Online Spending Index: Q4 2009:

Now in its 6th quarter, of reporting project eCommerce spending data, the eBillme Online Spending Index has proven to be an accurate and useful tool for eCommerce merchants. In this quarter we set out to understand people spending intentions for Q4 2009 and to measure if consumer sentiment has changed over the past year and a half.

Over the last 5 quarters we have projected a decline in online spending that that has unfortunately materialized. This quarter however we are forecasting an increase in online spending, the first since Q4 2008. Q4 has always been the strong quarter for online merchants, as consumer increase spending starting on Black Friday

< / Cyber Monday and until Christmas. The increase in spending amounts to approximately $281 per customer up by 24% over the previous year. This however is slightly lower than what was recorded in 2008 where the average was just shy of $350.

The index not only points us the over all average, it also allows us to explore opportunities and allow us to learn what is impacting the consumer sentiment and how economic and seasonal variation will have changed this sentiment over time. We invite you to join our webinar https://www2.gotomeeting.com/register/548547418 to explore all he detailed findings and learn about opportunities that exist in today’s market

We can at this point in time offer the following recommendations:

• The Hispanic community has seen an continuous increase in online participation and spending
• Youth also seems to be a pocket for growth however we caution that in the near future that segment will be limited in how they can pay as the Credit Card bill takes effect, merchants in this demographics will benefit greatly from this Forrester Research webinar addressing this topic
• There seems to be a permanent change in sentiment when it comes to spending using credit card instruments and a change in preference towards cash instruments
• Security and consumer protection are still a main concern for consumers

Online Spending Index by Dollars

Online shopping, cash and preferences