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Choice, convenience and price are key sales drivers online
Archived article dated Wednesday November 26th 2008
Online retailers see value, choice and flexibility as crucial to maintaining sales despite rising pressure on shoppers' budgets, according to research from PayPal
The ability to shop 24/7 and the wide range of products offered to online customers were seen as the greatest drivers of online sales (cited by over 85% of online retailers), and key advantages of online over the high street.The new research was conducted by PayPal in partnership with providers Vendaand RomanCart. More than 250 online retailers were surveyed including larger e-tailers such as Monsoon, Superdrug and Wickes as well as SMEs.
Over two thirds (69%) of online retailers surveyed believe that cheaper prices online are a key sales driver in the current economic climate. Better sites that meet customer needs in terms of service and experience also ranked highly with 67% of all retailers surveyed agreeing that this was a major contributor to online sales.
Cameron McLean, PayPal UK's PayPal's General Manager, Merchant Services, comments, “The online retail sector is in a stronger position than the high street to offer the money conscious shopper what they are after - a vast choice of products at attractive prices in one place. PayPal's UK customer base of over 20 million online shoppers gives us a special insight into online retail trends, which we're keen to share with our retailer partners.”
The research forms part of a major PayPal study looking at trends, issues and insights in online shopping, to be rolled out in the coming months. PayPal is the UK's preferred online payment brand and is a payment option on over 120,000 retailers' sites across Europe.
Overwhelmingly, 93% of all merchants surveyed agreed that 24/7 access was the greatest advantage of online shopping, with the absence of queues, crowds and sales people taking the second spot (88%), followed closely by convenient delivery options to home or work (82%).
Economic downturn (82%) and rising costs (77%) are understandably seen as the key issues facing the industry. Online fraud was seen as one of the least significant factors affecting retail with under half of online retailers surveyed (47%) citing this as a major issue.
Tagged as: paypal | online shopping
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