The holiday season accounts for over 50% of annual revenue for 20% five multi-channel retailers, increasing to nearly 25% for internet only operations, according to the latest research from global web analytics leader, WebTrends.
The new
Online Retail Holiday Readiness Report 2005 shows that in terms of holiday business, with the season contributing 43% of their revenues internet retailers lead the pack, followed by 37% for businesses with internet and store channels, 31% for internet and catalogue operations, and 27% for internet, store and catalogue operations.
However, according to Shop.org’s FirstLook 2005 report, the number of new households shopping online in 2005 will be half what was seen last year, intensifying pressure on online retailers to capture a greater percentage of sales from existing customers.
The WebTrends survey found that only 23.5% of all retailers expect 50% or more of their revenue to come from repeat customers versus new customers during the holiday season. Internet and catalogue retailers have higher expectations, with 30% indicating that 50% or more of their revenue would come from repeat customers.
Findings from the report show marketers planning on tempting consumers by offering special repeat buyer discounts tied in with online-only sales, free shipping and other value added promotions.
Commenting on the predictions, Greg Dew, chief executive officer and president of WebTrends said: “The holidays have always been a critical time for many retailers, and this year generating more revenue from loyal, repeat customers is more important than ever.”
US analyst, eMarketer, predicted online shopping in the US this holiday season to reach $26.2 billion, an increase of 22% from last year’s total of $21.5 billion, representing a jump of almost 50% from the $17.4 billion spent in the same period in 2003 (see US Online Shopping Forecast To Rise By 22% This Holiday Season).
Online retail sales in the US are predicted to rise by almost 25% this year, with revenues forecast to increase to $109.6 billion, up from $89 billion in 2004, according to a recent study by Shop.org and conducted by Forrester Research (see US Online Retail To Rise By 25% In 2005).
The projections are in line with eMarketer’s latest online retail estimates, predicting US online retail sales to reach $84.5 billion this year, a 22.1% increase from last year (see US Online Shopping To Reach $84.5 Billion In 2005).
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