WASHINGTON, Dec. 21, 2005 (PRIMEZONE) -- With three-quarters of the holiday shopping season complete, online retailers are more optimistic than ever, according to a Shop.org/BizRate eHoliday mood study. Eighty-two percent reported feeling very or somewhat optimistic about the holiday season. The number of online retailers saying they feel "very optimistic," increased to 41.0 percent compared to 24.0 percent when they were surveyed in late September before the holiday season began. More than one-third of retailers report sales growth of 50.0 percent or higher compared to the same time last year and three-quarters of retailers report growth of 20.0 percent or higher.
"After a strong Cyber Monday, online retailers haven't looked back," said Scott Silverman, Executive Director of Shop.org. "Aggressive marketing and promotions, combined with enhanced customer service and product availability have kept the momentum going."
Key Performance Measurements Increase
Fifty-nine percent of online retailers reported that their average order size increased compared to last year and 58.0 percent of retailers reported that their browse-to-buy or "conversion" rate increased compared to last year.
Despite reports of increasing costs for search engine marketing, 56.0 percent of online retailers report that their return on investment in paid search has increased compared to last year at the same time. Increased spending on paid search was the most frequently mentioned mid-holiday marketing adjustment being made by online retailers.
Shoppers are benefiting too -- 96.0 percent of online shoppers say that they are satisfied with their online buying experience so far this holiday season.
"So far, this season has been an undisputable success for both online retailers and their customers," said Chuck Davis, Chairman of Shopzilla. "The hard work online retailers have put into creating the best possible online shopping experience is paying off. With consumer satisfaction so high there is a state of near nirvana, especially given shoppers high holiday demands."
Retailers Make Final Push Last Week of the Holiday Season
Despite the success they've experienced so far, retailers have no plans to rest on their laurels. During the week of December 19, more than half of online retailers will still be offering free shipping promotions and 35.0 percent of retailers will offer free shipping upgrades, allowing shoppers to receive two-day shipping at the cost of standard shipping.
About the Survey
The 2005 Shop.org/BizRate Research eHoliday Mood Study is the only holiday measurement tool that is based on data provided directly from online retailers in addition to consumer data. Now in its fourth year, the study, conducted by BizRate Research, a division of Shopzilla, is designed to gauge consumer behavior and online retailers' success during the winter holiday season. The poll of 1,932 online buyers (defined as anyone who has made an online purchase in the last twelve months) and 109 online retailers, all members of Shop.org, was conducted December 12-14, 2005.
Shopzilla, formerly BizRate.com, is the most powerful and easiest-to-use shopping search site on the Web. With an index of more than 30 million products from more than 67,000 stores, Shopzilla uses ShopRank, a proprietary patent-pending algorithm, to help shoppers instantly find virtually anything on sale from anyone, anywhere on the Web at the best price. Shopzilla also features powerful comparison tools and BizRate consumer reviews of stores and products, the Web's largest and most trusted consumer feedback network. Every week Shopzilla prepares millions of shoppers to make smarter, more confident purchases and sends them directly to the checkout page of thousands of online merchants. Shopzilla also operates the BizRate consumer feedback network which collects approximately 1 million fresh reviews per month. Shopzilla powers shopping search for many of the Web's largest consumer sites including AOL, Lycos, Time Warner's RoadRunner, and many others. Founded in 1996, the Los Angeles-based company also operates sites in the United Kingdom, France, and Germany. Shopzilla is owned by The E.W. Scripps Company (NYSE:SSP), a diverse media concern with interests in national television networks, newspaper publishing, broadcast television stations, TV retailing and licensing and syndication. For more information, visit www.shopzilla.com, the smarter way to shop.
Shop.org is the network for retailers online. Its 600 members include the 10 largest specialty retailers in the U.S., and 70 percent of the Internet Retailer Top 100 E-Retailers. It's where the best retail minds come together to gain the insight, knowledge, and intelligence to make smarter, more informed decisions in the evolving world of the Internet and multichannel retailing. Founded in 1996, Shop.org became a division of the National Retail Federation in January 2001. Shop.org programs and activities include benchmarking research, events and networking communities. Shop.org produces the largest eCommerce trade shows in the world.