Consumer Online Spending To Grow 24%
Online retailers can expect to see an increase in consumer spending compared to the previous quarter, according to a new survey by Javelin Strategy & Research and released by eBillme.
Online shoppers predict they will spend an average of $281 online during Q4 2009, a 24 percent increase over last quarter. This is the first increase in spending since last year, but an 18 percent decrease in the overall spending rate compared to Q4 2008.
"This quarter’s uptick in spending is evidence of improving consumer optimism as we head into the holiday shopping season," said Marwan Forzley, President and CEO of eBillme. "While consumers are planning to loosen their financial constraints this quarter, they are still holding on to recession spending habits.
"This includes changing the way they shop and pay to better control debt. Forty percent of consumers plan to use their credit cards less often in favor of non-credit payment options this quarter. We have seen this significant shift in attitude towards credit carry over from previous quarters, and it will definitely impact consumer spending decisions this holiday season."
Consumers were also surveyed about projected holiday spending this year. Eleven percent plan to do most of their holiday shopping on Cyber Monday, while 48 percent plan to avoid Black Friday shopping in favor of shopping online. When it comes to how much people plan to spend this holiday season, 27 percent said they would spend more online this year for gifts compared to last year.
"This quarter’s Index shows some visible signs of improvement in the online retail sector," says Beth Robertson, Director of Payments Research for Javelin Strategy & Research. "We haven’t seen a projected increase in anticipated spending since this time last year. And it comes just in time for retailers during the most important quarter for capturing sales and customers.
"Although consumers are still spending with caution, 51 percent are delaying purchases because of continued uncertainty in the economy. This increase is a positive sign that consumer confidence is on the rise."