The eBillme Online Spending Index, conducted by Javelin Strategy and Research polled consumers to measure their projected online spending for the coming quarter and factors influencing their spending decisions. This quarter, the Index also surveyed consumers about their holiday spending.
The credit crunch, which has limited consumer access to credit is expected to cause shoppers to reduce their credit card use over the holiday season. While consumer spending projections remain steady at $100-$250 on average, 31 percent of respondents said they would prefer to better control their finances by paying with cash when they are shopping online; an opportunity for online merchants to optimize checkout with cash payment options. In addition, 45 percent of consumers surveyed have used their credit card less often over the last 90 days in favor of non-credit payment options.
According to the Q4 data, the credit crunch is continuing to impact consumer use and access to credit.
- 48 percent of consumers are delaying purchases due to uncertainty in the economy.
- 55 percent of respondents indicated that their available credit has decreased this holiday season as compared to last year.
- 34 percent of consumers are closer to their credit limit than a year ago.
This quarter’s Index also surveyed respondents about the upcoming holiday shopping season. 46 percent of consumers reported that they prefer to avoid Black Friday in-store shopping in favor of shopping online. 13 percent of respondents reported that they plan to do most of their shopping on ‘Cyber Monday’, the unofficial start of the online holiday shopping season.
Marwan Forzley, President and CEO, eBillme
“The consumer sentiment is not in favor of a positive Q4. The market has shifted and it is strategic for the long term benefit of eCommerce that merchants invest in cash-like payment options to appeal to the changing dynamics of consumer behavior. It is evident from the data that the credit crunch is having a profound impact on consumers. This is an opportunity for e-tailers to respond to the situation by strategically offering checkout options that support financial control and debt management.”
The next Index will be released in January, 2009.
About the Index
The Index is based on data collected from an online consumer survey deployed in August 2008, with a sample size of 1608 respondents. The survey targeted US adults (age 18 +) and was based on representative proportions of gender, ethnicity and income as compared to the overall US online population. Overall margin of sampling error is ±4.4 percentage points at the 95 percent confidence level.