Digital River Survey on Cost of Living and Online Spending Habits
Digital River has revealed how rising costs and inflation have impacted consumer habits. The new research, conducted by Opinium, explores how consumers’ finances and general spending have changed over the past six months due to the current socioeconomic landscape. The survey includes responses from adults from the US, UK, and Germany.
United States Results
Finances and General Spending
Less than half of US adults say they are currently struggling
Just under two in five US adults (39%) say they are currently financially comfortable, compared to a quarter (25%) who are struggling. More than a third (34%) say they are ‘getting by’.
Almost half of US adults (45%) also say their financial situation has got worse in the past 12 months, with less than a quarter (24%) who think it has got better. Three in ten (30%) say it has stayed the same. US adults are slightly more optimistic for the future however, with almost two in five (38%) expecting their financial situation to get better in the next 12 months, and just over a quarter (27%) who think it will get worse.
US adults are expecting to reduce their spending on special occasions this year
Almost two in five (38%) expect to be spending less at Christmas this year, with a further third (32%) expecting to spend about the same as usual. Two in five (40%) expect to spend less on holidays this summer, compared to 26% who say this will be the same.
In terms of more general ways to reduce spending, two thirds (67%) say they have reduced their spending on non-essential items in the past six months. This is followed by reducing spend on travel (49%), essentials (35%) and utilities (26%). Just 14% of US adults say they haven’t done anything to reduce their spending in the past six months.
Online Purchasing
Just over two fifths of US adults make online purchases at least once a week
Just over two in five US adults (42%) say they make an online transaction at least once a week, compared to 52% who do this less than once a week. Looking at this in more detail, a fifth (20%) say they typically make a purchase online once a week, 19% every two to three weeks, and 18% once a month.
Most online shoppers pay for products and services using debit (63%), with just over half (51%) using credit and one eighth (12%) using buy now-pay later (BNPL) for some online transactions.
For those who use Buy Now Pay Later (BNPL), two thirds (67%) say they do this to stretch their budget further while half (48%) use it to make a high value purchase. In comparison, those who use debit mainly use it to avoid interest rates on credit cards (64%).
Just over half (55%) credit card-users say they pay their balance off in full in a typical month, with 29% only paying a portion of their balance, and 14% who used to pay off all their balance but now only pay a portion.
The majority of BNPL users have used this more often in the last six months
Of those who use Buy Now Pay Later, almost two thirds (64%) say they have used this payment method more often in the last six months when buying online. Half (51%) say this was because it is a convenient way of paying, followed by finances being tighter (48%), increasing product costs (44%), and buying a specific product (38%).
In comparison, three fifths (60%) of credit card-users say they are using this payment method about the same as usual, compared to 31% who are using it more. Among those using it more, 44% say it is because of the convenience, followed by tighter finances (42%), and increasing product costs (40%).
Online vs In-Person Shopping
A third of US adults have shopped online more frequently in the past six months
Two in five US adults (39%) say they have shopped online more frequently in the past six months, with just 17% having shopped in person more. However, 41% say they have not changed the amount they shop online compared to in person.
For those who have shopped online more frequently, three fifths (59%) say this is because it is more convenient, followed by avoiding travel costs (37%), and buying certain products unavailable nearby (33%). On the other hand, those shopping more frequently in person do so because of the convenience, in-store experience (both 42%), and avoiding shipping costs (38%).
A fifth of US adults also expect they will shop more frequently online in the future
Three in ten US adults (30%) say they expect to shop online more frequently in the future, with 14% thinking they will shop more in person. However, more than half of US adults (52%) say they don’t expect their online spending to change.
For those expecting to shop more online, 54% say this is because it is more convenient, followed by avoiding travel costs (41%) cutting back on spending (29%) and buying products not available locally (28%).
Respondents more likely to shop in person cited liking the in-store experience (42%), shipping costs (35%) and convenience (33%) as the main reasons for this.
When asked generally about barriers to shopping more online, 45% say not being able to see products in person, followed by delivery pricing (35%), current financial situation, and high prices (both 30%).
Pricing was the primary factor in whether to shop online more, with almost three in five (57%) saying lower prices in general would make them more likely to shop online. Just under half (48%) would shop online more frequently if there were more discounts, a third (34%) if delivery times were quicker, and a quarter (26%) if there was a wider choice of products.
Groceries are most commonly bought in person, with TV and entertainment done more online
Over two thirds of US online shoppers (68%) say they do more of their grocery shopping in person rather than online. Other types of shopping, consumers prefer to shop in person include healthcare and beauty products (51%), houseware and furniture (48%) and clothes, shoes and fashion (43%).
