If your merchants aren't yet on the Web, this might convince them to get their virtual storefront going, and fast! According to data from Jupiter Communications, this holiday season on-line consumers are expected to spend $2.3 billionó this is more than double last year's $1.1 billion.
But, here's the kicker: just 11 percent of on-line buyers report that the majority of their on-line purchases are gift-related. Think of how much revenue could be earned if more shoppers were motivated to purchase more of their gifts on-line!
The survey found that the holiday season is the perfect time to convert "self-buyers" into "gift-buyers." Almost 60 percent of on-line buyers report that fewer than 10 percent of their on-line purchases are currently gift-related.
Nicole Vanderbilt, of Jupiter, explained that as the on-line shopping market matures, merchants will move from an acquisition strategy to a retention strategy. Commerce players should therefore use the gift-buying market as a way to increase their share of on-line buyers' wallets. "While on-line retailers have been successful in capturing dollars that consumers spend on themselves, they have been unsuccessful in getting the majority of those same customers to spend their gift dollars on-line," said Vanderbilt.
Jupiter believes that on-line merchants should develop features, such as gift registries, that use customer databases to maximize their customers' value. For instance, if an on-line shopper can access the preferences and wish lists of friends, the merchants will be better positioned to capture on-line buyers' gift dollars. "By providing an attractive service that is unavailable in other channels, retailers are able to both encourage incremental on-line spending and continue to develop their own all-important customer profiles," said Vanderbilt.
So, get your merchants equipped with a gift registry or wish list today!
