Ernst & Young released results from its 1999 post-holiday online retailing survey, finding that 26 percent of those polled made a purchase online during the holidays. Additionally, the number of women who shopped online during the holiday season outpaced the men. Fifty-six percent of total respondents were women and 44 percent were men.
The survey, which polled 1,283 Internet users, also found that while the sites most-visited by Internet shoppers remain consistent with earlier findings, a slightly different set of winners is revealed when reviewing the average dollar amount spent at these sites. For example, Amazon.com was the #1 shopping destination for 42 percent of online shoppers this holiday season, followed by eToys (20 percent), Toys R Us (19 percent), Barnes&Noble.com (17 percent) and Buy.com (16 percent). However, the top five sites by average dollar amount spent are Best Buy ($233), Egghead.com ($217), 1800flowers.com ($173), Disney ($172) and Walmart ($167). (See chart.)
Percentage of respondents who shopped at a particular site and the average they spent:
% respondents Average Amt.
shopping online Spent at Site
that shopped at site
————————— ——————– —————
Amazon.com 42.1% $128
eToys 20.3% $127
Toys R Us 19.4% $134
Barnes&Noble.com 16.9% $63
Buy.com 16.1% $111
Cdnow 14.3% $69
KBToys 14.3% $89
eBay 12.5% $152
J.C.Penney 9.8% $151
Drugstore.com 7.2% $38
PlanetRX.com 5.4% $33
Land’s End 5.2% $133
Columbia House 4.9% $71
Petsmart 4.9% $38
Reel.com 4.9% $72
Disney 4.6% $172
Egghead.com 4.3% $217
Iqvc 4.1% $151
1800flowers.com 3.9% $173
Best Buy 3.7% $233
Borders 3.3% $69
LL Bean 3.3% $138
Walmart 2.9% $167
“Whenever we ask online shoppers where they make their purchases, Amazon.com comes up again and again as number-one,” said Stephanie Shern, Ernst & Young’s Global Director of Retail & Consumer Products. “This new data, however, reveals that online shoppers are spending their money across a variety of online retailers and categories. The purchases made online are broad-based and many Internet retailers are enjoying a successful season.”
Total Online Sales
The Ernst & Young survey found that, on average, online shoppers spent $1,225 on Internet purchases during the past 12 months, with 60 percent spending at least $500. Most (87 percent) said that the total dollar amount they spent increased over the previous 12 months, and almost all (91 percent) said that they would spend the same or more in the coming 12 months in online purchases.
“Given this new data, we are updating our estimate for online holiday sales in 1999 to $10 – 13 billion,” said Shern. “Considering the dramatic increase in the number of Internet sites and merchandise available, plus the broad-based success among these retailers, our estimate of total revenue for calendar year 1999 remains at $25 – $30 billion.”
Favorites and Disappointments
When Internet shoppers were asked to report on their favorite online retailers this holiday season, the top five sites listed as number-one were Amazon.com, eBay, Buy.com, eToys and Barnes&Noble. (See chart.)
Favorite shopping sites and reasons why?
———————————————————————
Total Top Reasons
1st mention
Favorite Site
———————————————————————
Amazon.com 32% good selection good prices easy to use site
48% 16% 14%
eBay 6% good selection Has items not good prices
56% available in 16%
stores
18%
Buy.com 5% good prices 48% good selection 35%
eToys 5% good selection good availability easy to use
44% of items 20% site 11%
Barnes&Noble.com 5% good selection easy to good availability
52% use site 9% of items 9%
Cdnow 4% good selection good prices 19% easy to use
50% site 14%
Toys R Us 2% good selection good availability good prices,
23% of items 18% ease of
ordering, 14%
Land’s End 2% good selection easy to use site offers brands
53% 16% I like
16%
Egghead.com 2% good selection good prices good availability
44% 31% 19%
JCPenney 2% good selection on-time delivery good prices
40% 20% 13%
Disney 2% good selection easy to use site
43% 14%
In addition, respondents were asked to report on sites that disappointed them this holiday season. The top sites that were mentioned as number-one were Toys R Us, Best Buy, Buy.com, eToys and Walmart. “Overall, the percentages given by respondents are fairly low,” said Shern. “Even though there were some disappointments, this is not such bad news.”
Disappointing sites and reasons why?
———————————————————————
Total 1st Top Reasons
mention
disappointing
Site
———————————————————————
Toys R Us 13% merchandise out of merchandise could site was
stock 29% not be too slow
delivered 21% 18%
Best Buy 3% could not find desired
products 68%
Buy.com 3% merchandise merchandise could tech. Probs,
out of not be high shipping
stock 28% delivered 12% costs, poor
customer
service 12%
eToys 3% merchandise could not find site slow/
out of desired merch. 22% difficult
stock 22% to use 9%
Walmart 3% could not find merchandise prices
desired out of un-competitive,
products 48% stock 13% site difficult to
use 13%
JCPenney 2% merchandise site was too could not find
out of slow 14% desired prod, tech
stock 52% probs 10%
KBToys 2% merchandise could not find technical problems
out of desired 25%
stock 25% products 25%
Amazon.com 2% merchandise prices were not merchandise out
could not competitive 22% of stock 17%
be delivered
33%
Barnes&Noble.com 2% merchandise out could not find merch. Could
of stock 24% desired products not be
12% delivered,
priced not
competitive 12%
eBay 2% site was too slow site was hard poor customer
21% to use 21% service 14%
Total Holiday Shopping
Ernst & Young found that the average amount spent on total (all venues) holiday purchases was $1,080. Of these purchases, 67 percent were bought in stores, 7 percent through catalogs, and 26 percent online. Categories with the most purchases (all venues) were: toys (73 percent purchased from this category), apparel (70 percent), CDs/videos (64 percent), books (60 percent), and computer hardware and software (58 percent). Most purchased categories online were: books (50 percent), computer hardware and software (49 percent), toys (47 percent), CDs/videos (44 percent), and flowers (42 percent).
About Ernst & Young
Leveraging its strengths in e-business and drawing upon its deep knowledge of the retail and consumer products industry, Ernst & Young has developed a dedicated capability in e-tailing, helping retail and consumer products companies develop and execute 24×7 businesses that fully leverage Internet-based technologies to sell directly to customers. It is led by Stephanie Shern, Global and U.S. Director of Retail and Consumer Products.
Ernst & Young ([www.ey.com][1]) is one of the world’s leading providers of dot-company services in assurance, consulting, corporate finance and tax. More than 85,000 people around the world act as creative catalysts, joining forces with clients to do all it takes–FROM THOUGHT TO FINISH(TM)–to achieve positive, significant change. E&Y pioneered the development of advanced solutions that connect clients, partners and employees with E&Y resources and knowledge to help them rapidly reach their goals. Ernst & Young refers to the U.S. firm of Ernst & Young LLP and other members of the global Ernst & Young organization.
[1]: http://www.ey.com/
