Consumers Plan to Shop Online in Challenging Retail Holiday Season

Convenience and efficiency have clearly made shoppers more comfortable with the online channel, evidenced by more products being sold across a broader range of categories as well as increased usage of tools and information. Therefore, it's no surprise that this holiday season, the Web is projected to surpass the store as the preferred way for shoppers to purchase their holiday gifts.

The 3rd Annual Mindset of the Multi-Channel Shopper Holiday Survey, from the e-tailing group and ATG, reveals that 49 percent of those surveyed intend to do their holiday gift buying online while 44 percent plan to do so in-store. Reasons for shopping online start with saving time (88%), locating hard-to-find products (84%), greater selection (83%) and avoiding the crowds at the mall (83%) - all surpassing saving money, which is an important factor for 80 percent.

Given the tough economic climate, 52 percent of consumers plan to buy fewer holiday gifts this year. The average number of gifts is projected to be down from 16+ last year to 11-15 this year based on this online survey of over 1,000 adults who shop online 4+ times per year, spending $500+ annually.

Although these consumers plan to buy fewer gifts and spend less for those gifts, 72 percent vs. 65 percent in 2007 are planning to research products online prior to purchasing. More than 91 percent plan to purchase the same number or somewhat more gifts online, equal to last year's spending level.

Influencers when buying gifts online are topped by promotions, search and customer service based on a ranking of thirty-six features where free shipping, sales and specials top the list.

Seventy-eight percent of customers indicated that they are not buying more online due to the high cost of shipping. Setting a fair policy then monitoring it competitively and across the industry will be even more important during this cash-challenged holiday season. Keyword search along with clearly displayed and easily sorted search results speak to efficiencies and time-savings top performers.

For 42 percent vs. 30 percent last year, gift cards will account for 11-50 percent of their online holiday spending. Wish list usage has also accelerated with 35 percent vs. 25 percent last year reporting that they have shopped online from someone else's wish list 3 or more times.