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Social Networks have powerful effect on ecommerce

Online shoppers are making more use of the Internet as a tool to find the best deals in the recession pressure cooker conditions of the current economic climate. The influence of social networks is increasing and wider trends are uncovering for online shopping via ecommerce websites. These follow trends we have seen in the finance and travel industry sectors, with increased popularity of comparison and review websites.

53% of Internet users say that they are making more online transactions in 2009, driven by the current economic climate. The top reasons given by shoppers that make the Internet such an attractive place to buy include, the ability to compare products and prices (74%), as well as online-only sales and discounts (64%).

56% of the 1,651 adult Internet users surveyed said that they avoided a vendor due to a bad review. Social networks are being shown to have a powerful effect on consumer trust. The positive effects of online social media shown in this survey suggest 52% of us will do business with an online merchant, after reading a positive review.

Although there are improvements from the 2008 survey, problems encountered by users whilst shopping online include in descending order:

• Error messages
• Difficult to navigate website
• Incorrect or confusing information
• Problems logging in
• Unable to complete a transaction
• Unable to complete a transaction due to an endless loop
• Credit card transaction didn’t go through
• The website search function didn’t work

The survey urges online vendors to “monitor, react, and respond” to customers. Shoppers reporting a complaint via the website or by or contacting the company call centre have reduced to 25% and 35% respectively. 11% say they will share bad experiences on social networking sites.

Tealeaf (UK Survey 2009).

This news story was brought to you by the Rhubarb Media Web Design Leicester Team.