Internet Retailing is Getting Tribal for Xmas
Internet retailers will be preparing for their busiest season with mixed feelings this year. Traditionally Christmas has been a boon for internet shoppers wishing to avoid the crowds on the high street and possibly bag a bargain too. This year, internet shopping activity could well be slowed down by disruption to postal services, which struggle to cope, even in the good years.
However, research from eBay Advertising predicts 85 per cent of consumers will do the same internet shopping they did last year, or more. Entertainment is unsurprisingly the top category, but apparel is now purchased by 67 per cent of the survey. Grocery has shown the biggest growth in the last six months, with 47 per cent of shoppers increasing their supermarket shop online over the last six months.
In a conversation with eBay director of advertising relationships, Philip Rinn, he made some interesting observations about how internet advertising needs to change in time with the continuing maturity of the channel.
The research showed 60 per cent of online shoppers responded to ads on ecommerce sites, but that as internet shopper demographics materialise, a one-size-fits-all approach to advertising will have less relevance.
He contended that shoppers are now using the internet to shop for different things in different ways and that some sites which drive traffic won't necessarily get a good response if an ad is placed on it.
Rinn concluded the survey identified three types of shoppers:
- Instinctives respond to brand identity and use advertising to reach the checkout as quickly as possible. This group is comprised 54 per cent women, and the majority is under 35. They are most interested in categories such as entertainment and clothing. Price is not always the highest consideration for these shoppers. Their hunting grounds are more likely to be lifestyle sites that are closely aligned to the brands they identify with.
- Inspectors spend time comparing prices to get the best deal. For them, internet shopping is a past-time comparable to the TV. However, the quality of the product is also a high consideration. Purchases made through this behaviour include mobile phones and consumer electronics. These shoppers are more likely to spend time on aggregation sites and comparison portals to make their purchase decision.
- Stock-takers have been identified as the most cautious shoppers who amass a great deal of information about the items they want to buy, before they purchase. They represent the older, male end of the shopper spectrum and the most common purchases are consumer electronics and garden items. Stock-takers only shop on sites they trust and are more likely to frequent specialist sites.