British love affair with online shopping continues

Friday, 27 March 2009

Logan Tod, the e-business consultancy, has revealed that consumers are planning to spend more money online than ever before, despite the credit crunch. And it seems that this increase is all down to our desire to save money in the current economic climate, with the research showing that value for money is now a top priority when it comes to making that all important next purchase.
 
The information on current consumer online shopping habits, compiled for the company's third annual Online Shopping Index, reveals that almost two thirds (65%) of consumers plan to increase their shopping online over the next 12 months - which is welcome news for beleaguered retailers.
 
And it's those in the 45 and over age bracket who are mainly responsible for driving this growth (65% of those questioned in this age bracket said they will increase spend by at least 10%). As the over 45s become more internet savvy and comfortable with using e-commerce sites, they are now realising that online shopping offers the best value, and are taking advantage of current money off promotions.
 
Shoppers outside London are also purchasing more online, with the south west region alone planning to spend 20% more (when compared to the results from last year's Index). This increase can probably be attributed to the rise in broadband usage nationwide and the convenience of not having to travel any further than their living room to shop, as well as the quest to find a bargain.
 
By focusing on these groups, e-tailers can ensure they continue to grow steadily in 2009. According to the Index, the factors most likely to affect consumer behaviour are: low cost delivery (71%); increased money saving offers (67%); and improved description of goods and services (53%).
 
Matthew Tod, chief executive at Logan Tod explains: "We have already started to see signs of this predicted growth emerging in the recent online shopping results from Christmas 2008. With more and more people becoming accustomed to shopping online, it is no longer good enough to simply let the strength of your products drive your sales and traffic; you need to consider whether you are delivering a great experience for visitors to your site, or risk losing them to rivals.
 
"89% of those consumers we questioned felt that online service is getting better - this shows that the work being done to improve the customer experience is being noticed, and is one of the reasons why the public continue to vote with their money," concludes Matthew.

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