Perks such as free shipping and exclusive online incentives continue to drive consumers to the web. Bargain hunting remains the primary reason for online sales, while shipping costs remain the top frustration, The Conference Board and TNS report.



"Free shipping, special offers and deals are at the top of online holiday shoppers' Christmas lists this year," says Lynn Franco, Director of The Conference Board Consumer Research Center. "And, with more consumers referring to themselves as bargain hunters, it's a list retailers shouldn't ignore if they want to drive up holiday internet sales."

Free Shipping, Returns and Special Deals Would Lure More Consumers Online

Shipping charges remain the most frustrating aspect of shopping online. Ninety percent of online holiday shoppers said that free shipping would entice them to spend more online this holiday season. More than 73 percent said special offers and deals not available in stores would boost their online holiday spending. Half of holiday shoppers would be willing to spend more if the merchandise were offered exclusively online. Similarly, half of holiday shoppers claim that the ability to return items to a store would make them purchase more products online. A third said free postage for returns would increase their online holiday purchases.

Books, Movies, Clothes and Toys Top Online Shopping Lists

This holiday season, books, movies, clothes and toys are at the top of consumers' online shopping lists. For 43 percent of consumers, the most preferred type of site to shop online are retail and catalogue (i.e. Walmart.com, BestBuy.com, etc.). Online retailers (i.e. Amazon.com, Overstock.com, etc.) are preferred by 37 percent of consumers. Online auction sites (i.e. EBay.com, Yahoo! Auctions, etc.) are most preferred by about 21 percent of internet shoppers. Male shoppers cited online retailers as their most preferred shopping sites, while female shoppers preferred retail/catalog sites.

Consumers Still Plan to Hit the Stores

When it comes to holiday spending, consumers are saving their bigger purchases for in-store shopping. Less than 5 percent of online households plan to spend more than $500 online this holiday season, while 29 percent plan to spend less than $100 online. Conversely, 21 percent of online households plan to spend more than $500 in stores, while 16 percent plan to spend less than $100 in stores. "While in-store shopping still attracts the lion's share of spending, trend setter segments like younger consumers and affluent consumers look to online alternatives for an increasing part of their overall shopping needs," notes Don Ryan, V.P. Technology and Media, TNS. "This is especially true for media and consumer electronics."

Bargain Hunters on the Rise as Consumers Become Increasingly Cost Conscious

Consumers are increasingly weighing the benefits of their shopping choices in stores and online. Bargain hunting shoppers account for 44 percent of shoppers who have made an online purchase in the past three months, up from 41 percent a year ago. Traditional shoppers, who occasionally shop online but prefer the familiarity of brick and mortar stores, account for 16 percent of online shoppers. Die-hard internet shoppers have decreased slightly since last year and account for about 16 percent of online shoppers. Last resort shoppers, who buy online only when products are unavailable in stores, represent 15 percent of online shoppers. Hurried shoppers, who purchase online only when time is of the essence, have decreased slightly in size and represent about 10 percent of online shoppers.

More men than women, 46 percent versus 41 percent, are self-proclaimed bargain hunters.