Shop.org eHoliday study finds online retailers turning to social media, promos for holiday selling season
-- Home Textiles Today, 10/22/2009 12:37:00 PM
Washington – Shop.org’s new “eHoliday Study,” conducted by BIGresearch, predicts shoppers will see changes in retail marketing and promotions this holiday season as a result of economic uncertainty.
Keeping in mind that consumers are increasingly using social websites regularly like Facebook and Twitter – both of which pose cost-effective advertising options, the study found that 47.1% of retailers surveyed will be increasing their use of such internet venues this holiday season to promote their sales and special events. More than half of retailers said this year they have added or improved their Facebook and Twitter pages – 60.3% and 58.7%, respectively. And two-thirds, or 65.6%, have added or enhanced blogs and RSS feeds.
To provide consumers with an extra incentive to start shopping, one-third of retailers -- 34.3% -- said they intend to offer holiday deals earlier this year.
The study predicts free shipping offers will abound in the fourth quarter. Four out of five online retailers, or 79.4%, will offer free shipping with conditions at some point during the holiday season, while 57.4% also plan to offer free shipping without conditions. More than one-third, or 35.7%, said their budgets for free shipping are higher than last year, and 30.0% aid free shipping offers will start earlier than a year ago.
“Retailers know that times are tough so they have created promotions and incentives to help Americans save money this holiday season,” said Scott Silverman, executive director of Shop.org. “From free shipping to Facebook, online retailers are combining new initiatives with tried-and-true tactics to make their companies stand out.”
But cost control measures remain important. The survey found 41.4% of retailers have scaled back inventory levels and 22.9% have hired fewer people in their stores.
While online growth this holiday season is not expected to be as robust as it was in previous years, it remains a bright spot in retail. Almost half, or 45.8%, of online retailers expect their holiday sales to increase at least 15% above last year, while 33.9% expect sales to grow up to 14%.
As what the study described as “a testament to the economy and the maturity of online retail,” only 20.3%, expect sales to flat or decline.
“In a year where every penny counts, many people will start their holiday shopping online to find deals, search customer reviews to select products, and get gift ideas,” said Phil Rist, evp, strategic initiatives, BIGresearch. “The benefits of online shopping far outweigh the drawbacks, as far as most shoppers are concerned.”
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