Online Retailers “Resilient, Not Immune” to Challenging Holiday Season

WASHINGTON--(BUSINESS WIRE)--Though the holiday season will be challenging across the board, online retailers are expecting more than coal in their stockings. According to results of the 2008 eHoliday Study, conducted by Shopzilla® for Shop.org, more than half of online retailers (56.1%) expect their holiday sales to increase at least fifteen percent over last year. However, the rate of growth is slowing: three-fourths (77.5%) of retailers surveyed last year expected their sales to grow more than 15 percent.

“Online retailers are resilient, but not immune, to the challenges of this holiday season,” said Scott Silverman, Executive Director of Shop.org. “Retailers will be heavily promotional to attract shoppers on a budget, but have also invested in new site features to improve the online buying experience.”

Despite an increase in transportation costs, retailers do not plan to cut back on popular free shipping promotions. This year, the majority of retailers (78%) plan to offer free shipping with conditions¹ at some point during the holiday season, consistent with last year’s levels. Retailers are compensating for increased shipping costs by renegotiating terms with shipping providers (40.4%), closely managing company headcount (33.3%), and reducing other promotions (15.8%). In addition, one-fifth (21.3%) of retailers say they will require a higher purchase amount for customers to be eligible for free shipping and one in ten (10.6%) will cut back on usage of free shipping with no conditions.

In addition to free shipping promotions, many retailers have rolled out new website features to improve the customer experience. Features like improved site search, which 42.9 percent of retailers added or improved since last holiday season, will help customers navigate sites more easily. Other features like product video (42.6%) and customer reviews (32.7%) can give shoppers more information to make buying decisions. For price-focused shoppers, retailers have added and enhanced both clearance sale pages (27.1%) and featured sale pages (31.3%). In addition, retailers continue to experiment with social networking as nearly one-fourth (25.0%) of online retailers added a Facebook page this year.

As in previous years, consumers acknowledge that 24-hour shopping convenience is one of - sale from anyone, anywhere on the Web -- at the best price for their lifestyle. Shopzilla also operates the BizRate research division and consumer feedback network that collects more than one million consumer reviews of stores and products each month. Based in Los Angeles, Shopzilla has sites in the United Kingdom, France and Germany and the company is owned by Scripps Networks Interactive Inc. (NYSE:SNI), which include national lifestyle TV networks such as HGTV, The Food Network, Fine Living and more. For more information, please visit www.shopzilla.com http://www.shopzilla.com

About Shop.org

Shop.org, a division of the National Retail Federation, is the world's leading membership community for digital retail. Founded in 1996, Shop.org's 700 members include the 10 largest retailers in the U.S. and more than 60 percent of the Internet Retailer Top 100 E-Retailers. It's where the best retail minds come together to gain the insight, knowledge and intelligence to make smarter, more informed decisions in the evolving world of the Internet and multichannel retailing. Shop.org programs and activities include benchmarking research, events and networking communities.

¹ Free shipping with conditions means that a customer must purchase a certain item or a certain number of or dollar amount of merchandise before receiving the offer.

Note: Scott Silverman, Executive Director of Shop.org, and Helen Malani, Shopzilla’s Online Shopping Expert, are both available for interviews.