Press Releases - 13th November 2006

Research reveals online consumers untrusting of Christmas Delivery

Negative experiences with delivery are likely to be hurting online retailer's sales this Christmas, a survey from cashback-shopping site GreasyPalm.co.uk reveals.

Overall, 55% of people surveyed cited delivery times as the main drawback of shopping online at Christmas. 30% gave the main drawback as 'lack of stock' with the remaining 15% stating credit card security was their main concern.

Neil Durrant, Marketing Director for GreasyPalm comments: "Late delivery can cause a lot of problems for consumers at Christmas. However, whilst this is given as the biggest drawback of online shopping, notification on lack of stock seems to be the cause of most frustration. Shoppers are fairly forgiving if told, before ordering, that an item is out of stock. If they are notified only after ordering however, consumers feel this could have been avoided and that their time has been wasted."

Generally, ordering towards Christmas is still seen as a 'hit and miss' undertaking by consumers. 42% were not confident in delivery times at all, with a further 32% stating they are unsure deliveries would be received, but 'will take a gamble anyway.'

The mistrust of online retailers at Christmas is especially prevalent with women, who plan their shopping well in advance because of this. 48% of women were not confident of delivery at Christmas, so would be ordering very early, compared to 33% of men.

One GreasyPalm member comments on their Christmas shopping experiences: "Previously I have ordered items and paid for them, only to be informed that unfortunately they are now unavailable! But at the time of transaction they took the cash no worries."

Another member comments: "Every year I think I've found that items (mostly CDs) have either gone missing or arrived too late so have ended up going to a real shop to purchase them."

Neil Durrant says: "From the feedback we have received, consumers are very much 'once bitten twice shy' with specific retailers who have let them down in the past. Good service is especially crucial at this time of year, where failure to provide the expected level of service results in even greater disappointment than usual. Previous year's successes and failures with orders are firmly in the mind of consumers when shopping again the following year."

Zak Edwards, Managing Director for online gift retailer PrezzyBox: "It is imperative for online retailers to communicate their intentions and then deliver with regards to stock availability and customer fulfilment. Communication is key. Under promise and over deliver. It is better for the customer to receive products earlier than expected than later than anticipated and become disappointed."

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Notes to editor:

Research by GreasyPalm surveyed 2000 UK adults.

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About GreasyPalm:

GreasyPalm was the UK's very first 'cashback' website, launched in 2003 and remains one of the UK's fastest growing consumer reward sites. The GreasyPalm model rewards consumers with cash discounts when they shop for goods & services from hundreds of the UK's leading companies including The AA, Marks & Spencer and Lloyds TSB. GreasyPalm has over 500,000 registered members and generates millions of pounds in retail sales every month, with over £3 million in cash rebates having been awarded to members since launch.

Contacts:

Submission Technology / GreasyPalm
Shaun Dempsey
T. 0207 1831 653
E. shaun@submissiontechnology.co.uk