Software Seeks Online Bargains
Dec. 7, 2004 — -- If a popular item for sale on one Web site is even cheaper at a lesser-known site, will online shoppers know about it? Maybe.
Online shopping has already made significant inroads with consumers in the United States. According to a recent e-commerce report produced by Goldman Sachs, Harris Interactive and Nielsen//Netratings, shoppers spent $8.8 billion online last month -- up 19 percent from the $7.4 billion spent in November 2003.
What's more, last month's online sales figures are already 62 percent higher than the $5.5 billion spent online during the entire 2002 holiday shopping season.
"We remain enthusiastic about the start of this holiday season," said Heather Dougherty, senior retail analyst for Nielsen//NetRatings. "The growth in 2004 holiday revenue suggests that consumers are shifting more dollars to the Internet this season."
And according to the report, compiled from weekly surveys of more than 1,000 U.S. adult shoppers, the reasons are obvious.
Nearly 36 percent of respondents said they purchased online because prices were lower on the Web. Thirty-four percent responded that wider selection of products was a main advantage of shopping online. Combine these top two reasons, and shoppers believe there's another compelling advantage to take their dollars online.
"Interestingly, consumers also continue to highlight the ease of comparing products and prices online as one of their top reasons for shopping online versus offline," said Anthony Noto, Internet and Entertainment Analyst at Goldman Sachs. "We believe that this is a result of improved search technologies that are providing Internet users more relevant results and thereby increasing the satisfaction of the online experience."
Web sites such as MySimon.com, PriceGrabber.com and Shopping.com have helped online consumers looking for comparative product and pricing information. But New York-based Shelron Group Inc., an e-commerce software maker, is advocating a new way for shoppers to find bargain-priced products online.