Entertainment products and services are bought more often online by just over two in five US online shoppers (42%), followed by technology and electrical products (34%), clothes shoes and fashion (28%), and lifestyle or hobby items (26%).
Pricing
In person and online price increases have been noticed by most US online shoppers
More than seven in ten online shoppers (71%) say they have noticed an increase of prices in person over the past six months, compared to 67% who have noticed price rises online. This includes 29% who think in person prices have increased a lot, compared to 20% who say the same about online goods and services.
For those who say online prices have increased, 47% have reduced the amount they spend online as a result of this, followed by two in five (39%) who have tried to find discount codes, and 29% who have used comparison sites more frequently. Around one eighth (13%) say they haven’t done anything in particular as a result of price increases.
More people find online prices easier to track than in person
A third of US online shoppers (33%) say they find it easier to track online prices compared to 23% who think in person prices are easier to track. However, 37% say they are both about as easy as each other to monitor.
Online shoppers say they often make direct comparisons between online products and those they buy in person. Almost half (47%) always or usually do this, while more than a third (32%) only do it sometimes.
Almost two thirds of US online shoppers (64%) say they want more help from retailers to deal with rising prices. Without this, online shopping could be most affected, with half (49%) of online shoppers agreeing that online purchases would be among the first things to go if they needed to reduce their spending.
When asked what would be most helpful for retailers to offer to help with the cost of living. 48% said free or reduced delivery fees, 43% say more vouchers and options, and 34% think ways to compare prices with other retailers.
Two in five online shoppers (41%) say they have browsed for things online even if they couldn’t afford them, with 23% having moved money from one account to another to make an online purchase, and the same amount who have abandoned an online purchase in the past due to insufficient funds.
United Kingdom Results
Finances and General Spending
Less than half of UK adults say they are currently struggling
Just under half of UK adults (47%) say they are currently financially comfortable, compared to just over one in six (17%) who are struggling. More than a third (35%) say they are ‘getting by’.
Almost half of UK adults (46%) also say their financial situation has got worse in the past 12 months, with less than a fifth (19%) who think it has got better. One in three (34%) say it has stayed the same. UK adults are also not especially optimistic for the future, with half (48%) expecting their financial situation to get worse in the next 12 months, and just 18% who think it will get better.
UK adults are expecting to reduce their spending on special occasions this year
Almost two in five (37%) expect to be spending less at Christmas this year, with a further 43% expecting to spend about the same as usual. A third (34%) expect to spend less on holidays this summer, compared to 34% who say this will be the same.
In terms of more general ways to reduce spending, more than half (58%) say they have reduced their spending on non-essential items in the past six months. This is followed by reducing spend on travel (37%), essentials (32%) and utilities (28%). Less than a quarter of adults (24%) say they haven’t done anything to reduce their spending in the past six months.
Online Purchasing
Just under half of UK adults make online purchases at least once a week
Slightly less than half of UK adults (47%) say they make an online transaction at least once a week, compared to 50% who do this less than once a week. Looking at this in more detail, a quarter (24%) say they typically make a purchase online once a week, 22% every two to three weeks, and 23% two to four times a week or more frequently.
Most online shoppers pay for products and services using debit (63%), with just under half (47%) using credit and 15% using buy now-pay later (BNPL) for some online transactions.
For those who use BNPL, almost three in five (58%) say they do this to stretch their budget further while half (48%) use it to make a high value purchase. In comparison, those who use debit mainly use it to avoid interest rates on credit cards (58%).
Seven in ten (70%) credit card-users say they pay their balance off in full in a typical month, with 21% only paying a portion of their balance, and 8% who used to lay off all their balance but now only pay a portion.
The majority of BNPL users have used this more often in the last six months
Of those who use buy now pay later, two thirds (66%) say they have used this payment method more often in the last six months when buying online. Half (49%) say this was because their finances are tighter than they were previously, followed by convenience (44%), needing to buy a specific product (38%) and the increasing cost of products (36%).
In comparison, three fifths (60%) of credit card-users say they are using this payment method about the same as usual, compared to 31% who are using it more. Among those using it more, 44% say it is because of the convenience, followed by tighter finances (42%), and increasing product costs (40%).
Online vs In-Person Shopping
A third of UK adults have shopped online more frequently in the past six months
One in three UK adults (33%) say they have shopped online more frequently in the past six months, with just 9% having shopped in person more. However, more than half (56%) say they have not changed the amount they shop online compared to in person.
