Posted by Stephanie Fenton
Whilst overall retail sales dropped 0.3%, Internet and mail order sales were up 18%*. Convenience, stress reduction and better prices have all been highlighted as major reasons for 44% of UK consumers spending more online this year. House of Fraser’s online sales grew 120% compared to 8.5% overall sales in the 5 weeks up to the 8th January, and for the first time ever, sales on the House of Fraser website were higher than any of its outlets.
*compared with December 2009
This year also saw a 10% rise in the number of consumers using the Internet on Christmas and Boxing Day, 22% of which used their mobile phones stressing the importance of mobile optimised websites for retailers.
Supermarket Morrisons is said to have missed out on sales to its online competitors Sainsburys and Tesco this Christmas, forcing them to trial an online service later this year.
Over in the US, online retailers have achieved similar success with online sales for this holiday season reaching a record of $32.6bn, a 12% increase on last year.
Despite this huge growth in online spending, Tealeaf say online retailers have actually missed out this year. Nearly half of all adults who shopped online this Christmas said that they encountered problems causing 32% of shoppers to abandon their baskets at the checkout. Top reasons for abandonment included: errors on the retailer’s website, high delivery prices and late delivery dates. Tealeaf’s research then went on to find that 46% of the shoppers who encountered problems would be less likely to buy from that company again.
UK retailers are blaming the 0.3% drop in overall retail sales on the big freeze, with Debenhams saying the weather has caused them to lose out £30million worth of sales.
Looking forward to 2011, Docnet’s main advice for retailers is;
Don’t lose out on valuable sales coming through mobile devices. Test your website out on mobile handsets.
If you don’t have an online store, you’re going to miss out on market share.
Create a hassle free checkout that will reduce abandonment.