Paypal unveils its "E-commerce Index" study and deciphers the online shopping trends of European consumers.

PayPal unveils today its E-commerce Index study which deciphers the trends in online commerce: new payment methods, recommerce, social commerce, cryptocurrencies or metaverse, e-commerce is going through profound changes. These changes are driven by profound shifts in consumer habits in Europe and around the world, as revealed by the E-commerce Index, which takes stock of these new trends in e-commerce in France and Europe.

FACTS

• Paypal's E-commerce Index was conducted by ACA Research from 15 June to 22 July among more than 15,000 consumers, including 2,043 in France, and 4,600 businesses, including 405 in France.

• E-commerce is experiencing an unprecedented 13% increase in comparison to 2021, reaching 718 billion euros in Europe according to Fevad.

• In this study, France is in last place: only 47% of French people say they shop online at least once a week, compared with 59% in Germany and 78% in the Netherlands. Dutch consumers have an average shopping basket of 270 euros per month.

• The main lessons to be learned for France :

  • Ethics: for 46% of consumers, the values and ethical approach of brands motivate their decisions. This figure reaches 71% for Gen Z.

  • Security: 66% of French consumers have abandoned an online purchase before payment (64% in Europe on average), a trend that is particularly pronounced among Gen Z (81%).

CHALLENGES

• Ethics and values displayed by brands: In Europe, almost half of consumers turn to brands that are in line with their values. In France, 46% of respondents and 71% of Gen Z say they are motivated by a brand's values and ethical approach in their purchasing decision. These values include employee working conditions for 29% of consumers, respect for the environment for 27%, social causes for 23% or diversity and inclusion for 18%.

• The importance of social commerce: While traditional channels are still widely favoured by consumers, social commerce is becoming an increasingly important part of the shopping basket. Nearly half of European consumers (43%) say they have purchased on social networks in the last six months. In France, 41% of consumers made their purchases via Facebook (for 18% of respondents), Youtube (16%) or Instagram (15%). Clothing and accessories are among the most purchased products (29%), followed by beauty products (20%), online ticket purchases (20%) and online games (18%).

• Split payment: Split payment appears to be more widespread in France than in other European countries. This solution is widely favoured by Gen Z: 42% of them say they use it to finance their average shopping basket of 200 euros per month. These purchases are mainly made up of clothing and accessories.

• The emergence of the Web3 and its possibilities are helping to shape the new contours of online commerce. According to the E-commerce Index, more than one consumer in ten (13%) believes that virtual spaces and the metaverse will become important channels for online commerce. 15% of French people have already been to a metaverse and this figure rises to 40% when it comes to Gen Z.

MARKET PERSPECTIVE

• Although the trends are similar across countries, there are some specificities.

• In the UK, TikTok is becoming the search engine of choice for the generation. It is also gaining popularity among shoppers aged 18-25, with almost half (48%) making a purchase via the platform.

• Also in the UK, the economic impact of the pandemic and a sudden sharp wave of inflation are contributing factors driving international shopping - with access to better prices (35%) and products they can't find locally (31%) cited by international shoppers as the main reasons for shopping outside their home country. The study shows that almost a third of people (62%) now buy from abroad and a fifth (21%) of consumers who buy online come from retailers based outside their own country.