Consumers Shifting Budget to Online, Total Budget Remains the Same

25 Oct

The good news for online retailers: consumers plan on shifting a significant part of their budget and spend online. The bad news is sonsumers plan on spending about the same amount they did last year. This when in a report released today, online retailers  expect to grow their business 30% this holiday season.

 While consumers say their holiday shopping budgets are going to be the same as last years, 35% of them  plan on  shifting that budget and will be spending  it online according to a BizRate Research survey for online retailer trade group Shop.org and comparison shopping site Shopzilla. BizRate surveyed 2,695 online consumers and 116 retailers for its 2007 eHoliday Study.

Online retailers plan on aggressively growing their budget and to offer promotions. One of their favorites? Free shipping.

 Other takeaways:

  • Providing good value remains the most important attribute of an e-commerce site in consumers’ eyes, receiving an average rating of 4.52 out of 5.0. Shoppers also rated clear product descriptions (4.37), merchant reputation (4.31) and guaranteed on-time delivery (4.28) as important criteria in deciding where to shop.
  • Asked how they had improved their sites in the past year, 10.2% of merchants said they had added cross-selling from the product page this year and another 28.7% said they improved it; for cross-selling from the cart page the comparable figures were 9.3% and 19.4%. 24.8% said they had added product reviews for the first time and 14.8% faceted search that lets visitors narrow a search by attribute.
  • 10.3% of the online retailers surveyed said they had added Google Checkout as a payment option this year, 9.4% PayPal, 8.4% Bill Me Later and 8.2% gift card or certificate redemption. 96.4% say they accept credit cards and 63.6% debit cards.
  • Nearly half the merchants (48.5%) planned to start their online promotions by this week. Many of those who have not (28.2%) are targeting the week of Nov. 5 to begin. 21.8% said they plan to start their online marketing campaigns earlier this year, and only 2.6% later.
  • http://www.internetretailer.com/dailyNews.asp?id=24180

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