UK on-line sales to pass £10 billion in 2003, says Forrester

The results are encouraging. According to Rebecca Jennings, senior analyst at Forrester, 65% of adults who use the internet have purchased on-line, whether this be a service or product. The average spend in the past three months has been £237, most commonly on products that do not need to be seen before being bought, such as books and videos.

However, 55% of non-buyers do not buy on-line because of fears over security. In particular they were unwilling to disclose personal financial details over the internet. Other worries included an unwillingness to buy items unseen – according to Forrester, 34% of consumers would like to see items prior to purchase, while 23% use the internet to carry out shopping research, and then buy off-line.

The research shows, says Rebecca Jennings, that "Successful retailers will be those that design sites to serve multiple types of user and use multi-channel marketing to smooth the path of on-line shoppers".

Such multi-channel marketing is a must for boosting consumer awareness of sites and their products. In particular there must be cross marketing between shops and their on-line counterparts.

Jennings commented,

"Retailers must start by educating store managers that the web is complementary, not cannibalistic, to their business, and by prominently displaying their site's URL both in-store and on packaging."

According to Forrester, those retailers wishing to participate in the predicted growth in internet sales must counter consumers' worries about security.

Jennings says that this must involve:

"a simple, jargon-free privacy and security policy link at every step where users are asked to provide information. Retailers must offer contextual on-line help that is easy to understand and allows easy escalation to assisted service, such as call centres or live on-line chat."

Retailers should also consider such services as free delivery for purchases over a certain amount, complementary products should be placed side by side and impulse buys strategically positioned, says Jennings.

She also suggests ensuring that the site offers several routes from product to purchase, so as to entice both those familiar with the site and complete beginners.

The full 3-page brief by Forrester is available free, although registration is required, at:
www.forrester.com/ER/Research/
Brief/0,1317,17215,00.html