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U.S. online holiday retail sales are expected to hit $27 billion this year, representing a year-over-year surge of 23 percent according to a recent Forrester Research report.
Much of the reasoning behind the expected growth is consumer comfort with the online channel. Given busy schedules and packed store lines, consumers want to avoid the stress all together, and online purchasing offers the convenience and speed. About one-fifth of those surveyed indicated that the Internet will be the place they shop this holiday season.
Consumer sentiment towards the Internet can be attributed to the economy’s health. While 2005 was a year of a housing boom, 2006 was a year of wild gas price fluctuation, leading to consumer uncertainty. Factors that remain uncertain make people a little more reluctant to increase their spend, but gas price fluctuation may actually contribute to online retail sales growth, as people try to avoid that drive to the store. In fact, 23 percent of respondents noted that they are more likely to shop online because of higher gas prices.
Still, retailers have obstacles to overcome. Product fulfillment issues were a major complaint from last year. Fifteen present of survey respondents noted that they received their online orders after the holiday season had passed, leaving them empty handed for gift giving. Additionally, consumers are skeptical of the online return process. Fifty percent feel that returning items purchased online is a hassle, and 27 percent stated they would rather not buy online just to avoid the hassle of returning items.
Retailers are charged with making the online purchasing experience seamless and as easy as possible for the consumer to boost sales generated online. Some tips include:
- Featuring a robust selection of items
- Emphasizing the convenience of the return process
- Provide free standard shipping
- Offer overnight delivery
According to the report, an overwhelming 66 percent of respondents are more likely to shop at a retailer that provides free shipping than not. It is especially important to increase marketing spend and be visible in portals, paid searches or shopping engines. This is the time of year that customers are using these vehicles to search for what they want and it is vital to ensure your company is top of mind.
For more information about Online Marketing, contact O’NEIL Data Systems. Phone 866–659–0824 or sales@oneildata.com.
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