Online sales of non-food products have been sluggish since the end of the Covid-driven e-boom but results in the past few months have shown a signs of life and now analytics and data specialist GlobalData has said UK non-food online penetration is set to improve for first time since the pandemic.

The non-food online market is set to grow by 2.9% to reach £106 million this year, with online penetration forecast to climb to 39%.

In fact, GlobalData “anticipates the non-food online market growth will outpace the total retail market, which is expected to increase by 2.1% in 2024”.

We’re told that social media “will play a vital role in the growth of the non-food online market, as consumers increasingly shop directly through social media platforms. Some 49% of UK consumers use Instagram, and 30.9% use TikTok, according to GlobalData’s latest monthly surveys of 2,000 consumers. Usage is highest among Gen Z consumers, with 88% using Instagram and 74% using TikTok, although ‘only’ 61% use Facebook.

The user percentages for Instagram, TikTok and Facebook among Millennials are 70%, 43% and 81%, respectively, so that group is clearly still very attached to Facebook. 

For Gen X it’s 42%, 26% and 74%, so another win for Facebook there. Among Boomers the numbers are 19%, 5% and 63%, further highlighting Facebook’s strength among older consumers and how Instagram and especially TikTok matter less to them.

As for the oldest consumers, the so-called Silent Generation, the percentages are 10%, 4% and 57%, showing similar results to Boomers.

Retail analyst Tash Van Boxel said: “Social media is growing as a retail channel, but given the variation in usage among the generations, retailers need to cater their content on each platform to reach their target audience. As younger consumers utilise Instagram and TikTok more than their older counterparts, retailers must tailor content to this demographic. For example, collaborations with content creators are more likely to resonate with younger consumers who are more trusting of social media reviews than sponsored posts announcing new product launches, which may capture all age groups. Personalising marketing campaigns and content will be key to growing retailers’ customer bases and bolstering online traffic.”

Retailers also have to be careful not to squash the revival by some simple errors. 

The surveys showed that 85% of frequent online shoppers would switch away from their favourite online retailer if they could find faster delivery for the same item elsewhere. A further 60% of frequent online shoppers said that the delivery experience impacts whether they shop at the retailer again. So retailers “must ensure that delivery services provide good value for money and high efficiency”.

Tash Van Boxel added: “Retailers must diversify online capabilities to take advantage of increased online demand. Enhancing online services will be essential, such as implementing AI-powered tools to strengthen apps and websites and improving fulfilment services. Not doing so will expose retailers to fluctuations in footfall, impacting offline demand. A strong online proposition can help retailers convert online browsers to purchase through services such as click & collect.

“Online shoppers value the delivery experience and will switch away to competitors if the experience goes sour. Prioritising cost-effective delivery methods is crucial for retailers to retain customers, ensuring shoppers have options, such as next-day delivery and nominated-day delivery at reasonable prices. Retailers must also be cautious about which couriers they partner with, as shoppers will look elsewhere if the only available courier has proved to be unreliable in the past.”