Super-Shoppers: 13 percent of shoppers account for 62 percent of Internet revenue

Wondercon 2016 Supergirl Cosplay 25478352823

New Worldpay study finds online Super-Shoppers spent $372.5 billion of the $601 billion market for physical goods from March 2015 to March 2016

ATLANTA – July 27, 2016 – International buying power in the Internet age is highly concentrated within a group of high-spending, high-frequency Super-Shoppers, according to a new global study from Worldpay called Pay That Way. Despite representing only 13 percent of the general population, these Super-Shoppers accounted for 62 percent of all spending on physical goods bought via the Internet every month. From March 2015 to March 2016, Super-Shoppers spent an astounding $372 billion on everything from clothes to leisure goods and electronics, compared to just $231 billion among the remaining 87 percent of the population.

Worldpay’s research – which polled 20,000 consumers across Australia, Brazil, China, France, Germany, Japan, Mexico, the Netherlands, the U.K. and the U.S. – revealed Super-Shoppers aren’t just concentrated in developed e-commerce markets either. Brazil led the pack for Internet shopaholics, with 25 percent of its population of Internet users falling into the Super-Shopper category, followed by the U.S. (18 percent) and Mexico (15 percent). Nowhere, however, was the buying power of the Super-Shopper higher than in China, where despite accounting for just 5 percent of the general population, this small group of consumers was responsible for an incredible 62 percent of the country’s estimated online shopping revenues.

The buying power of this group of Super-Shoppers – of which 34 percent are millennials – is explained by the frequency and value of their shopping habits. Eight-five percent of Super-Shoppers shop weekly, and 15 percent shop daily. Nor are they buying little. Almost a quarter (24.4 percent) of Super-Shoppers spent between $144 and $215 the last time they shopped online, and 13 percent of them spent more than $287.

“This study is the latest evidence to confirm the emergence of the so-called online Super-Shopper,” said Tim Denison, Director of Retail Intelligence, IPSOS. “This elite shopping set not only exists in the emerging economies as well as the developed world, but thrives there, thanks to the expansion of an affluent middle class, the relentless march of consumerism and consumer technology, together with the progressive trend to urbanization.”

Worldpay’s research into the preferences of Super-Shoppers also discovered this group’s behavior between countries was remarkably consistent. Globally, 52 percent of Super-Shoppers preferred to use their credit card to pay for their shopping, which was 10 percent more than the all-shopper global average of 42 percent. They overwhelmingly preferred credit cards, even in markets where credit card use is low. For example, 70.5 percent of German Super-Shoppers used a credit card the last time they shopped online, compared to the national average of 36 percent. Chinese Super-Shoppers were also much more likely to pay using their credit cards than the average consumer in China.

“They are equipped to shop from whichever device is most convenient to them at the time – whether it be PC, laptop, tablet or smartphone,” Denison said of Super-Shoppers. “By default they are super-connected. And by shopping online they are, of course, unconstrained by time, able to satisfy their cravings for instant gratification any time of day or night. ‘Super-Shoppers’ are not synonymous with the super-rich, however. They are passionate about what they buy and sophisticated in how they shop, taking the time and trouble to research the best products and find the most competitive prices available, relishing the process as well as the output. ” 

The research also showed a potential downside of the Super-Shopper phenomenon for online retailers in terms of lost revenue. Thirty-six percent reported they had reached the checkout stage for an item and found they couldn’t use their preferred payment method to buy. In scenarios like this, 52 percent of Super-Shoppers said they bought the same item from a different website, and a remarkable 17 percent said they went out to buy from a physical shop.

“The remarkably consistent buying behavior of these Super-Shoppers across markets is a very interesting phenomenon for online retailers. It suggests that retailers should be looking at these consumers as a distinct group that often behaves very differently from the rest of their customers,” said Casey Bullock, General Manager North America, Global eCommerce at Worldpay. “For example, their high use of credit cards in markets where these cards have little or no traction among the general population means that a retailer who doesn’t support the full range of payment methods could actually be losing major revenue without noticing.”

Worldpay estimates the cost to each retailer of a lost transaction could be as much as $144, a significant amount of lost revenue from such frequent and high-value shoppers.

“Elsewhere the Super-Shopper phenomenon gives retailers much food for thought – in terms of how they merchandize to these consumers to maximize basket size, or market to an audience who thinks of online shopping as a daily task, not just as an occasional treat,” Bullock said. “With so much buying power concentrated in this group globally, it’s essential that retailers innovate in such a way that they deliver what Super-Shoppers want, when they want it and let them pay for it in the way that suits them best.”

About Worldpay

Worldpay is a leading payments company with global reach. We provide an extensive range of technology-led payment products and services to over 400,000 customers, enabling their businesses to grow and prosper. We manage the increasing complexity of the payments landscape for our customers, allowing them to accept the widest range of payment types around the world.

Using our network and technology, we are able to process payments from geographies covering 99 percent of global GDP, across 146 countries and 126 currencies. We help our customers to accept more than 300 different payment types, by providing an end-to-end service including acquiring, treasury, gateway, alternative payments and risk management, all via a single integration to Worldpay. Worldpay makes global payments simple for many of the world’s leading organizations.

Image source: WikiMedia Commons – by William Tung

Other recent interesting Point-of-sale articles:

 Point-of-Sale Attacks Still Going Strong but the Reason Isn’t What You Think
Winning the Omnichannel Game With a Single Stock Pool
Fixing The EMV Quagmire
How Supply Chain Technology is Changing the Warehouse for Good
Protect Businesses and Employees from Overtime Issues – Workforce Management Technology
Smart Shelf Technology Shapes Retailing
PGA Golf Tournament Tees Up APG Cash Drawers for Second Year
Holy Point-of-Sale Batman! Amazon Has How Many SKUs?
Elo Introduces Commercial-Grade Point-of-Sale Terminals With Remote Capabilities
GS1 Modifies Standards to Enable First Mobile Barcoded Coupons for Manufacturers
Why Businesses Can Benefit from Learning More About Their Customers