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BizReport : Ecommerce archives : August 28, 2013

Online retailers' Christmas spending cheer not shared by consumers

Retailers can not rely on increased online consumer spending this coming festive season, according to new research from Peerius, but instead must focus on taking a larger share of spend, as cautious consumers expect to spend about the same as last year.

by Helen Leggatt

A survey by Europe-based personalization specialists Peerius reveals that retailers are feeling particularly bullish about online sales for Christmas 2013. Almost all (88%) expect growth in online sales of 20% or more, and even more expect sales to grow by 50% or more.

However, consumers don't share their optimism. In fact, two-thirds of consumers expect to keep their spending to about the same as last year and just 17% expect to spend more. Even among those who expect to shell out more online this Christmas than last, the average increase is just 26%.

Peerius-Logo-Green-e1357214412306.jpg"These findings are a timely reminder for retailers that there is absolutely no room for complacency," warns Roger Doddy, Director at Peerius. "If retailers are to deliver the online sales performance they are hoping for, and on which survival may well depend, the hard work starts now because it appears that delivering growth will mean taking a larger share of spend, rather than benefiting from significantly higher spending overall."

The Peerius survey also uncovered disparity between what consumers want, and what retailers think they want. Retailers severely underestimate consumers' want of lower prices with just 31% of retailers believing this to be true versus 68% of consumers. Likewise, while retailers think consumers want more help finding what they want, just 15% agree.

And, as usual, delivery makes a huge impact on whether consumers shop online or in-store, with 43% saying that 'flexible delivery options' would make them more likely to buy online.

Image via Shutterstock

Tags: Christmas, consumer preferences, ecommerce, Europe, festive season, online shopping, retail

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