'Tis the season to spend your lolly... - Net.Matters - October 2007

A number of articles have been published in the media this month covering retail predictions for online Christmas shopping this year.  The figures are staggering:  experts at Forrester Research predict online shopping across western Europe will top 51 million euros (£35bn) between October and December - up 58% from last year.

A survey by Which? confirms that consumers are drawn to online shopping as it is convenient (especially with so many households using broadband), offers price competitiveness and comparison, greater choice and crowd avoidance.

Interestingly, the UK market will take the biggest slice - £14 billion, which equates to £509 for every online shopper.  Compared to Germany, whose online shoppers are predicted to rise to 33 million, only 27 million British shoppers will indulge - but we will spend more (the Germans are expected to spend 2 billion euros less).  The French will spend less still - 6.5 billion euros and the Italians and the Dutch will be even more timid with 2.1 billion and 1.9 billion euros respectively.

The areas that will benefit most come as no surprise - books, DVDs, toys, video games, consumer electronics and alcohol.  And the biggest winner, the report suggests:  "Despite a smaller Christmas boost, the leisure travel category will claim most online sales - responsible for 31% of Christmas sales."

The report from Forrester also warns online retailers to get their logistics in place now, as online shoppers are already scouring sites.  Senior analyst Victoria Bracewell Lewis was quoted as saying:  "Online retailers who provide their customers with reliable, quick and reasonably priced delivery options will be this season's big winners.  And, it's important to sell your dispatch services, especially in light of recent strikes within the Royal Mail."

Webcredible (a usability and accessibility consultancy) has compiled a top 5 list of the best online high street retailers - based on 20 leading retailers who were each measured on website performance:  ease of use, efficient product search facility and purchase process from selection through to basket and finally payment.

Best Customer Experience

1.  HMV, (www.hmv.co.uk)
2.  Game, (www. game.co.uk)
3.  Mothercare, (www.mothercare.co.uk)
4.  Argos, (www.argos.co.uk)
5.  John Lewis, (www.johnlewis.com)

A full copy of the report can be downloaded from www.webcredible.co.uk/ecommerce2007

Not only is online shopping a means of avoiding the tortuous crowds but you could be bagging a bargain at the same time.  Reuters UK report on research by Which? (covered in their November issue) which says savings can be made across a range of products by purchasing online.  Looking at 111 retailers and 72 products researchers at Which? found a range of savings:

	Online Savings
LCD & Plasma TVs	29%
Books	14%
Digital cameras	11%
MPS/MP4 players	11%
CDs	7%
Champagne	2%

Standard pricing across retailers was more likely to be found on games consoles (Wii, Xbox 360 and PS3) but the discerning shopper could still benefit from comparing pricing when the product was bundled (i.e. extra games and accessories were thrown in).