No one likes to admit to pampering themselves while the economy crumbles, but the fact of the matter is that these are the times when these smaller items can make the biggest difference. I remember reading an article in the London Daily Telegraph where they claimed that during the depression of the 1930s sales of lipstick experienced an all time high!

According to the eBillme Online Spending Index, 7% of Total respondents said ‘Yes’ when asked ‘Gym membership/Gym Equipment ‘, 14% said ‘Cosmetics, hair treatments ‘and 16% said ‘Massages or other personal care’. These relatively low numbers show that people are less willing to relinquish items that fall into these categories. During times of economic stress, these items still manage to receive priority in people’s budgets. People will find places to cut elsewhere in their budgets, but not their gym membership, their cosmetics, or personal care items. These are the places, where (like it or not!) people say “This far, and no further!”

However, there is a category that according to our numbers should experience a post-recession surge. 41% of Total respondents said that they intended to spend more on ‘Apparel and clothes ‘! Compared to the other numbers this is a huge jump. It would seem that people have been making concessions on their clothing purchases, but not on other personal expenditures. It begs the question: what makes cosmetics sacred ground?

Stay tuned for part 3 where I’ll look at people’s spending in the home!

Some of the responses were pretty predictable. According to the eBillme Online Spending Index, 50% of Total respondents said ‘Yes’ when asked if they would divert more of their budget towards ‘Dining out’, and 51% of Total respondents said ‘Travel ‘. When it comes to entertainment, these are two common areas in the economy that experience predictable and healthy growth in times of wealth.

While many people have been spending more time at home in hopes of saving a few dollars, if the economy improves 29% of Total respondents said they plan on spending more money on ‘Concert or movie tickets’ and 13% say they’ll be ‘Going out to bars or clubs’. –but just because people plan to spend more time away from home doesn’t mean that people give up on home entertainment completely.

Economic recovery promises a rise in spending across the board, and in every sector. It’s important for e-tailers to note that despite the diversion of funds into entertainment that take people away from the house, consumers won’t stop shopping online for forms of entertainment for the home.

A substantial amount of consumers will remain interested in spending a majority of their evenings in even though the economy is on the upswing: 24% of Total respondents said ‘Yes’ when asked if they would be spending more money on ‘New music or movies (i.e. iTunes, DVDs, Blu-ray )’, and 18% of Total respondents said ‘Toys, hobbies, video games ‘.

Despite the fact that traditional areas are destined to see financial increases as the economy increases, so too will the popular areas of entertainment that grew during the recession! Prepare to see an overall growth, and not one restricted to any particular area. Everybody wins!

Stay tuned for the second installation of my blog, where we’ll look at how our spending habits will change with regards to our spending choices on personal grooming and beauty products.

According to the eBillme Online Spending Index, 23% of Total respondents said ‘Yes’ when asked ‘I would purchase more online if I could control my finances and pay using cash. ‘

We’re all familiar with the approach our Grandfather took when he was dissatisfied with something and wanted to buy himself more control in the consumer world: a) Ask to see whoever is in charge, b) Write a strongly worded letter or, c) Vow never to bring their business back to the offending establishment ever again. Effective in their day, but do these approaches work in the internet age?

Another habit my grandfather had was to simply pay with cash. When I asked him why, he said simply “’cause when the money’s gone, I stop spending”—wise words.

Find out more about your options when it comes to spending cash online. Find out what retailers accept cash payments online, and tips on becoming an online shopping expert!

Unfortunately, it’s easier to find yourself in that 23% than the other 77% of us would like to believe. One way to avoid debt is to shop online at stores who offer cash payment options. There are more of them than you think!

Want to find out more about how to avoid falling deeper into debt, or just how to shop debt free online? Click here!

Luckily, businesses can attract those numbers to their stores by offering the right payment options. Payment options that assure safety on every transaction can make this demographic feel more comfortable making purchases online, find out more about how your business can take advantage of the web’s most secure method of shop with cash online!

Despite the slight uptick in online spending, the outlook for offline retail sales remains bleak. This quarter’s Index shows a decline in consumer confidence as we approach the 100-day mark for the Obama administration. Consumer sentiment towards the economy in general and confidence in overall spending has decreased from last quarter. 39 percent of consumers reported having more confidence in the economy with the 100-day anniversary of the Obama administration approaching. This is down from 51 percent who expected to have more confidence once the new administration began. And when it comes to confidence in overall spending, 19 percent feel more comfortable increasing their everyday spending this quarter, a decline from 28 percent who expected to feel comfortable increasing spending during Q1.

