Why websites win out in the multichannel world

Sep 25 2019 | PayPal editorial staff

Research shows customers and businesses agree on the fundamental role a website plays in an omnichannel shopping world.

In a fast-paced, increasingly innovative and social world, the good old trusty website has stood the test of time. And customers agree.

With 68% of online shoppers now purchasing across multiple channels (including websites, mobile apps, social platforms and online marketplaces), new research from PayPal shows Australian consumers still value a company’s own website as their preferred shopping channel – and point of purchase – citing a faster experience, better customer service, and broader product range.

There’s no doubt Australian consumers love to shop ‘multichannel’ (45% of Gen Z say they’re more likely to purchase online with a company who has a multichannel experience), but it’s clear that a business’s website remains the crown jewel of a multichannel strategy.

Almost half of all Australian online shoppers (48%) said they save time by going directly to company websites, rather than trawling through thousands of sellers on a marketplace. And 35% of online shoppers said a company’s own website gives them better customer service if they need a question answered.

31% online shoppers said a company’s own website often has a broader range of products
37% of online shoppers agree that if a company doesn’t have a website and they can’t find them online, that they are either ‘old-fashioned’ or ‘dodgy’

When it comes to younger shoppers, 44% of Gen Z and 39% of Gen Y online shoppers prefer to shop via a company’s website. As well as convenience, trust is also a key driver with younger audiences, as 42% agree that companies who have their own website have more credibility than those who only sell via a marketplace.

Proving their keenness to shop around, 34% of Gen Z and Gen Y online shoppers have found an item on a marketplace, but then proceeded to purchase it directly through the company’s own website. Significantly, Gen Z online shoppers stated they spend close to three quarters (74%) of their total monthly spend online on company owned websites.

Businesses echo this general consumer sentiment, with 67% of multi-channel businesses believing their own website allows them to better own their relationships with customers, while 73% believe their own website allows them to better personalise their customers’ experiences.

69% of multi-channel businesses believe their own website gives them better margins
64% of multi-channel businesses believe their own website allows them to better understand their customer’s needs

Payment methods are also important to the trust factor. When it comes to making a purchase, 56% of online shoppers said that secure payment methods like PayPal would motivate them to spend more online, and 56% of online shoppers agree they don’t trust companies that don’t offer secure ways to pay online.

For Australian SMBs, maintaining and building integrated online customer experiences is going to be crucial for their future success. And websites remain a key part of the retail mix; 44% of Australian online shoppers agree that in the future, it will be critical for companies to offer multiple ways to buy online, including website, marketplace and social media.

Research conducted by ACA Research between Friday 22 March and Thursday 28 March and commissioned by PayPal Australia Pty Limited (ABN 93 111 195 389). The research surveyed 1123 consumers nationally and 198 Australian merchants with a turnover cap of $10M AUD.

The contents of this site are provided for informational purposes only. The information in this article does not constitute legal, financial, IT, business or investment advice of any kind and is not a substitute for any professional advice. You should always obtain independent, professional accounting, financial, IT and legal advice before making any business decision.

The contents of this site are provided for informational purposes only. The information in this article does not constitute legal, financial, IT, business or investment advice of any kind and is not a substitute for any professional advice. You should always obtain independent, professional accounting, financial, IT and legal advice before making any business decision.