With consumer confidence still at record low levels, and in an increasingly complicated technical environment, Internet retailers that are actively marketing products on comparison shopping may be the only ones that will be left standing as consumers continue to look for the lowest price – and not just their favorite merchants. Those merchants with an eye on performance optimization will be thriving and not just surviving.
Retail clients of Channel Intelligence (CI), a provider of performance-based e-commerce services (product search, paid search, display ads), saw a thirty percent year-over-year sales increase (on a same-seller basis). Retailers using CI Product Search saw a 28 percent year-over-year sales increase, and clients using CI’s Shopping Engines service experienced a 32 percent increase compared to the same period in 2010.
“Although there is a significant increase in year-over-year sales, our analysis reveals that consumer confidence may still be weak because we see the majority of online shoppers currently making selections based on price.” said Rob Wight, CEO of CI. “The good news is that consumers are spending. They are just being very deliberate and price-conscious in how they spend.”
Channel Intelligence has a long roster of leading companies as clients including Best Buy, Target, HP and others and drives upwards of $2 billion annually in online sales.