Online spending looks bright this holiday season

5 Comments | This entry was posted in @Shop.org, Holidays, Research

Here in the Northeast, there’s a definite chill in the air this week, presumably boding well for thoughts of holiday shopping. So how are consumers thinking about spending this year? Our partner, BIGresearch, explored this topic with our parent, the NRF, in the October Consumer Intentions & Actions Survey. Herewith a few highlights for you (Shop.org Members can see results at the NRF site and as part of the 2010 eHoliday pre-holiday results):

  • 92% of consumers surveyed indicate that they plan to celebrate at least one major winter holiday this year (Christmas, Hannukah, and/or Kwanzaa).
  • Online retailers, rejoice: fully 44% of consumers plan to make some portion of their holiday purchases (gifts, food, decorations, etc.) online. As largely cross-channel shoppers, online consumers also plan to shop in discount stores, department stores, grocery stores and numerous other retail venues. (It’s November 10 – do you know where your cross-channel promotion strategy is?)
  • More good news: consumers who buy online this holiday season expect to spend a net average of $653.42 on gifts for family, friends, co-workers and others – that’s 25% more than consumers who will buy only offline.
  • As for decorations, greeting cards and postage, candy and food, as well as seasonal flowers, online holiday shoppers will also spend more than the average for shoppers buying only offline.
  • But wait, there’s more: after months (years?) of restraint, well over half of online holiday shoppers also plan to take advantage of sales and discounts to make purchases for themselves, somewhat more so than offline-only shoppers. Perhaps this year’s three magic little words are “You deserve it”…
  • And just in case you or your customers are stuck on what to buy that special (or not too special) someone? Almost two-thirds of online holiday shoppers most want to receive gift cards (brilliant for online retailers to extend holiday sales right through December 24), followed by books and media.

If you haven’t already done so, do also check out the NRF “Top 10 Holiday Trends for 2010″ post — see #9 especially. Happy holiday selling (and shopping) in the weeks to come.

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Posted in: @Shop.org | Holidays | Research

3 Comments

  1. Posted November 11, 2010 at 12:55 pm | Permalink

    These statistics certainly show that online retailers should be optimistic this holiday season!

    In addition to this, SeeWhy published results from an online poll this week, which shows that online retailers are approaching this holiday season differently from previous years, in the hope of increasing online sales. There has been a noticeable shift in retailers breaking from tradition and rolling out their promotions earlier. The results showed that two thirds of online retailers are rolling out holiday promotions this week or have already done so.

    In rolling out offers early, online retailers are hoping to entice web visitors not only to browse, but also to buy online to help minimize the impact of shopping cart abandonment which has a history of significantly increasing around this time of year. In 2009, there was a strong trend of customers stalling purchases in anticipation of holiday offers. From Labor Day through November 15, the number of online sales fell by almost 56 percent compared with the volume for the previous month, and the shopping cart abandonment rate shot up, peaking at 83 percent. Once holiday promotional offers were rolled out, the transaction volumes rose sharply, and the abandonment rate fell dramatically.

    With the majority of online retailers rolling out holiday offers this week, we can expect the shopping cart abandonment rate to fall sharply, as it did last year, as customers begin to take advantage of free shipping offers, which have for long been a customer favorite.

    It will be interesting to see how both the intentions of the consumers polled in the 2010 eHoliday pre-holiday results pan out and how the different tactics of the online retailers impact on this. There is more information on the SeeWhy survey results here: http://bit.ly/csef7Z.

  2. Posted November 18, 2010 at 8:45 pm | Permalink

    Thanks for the insights. I second Dawn’s emphasis on deals and coupons playing a major roll for retailers this Holiday season. They’re an integral part of capturing a piece of the Holiday shopping pie.

    So what works best? With my clients, straight percent off coupons for purchasing over a certain amount have shown great results.

    Additionally, making offers exclusive to certain marketing channels and making them time sensitive speak to the consumer directly and direct the consumer with haste.

  3. Posted December 3, 2010 at 12:42 am | Permalink

    Just sought after to say that you’re going to have some helpful articles in your site. You have achieved a astonishingly excellent employment with this 1. Thanks!

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