“The slight uptick in online spending this quarter is further evidence that the online retail sector is better withstanding the economic conditions,” says Bruce Cundiff, Director of Payments Research and Consulting for Javelin Strategy & Research. “Overall, consumers are still spending more responsibly and with caution. As we approached inauguration day during Q1, confidence was strong and consumers were hopeful. The continued economic strain, increasing job loss, and consumer debt over the last 90 days has taken a toll on confidence this quarter.”

The eBillme Online Spending Index polled 1,200 consumers to measure projected online spending for the quarter and the influencing factors including the economy, security, and financial control. This quarter’s Index also surveyed respondents about Mother’s Day spending to learn what type of holiday retailers can anticipate this year

• 20 percent of respondents plan to make their Mother’s Day purchases online this year.
• 9 percent of consumers anticipate spending more this year for Mother’s Day.

“Overall cautious spending is carrying over from Q1,” says Marwan Forzley, President and CEO of eBillme. “Purchase delays and spending trends have remained steady as a result of faltering confidence. Over half of consumers surveyed are still delaying purchases due to uncertainty in the economy. Shoppers remain hesitant to spend extravagantly and when they do, they are making decisions to spend more responsibly using cash. We are seeing the demand continue to increase for cash checkout online as shoppers focus on limiting debt.”

eBillme and Javelin Strategy & Research will be presenting a Webinar to discuss the research findings and consumer trends from the data. The Webinar will be presented on April 30^th at 1PM EST. To register, please visit https://www2.gotomeeting.com/register/676120659.

Read additional eBillme posts, including artciles on the credit crunch.

The index data shows a decrease in spending intent online from Q4 2008, with the average spend dropping from $175.00 to $75.00

Looking forward over the next 90 days, how much will you spend through online shopping? Please include any online purchases such as gifts, gift cards, airline tickets, or digital goods like music

WILMINGTON, Del. – January 22, 2009 – 50 percent of consumers reported they will have more confidence in the economy while more than 1 in 4 feel more comfortable increasing their everyday spending now that the new administration has taken over. This is according to the eBillme(TM) Online Spending Index, a quarterly survey examining consumer spending trends online. The survey is conducted by Javelin Strategy and Research and released quarterly by eBillme, the payment option that enables consumers and small businesses to use online banking to pay now, pay securely and use available funds. This quarter’s Index shows cautious optimism through the continuing uncertainty about economic conditions.

“Amid all of the economic gloom, there appears to be some optimism on the horizon,” says Bruce Cundiff, Director of Payments Research and Consulting for Javelin Strategy and Research. “Fully half of consumers indicate more confidence in the economy as a result of the new administration. However, consumers will remain cautious and reliance on credit will continue to weaken. More financial responsibility towards everyday spending will be critical as we move forward and consumers adopt new spending habits to live within their means during this new era of personal responsibility.”

The eBillme Online Spending Index polled 1,600 consumers to measure projected online spending for the quarter and the influencing factors including the economy, security, and financial control. This quarter, the Index also surveyed consumers about projected Valentine’s Day spending in addition to the impact of the Obama administration on spending and consumer confidence.

Consumers are projected to decrease online spending over the next 90 days to an average of $75 as compared to $175 during Q4. Further data shows a slight uptick in uncertainty with 55 percent of consumers reporting the delay of major purchases due to uncertainty in the economy as compared to 48 percent over the last 2 quarters.

“It is not surprising that spending for Q1 is projected to reach a lower average than Q4,” says Cundiff. “Q1 is historically a low quarter in sales for retailers coming out of the holiday shopping season. Consumers are typically focused on paying bills and lowering any debt they acquired throughout Q4. This year, the strain of the economy and the credit crunch are impacting spending even further.”

This quarter’s Index also surveyed respondents about Valentine’s Day spending to learn what type of holiday retailers can anticipate this year.

• 11 percent of consumers are planning to spend more this Valentine’s Day as compared to last.
• 18 percent of consumers are planning to make their Valentine’s Day purchases online this year.

We are entering into a new era of responsibility,” says Marwan Forzley, President and CEO of eBillme. “Evidence of the consumer shift from credit to cash has carried over from Q4 and our Index data shows that consumers are taking steps to spend with caution. While the online retail sector has been able to better withstand the effects of the economy, we are heading into a cycle where shopping responsibly will be on the mind of every consumer.”

eBillme and Javelin Strategy and Research will be presenting a Webinar to discuss the research findings and consumer trends from the data. The Webinar will be presented on Thursday, February 5, 2009 at 1PM EST. To register, please visit https://www2.gotomeeting.com/register/428949622

For more information or to sign up to receive future editions of the eBillme Online Spending Index, please contact Alicia Buonanno at Alicia@GregoryFCA.com or 610-228-2096.

