JupiterResearch, a leading authority on the impact of the internet and emerging consumer technologies on business, forecasts that 2006 online holiday retail sales will grow to U.S. $32 Billion, an increase of 18 percent over last year’s holiday season. According to JupiterResearch’s “Online Retail Holiday Forecast, 2006,” a record 114 million users, a 6 percent increase over last year, will buy online this holiday season.
“For retailers selling online, the larger opportunity this holiday season will come from increased levels of spending from existing online buyers,” said Patti Freeman Evans, JupiterResearch Senior Analyst and lead author of the report. “Additionally, more than one third of online holiday shoppers will still make online purchases after ground cut off dates, which signals opportunity and added stress for retailers to capture the inevitable last minute purchases.”
Retailers may be able to help online shoppers feel as though they are more in control of the season by presenting shipping cut off dates early and using them more frequently in their messaging. JupiterResearch has found that more than half of online holiday shoppers say that seeing shipping cut off dates helps them plan their shopping for earlier in the season.
“Retailers can maximize their opportunity with online shoppers and especially last minute shoppers,” said David Schatsky, President of JupiterKagan. “One strategy is to use upgrades to free shipping strategically with customer segments that are particularly sensitive to shipping costs, and less aggressive offers to buyers who have purchased last minute at full shipping in the past.”
to Daily News