Internet Helps To Drive Offline Sales, Says Report
The strong relationship between online and offline sales is demonstrated by a survey which shows that over half of the visitors accessing product information on manufacturers’ websites plan to purchase the item within a week from one source or another.
Figures from research by Shop.org and Forrester show that the conversion rate of browsers to buyers was 3.2% in 2002. Channel Intelligence, a US firm which links manufacturers with their dealers and consumers, claims that its clients show a better rate (8% to 12%) and has commissioned further research into the habits of internet shoppers.
The survey was conducted by Frank Lynn & Associates, a US-based consulting firm, and targeted users who selected the Channel Buy Links option on a manufacturer website. These links are provided by Channel Intelligence and take the user to a list of vendors who sell the product and subsequently to the detail page for a particular dealer.
Survey findings A total of 55% of consumers said they planned to buy the product they had requested information on in the near future. When initially asked, 11% indicated that they intended to buy the product in question straight away online. A further 6% said they planned to purchase immediately in a store while 21% maintained they would buy the product within 48 hours. Some 17% said they proposed to acquire the item over the next week.
The follow-up survey showed that in the event, 8% of consumers immediately bought from the site and 7% bought later online. Another 7% said they bought later offline while 11% went on to buy from a retailer that was not listed. Overall, 33% of web visitors ultimately made a purchase through the channel and an additional 22% indicated that they intended to make a purchase within 30 days.
“While the self-selection methodology cannot be projected absolutely across the entire internet population, it does provide a strong indication that there is a quantifiable tie between online retailing sites and offline purchasing,” said the report. “It can be surmised that consumers who shop online do not limit their final purchasing destination to online outlets; in fact, a number of factors including convenience, availability, and price enter into the equation.”
Channel Intelligence found that price was extremely or very important to 88% of consumers looking to make an online purchase. Some 78% of respondents laid great store by a retailer’s return policy while 76% cited the ease of buying from a site as crucial in their shopping experience.
| Importance Of Various Factors In The Choice Of An Online Retailer | |||
| Extremely Important | Very Important | Total | |
| Price | 52% | 37% | 89% |
| Return Policy | 43% | 35% | 78% |
| Ease Of Buying Process | 34% | 42% | 76% |
| Name/Reputation Of Retailer | 31% | 42% | 73% |
| Shipping Rates & Methods | 30% | 35% | 65% |
| Source: Frank Lynn & Associates, May 2003 | |||