Research predicts good Xmas for online retailers

Ebay Advertising has released research that suggests 85 per cent of consumers intend to maintain or increase their online shopping and 37 per cent will shop more online compared with 2008.

The research appears to predict a healthy Christmas for online retailers.

It also reveals 86 per cent of UK online shoppers are shopping the same or more online overall compared with six months ago, citing trust (78 per cent), selection (70 per cent, and value (70 per cent) as the key reasons.

The UK findings from a study of more than 5,000 European online shoppers, reveals that entertainment (71 per cent), clothing, shoes and accessories (67 per cent) and consumer electronics (52 per cent) are the top most-purchased categories.

While not in the top three categories, groceries showed the biggest growth with 47 per cent of online shoppers buying more groceries online compared with six months ago.

In addition, 38 per cent of UK online shoppers buying consumer electronics and 37 per cent buying home and garden items are buying more of these items online compared with six months ago.

When consumers choose where to do their online shopping, 78 per cent say they only buy from sites they trust.

In addition, 70 per cent choose sites where they know they will get the best selection of items, and 70 per cent say they always get the best deal they can on the items they buy.

Value for money is the biggest reason why online shoppers are buying more items online across top shopping verticals, including consumer electronics (84 per cent), entertainment (83 per cent), clothing, shoes and accessories (63 per cent) and home and garden (59 per cent).

The study reveals key insights into their response to online advertising as they search, browse and buy items on the web.

It shows that 60 per cent of shoppers are most receptive to advertising when they are on an e-commerce site.

This is significantly higher compared with the five per cent that are receptive to ads on portals, and seven per cent that pay attention to an ad when using social networks.

Display ads on e-commerce sites have the biggest impact on consumer purchase (23 per cent), followed by sponsored links (20 per cent).

In contrast, only four per cent of online shoppers said a video ad had prompted them to buy a product online in the last six months.

Based on quantitative and qualitative research into the attitudes and motivations of online shoppers from the moment they search to the moment they purchase, the study revealed three new tribes of online shopping behaviour.

Consisting of 23 per cent of online shoppers, Instinctives are impulse buyers who get a 'buzz' from the actual moment of purchase.

They are heavily influenced by brand names, convenience and advertising and use these as shortcuts to reach the online checkout as quickly as possible.

This group of shoppers are largely female (54 per cent), with 56 per cent under the age of 35.

For them, price considerations take a backseat, and they are responsible for the highest increase in online shopping and spend over the last six months, across all popular shopping categories.

In addition, 35 per cent of online shoppers are identified as Inspectors, who enjoy spending time comparing prices of products online to get the best deal.

This group of savvy shoppers consider online shopping a 'hobby' and spend the most time making sure they get the right deal at the right price, without compromising on quality.

The gender split is equal (51 per cent male, 49 per cent female) and 51 per cent are under the age of 35.

Popular item purchase categories for Inspectors include mobile and consumer electronics.

The Stock-Takers (42 per cent) are identified as the most cautious and sensible group of online shoppers, who research items thoroughly before they buy.

They only shop on sites they trust that offer a wide selection of items to choose from.

In addition, 51 per cent are over the age of 35 and 52 per cent are male.

They regard online shopping as a means to convenience rather enjoyment.

The most common purchases among the Stock-Takers are consumer electronics and home and garden items.

Phillip Rinn, director of advertising partnerships at Ebay, said: 'As e-commerce becomes an increasingly significant part of people's daily lives, understanding how to engage with the online consumer is fundamental to achieving advertising success.

'As our study shows, online shopping is a varying and developing behaviour.

'Brand advertisers that understand why and how different groups of e-buying consumers are motivated to purchase online, will have greater chance of reaching engaged consumers in the purchase mindset.

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