Yahoo! Poll Shows Eight Out of Ten Holiday Shoppers Will Buy Gifts Online and Most Are Likely to Buy Online From Small Businesses; Nearly Two Thirds of Holiday Shoppers Said Online 'Niche' Stores Are the Best Places to Go for Hard-to-Find Gifts

Business Wire, Nov 16, 2005

SUNNYVALE, Calif. -- More than eight out of ten holiday shoppers (83 percent) said they would shop for holiday gifts online, and a similar number, 80 percent, said they are likely to purchase gifts online from small businesses, according to a new survey commissioned by Yahoo! Small Business (http://smallbusiness.yahoo.com) and conducted by Harris Interactive(R). With leading marketing research firms predicting a significant increase in online shopping this holiday season, the Yahoo! Small Business survey results are further evidence of strong support among consumers for e-commerce with small businesses.

Nearly a third (30 percent) of holiday shoppers polled said they will do at least half of their holiday shopping online. In addition, nearly two thirds of holiday shoppers(1) (63 percent) said online specialty or 'niche' retailers are the "best places" to shop for unusual or hard-to-find gifts.

The nationwide survey of 1,813 U.S. online adults who plan to do holiday gift shopping is being released in advance of the beginning of the peak holiday shopping season. The survey, conducted in late October, measured sentiment among the general online adult population about holiday shopping online. Results from the survey suggest that holiday shoppers look to small online retailers for unique, distinctive gift items, and a large majority would be likely to buy gifts online from small businesses.

"Holiday shoppers are ready and willing to buy gifts online from small businesses that offer variety and value," said Rich Riley, vice president and general manager of Yahoo! Small Business, the division of Yahoo! that powers more than 35,000 online stores. "The survey results are an encouraging confirmation that small business e-commerce has become an integral part of the holiday shopping experience for many consumers."

Pain at the pump

Nearly four out of five holiday shoppers (79 percent) said they would change their shopping habits if gas prices remain high or climb higher during the holiday buying season. Asked how they might change, many shoppers indicated they would be on the road less and on the Web more:

Make fewer shopping outings, but plan better to reduce
 unnecessary use of gas                                            45%
Shop online more                                                   43%
Make fewer shopping trips and spend less in general                42%
Shop at stores closer to home                                      38%
Make as many shopping trips as before, but spend less money to
 make up for increased gas costs                                    4%
Other                                                               2%

Additional survey results include:

Finding unusual gifts online

Nearly three in five holiday shoppers (59 percent) said it was important that their favorite specialty or gift stores have an online presence. Seventy percent said they had no preference between shopping online with small versus large businesses. But shoppers did express their opinions about what they considered to be the "best places" to shop for unusual gifts:

Online specialty, niche, or boutique retailers    63%
Small specialty retail stores in my area          45%
Mail order catalog retailers                      39%
Large chain or department stores                  25%
Other                                              9%
Not sure                                           8%

Open all night

Shoppers stated that the key reasons they would shop for holiday gifts online with small businesses include convenient hours, avoiding crowded parking lots and the ability to find just the right gift, while fewer see low prices as a key factor:

Ability to shop anytime (day or night)                             75%
Avoiding crowded parking lots and long lines at malls and
 shopping centers                                                  68%
Better selection of unique, hard to find gifts                     60%
Easier to find personalized, distinctive gifts                     53%
Convenience in having gifts shipped to out-of-town friends and
 family                                                            40%
Past experience -- reliable service in previous online holiday
 shopping                                                          40%
Better value, low prices                                           36%
Other                                                               5%

"These data confirm that small business retailers need to be in front of online consumers as they use the Internet to shop for products during the hectic holiday season," said Kelsey Group analyst Greg Sterling. "Consumers clearly want what small retailers have to offer and those who can't be found online are missing a significant potential opportunity."

Methodology for Survey

Harris Interactive(R) fielded the study on behalf of Yahoo! Small Business from October 25-27, 2005, via its QuickQuery(SM) online omnibus, interviewing a nationwide sample of 1,813 U.S. adults age 18 and over who plan to do any holiday gift shopping. Data were weighted to be representative of the total U.S. online adult population on the basis of region, age within gender, education, household income, race/ethnicity, and amount of time spent online.