Are High Gas Prices Helping Online Sales?
By: Sara Conde
DALLAS, May 28, 2007/ FW/ --- According to the National Retail Federation, total online sales for 2007 is expected to reach $259 million, an increase of 18 % compared to last year’s $259.1 billion.
And from two different surveys released last week, one by Forrester Research and the other one by Kelly Blue Book, high gas prices are already affecting consumer behavior to lessen the financial impact of high gas prices.
The Forrester Research survey revealed that 40.2% of consumers are taking fewer shopping trips, while 37.9% are shopping closer to home. One in three consumers (30.7%) are shopping for sales more often and one in five (23.5%) are using more coupons.
Though the survey did not give any figures about online shopping, it is safe to assume that with consumers getting more comfortable in using computers, shopping online is another option open to consumers to offset the impact of high gas prices.
And with e-commerce sites offering free shipping on returns and exchanges, online shopping has never been so attractive. Add the fact that retailers are doing such a great job online that in some cases it’s easier to find and buy a product, such as clothing on the web than it is in stores
Speaking of clothing, fashion items like clothes, shoes and accessories have become the leader of the pack among the list of products that can be purchased online. The survey revealed that the apparel, accessories and footwear category reached $18.3 billion in 2006 and is expected to hit $22.1 billion in 2007. This year, 10 percent of all clothing sales are expected to occur online.
Computer hardware and software, long the frontrunner for non-travel online sales, moved into second place in 2006 at $17.2 billion, followed by sales of autos and auto parts ($16.7 billion) and home furnishings ($10 billion).
The report suggests that the apparel and accessories category has experienced strong sales because of an influx of new companies and liberal shipping policies.
Additionally, apparel and accessories retailers are integrating new technologies onto their sites including rich imaging, where customers can zoom and rotate merchandise or see the item in different colors before buying, all of which eases the mind of a customer who is hesitant to purchase apparel online.
In short, shopping online is so convenient and the online experience has become richer.
“As consumers flood the web to purchase merchandise and research products, online retail is moving full speed ahead,” said Sucharita Mulpuru , Forrester Research senior analyst and lead author of the report. “This strong growth is an indicator that online retail is years away from reaching a point of saturation.”
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