About the Index

The Index is based on data collected from an online consumer survey deployed in August 2008, with a sample size of 1608 respondents. The survey targeted US adults (age 18 +) and was based on representative proportions of gender, ethnicity and income as compared to the overall US online population. Overall margin of sampling error is ±4.4 percentage points at the 95% confidence level.

RECENT: see 2011 Online Spending projections.

Retailers: Get an in-depth look at the complete Spending Index by attending our next webinar

Thursday November 13, 1 pm EST
Register now: https://www2.gotomeeting.com/register/279533410

	Q4 Index	Q3 Index
Looking forward over the next 90 days, how much do you believe you will spend online? Please include any online purchases such as gifts, airline tickets, or digital goods like music
I do not plan to purchase anything online in the next 90 day	10%	9%
Less than $50	11%	14%
$50 to less than $100	17%	17%
$100 to less than $250	24%	23%
$250 to less than $500	19%	18%
$500 to less than $1,000	12%	12%
$1,000 to less than $2,000	4%	4%
More than $2,000	3%	3%
Total	100%	100%
Considering any online purchasing you expect to make, please select agree or disagree to each of the following:
Security and Shopping
I want to use more payment options that protect me from online fraud	77%	77%
I would buy more online if I felt more protected against identity theft	56%	57%
The Economy
I am delaying purchases due to uncertainty in the economy	48%	48%
I would purchase more online if I could control my finances and pay using cash	31%	32%
I would purchase more online if I could pay using available funds through my bank’s bill pay web site	29%	28%
I am closer to my credit limit than I was a year ago	34%
I used my credit card less often over the last 90 days in favor of non-credit payment options	45%
Shopping Online
I am more likely to buy products online that I can research thoroughly	83%
I have heard of “Cyber Monday” as the start of the holiday online shopping season	41%
I plan to do most of my holiday shopping on “Cyber Monday”	13%
I prefer to avoid shopping on “Black Friday” in favor of shopping online	46%
Compared to last year’s holiday season, how will this year be different for you? Increase Decrease Stay the same
My overall spending this holiday season will…
My overall spending online this holiday season will…
My price comparison shopping online this holiday season will…
My available credit this holiday season has…

The eBillme Online Spending Index, conducted by Javelin Strategy and Research, and to be released quarterly by eBillme, polled 1,600 consumers to measure projected online spending for the quarter and the influencing factors including the economy, available payment options, security, and financial control. This quarter, the Index also polled consumers about their online spending for back-to-school shopping.
According to the Online Spending Index, the economy and credit crunch are having an impact on consumer buying this quarter, especially when it comes to female shoppers.

• 48% of consumers are delaying purchases due to uncertainty in the economy
• 32% of consumers are willing to spend more if they could purchase online with cash revealing a general shift towards cash preferences
• Female consumers indicated a 5% decrease in credit card sentiment further indicating a shift towards cash

“Consumer spending online is an indicator for consumer preferences, attitudes, and offline trends in society,” says Marwan Forzley, President and CEO of eBillme. “The Index results show a significant shift in consumer behavior, especially among female consumers. We have noticed that as compared to men, a higher percentage of women are concerned with fraud, identity theft and the economy. In fact, 38% of women said that they would purchase more online if they could control their finances and pay using cash.”

This quarter’s Index also surveyed respondents about their projected back-to-school spending. 18% of consumers plan to shop for back-to-school purchases online with females and 18-24 year olds representing the majority.

“We thought it was most important to bring this critical information to the retail industry and give online retailers a projection of consumer spending for the upcoming quarter and an opportunity to gain critical insight on customer behavior,” says Forzley. “We look forward to releasing this data quarterly to provide a snapshot of consumer online shopping activity and track the various trends that will be uncovered.”

eBillme and Javelin Strategy and Research will be presenting a Webinar to discuss the research findings and consumer trends from the data. The Webinar will be presented on September 24th at 1PM EST. To register, please visit http://tinyurl.com/66kau6.

About the Index

The Index is based on data collected from an online consumer deployed in August 2008, with a sample size of 1608 respondents. The survey targeted US adults (age 18 +) and was based on representative proportions of gender, ethnicity and income as compared to the overall US online population. Overall margin of sampling error is ±4.4 percentage points at the 95% confidence level.

The next Index will be released in November, 2008. Data from the index will be posted on the eBillme website.

UPDATE: see 2011 Online Spending projections.