Member Article

Online retailers experience new Christmas trends

Online retail sales for SMEs showed signs of increase in the final quarter of 2011, research from Actinic suggests.

The sixth quarterly UK online sales survey found a 1.5% increase in sales revenue across businesses, as well as a 1.6% year-on-year increase in the numbers of orders processed in the three months to the end of December.

Year-on-year, there was only a 3% increase in the average number of orders processed by each company in the final quarter.

Little change was seen in the average order value, at £76.30 for Q4 2011, compared to £76.38 for Q4 2010.

Simon Armstrong, marketing manager at Actinic Online commented: “These figures show a turbulent time for SME online store owners, with many needing special offers even before Christmas to tempt customers to place and order.

“This has mean a hit on the gross profit margins for many e-tailers.

“However, in comparison to the high street, with frequent announcements of chains of stores in difficulty, e-commerce is still faring well in very uncertain times.”

Many retailers brought traditional January sales forward, offering discounts to entice shoppers in the last few days before Christmas.

Experian reported 86m hits to British shopping website on Boxing Day, and many online retailers had started sales on Christmas Day.

Actinic merchant Nick Powell, of Trout Catchers, said: “It was noticeable that shoppers were delaying placing orders before Christmas.

“In fact, many waited until after Christmas Day, and we saw a definite increase in orders from 26th through to New Year’s Eve, which hasn’t happened before.”

Paul Nicolson, designer for TerraTag, echoed these comments: “We are always trying different styles of promotions, but a percentage discount invariable works the best.

“Christmas 2011 was no exception; to get the orders we had to offer better prices than our competitors, but also ensure deliveries arrived promptly. That way customers are more likely to return.”

This was posted in Bdaily's Members' News section by Tom Keighley .