JACKSONVILLE, Fla.--(BUSINESS WIRE)--Macro-economic headwinds across the globe have resulted in more people shopping for bargains, which has led to the acceleration of online marketplace adoption. This is according to new research from Worldpay from FIS, the merchant solutions business of global financial technology leader FIS® (NYSE: FIS). As online marketplaces grow in popularity and with instances of fraud and disputes typically increasing during the holiday season, merchants need to be extra vigilant this year to minimize the risk of negative business impact.
Worldpay’s new Future Shoppers Report found online marketplaces are now as popular as shopping in physical stores, with 77 percent of consumers having shopped through an online marketplace in the last 12 months, compared to 78 percent in a physical store and 51 percent on the stores’ branded websites. Gen X is leading the way with the adoption of marketplaces, with 81 percent of those aged 36-58 stating they had used an online marketplace in the past 12 months.
Maria Prados, Worldpay from FIS retail expert said: “With the rise of cost-conscious shoppers, consumers are now finding online marketplaces meet their needs better than conventional eCommerce sites which only offer products from a single retailer. It’s not just competitive prices that marketplaces offer, but the convenience and a more seamless experience which is driving their growth.”
While online marketplaces have become a mainstream shopping channel, consumers still have a desire to be loyal to the brands they love. When asked if all things were the same (price, shipping speed, etc), almost 40 percent of consumers indicated they would prefer to shop directly with a brand, with just 15 percent indicating they would shop through a marketplace.
“With consumers set to be more mindful of how they spend this holiday season, merchants need to consider how they can replicate the marketplace experience within their own online offering,” Prados added. “Curating a marketplace experience as part of brand websites and pairing their own products with brands that have similar values is already being done successfully by a number of retailers.”
“People still want the holiday season to be special, they’re just changing how they create it. While it’s now fashionable to be frugal, consumers won’t accept a reduced experience. Now more than ever, merchants need to consider how they show up across multiple online channels, offering a wider variety of shopping options.”
The growing popularity of online marketplaces combined with the traditional holiday trends of increased fraud and goods dispute chargebacks, means that new marketplace sellers and brick and mortar merchants need to be extra vigilant to ensure safe selling and shopping over the holiday season.
To keep merchants safe from fraud and decrease the volume of chargebacks, Worldpay from FIS offers the following top tips:
- Use solutions such as 3DS (3D secure solution) to ensure ecommerce transactions are fully secure.
- Provide excellent customer service. Ensure you keep customers updated on the status of orders, including delivery progress and tracking. Be honest up front if there are likely to be delays and make it easy for customers to contact you so any issues can be resolved.
- Require signed proof of delivery to the agreed upon delivery address and use a reputable and reliable delivery company.
- Make sure all payment and return terms and conditions are clear and prominent.
The Future Shoppers Report surveyed over 5000 consumers across France, Germany, UK, US and China to get to know them better. Meeting customers’ needs is no longer just about understanding what they feel about price and product, but about building shopping environments through which they’re catered for as individuals with lots on their minds and substantial experience in new technologies under their belts.
FIS is a leading provider of technology solutions for financial institutions and businesses of all sizes and across any industry globally. We enable the movement of commerce by unlocking the financial technology that powers the world’s economy. Our employees are dedicated to advancing the way the world pays, banks and invests through our trusted innovation, system performance and flexible architecture. We help our clients use technology in innovative ways to solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS is a member of the Fortune 500® and the Standard & Poor’s 500® Index. To learn more, visit www.fisglobal.com. Follow FIS on Facebook, LinkedIn and Twitter (@FISGlobal).
