Robust European Online Shopping Growth to Continue
European online retail activity rose “a staggering 58%” in 2007 and a similar increase is likely this year, Forrester Research predicts.
In 2007, the European Christmas season was particularly robust, according to ComScore data. In the UK and France, online shopping activity built steadily throughout the season, peaking during the first half of December. The sixth week of the season (Dec. 3 – Dec. 9) recorded the highest level of online shopping activity, up 38% versus the base period (Sep. 3 – Oct. 28) in the UK, and up 45% in France.
In Germany, the rail strike and consumer worries about the economy harmed growth in holiday-season ecommerce activity: During the holiday season, the increase in online consumer traffic was less than a third of what it was in France and the UK.
In all three economies, Amazon and Apple were among the top five traffic leaders, while domestic firms occupied the other three slots, according to comScore.
Looking ahead to 2008, Forrester sees not just huge growth but the dynamic development of European online retail markets.
Despite continuing online security fears, shockingly bad site designs, painful checkout processes, and poor delivery services, many consumers were willing to overcome these hurdles - and online shoppers now represent more than a third of the online population in Europe.
Specifically, Forrester predicts that:
- Growth in European ecommerce will be of a similar magnitude to 2007 ;
- As those less accustomed to ecommerce begin to shop online, demand for websites that offer a more “in-store shopping experience” is expected to increase ;
- Price comparison sites, consumer reviews, and other features of online shopping are expected to grow in popularity. Websites that offer such features will gain more “hard conversions” among consumers;
- A significant increase in online luxury retail and services-oriented websites will occur;
- Delivery prices and options will become more important to consumers;
- European online consumers will lead the way in increasing demand for environmentally-friendly products.
The Forrester report Trends 2008: European eCommerce And Online Retail includes recommendations to eBusiness professionals, such as emulating Amazon’s 1-click transaction system.
Fully transactional sites with real-time stock availablity are essential.
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