Online Shopping is Maturing [3/21/2008]

Almost three-quarters of US consumers (74%) report that they have shopped online, Forrester Research reports. A closer look at the report, Web Buyers—And Their Expectations—Grow Up, revealed some interesting findings now that there are fewer new customers to capture.

The Report at a Glance
Experience Shopping Online: Thirty-two percent of respondents had shopped online for seven years or more (this was exactly double the number who had this amount of experience under their belt in 2006). Nine percent of respondents had less than one year of online shopping experience (this was a full 7% drop from the year before (2006).

Shopper Demographics: High-income males were the most experienced online shoppers. Forty-one percent of experienced shoppers were high-income females. Their median household income was just over $95K; their mean age was 45.

Fifty-five percent of new online shoppers (those with less than a year of online shopping experience) were female. Their incomes were almost a third less (almost 62K) than their more experienced female counterparts.
Online Spending: Experienced online shoppers (those with 7+ years of online purchasing experience) spent in excess of $1,000 in the previous three months. Less experienced shoppers spent only $330.

Veteran shoppers also made heavy use of search engines. Almost 30% started their online shopping experience at a search engine. Less than half this number (14%) of new online shoppers started here.

Parsing the data, Forrester analysts surmised that “new web buyers treat the online shopping experience as if they were at the mall, heading straight to their desired retailer.” Comparatively, by starting at search engines, veteran online shoppers were more likely to comparison shop and look for the best deal.

One other important point: Newcomers are more likely than veteran online shoppers to be concerned about the security and privacy of their information while shopping online. To address this, various payment methods should be offered and privacy policies should be clearly highlighted and explained, Forrester experts recommend.

What the Report Means for Internet Retailers
Perhaps the most glaring fact the report highlighted is that there are fewer customers to capture. Hence, Internet marketers and online retailers must shift their focus from acquiring new customers to retaining the ones they already have.

This can only mean better customer service – for all online shoppers.

For more insight visit Ecommerce development Services

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