During lean times we’re all familiar with making sacrifices to save a buck or two, but where do we make those sacrifices when it comes to the creature comforts of the home, and our home away from home (the car)? Let’s take a look at what the numbers have to say:

A number of people intend to put more money towards their car and home improvements. According to the eBillme Online Spending Index, 18% of Total respondents said ‘Yes’ when asked if they would spend more money on ‘automotive care or car parts ‘ and 12% of Total respondents said they would spend more on ‘Home hardware‘. So these are two areas that can expect to see light growth as the economy recovers.

Moving ahead, there are two areas that can expect to see significant growth as the population’s finances stabilizes. Any guesses? A noteworthy 27% of Total respondents said ‘Yes’ when asked if they intended to spend more on ‘Home appliances or furniture‘. Better income often translates to upgrades to décor and furnishings. During one particular dry spell I remember the leg of my bed broke. We had it propped up on a paint can for months until our financial situation finally improved. When finances aren’t available most people simply put up with their furnishings—no matter what their condition!

Similarly, 33% of Total respondents said ‘Yes’ when asked if they planned to purchase more ‘Electronics ‘ as the economy improves. We can expect to see a significant growth in the sales of big ticket items like new computers, big screen TVs, and stereo equipment as people feel regain confidence in their purchasing power.

Where will we see the least amount of growth, you ask? A mere 1% of Total respondents said they would spend more on ‘Pet care‘. This could be interpreted two ways, either pets aren’t a priority for most people—or the way I prefer to see it: that even during hard financial times, people remain consistent in their spending habits when it comes to pet care. As most pet owners tend to be pretty committed to the needs of their pets I think this is probably the most likely interpretation.

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, 33% of Total respondents said ‘Yes’ when asked ‘Did you use your credit card online less often over the last 90 days in favor of non-credit payment options.’

The word is circulating that there are better ways to shop online. More and more consumers are demanding options that will keep them debt free, and won’t charge them exorbitant amounts of interest.

Find out about new ways to pay cash online, and save money right here…and feel free to share your tips on how you shop and save below!

New data on online shopping, the economy, holiday shopping, Black Friday deals, Cyber Monday, and much more was collected for Q4 2009 and the results are intriguing.

Join us this Thursday Nov 5th for a webinar to review the results from the eBillme Online Spending Index.

Sign up now, a must attend for online retailers

The only thing we ask is you use eBillme when you checkout.

Here’s how it works:

• At the checkout section while shopping online, choose eBillme as your payment method.
• You’ll have the option to sign up for eBillme’s cash back rewards program
• Take just a minute or two to sign up
• Once you’ve signed up, you will immediately start earning 1% cash back for every order you make
• After earning $10 or more in rewards you can redeem while shopping on eBillme merchant sites, or you can choose to keep racking up the rewards before redeeming
• Each month you will receive an email summary of how many cash back rewards you have

It’s easy to redeem your rewards:

• When you have a minimum of $10 in cash back rewards, your monthly statement will have a link to “create a cash back coupon”.
• Simply click the link, follow the instructions and create a cash back coupon code.
• The next time you use eBillme at a participating merchant simply enter the coupon when you are accepting eBillme’s Terms and Conditions.

It’s that simple!

Now, your rewards will last for 2 years, so you have time to hold onto those, accumulate more, then redeem them for cash later. Once you create a cash back coupon it’s valid for 6 months.

It coudn’t be easier to shop and get money back! Try it out and once you do, come back here and let us know how you like it.

Who are those consumers? In this post, I thought I would share a bit more detail on the demographics.

Gender: 24% of Males reported that they will spend more online for Mom this year compared to 17% Females. Males are also twice as likely to spend more this year on Mom compared to Females. The data shows that 12 % of Males will buy more for Mom this year, compared to 6% Females

Income: Respondents from all income groups responded favorably to spending online for Mom this year, Interesting to note however that when it came to increasing their spending the data across income groups was within the margin of error.

Ethnicity: Those respondents who identified themselves as ethnic, reported a higher likely hood of shopping online for Mothers day this year. African Americans 32%,  Asians 31%, followed by Hispanics at 24% and Caucasians at 17%

Marital Status: If you are single, its more likely that you will buy Mom a gift online this year. 27% of respondents who indicated that they are single indicated that they will shop online for a Mothers day gift online this year. This is compared to 24% who “Live we a Partner” and 19% who are Married.

Region: If you live in the Western USA, you are likely to buy online for Mom this year. 25% of those who live in the west indicated that online is where they plan to buy their gifts, that compared to 22% in the North East, 20% in the South and 14% in the Mid West. Interesting to Note that those who live in the South indicated that they will increase their spending on Mothers day the most this year.

This data was collected by Javelin Strategy, on behalf of eBillme as part of the Online Spending Index released by eBillme every Quarter. Join eBillme for an indepth  webinar on April 30th, where this and the full index data will be discussed.

For you shoppers – be sure to checkout eBillme’s Mother’s Day gift ideas.

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…