Broadband biggest factor in online sales growth
Recent research by Zendor points to the takeup of broadband as having the biggest single influence on growth of online shoppers in 2006.
As experts continue to predict huge growth in online sales, fulfilment company Zendor asked consumers to identify the factors that are most likely to impact this shift during 2006. Of more than 200 consumers polled by Zendor about their shopping habits, 51% claim that the single biggest factor which would encourage them to shop across more than one channel (online, telephone, catalogue etc) is faster Internet connections. As falling prices and increasing speed impact the takeup of broadband in the UK, it is estimated that 60% of households will have a high-speed broadband connection by 2007 (Source: Data Monitor), and the research indicates that this will play a major role in the continued growth of online shopping.
According to Zendor’s findings, published in January 06, other factors which influence a consumer’s decision to shop across more than one channel include better promotion of available channels by retailers, improved delivery and better online security. In terms of the need by consumers of better promotion of channels, this suggests that consumers are not only expecting more than one channel via which to shop, but are also not aware of websites offered by many high street retailers. It seems there is still a lot of work to be done by retailers in driving customers to their own sites rather than competitors.
The need for improved delivery services and options is still prevalent, with many consumers demanding flexibility of delivery options in terms of timed slots and specified delivery days, as well as an overall improvement in reliability. Use of a 3rd party fulfilment provider such as Zendor is an increasingly common way for retailers to reduce risks and guarantee a high level of service.
Online security, although cited, is less of an issue than it has been in the past, which suggests that consumer confidence in the Internet is growing. This could be due to effective 3rd party online fraud solutions being made available and campaigns, such as the Interactive Media Retail Group’s (IMRG) Internet Shopping is Safe (ISIS) mark, reassuring online shoppers. This increase in consumer confidence was further demonstrated by the huge rise in online shopping during the 10 week run up to Christmas 2005 when sales soared by 50%.
