Spotlight on… impulse e-commerce

TRENDS & INSIGHTS


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MARKET INTELLIGENCE




Spotlight on… impulse e-commerce

Consumers are buying online more impulsively – how can your business make the most of it?



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Average reading time: 4 minutes




Executive summary

Social media, especially TikTok, is changing the way we shop online, with users being served ads and content specifically tailored to them.


Impulse buying is sparked by a range of factors. Anything from spotting a great deal to wanting to relieve stress can trigger a purchase.


Establishing a strong digital presence can help engage an audience. By using consumer insights, businesses can adapt their content to encourage impulse buying.





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Spotlight on impulse ecommerce image body 1
Spotlight on impulse ecommerce image body 1



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96%

Nearly all global internet users (96%) are on at least one social media platform1


What is impulse e-commerce?

The way we shop online is evolving, with research suggesting that some consumers are becoming more spontaneous in their buying habits – making purchases without having had any prior intention to do so.

Rather than going online specifically to shop, these customers are inspired to buy an item there and then by what they discover when browsing. Social channels are driving many of these purchases.

Nearly all global internet users (96%) are on at least one social media platform, spending about two-and-a-half hours a day on them on average.1 And, with brands, influencers and peers all using them to showcase their latest products and trends, users can discover aspirational items with every scroll of the thumb. Customers often don’t even have to leave the app to make a purchase, and this ease could help explain why the global social commerce market is expected to reach $1.9 trillion 2026.2




"Research suggests that some consumers are becoming more spontaneous in their buying habits."


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39%

39% of users say they've doscovered brands they'd never heard of through TikTok.


Who’s making impulse purchases and why?

Since 2020, there’s been an 8% drop in consumers saying they undertake research online before buying a product.3 But there’s a generational divide in impulse shopping with 41% of Gen Z and millennials make impulse purchases online every two to three weeks, compared to just 10% among baby boomers.4

In addition, a study by Shopify found that, in January 2020, the average US consumer spent $155.03 a month on impulse buys, which rose to $182.98 over the next four months.5 This period covered the start of the pandemic – when ‘hedonistic buying,’ or shopping purely for pleasure, rose considerably6 – but also the meteoric rise of TikTok.

The discovery-led social platform focuses on serving users the content they like, which gives small businesses the same opportunity to go viral as any big brand. 39% of users say they’ve discovered brands they’d never heard of through TikTok, while 49% have made buying decisions directly in-app.7

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Spotlight on impulse ecommerce image body 2
Spotlight on impulse ecommerce image body 2




What motivates an impulse buy?




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Emotional factors

  • Positive feelings such as happiness and excitement8
  • Trying to relieve negative ones like stress or boredom9
  • A sense of urgency or fear of missing out10



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Social or environmental factors11

  • Recommendations from a friend or influencer
  • An unmissable deal or special offer
  • Solving a problem, like seeing a fan for sale on a hot day




How can businesses leverage impulse e-commerce?

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Spotlight on impulse ecommerce image body 3
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1. Use your agility

Consumer interest can move very quickly, but the agility of smaller businesses can often give them an advantage over bigger brands by allowing them to jump on trends and become a part of the online conversation. Ensure your channels are a constant source of fun, relevant content which keep consumers coming back for more.12






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2. Partner with trusted creators

User-generated content is becoming increasingly popular,13 and partnerships with influencers could potentially help your business get noticed by a larger audience. Research shows that 11% fewer consumers say they trust online reviews than in 2020,14 so a trusted influencer’s endorsement of a product could be more powerful than a write-up from an official channel.






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3. Use analytics and insights

One of the best ways to reach more customers, or to build stronger bonds with existing ones, is to study your audience. Once you know who is following you and what they enjoy, it’s easier to provide them with more personalised content and products they’re likely to purchase.15




Disclaimer: The information provided on this page does not constitute legal, tax, finance, accounting, or trade advice, but is designed to provide general information relating to business and commerce. The FedEx Small Business Hub content, information, and services are not a substitute for obtaining the advice of a competent professional, for example a licensed attorney, law firm, accountant, or financial adviser.

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