Online shopping to increase in 2010, survey shows

Logan Tod's Annual Online Shopping Index has revealed that the public intend to do 23 per cent more shopping online in the run up to Christmas 2010.

This complements the figures from the IMRG, which show that e-tailers experienced growth of 17 per cent on the previous December.

The fourth annual index from Logan Tod found that shoppers purchased more than half of their gifts online this past Christmas.

The research, which reviews and predicts consumers' attitudes towards online Christmas spend, still found that cost was the most important factor, with just under 70 per cent choosing to shop online due to competitive prices.

Matthew Tod, chief executive at Logan Tod, said: '2009 was a tough year financially for everyone, so it is not surprising to see cost play such an integral part of the purchasing process.

'That is why it is extremely positive to see that online retailers were so successful over Christmas.

'It is important to note that consumers are still concerned with the experience that they have online, with 65 per cent of consumers indicating they will go to stores they have had previous good experience with.

'Search continued to be a big influence this Christmas with 42 per cent visiting online stores through search engine results.

'Moving forward, retailers will also have to look at the broader influences on their sites, from back-end functionality to third-party recommendations; it all impacts the customer journey,' he added.

As with the last two previous years, the 2010 Index showed the largest group of growth is the 'adopters' age group, aged 45-plus, who are becoming increasingly comfortable shopping online.

These shoppers are more focused on convenience, with the primary reasons for shopping online being: prices; store opening times; home delivery; and avoiding crowds.

More than 70 per cent of this demographic researched online before purchasing.

However, this group is less tolerant to customer experience issues and as the richest and fastest-growing demographic, it is necessary for retailers to consider their habits.

Once at an online site, the most important elements for conversion were listed as: delivery options (68 per cent); site search and product availability (67 per cent); and well-written copy (50 per cent).

It would appear that online retailers have been taking heed of these trends, with 42 per cent of UK adults stating that this year's online shopping experience was better than last year.

The biggest shoppers (those who bought the majority of their Christmas shopping online) were most affected by delivery options and search.

This varies from last year's research, which found crowds and opening times most important.

Interestingly, a third of all online Christmas shoppers used 'click and collect' this Christmas, therefore this should be a key part of any high-street retailer's strategy.

Tod said: 'The shift in the mindset of the consumer has produced a savvier shopper.

'The public is planning to do yet more search and is looking for money-off vouchers and promotions.

'By Christmas 2010, 60 per cent of shoppers stated that research will be crucial in their purchasing decisions, however, a third of consumers will abandon sites that are not good enough quality.

'Retailers will need to be more intelligent than ever to target the more considered purchaser - the overall customer experience from search to purchase will be under scrutiny.

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