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December 09, 2010

Increasing Revenues throughout the Holiday Season for Online Merchants

With online shopping and e-commerce continuing to gain strength in the consumer market, holiday sales will continue to increase throughout the remainder of this year.  In 2009, online sales increased by an estimated 4 percent, however, this year analysts are predicting a much more substantial increase at an 11 percent growth.

There’s no denying that consumer confidence is improving just in time to salvage this year’s otherwise bleak sales’ season.  The economy is starting to show small signs of improvement, which in turn fuels consumers’ desire to spend more freely to purchase wish list items.

Although online shopping and e-commerce are growing, traditional retail markets are still retaining the majority of the consumers.  Therefore, the question lingers: how can online business owners encourage consumers to make online transactions, while driving up revenue for online profits?

Enticing Online Shoppers

While online shopping offers customers much more convenience, potential customers still must be enticed to spend their money.  One such advantage is being able to shop in the privacy of their own home, even in the comfort of their pjs.  Other advantages include a diverse inventory to browse through, no massive crowds of shoppers to compete with, and the bonus of shopping at home without getting off the sofa.

Even though the general public is beginning to spend more freely, still consumers are being very conscientious about where they are actually spending their money.  Online shopping helps thrifty consumers by allowing them to quickly and easily compare prices, and then make educated decisions about making a final purchase transaction.

Online merchants should keep in mind that one thing all consumers have in common: searching for a bargain. This doesn’t always mean looking for the lowest price.  Many times it’s the enticement of offering the consumer a small perk with a purchase such as a special online discount.  Another marketing trick used to increase online sales is a buy one get one half off offer.  The enticement of a half-price product will influence many potential customers to purchase more than they had originally intended or needed.

Perhaps the most popular online shopping bonus that online merchants offer to their customers is free shipping on selected orders.  Larger online companies have began attracting more and more potential customers with the appealing offer of free shipping and handling fees.  In fact during the holiday season, it has almost become expected. Many consumers are so expectant of free shipping that they may even refuse to order from a site that doesn’t offer the perk.  Successful online merchants can testify to the fact that it’s now a requirement to boost a site’s holiday sales. 

Reaping the Benefits

While, there are many advantages to online shopping, the only one that consumers are concerned with this holiday season is that of a good bargain and free shipping.  With such knowledge in hand, online merchants can anticipate their revenues to increase throughout the holiday and remain vigilant of this current trend.

Tags: online shopping,  e-commerce,  consumer confidence,  retail markets,  online transactions,  online profits,  online discount