Rye Brook, NY - October 27, 2009 - As the largest retail shopping season of the year approaches, eCommerce retailers can expect a surge in consumer spending compared to the previous quarter. Consumers anticipate that they will spend an average of $281 online during Q4 2009, a 24 percent increase over last quarter. While this represents the first increase in spending since last year, it is an 18 percent decrease in the overall spending rate as compared to Q4 2008. This is according to the eBillme™ Online Spending Index, a quarterly survey examining consumer spending trends online. The survey is conducted by Javelin Strategy & Research and released quarterly by eBillme, the most secure payment option online that enables consumers to use online banking to pay now, pay securely and use available funds.
The Index polls 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 shows some visible signs of improvement in the online retail sector,” says Beth Robertson, Director of Payments Research for Javelin Strategy & Research. “We haven’t seen a projected increase in anticipated spending since this time last year. And it comes just in time for retailers during the most important quarter for capturing sales and customers. Although consumers are still spending with caution, 51 percent are delaying purchases because of continued uncertainty in the economy, this increase is a positive sign that consumer confidence is on the rise.”
Consumers were also surveyed about projected holiday spending this year. 11 percent of respondents plan to do most of their holiday shopping on Cyber Monday, while 48 percent plan to avoid Black Friday shopping in favor of shopping online. And when it comes to how much consumers plan to spend this holiday season, 27 percent anticipate that they will spend more online this year for holiday gifts as compared to last year.
“This quarter’s uptick in spending is evidence of improving consumer optimism as we head into the holiday shopping season,” says Marwan Forzley, President and CEO of eBillme. “While consumers are planning to loosen their financial constraints this quarter, they are still holding on to recession spending habits. This includes changing the way they shop and pay to better control debt. 40 percent of consumers plan to use their credit cards less often in favor of non-credit payment options this quarter. We have seen this significant shift in attitude towards credit carry over from previous quarters, and it will definitely impact consumer spending decisions this holiday season.”
eBillme will be presenting a Webinar to discuss the research findings and consumer trends from the data. The Webinar will be presented on Thursday, November 5 at 1PM EST and discussion topics will include:
- Consumer spending data for the quarter
- Black Friday shopping preferences
- Consumer perceptions of Cyber Monday
- Opportunities for online retailers to capture customers and sales
- Projected long-term consumer attitudes on the economy and eCommerce.
To register, please visit https://www2.gotomeeting.com/register/548547418.
About the Index
The Index is based on data collected from an online consumer survey deployed quarterly starting in August 2008, with a sample size of 1,209 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 ±2.8 percentage points at the 95% confidence level.
The next Index will be released in January, 2010. Data from the Index will be posted on the eBillme website, http://blog.eBillme.com.
About eBillme
eBillme™ is the most secure way to pay online and the only online payment solution that extends the convenience of online banking to the merchant’s checkout process. The service enhances security for online shoppers, and enables merchants to increase sales while reducing transaction costs. No financial data is exposed and the payment transaction is securely transferred from the customer’s bank to the retailer’s bank. Consumers can shop online, by catalog or through call centers, and pay for their purchases at their bank, credit union, or bill pay portal using the security and convenience of online banking or by paying the bill at over 75000 walk-in locations. For more information, please visit www.eBillme.com or eBillme’s Online Debt-Free Shopping Mall.
PRESS RESOURCES
eBillme Website: http://www.eBillme.com
eBillme Blog: http://blog.ebillme.com/
@eBillme on Twitter: http://www.twitter.com/eBillme
Marwan Forzley: http://www.ebillme.com/about/management-team/
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