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Online Shoppers to Spend 70% More Than Their Brick-And-Mortar Loyalists

Consumers will not only lean more heavily on e-commerce to complete their holiday shopping this year, but they’ll also open their wallets a little wider in the process.

Consumers expect to complete nearly 40 percent of their 2017 holiday shopping online, up from one-third two years ago, according to The NPD Group. The firm polled 3,785 people online in September.

Those who shop online also plan to spend roughly 70 percent more than their in-store-only counterparts. Online shoppers anticipate spending anw average of $793 this holiday season while those who will only shop in brick-and-mortar stores plan to spend an average of $467.

“Online is going to play an increasingly critical role in the 2017 holiday shopping season,” said Marshal Cohen, NPD chief industry analyst. “Retailers, big and small, recognize online retail’s importance and have been turning up the volume on their online strategy this year, which will only intensify during the holidays.”

Purchase frequency is also growing online while decreasing in stores. During Q4 2016, consumer e-commerce purchase frequency increased 12 percent to an average of more than six online orders, while brick-and-mortar consumers made an average of 18 purchases, a 4 percent decline from the prior year.

Almost three-quarters of holiday consumers plan to do some of their holiday shopping online this year, with even higher likelihood among millennials and Gen X, said NPD. Two-thirds (66 percent) cited Amazon, eBay and Etsy as anticipated holiday shopping destinations. Mass merchants/discount stores, and their websites, were the second most popular planned destination, followed by national chains, and department stores.

“New online competition is emerging every day giving consumers more options, but also creating more noise and shopping confusion,” added Cohen. “The key for traditional retail continues to be an omni-presences approach that muffles that noise, synthesizes brick and click strategies, and keeps your brand top of mind for consumers throughout the holiday season.”