Consumer online shopping to go up 24%

Online merchants can expect to see an increase in sales compared to the previous quarter, according to a survey by Javelin Strategy & Research releases by eBillme.

Online shoppers are predicting that they will spend and average of $281 during the fourth quarter of 2009, a 24 percent increase over the last quarter. This is the first increase of online spending since last year, but also a 18 percent decrease in spending compared to the fourth quarter of2008.

“This quarter’s uptick in spending is evidence of improving consumer optimism as we head into the holiday shopping season, while consumers are planning to loosen their financial constraints this quarter, they are still holding on to recession spending habits.” Says President and CEO of eBillme.

“This includes changing the way they shop and pay to better control debt. Forty percent of consumers plan to use their credit cards less often in favor of non-credit payment options this quarter. We have seen this significant shift in attitude towards credit carry over from previous quarters, and it will definitely impact consumer spending decisions this holiday season.”

Consumers were also surveyed about projected holiday spending this year. Eleven percent are planning to do majority of their holiday shopping on Cyber Monday, while forty eight percent are planning on avoiding Black Friday shopping in favor of online shopping.

“This quarter’s Index shows some visible signs of improvement in the online retail sector,” says Beth Robertson, Director of Payments Research for Javelin Strategy & Research. “We haven’t seen a projected increase in anticipated spending since this time last year. And it comes just in time for retailers during the most important quarter for capturing sales and customers.

“Although consumers are still spending with caution, 51 percent are delaying purchases because of continued uncertainty in the economy. This increase is a positive sign that consumer confidence is on the rise.”