2014 Sealed Air e-commerce Survey: Packaging for e-commerce Success
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1 EXECUTIVE SUMMARY 2014 Sealed Air e-commerce Survey: Packaging for e-commerce Success A consumer survey conducted by Harris Poll Share on:
2 The Sealed Air 2014 Packaging for e-commerce Success survey examines the important role of packaging in e-commerce and how the presentation of products impacts the e-commerce customer experience and consumers image of retailers. The survey also explores consumer expectations on online order processing speeds, the impacts on retailers when consumers receive broken or damaged items, viewpoints on environmentally-friendly packaging and top consumer packaging pet peeves. 2
3 e-commerce has continued to gain traction over the last decade. Nearly nine in ten (87%) Americans purchased items online in the past year, and almost half purchased clothing (55%) and electronics (46%). Women accounted for the majority of clothing purchases (60% vs. 50% men), while men bought the lion s share of electronics (54% vs. 38% women). Interestingly, more than two thirds of women who purchased clothing were between 18 to 44 years (67%), while the next highest segment was between 55 to 64 years (59%) with a dip in women 45 to 54 years (54%). Men aged 18 to 34 years (67%) accounted for the majority of electronics purchases, and men s online purchases of electronics did not decline dramatically as they aged. In fact, 42% of men aged 65 years and older made an electronics purchase online in the past year. Top e-commerce Purchases Any Online Purchases 86% 88% Total Purchases 87% Clothing 50% 60% 55% Electronics 54% 38% 46% Other Food 44% 48% 46% 20% 20% 20% 3
4 : How Fast? In this on-demand world, nearly four in five (78%) Americans think retailers should ship their online orders in 24 hours or less, and males expect their orders to be processed faster than females. Only 17% of American consumers are willing to wait between 25 and 48 hours. Just 4% believe that a timeframe of more than 48 hours is an acceptable amount of time to process a shipment for an online order. Expectations 78% 81% 76% 17% 4% 24 hours or less hours More than 48 hours 24 hours or less 4
5 The packaging of products plays a significant role in consumer perceptions of retailers, including indicating how much consumers believe a retailer cares about them, the perceived value of the item they received and whether the retailer believes in taking care of the environment. Two thirds of Americans (66%) believe the packaging of their shipment shows them how much the retailer cares about them and their order. Just under half (48%) think the packaging reflects the value of the shipment the better the packaging, the better the product inside. This viewpoint is more prevalent in younger purchasers nearly three in five (59%) aged 18 to 34 years share this belief. A third (34%) say the packaging tells them about the retailer s environmental policy and commitment, based on the type and amount of packaging materials used. Packaging Reflects on Retailer Packaging Conveys Value of Shipment Retailer Cares Value of Shipment 66% 59% 48% 40% 44% 45% 48% Environmental Commitment 34% Age Range 5
6 : What s the Impact? More than a quarter (26%) of Americans have received a broken or damaged product from an online order. When asked who is to blame for the damage the retailer or the package carrier - the majority of Americans (59%) believe both the retailer and the package carrier are equally responsible for damage to a product that they order online. Regardless of who is to blame, retailers are heavily impacted by damaged products. Nearly three in five (58%) Americans say that their relationship with the retailer would be impacted in some way if they received a broken or damaged online order. Almost two in five (38%) admit they would consider purchasing from a competitor before purchasing from the retailer again and one in five (20%) would never use that retailer again. Who is to Blame? Damage Affects Retailer Relationship Both 55% Package Carrier 34% 28% Retailer 11% 9% 63% Total 59% 31% 10% 81% 30% 51% Avoid retailer 63% 18% 45% 54% 18% 36% Consider purchasing from competitor 43% 15% 41% 15% 28% 26% Age Range 6
7 Good or Bad? While half of Americans (51%) feel extra packaging is worth it if it provides adequate protection, just under half (47%) also feel that it is wasteful and one in five (21%) believe they paid too much for their order. Men are more likely than women to view extra packaging as a benefit (54% vs. 49%). And, women are more likely than men to say that too much packaging is wasteful (51% vs. 43%). Views on Extra Packaging Beneficial 54% Wasteful 43% Inconvenient 26% 25% 51% 49% Total 51% 47% 25% 27% 29% 45% 17% 25% 51% 23% 17% 19% 25% 23% 23% 48% 46% 48% Paid Too Much Inconvenient Wasteful Paid Too Much 51% 46% 53% 55% 53% Beneficial 20% 22% 21% Age Range 7
8 Nearly seven in 10 (68%) Americans say they are more conscious of packaging materials and design today than they were five years ago. More than three quarters of Americans (77%) feel that the packaging a company uses for online shipments should reflect their environmental values. At the same time, consumers are not willing to sacrifice quality. Only 26% say they are willing to risk potential damage to their online purchases by retailers using more environmentally-friendly packaging materials. 23% 74% 29% 6% 94% 32% Strongly/ Somewhat Disagree 77% 71% 68% Strongly/ Somewhat Agree 26% The packaging a company uses for online shipments should reflect their environmental values. I am willing to risk potential damage to my online purchases by retailers using more environmentally friendly packaging materials. I would expect a company selling high-end, luxury or high-value goods to use packaging that is more visually appealing and consumer friendly. If I were returning an online order, I would prefer to re-use the original packaging. I am more conscious of packaging materials and design today than I was five years ago. 8
9 Ninety-four percent of Americans believe there are environmentally friendly packaging solutions, but they tend to define environmentally friendly packaging in different ways. More than three quarters of Americans (78%) say it can be easily recycled; three quarters (75%) think it is made from recycled materials; 63% believe it can be re-used for other shipments either personal or return shipping; roughly half (55%) say it biodegrades or composts, with half (50%) saying it biodegrades, and 29% saying it composts; while 31% believe it prevents them from having to return a damaged product. What is Environmentally Friendly Packaging? Easily Recycled Total 75% 80% 78% Made from Recycled Materials 74% 76% 75% Reusable 58% 68% 63% Biodegradable/Compostable 56% 54% 55% Prevents Return due to Damage 30% 31% 31% No Environmentally Friendly Options 6% 5% 6% 9
10 More than half of Americans (56%) say they have packaging pet peeves, with the top two concerning recycling and disposal of packaging. About one third (32%) say their pet peeve is packaging that is difficult to dispose of (e.g., takes up too much space in garbage, requires breakdown), which frustrates women (35%) more than men (29%). More than a quarter (27%) indicate their pet peeve is packaging that is difficult to recycle or unrecyclable (e.g., not curbside recyclable or unclear if it is recyclable). A pet peeve of roughly three in ten (31%) Americans is packaging that creates a mess in their home. And, 17% of Americans say their pet peeve is packaging that makes it difficult to access the product. This tends to frustrate men (19%) more than women (15%) and those aged 18 to 34 years (25%) more than those 35 years and older (13%). Top Bothersome Disposal Total Any Pet Peeves 29% 35% Creates Mess 32% 55% 56% 30% 32% Difficult to Recycle 31% 25% 28% 27% Challenging to Access 19% 15% 17% No Yes 10
11 The Sealed Air 2014 Packaging for e-commerce Success survey was conducted online within the United States in August 2014 among 2,010 adults 18 years and older by Harris Poll. Figures for age, sex, race/ ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was used to adjust for respondents propensity to be online. The data have been weighted to reflect the composition of the adult population. 11
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