A new report from Mollie highlights how spending and payment behaviour has shifted in light of growing inflation and the cost-of-living crisis. Despite economic challenges, nearly half of consumers believe the economic situation will improve in the short-term and expect to spend more in the next year. 

The report is based on a survey of 5,000 e-commerce shoppers across Belgium, France, Germany, Netherlands and the UK.

Unsurprisingly, people are increasingly drawn to discounted items, with 38% indicating a higher likelihood of purchasing discounted products compared to a year ago. Additionally, 47% of UK consumers are more inclined to make online purchases if they are discounted. 

Wider shopping habits are also shifting with only 1% of UK shoppers saying they haven’t changed their buying behaviour in the last year.

Social media, in particular, is playing a starring role, as 21% of Brits report being persuaded by content creators to make an online purchase - the highest in Europe. Only 1% of UK shoppers do not use social platforms for product research.

The report discovered that 61% of UK consumers report feeling negative about the country’s current economic situation. However, 46% believe the economic situation will improve in the next six to twelve months. 

And there’s even more good news, with 49% planning to spend more online in the next 12 months. Buy now, pay later is on the rise, with 64% of UK users reporting an increase in their usage over the past 12 months. 

For UK shoppers, YouTube (44%) is the most popular platform to research a product before purchasing. Meta platforms Facebook (43%) and Instagram (38%) rank second and third respectively. 22% of consumers report using TikTok for product research. 

More and more social media platforms are integrating “buy in app” features. 41% of UK consumers have purchased products from Facebook, 32% from YouTube and 30% have purchased from Instagram. 

While 41% of UK shoppers flag free shipping as being an influential factor, a further 52% highlighted high shipping fees being a reason to abandon a purchase, the highest in the UK, compared to other regions surveyed.             

47% of Brits report discount codes being offered after leaving the site being a contributing factor to completing purchases. Overall, email appears to be a strong platform for communications, with 39% saying receiving an email from a brand they like could influence a purchase.

Security is a crucial concern, as 46% of consumers abandon carts due to security worries and 33% due to concerns about third-party data sharing. 

94% of UK consumers emphasise the importance of retailers offering their preferred payment methods, with 58% considering it "very important”.

Whether you’re checking out as a guest or member, for 40% of UK consumers, streamlining the checkout process is key to driving conversion (compared to a European average of 29%).

"In an era of economic uncertainty, this research underscores the resilience and adaptability of UK consumers, who, despite concerns about the economic climate, are primed to increase their online spending. It's a clear signal for e-commerce businesses to prioritise payment diversity and optimise the checkout experience,” says Mia Hunter, UK MD & Director of International Expansion at Mollie.

“The surge in buy now, pay later usage and the dominance of social media platforms for product research underscores the need for a comprehensive and flexible approach in the e-commerce space. Navigating the dynamic UK e-commerce landscape calls for a versatile approach that cannot be ignored any longer by merchants.”