For the first time, consumers say they bought more of their purchases on the web than in stores, according to an annual survey of more than 5,000 online shoppers by United Parcel Service Inc.
The shoppers now made 51% of their purchases on the web compared with 48% in 2015 and 47% in 2014, according to the survey by UPS and analytics firm comScore Inc. The survey polled shoppers who make at least two online purchases in a three-month period, excluding groceries.
The latest results of the survey—now in its fifth year—show the degree to which the adoption of online shopping is accelerating. This year, 44% of smartphone users said they made a purchase from their device, up from 41% a year ago. It also helps explain why retailers are having so much trouble adjusting to the new cyber shopping era.
Amazon accounted for 60% of total U.S. online sales growth last year alone, according to Forrester estimates.
The shoppers reported that only 20% of their purchases were made in a store the conventional way—going to a store, browsing there and buying—down from 22% a year ago. Forty-two percent chose to search and buy entirely online, while the rest said their purchases were made by combining online and in-store shopping and browsing.
“There’s been a dramatic shift,” says Steve Osburn, who advises retailers on supply-chain issues for Kurt Salmon. “Over time, people are getting more and more comfortable” shopping online, he says. That has hit retailers hard.
While total online spending comprised 7.8% of all retail purchases in the first quarter, according to the Commerce Department, more than half the population, or about 190 million U.S. consumers, will shop online this year, according to Forrester.
And as for shopping by smartphone users: the survey found that 63% of millennials use their phones to shop, while 19% of baby boomers and 8% of seniors use their phones to make purchases.