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Online retailers have a bumper Christmas

Published: 7 January 2010
E-commerce businesses end 2009 on a high with a 51% increase in sales over the festive period
Online retailers have a bumper Christmas
A Christmas poll of small and medium businesses selling online revealed a 51% increase in order volume for November and December 2009 compared with 2008 figures.

The annual survey carried out by ecommerce specialist Actinic, also revealed a positive increase in annual turnover, with respondents reporting a 42% increase in revenue compared with 2008, though growth had slowed compared to last year's 48% over 2007.
Nick Kington, managing director at Actinic commented, "This is another impressive performance by online sellers in the SME market with many Actinic customers weathering the economic climate and reporting healthy increases in both order volumes and revenue. Some of December's larger value item purchases might be attributed to customers wanting to benefit from the 15% VAT rate before its return to 17.5% this month. Only time will tell either way."

The results highlight increasing price sensitivity as shoppers continue to compare prices and seek out bargains. Sean McMenemy from arkwildlife.co.uk commented: "In tough times, don't cut back on advertising and marketing, potential customers shop around more during hard times, so don't miss this opportunity."

Meanwhile the latest GIM Consumer Insight Report from the HTA suggests that consumers are spending more time researching products before buying them, with a new breed of 'professional shopper' scouring the internet to find the best deal. The increase in shopping around has resulted in a drop in customer loyalty, with 53% of people agreeing that they are less loyal to companies now than they were previously.

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