand websites more for accurate product information and plan to use brand websites for holiday shopping.
4. Cultural Differences in Pricing: – European customers are less likely to compare prices on multiple websites before making a purchase but are more likely to use price comparison websites.
5. Social Commerce: – American shoppers are more likely to discover products through social media feeds and ads/influencer posts on social media compared to Europeans.
6. Amazon’s Influence: – Amazon is more prominent in the US, with a higher percentage of shoppers starting their product searches on Amazon and making purchases after seeing ads on Amazon.

Quick Takeaways:

• UK shoppers prefer online marketplaces like Amazon and eBay, while Americans often shop directly on brand websites.
• Contactless payments and mobile wallets are popular in the UK, while credit cards dominate in the US.
• UK offers next-day and same-day delivery services, while delivery times in the US can vary due to its size.
• UK retailers have more lenient return policies, while the US may have stricter policies with restocking fees and shorter return windows.
• The UK has local players like ASOS and Boohoo, while the US has niche marketplaces like Etsy and Wayfair.
• UK includes VAT in displayed prices, while the US adds sales tax during checkout.
• Black Friday, Cyber Monday, and Christmas are significant shopping seasons in both countries.
• UK has strong consumer protection laws, while laws in the US vary by state.
• Consider e-commerce category preferences, inflation’s impact on spending, brand loyalty, pricing differences, social commerce trends, and Amazon’s influence when targeting these markets.