Washington, DC, December 21, 2005--With three-quarters of the holiday shopping season complete, online retailers are more optimistic than ever.
Eighty-two percent reported feeling very or somewhat optimistic about the holiday season. The number of online retailers saying they feel “very optimistic,” increased to 41.0 percent compared to 24.0 percent when they were surveyed in late September before the holiday season began.
More than one-third of retailers report sales growth of 50.0 percent or higher compared to the same time last year and three-quarters of retailers report growth of 20.0 percent or higher.
“After a strong Cyber Monday, online retailers haven’t looked back,” said Scott Silverman, executive director of Shop.org. “Aggressive marketing and promotions, combined with enhanced customer service and product availability have kept the momentum going.”
Fifty-nine percent of online retailers reported that their average order size increased compared to last year and 58.0 percent of retailers reported that their browse-to-buy or “conversion” rate increased compared to last year.
Despite reports of increasing costs for search engine marketing, 56.0 percent of online retailers report that their return on investment in paid search has increased compared to last year at the same time. Increased spending on paid search was the most frequently mentioned mid-holiday marketing adjustment being made by online retailers.
Shoppers are benefiting too--96.0 percent of online shoppers say that they are satisfied with their online buying experience so far this holiday season.
“So far, this season has been an undisputable success for both online retailers and their customers,” said Chuck Davis, chairman of Shopzilla. “The hard work online retailers have put into creating the best possible online shopping experience is paying off. With consumer satisfaction so high there is a state of near nirvana, especially given shoppers high holiday demands.”
Despite the success they’ve experienced so far, retailers have no plans to rest on their laurels. During the week of December 19, more than half of online retailers will still be offering free shipping promotions, and 35.0 percent of retailers will offer free shipping upgrades, allowing shoppers to receive two-day shipping at the cost of standard shipping.
