Online stores - less shopping, more research?

Web-to-store (known as W2S) shopping could be an online store's biggest threat. As online stores become more competative with each other and try to increase conversion rates by supplying consumers with every possible bit of product data, they could be empowering consumers with all the information needed to hop in thier car and drive down to thier local store to finalize the purchase. In this way online stores could become online research centers.

According to this reasarch, the model of doing business solely online could prove more challenging moving forward. As brick and mortal stores become more web savvy, online stores will need to find more effective and often more creative ways to ensure the sale takes place online and not down the street.

The Study

The outlook for using the Internet to research purchases before going to local stores, otherwise known as Web-to- store (W2S) shopping, is stronger than online e-commerce, according to new research released this week.

The 2005 U.S. Web2Store Benchmark Survey was conducted by The Dieringer Group. It measured shopping patterns during the last three months of 2004

The U.S. Web2Store Benchmark Survey is a survey of 1,101 consumers who used the Internet to research products or stores prior to making a local shopping trip during the last three months of 2004.

Highlights

- The DRG estimates 83.4 million U.S. consumers made offline purchases impacted by online information during 2004, up 19 percent from the prior year.
-Approximately 80 million shoppers used the Internet during the fourth quarter for W2S shopping.
-According to the study, the growth outlook for W2S shopping is robust for retailers who use the Internet to drive shoppers to their local stores.
-Research findings show that among all W2S shoppers, 70 percent say they do more W2S shopping now than they did a year ago and 48 percent plan to do more W2S shopping in 2005.
-Online product research conducted by consumers this past year, often done in online stores, was responsible for driving $180.7 billion in offline spending, compared to $106.5 billion in direct online consumer spending.

Summary

"Based on these results, it's clear shoppers prefer to use the Internet to find and better understand what they want to buy before making their purchases at local stores," said Brian Hand, President and CEO of ShopLocal.com. "This benchmark research drives the conclusion that the outlook for W2S shopping is stronger than online e-commerce and has enormous potential for all retailers, from national brands to small stores."

For the whole story visit - News Finder

2 comments