Online Shoppers are Buying More, But Spending Less

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A new report by Channel Intelligence has shown that although customers are shopping online more frequently, total order value is starting to decrease.

A new report by Channel Intelligence has shown that although shoppers are spending more online, their order values are decreasing.

Channel Intelligence is a marketing technology company that sells its products and services to e-commerce clients. The company says it handles 15% of all online commerce in the US and the following statistics are taken from Channel Intelligence’s clientele.

Online sales in the second quarter jumped 30% across all channels compared to that of the same time in 2010.  Channel Intelligence says that figure is based on the online shopping activity for hundreds of retailers.

It is also reported that there has been a 15% decrease in average sales price per order based on CI’s largest retail clients.

“Our analysis tells us consumer confidence may still be weak, because price seems to be a major consideration right now for online shoppers,” said Rob Wight, CEO of Channel Intelligence.  “The good news is that consumers are spending. But it is worth noting that they are buying less expensive items. This might be an indicator of what spending habits will be like during the holiday season.”

As the holiday season draws closer, consumers will be looking online to try and find gifts and products to purchase.  As Channel Intelligence’s statistics show, consumers will not be looking for the expensive items, but for the cheapest price available.

CI also offered the observation that retailers must optimise their data feeds and product search because consumers are now favouring product searches over shopping engines.

Article by Samantha Youl

Sam is a content creator for The Media Pad. She was never sure what type of media job she wanted to settle for after studying media and communications at University, but being a bit of a shopaholic and a mobile phone junkie, The Media Pad seemed to be the perfect fit. When she isn’t watching the online retail space she spends far too much time playing netball and investigating her next trip abroad.

One Comment

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  • John Debrincat
  • 22nd August

  Nice article Samantha and interesting information. I think that this information is purely based in USA collected statistics and is not an accurate indication of potential buying patterns in Australia and I don’t think that it is trying to be either. On a cross section of 120 of our customers online stores the average basket value has risen from $105 in 2009 to $114 in 2010 and $132 in 2011. At the same time the average number of products at checkout has stayed much the same. In the USA the economic situation and unemployment is dire and it may be driving both retailers pricing and buyers choices. Although Australia is still cost competitive the local buyer is looking for best value and price is not always the issue. So I am not saying that we should not be looking at the USA stats but decisions on local pricing and promotion should be based on local market conditions. I would urge retailers and our customers not to have knee jerk reactions on pricing. But to always be diligent about offering best value for money as a total sales proposition.

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