Online spending continues to increase

Consumers' love affair with online shopping shows no sign of slowing down

Nearly £80-billion of annual consumer spending is either done online or influenced by the internet, and this figure is rising.

According to the sixth annual report from online retailers' organisation, the IMRG, 44 per cent of online shoppers said they planned to increase their online spending over the next year.

Online sales are growing at an average year-on-year rate of 45 per cent, and the amount spent directly online now accounts for 10 per cent of the annual spending total of £300-billion.

The IMRG concluded that "what emerges very clearly is that e-commerce continues to grow as a channel of retail choice for consumers".

The report, which surveyed the spending habits of 3,900 consumers, breaks the part the internet plays in influencing purchases into three areas.

It said the £30-billion of direct online purchases is made on products such as groceries, consumer goods and digital downloads.

Another £20 billion is spent in areas such as financial products, at online auctions, gambling, gaming and telecoms services such as internet access.

The internet also has great influence a further £30 billion that is spent offline. Nearly nine in ten people surveyed said finding out about products online had played a major factor in their choice of purchases from traditional stores.

The role played by thie internet also depends on the type of purchase the consumer is looking for. All of those surveyed who were considering buying home appliances or music looked for information on the internet first.

Nine in ten researched the internet for information on consumer electronics, eight in ten people did so for books and seven in ten for travel.

Interestingly, despite the figure for consumer electronics, only just over half of people considering buying computer equipment used the internet to research products.

The survey also looked at consumer expectations when dealing with companies who trade both offline and online.

It found that nearly three-quarters expect an item that is available in a retailer's store to be available on its website. However, only six in ten people expect website items to be available in the retailer's store.

In most cases, if consumers can't find an item on the company's website, they presume it is not available in the retailer's stores either.