The Inaugural eHoliday Shopping Monitor Finds Online Companies Expect to Increase Sales Volume, Average Ticket Prices to Remain the Same
Dallas, October 23, 2012 - E-commerce companies expect the 2012 holiday shopping season to be merrier than last year, according to a new survey from Chase Paymentech, a leading merchant acquirer and payment processor and a subsidiary of JPMorgan Chase & Co. [NYSE:JPM]. Nearly six in 10 (59 percent) e-commerce companies surveyed expect better sales volume this season than in 2011, while almost half (47 percent) expect it to be better than pre-recession levels in 2007.
The Chase Paymentech eHoliday Shopping Monitor reveals expectations for the holiday shopping season among e-commerce companies across a variety of sectors. This survey arrives ahead of the Chase Holiday Pulse, which, for the seventh year, will present actual aggregated daily payment processing activity for 50 of the leading U.S. online retailers, giving a near-real-time snapshot of year-over-year e-commerce growth.
“E-commerce payment activity provides a unique window into the country’s economic health during the busiest shopping season of the year,” said Mike Duffy, president of Chase Paymentech. “Half of companies, representing a wide variety of industries, expect the holiday season to have a positive impact on their business. If these predictions hold true, it could be a very good holiday shopping season for e-commerce.”
This Holiday, E-commerce Reigns Supreme
E-commerce is expected to remain strong during the 2012 holiday season. Nearly half (45 percent) of the companies surveyed expect to see an increase in their e-commerce sales over last year, and a majority (53 percent) expect their e-commerce holiday sales to remain similar to last year. On average, these companies expect more than half (51 percent) of their holiday sales to come from e-commerce. While the e-commerce cash register rings, mobile commerce is expected to account for only six percent of holiday sales.
However, nearly half (45 percent) do not believe average ticket prices will change from last year and only four in 10 (39 percent) expect average ticket prices to be higher.
Marketing Plans for E-commerce Companies
Despite the expectations for a strong shopping season, the e-commerce companies surveyed expect that they will face some marketing challenges over the coming months. More than half (52 percent) indicated “reaching new customers” would be “significantly challenging,” followed by “offering competitive pricing” (25 percent) and “reaching return customers” (23 percent).
Of those who plan to use digital promotions, companies said Facebook® (86 percent) and Twitter® (70 percent) are the social media sites they plan to use most to reach customers.
Holidays Present a Springboard for Economic Optimism
Companies’ optimism about the holiday season should reflect a positive sentiment about the direction of the economy. The vast majority of e-commerce companies (65 percent) surveyed believe the 2012 shopping season will have a positive impact on the U.S. economy. Overall, 80 percent say the U.S. economy will either remain the same or improve over the next 12 months, compared to only two in ten (20 percent) expecting conditions to get worse.
About the Chase Paymentech eHoliday Shopping Monitor
The inaugural Chase Paymentech eHoliday Shopping Monitor was an online poll conducted between September 18 and September 25, 2012 among 178 companies generating e-commerce sales this holiday season. Companies were drawn from Chase Paymentech’s customer base that collectively account for half of all global Internet transactions. The survey was administered by Braun Research, Inc. The Chase Holiday Pulse was formerly known as the Cyber Holiday Pulse Index.
About Chase Paymentech:
Chase Paymentech, a subsidiary of JPMorgan Chase (JPMC), is a leading provider of payment processing and merchant acquiring. The company’s proprietary platforms enable integrated solutions for all payment types, including credit, debit, prepaid stored value and electronic check processing; as well as digital, alternative and mobile payment options. Chase Paymentech has uniquely combined proven payment technology with a long legacy of merchant advocacy that creates quantifiable value for companies large and small. In 2011, Chase Paymentech processed 24.4 billion transactions with a value of $553.7 billion, including an estimated half of all global Internet transactions. In addition to the ability to authorize transactions in more than 130 currencies, the company provides business analytics and information services, fraud detection and data security solutions. More information can be found at www.chasepaymentech.com.