Free Shipping, Special Deals Key To Making Online Holiday Purchases

More than 90 percent of consumers said free shipping would serve as an incentive to spend more online this holiday season and more than 65 percent said special offers or deals not available in stores would boost their online spending. Half of holiday shoppers would be willing to spend more if the merchandise offered was available exclusively online. An equal proportion said that the ability to return items to a store would make them point and click more often. And, 35 percent said free return postage would increase their online holiday purchases.

"Consumers are clearly willing to increase their online holiday purchases, but only if retailers are willing to offer holiday bargains online that are better than or different from what they are offering in stores," says Lynn Franco, Director of The Conference Board Consumer Research Center. "If retailers want to increase their share of the online market, free shipping, exclusivity and bargains are sure ways to get consumers to point, click and order more during the holidays."

When it comes to holiday spending, consumers are saving their bigger purchases for in-store shopping. Only 5 percent of online households plan to spend more than $500 online this holiday season, while 30 percent plan to spend less than $100 online. Conversely, 22 percent of online households plan to spend more than $500 in stores, while 16 percent plan to spend less than $100 in stores. This holiday season, books, movies, and clothing are at the top of consumers' online shopping lists.

The Consumer Internet Barometer segments respondents into five self- selected online shopping categories: die-hard, bargain hunters, traditional shoppers, last-resort shoppers and hurried.

The number of shoppers who prefer point-and-click shopping over stores has increased overall over the past three years. "Die-hard" shoppers accounted for 17 percent of consumers who made an online purchase in the past three months, up from just 12 percent three years ago.

Bargain hunters remain the most common type of online shopper, as more than 40 percent of online shoppers are self-proclaimed bargain hunters. Bargain hunters, however, were more common three years ago, when about 45 percent of consumers classified themselves as such.

Traditional shoppers, who occasionally shop online but prefer the familiarity of brick and mortar stores, account for about 16 percent of online shoppers, and are the third most common type of Internet shopper. Last-resort shoppers, who buy online only when products are unavailable in stores, rank fourth on the list and represent 15 percent of online shoppers. Lastly, there are the hurried shoppers who point and click only when time is limited. This group has decreased in size and represents only 11 percent of online shoppers.

In the past, bargain hunters were more likely to be men than women, but today almost as many women as men are scouring the Internet for bargains. Some 40 percent of women and 43 percent of men are self-proclaimed bargain hunters, compared with less than 40 percent of female shoppers and nearly 50 percent of male shoppers three years ago. Among Internet die-hards, traditional and last-resort shoppers, there is little difference among the sexes.

For both sexes, the most frustrating aspects of shopping online are shipping charges, not being able to physically handle merchandise, and having to give out credit card information.