For those who have shopped online more frequently, half (50%) say this is because it’s more convenient, followed by items being cheaper online (30%), and avoiding travel costs (30%). On the other hand, those shopping more frequently in person do so because of the in-store experience (38%), avoiding shipping costs (35%), and for the convenience (32%).
A fifth of UK adults also expect they will shop more frequently online in the future
More than one in five UK adults say they expect to shop online more frequently in the future, with only 8% thinking they will reduce their spending. Two thirds of UK adults (66%) say they don’t expect their online spending to change, however.
For those expecting to shop more online, 43% say this is because it is more convenient, followed by avoiding travel costs (33%) cheaper items (29%) and online retailers offering better discounts (26%).
Respondents more likely to shop in person cited avoiding shipping costs, liking the in-store experience (both 35%) and convenience (32%) as the main reasons for this.
When asked generally about barriers to shopping more online almost two in five (38%) say not being able to see products in person, followed by delivery pricing (32%), delivery timings, and current financial situation (both 20%).
Pricing was the primary factor in whether to shop online more, with just under half (45%) saying lower prices in general would make them more likely to shop online. Two fifths (38%) would shop online more frequently if there were more discounts, a quarter (25%) if delivery times were quicker, and a fifth (20%) if there were a wider choice of products.
Groceries are most commonly bought in person, with TV and entertainment done more online
More than half of UK online shoppers (54%) say they do more of their grocery shopping in person rather than online. Other types of shopping done more in person include healthcare and beauty products (35%), houseware and furniture (31%) and clothes, shoes and fashion (30%).
Entertainment is bought more often online by just under half of UK online shoppers (47%), followed by technology and electrical products (42%), clothes shoes and fashion (36%), and lifestyle or hobby items (32%).
Pricing
In person price increases have been noticed more than online price rises
Almost two thirds of UK online shoppers say they have noticed an increase of prices in person over the past six months, compared to 57% who have noticed price rises online. This includes 13% who think in person prices have increased a lot, compared to 9% who say the same about online goods and services.
For those who say online prices have increased, 42% have reduced the amount they spend online as a result of this, followed by two in five (38%) who have tried to find discount codes, and 27% who have used different retailers/providers. Less than a quarter (22%) say they haven’t done anything in particular as a result of price increases.
More people find online prices easier to track than in person
Over a quarter of UK online shoppers (29%) say they find it easier to track online prices compared to 19% who think in person prices are easier to track. However, two in five (39%) say they are both about as easy as each other to monitor.
However, many online shoppers say they rarely make direct comparisons between online products and those they buy in person. Three in ten (28%) rarely or never do this, while more than a third (36%) only do it sometimes.
Half of UK online shoppers (50%) say they want more help from retailers to deal with rising prices. Without this, online shopping could be most affected, with two in five (41%) online shoppers agreeing that online purchases would be among the first things to go if they needed to reduce their spending.
When asked what would be most helpful for retailers to offer to help with the cost of living. 48% said free or reduced delivery fees, 38% more vouchers and options, and 31% ways to compare prices with other retailers.
A quarter of online shoppers (25%) say they have browsed for things online even if they couldn’t afford them, with 17% having moved money from one account to another to make an online purchase, and 14% who have abandoned an online purchase in the past due to insufficient funds.
Germany Results
Finances and General Spending
Less than a fifth of German adults say they are currently struggling
More than half of German adults (55%) say they are currently financially comfortable, compared to a 17% who are struggling. More than a quarter (27%) say they are ‘getting by’.
However, almost half of German adults (45%) also say their financial situation has got worse in the past 12 months, just a fifth (20%) who think it has got better and just over a third (36%) who say it has stayed the same. German adults are also less optimistic for the future, with two in five (41%) expecting their financial situation to get worse in the next 12 months, and a quarter (25%) who think it will get better.
German adults are expecting to reduce their spending on special occasions this year
Over a third (36%) expect to be spending less at Christmas this year, with a further two in five (38%) expecting to spend about the same as usual. One in three (33%) expect to spend less on holidays this summer, compared to 26% who say this will be the same.
In terms of more general ways to reduce spending, three fifths (61%) say they have reduced their spending on non-essential items in the past six months. This is followed by reducing spend on travel (43%), essentials (37%) and utilities (36%). Just 17% of German adults say they haven’t done anything to reduce their spending in the past six months.
Online Purchasing
Just over a third of German adults make online purchases at least once a week
Around one in three German adults (36%) say they make an online transaction at least once a week, compared to 62% who do this less than once a week. Looking at this in more detail, a fifth 23% say they typically make a purchase online every two to three weeks, 22% once a week, and 21% once a month.
