E-commerce and its discontents Oh yeah, and more
• Among the Web shoppers surveyed, 33% plan to buy fewer discretionary goods online, 55% say the amount will remain about the same while only 12% expect to purchase more.
• Just 31% of respondents say they are “most likely” to buy goods and services with the rebate checks. More people–40%–are planning to cut discretionary purchases while 53% plan on spending the same as in 2007.
So Ben (Bailout) Bernanke has been testifying before Congress the last couple of days, predicting a possible contraction in the first half of the year. Lovely. Though considering the Fed’s predictive track record, I wouldn’t hit the panic button just yet.
These things move in cycles but right now, the signs point in the direction of a trough. The level of consumer confidence remains low, even after the passage of President Bush’s stimulus package. The survey suggests that we’re entering a period which will be punctuated by less spending on e-commerce. The highlights (or should that be “lowlights”?) include the following:
• 36% say they are worse off financially today compared with a year ago. While 41% reported no change, 23% indicated that things were better.
Cloudy days ahead? Wall Street wants to know
• 27% of online shoppers expect to reduce what they buy. (This is an across-the-board decrease spanning consumer electronics, computers, and jewelry verticals.)
How all of this economic upset is going to affect e-commerce obviously continues to be the big unanswered question on Wall Street. Piper Jaffray just came out with the results of a survey of 200 consumers which, among other things, suggests that the grim spending outlook for the remainder of this year will be, well, grim.
• When it comes to buying high ticket items. 40% of the respondents plan to spend less than $500 per purchase. Half say things will remain unchanged while 10% expect to buy more high ticket items in 2008.
