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BizReport : Ecommerce archives : November 03, 2011

Digital gifts have "last minute" appeal

A new survey from Elastic Path reveals the rise of digital gift purchases and the top reasons why consumers opt to purchase them.

by Helen Leggatt

A study from Elastic Path Software, a company that sells technology to support the sale of online digital goods, engaged research firm Vision Critical to survey shoppers in the US about their purchase of digital goods.

Those shopping for digital goods were found to have 40% bigger budgets than those purchasing physical items spending averaging $440. The survey also found that 30% of digital goods shoppers plan to spend more this holiday season than last year on gifts of all types, physical and digital, while only 13% plan to spend less compared to a year ago.

Digital goods may not appear neatly wrapped under the Christmas tree but, say 29% of digital shoppers, they're great for last minute purchases and there's no stressing about whether they'll arrive on time as they are delivered instantly. In fact, the absence of shipping fees attracted 22% and 19% liked that they didn't need wrapping.

E-books and music were the most popular digital gifts, cited by 11% of digital shoppers, followed by mobile apps (10%) and credits for digital games (8%).

"With the digital goods market expected to swell to $36 billion by 2014, digital goods and service providers will be pulling in big profits this holiday season. Some traditional brands have keyed-in on this and embraced the digital market. Mattel, Lego and Crayola, for example, have created 'app-cessories' - physical toys that interact with Apple gadgets - to lure techno parents," said Amanda Dhalla ecommerce consultant for Elastic Path.

"If you don't make or sell digital goods, it's not too late to consider adding third-party apps or digital subscriptions to your ecommerce site--sold with physical products, or as up-sells."

Tags: Christmas, digital goods, digital market, ecommerce, Elastic Path, gifts, mobile apps, online shopping, survey

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