Most online shoppers pay for products and services using Buy Now Pay Later (36%), with a third (32%) using credit and just over a quarter (28%) using debit for some online transactions.
For those who use BNPL, two in five (40%) say they do this for general shopping while a quarter (26%) use it to avoid interest on credit cards. In comparison, those who use debit mainly use it also to avoid interest rates on credit cards (54%).
Just over three quarters (77%) of credit card-users say they pay their balance off in full in a typical month, with 16% only paying a portion of their balance, and 6% who used to pay off all their balance but now only pay a portion.
Almost half of BNPL users have used this more often in the last six months
Of those who use Buy Now Pay Later, almost half (47%) say they have used this payment method more often in the last six months when buying online. Three in five (61%) say this was because it is a convenient way of paying, followed by finances being tighter (38%), buying something specific (19%), and the increasing cost of products (17%).
In comparison, more than half (54%) of credit card-users say they are using this payment method about the same as usual, compared to 31% who are using it more. Among those using it more, 65% say it is because of the convenience, followed by tighter finances (25%), and increasing product costs (21%).
Online vs In-Person Shopping
A third of German adults have shopped online more frequently in the past six months
Almost two in five German adults (38%) say they have shopped online more frequently in the past six months, with just 17% having shopped in person more. However, 44% say they have not changed the amount they shop online compared to in person.
For those who have shopped online more frequently, over half (55%) say this is because it is more convenient, followed by avoiding travel costs (37%), and the fact items online are cheaper (35%). On the other hand, those shopping more frequently in person do so because of the convenience (48%), avoiding shipping costs (47%) and supporting local businesses (42%).
A quarter of German adults also expect they will shop more frequently online in the future
A quarter of German adults (25%) say they expect to shop online more frequently in the future, with 13% thinking they will shop more in person. More than half of German adults (57%) say they don’t expect their online spending to change, however.
For those expecting to shop more online, 53% say this is because it is more convenient, followed by avoiding travel costs (45%) retailers offering better discounts, and the fact items online are generally cheaper (both 36%).
Respondents who are more likely to shop in person, cited supporting local businesses, shipping costs (both 45%) and the in-store experience (38%) as the main reasons for this.
When asked generally about barriers to shopping more online, 43% say delivery pricing, followed by being unable to see products in person (41%) current financial situation, and delivery timings (both 25%).
Pricing was the primary factor in whether to shop online more, with over half (54%) saying lower prices in general would make them more likely to shop online. Just under half (47%) would shop online more frequently if there were more discounts, more than a (27%) if delivery times were quicker, and a quarter (21%) if there was a wider choice of products.
Groceries are most commonly bought in person, with TV and entertainment done more online
Over four fifths of German online shoppers (83%) say they do more of their grocery shopping in person rather than online. Other types of shopping with a preference for in-person rather than online include healthcare and beauty products (51%), houseware and furniture (40%) and clothes, shoes and fashion (28%)
Entertainment products and services are purchased more often online by just over two in five German online shoppers (43%), followed by technology and technology / electrical products (41%), clothes shoes and fashion (38%), and lifestyle or hobby items (29%).
Pricing
In person price increases have been noticed slightly more than online prices
Four fifths of online shoppers (81%) say they have noticed an increase of prices in person over the past six months, compared to 69% who have noticed price rises online. This includes a third (33%) who think in person prices have increased a lot, compared to 14% who say the same about online goods and services.
For those who say online prices have increased, 45% have tried to find more discount codes as a result of this, followed by two in five (38%) who have used comparison sites more, and a third (33%) generally reduced their online spending. Around one eighth (13%) say they haven’t done anything in particular as a result of price increases.
More people find online prices easier to track than in person
Two in five German online shoppers (41%) say they find it easier to track online prices compared to a fifth (20%) who think in person prices are easier to track. However, 32% say they are both about as easy as each other to monitor.
Online shoppers say they often make direct comparisons between online products and those they buy in person. Almost half (46%) always or usually do this, while almost a third (32%) do it sometimes.
Almost two thirds of German online shoppers (53%) say they want more help from retailers to deal with rising prices. Without this, online shopping may be affected, with three in ten (44%) of online shoppers agreeing that online purchases would be among the first things to go if they needed to reduce their spending.
When asked what would be most helpful for retailers to offer to help with the cost of living, 53% said free or reduced delivery fees, 43% say more vouchers and options, and 32% think making price changes easier to notice would help.
Additionally,14% of online shoppers say they have browsed for things online even if they couldn’t afford them, with 13% having moved money from one account to another to make an online purchase, and 12% who have abandoned an online purchase in the past due to insufficient funds.
