Looking at the seemingly endless line of traffic jams at this time of year fills a lot of people with dread.
Just like pension contributions and budget deficits, the longer you delay the Christmas shop – the worse it gets. I’m sure avoiding the rush of the high street is one factors fuelling the rise in online shopping at Christmas, which according to latest figures, has increased dramatically in the past year.
‘Cyber Monday’, which falls on the first Monday in December, showed that UK sales were up 21% this year compared with 2009
‘Cyber Monday’, which falls on the first Monday in December, showed that UK sales were up 21% this year compared with 2009. Considering the news environment is full of downward graphs on house prices and stocks, it’s certainly welcome to see real and sustainable growth in ecommerce.
And industry analysts are even more buoyant for December as a whole. Projections for UK internet sales in December 2010 are expected to increase 22% to £6.9 billion compared to last year.
The trend is even more impressive in the US. Black Friday, the day after Thanksgiving holiday, witnessed online retail sales rises of 39% compared to 2009.
Industry analysts highlight a mixture of greater convenience and savvier shopping for the rise in online Christmas sales. Commenting on the figures, David Smith, managing director at IMRG, said: “The economic climate is tough for retailers, but online can offer the value, choice and convenience that consumers turn to in order to make the most of their resources.”
Carl Clump, CEO of Retail Decisions, believes deal-hungry shoppers are turning to online offers and sales to grab a seasonal bargain. “Shoppers are getting smarter when it comes to the great deals to be found online,” says Clump. “Experienced bargain hunters go out and window-shop at the weekend to choose what they want, but then buy online on Monday after searching for the very best prices.”
It’s also interesting to look at the competitive playing field of online selling. There’s no doubt that pioneering ecommerce companies such as Amazon are raising the bar for online sales and have forced established bricks and mortar retail brands to dedicate more resources to Christmas ecommerce sales.
This year witnessed more investment from major retail players across the whole business cycle from marketing and sales to fulfilment and customer relations. Huge sales growth from ecommerce ‘topdog’ Amazon has undoubtedly encouraged major retailers such as Wal-Mart to offer free shipping on sales during the Christmas season.
Indeed in the US, over 1700 retailers have joined together as part of National Free Shipping Day on 17 December, no doubt keen to help remain competitive and attract bargain conscious shoppers.
However online selling isn’t a straightforward recipe for success. Retailers need to be extra prepared for the added pressure that the season brings on their fulfilment and customer care systems.
The message from ecommerce experts this Christmas is that retailers really need to keep to delivery times and providing great after sales support to ensure their hard earned online custom returns to their sites next year.
