Online merchants are bracing for a chilly holiday shopping season by cutting back their marketing budgets by nearly 1/3 and eschewing promotions for such tried-and-true inducements in anticipation of business that is estimated to grow by only half what it did last year.
These trends, reported by AdAge, indicate a hunkering down even by virtual shopkeepers who have been steadily eating away at brick-and-mortar retailers for holiday bucks. This year a sinking tide stands to lower all boats.
Forrester Research projects that online sales will grow only 12 percent compared with 21 percent last year. A Shop.org survey found that 30 percent of online merchants are cutting back their marketing budgets this season and that 16 percent are planning to reduce promotions this season in lieu of free shipping.
Other metrics are expected to be about unchanged, year-over-year: 21 percent of consumers plan to do all of their holiday shopping online this year, compared to 19 percent last year. And 24 percent of total dollar spend this season are expected to be spent online, versus with 22 percent last year, according to Deloitte's annual holiday survey.
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