eHoliday Mood Study: Catalogs Drive Online Sales
Tuesday, 19 December 2006

Mail-order catalogs are the most successful offline tool to generate online sales, with 38 percent of retailers rating catalogs as the most successful tool for increasing revenue, according to the 2006 eHoliday Mood Study, conducted by BizRate Research for Shopzilla and Shop.org.

Catalogs also resonate with consumers as 43 percent of online shoppers said they typically use printed catalogs to research products and then purchase items online. In fact, more online shoppers typically use printed catalogs to research products and buy online (43 percent) than use them to research and order products from the catalog (24 percent).

Online Shopping Grows in Consumer Popularity

As expected, online retailers are seeing big gains this holiday season. According to the survey, one-fourth (25 percent) of online retailers said their holiday sales are at least 50 percent higher than last year at this time.

Another one-fourth of retailers (26 percent) said that holiday sales have grown between 25 and 49 percent over last year. In addition, 68 percent of online retailers said that the average order value has increased over last year and 85 percent found that their site traffic has increased over last holiday season.

Consumers who plan to shop online this year say they will do so to avoid crowds (72 percent), avoid lines in retail stores (58 percent), and because they believe it is easier to compare prices (52 percent).

Tick Tock: Time Running Out for Shipping

Shoppers who would rather buy online than fight crowds at the mall need to keep a close eye on the calendar. According to the 2006 eHoliday Mood Study, time is running out for customers to shop online before retailers start scaling back shipping guarantees.

The Study, which polled 76 online retailers, found that the number of retailers who guarantee that standard shipping orders placed by December 18 or 19 will be delivered by Christmas Day (39 percent) nearly doubled from last year (19 percent), despite there being one less business day to ship merchandise this year due to Christmas falling on a Monday rather than a Sunday.

Approximately one-third (32 percent) of retailers' standard shipping deadline is December 15, 16, or 17 and almost a quarter (23 percent) is December 14 or earlier. A small group of retailers (6 percent) are pushing the envelope, saying that their magic day for final standard shipping orders to be placed would be December 20 or later.

"As retailers' systems become more sophisticated, shipping deadlines are being extended," said Scott Silverman, executive director of Shop.org. "Retailers recognize that many of us procrastinate, so companies are giving shoppers a little extra time to buy online this holiday season. Online retailers will be scrambling to fill every last order so that Christmas presents will be received on time."

"With this year's truncated shopping season, due to Christmas Day falling on a Monday, Internet retailers are working hard for the consumer by prolonging the standard shipping deadlines. This will be a great comfort to the consumer given that one quarter of online shoppers have yet to start their holiday shopping," said Helen Malani, Shopzilla's Chief Shopping Expert. "In fact, more than half of all online retailers (55 percent) are planning to offer free shipping, with conditions, in the final week leading up to Christmas – the week of December 17th."

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