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In the past few years, the economic down turn has caused many people to modify their spending habits. Many traditional retail stores have seen a large decline in sales. Massive lay offs and home foreclosures have also affected the retail sales industry. One area of retail that appears to be thriving during these tough economic tomes is online shopping sites.
A study by Penn, Schoen & Berland Associates, Inc. (PSB) and commissioned by LinkShare, a marketing network provider, found that consumers have become increasingly more cautious about their purchasing decisions. There is now a new group of shoppers flocking to internet shopping sites. This new group of online buyers have been labelled as 'Recession Shoppers.' They are going online to locate the best deals in an effort to curb their spending habits. They are being drawn to online sites that offer such deals as online product price comparisons, coupons and discounts such as free shipping, buy one get one free, product price slashing, and other special promotions.
The PSB study reported the following:
• 68 percent of "recession shoppers" (and 79 percent of "weekly shoppers") purchased something online they wouldn't have otherwise because of a coupon or discount.
• 64 percent of "recession shoppers" (and 70 percent of "weekly shoppers") said they purchased something from a particular online retailer they wouldn't have otherwise because of a coupon or discount.
The Internet is providing shoppers with the tools to compare similar products in order to find the best price. As well, shoppers do not have the fuel expenses associated with traveling to and from traditional retail stores. The results of the PBS study indicate that today's consumer is becoming less of an impulse buyer and more of a careful shopper.
An April study from Performics and ROI Research revealed that “Three-fifths of online consumers say they will spend equal (41%) or more (19%) money shopping online in the next 60 days than they did at this time last year.” The first monthly ‘2009 Online Buyer Economic Trend Study' also found that “respondents are more likely to maintain or increase online spending than they are for purchases in general, especially because they have the ability to go online to research products, compare prices and search for discounts and coupons.”
Other factors that influence consumers to shop online include:
• Online consumers are now finding an extensive amount of online retailers that cater to one specific category.
• There are many retailers offering great deals that only exist online
• Most online shoppers are receiving e-mail alerts about discounted products and other specials.
This is a great time for online retailers to acquire new customers and increase their profits. When attracting and maintaining a loyal customer base, these retailers should make sure that they maintain quality products and services, keep prices low, provide consumers with price-comparison engines, and provide easy and effective customer care contact.
The recession has sent a flood of shoppers to the internet. Consumers are spending and saving much differently during this current economic crisis. Low prices, convenience, and quick and easy access, have been the driving force behind the 'Recession Shopper' trend. The result will likely be a number of modifications and improvements in the way traditional retailers do business. Understanding consumer behaviour is a key aspect of maintaining a thriving business during a difficult recession period.
Below are a number of reasons why online shopping is better than actually going to the malls:
1. Going to a traditional shopping mall requires getting ready, getting the proper clothing, doing your hair and make up, making sure you have your money, and getting in your vehicle and driving there. When you shop online, you just switch on the computer, connect to the internet, and start shopping. It is easy, convenient, and it does not matter what are wearing and what you look like.
2. Transportation can be a hassle when you shop at a traditional mall. You have to spend money on fuel, fight the traffic, locate a parking spot, and carry all your purchased items to the car. With online shopping, you don't have to worry about transportation hassles and often your packages are delivered right to the door. If you don't have a car, taking a bus can be a real hassle when going to a mall.
3. Shopping malls are well-known for the crowds. It can be frustrating trying to get the items you want to purchase. With online shopping, there are no pushy crowds and you can relax and enjoy your online shopping experience.
4. Shopping online is better for the environment. Most online retailers keep their items at a central distribution centre so there is less energy being used which is better for the planet. Retail stores have such energy consuming things as lights and heating and cooling units. As well, shipping from online stores is better on the environment. According to the Center for Energy and Climate Solutions, “shipping two 20 pound packages by overnight air - the most energy-intensive delivery mode - still uses 40 percent less fuel than driving 20 miles round-trip to the mall or store.”
5. Online shopping is a definite time saver. Most people shop on the weekends. Many shopping experiences at a traditional mall can take an entire day. Online shopping saves time so you can enjoy the rest of your weekend. Or, you may have the weekend free if you online shop during the weekday. You can shop any time of the day or night.
6. You can save a lot of money when you online shop. There are many deals on the internet just waiting to be scooped up. As well, most online shops offer free shipping on a certain amount purchased. You are also paying a cheaper price because online stores have less overhead.
7. Shopping online gives access to millions of different products. When you go to a shopping at a shopping mall, you only have access to what the stores have in stock so you end up going from store to store trying to find what you are looking for. Sometimes, it is not always available. When shopping online, you almost always find what you are looking for. You can also comparison shop to find the deals.
Online shopping is continuing to grow at astounding rates. With improvements in secure payment processing, the online shopping industry shows no signs of slowing down. More consumers are discovering that it is a great way to find exactly what you are looking for at a low price.