The USC Annenberg School Center for the Digital Future recently released the 7th Digital Future report. While you have to pay for the full report, even the summary offers some interesting insights into ecommerce and online shopping behavior.

Ecommerce affects offline shopping more than previously

The Digital Future reports points out that 67 percent of respondents said that online shopping reduced their traditional retail purchasing. This is an increase from 65 percent as compared to 2006. This is very interesting. It speaks to the fact that consumers are finding more of what they want — whether it is in terms of price, selection, quality or other factors — online than they are offline.

Interestingly, though, while online shopping cuts into traditional retail purchasing, it doesn’t stop consumers from going to the store. 71 percent of ecommerce shoppers said that they “sometimes or often” browse local stores before making an online purchase. The wise etailer could benefit from this information. Consumers are not finding exactly what they want locally in some cases — this is most likely in many cases for specialty or niche items.

Even those who still engage in traditional retail purchasing behaviors do a little online browsing. Internet search for products is very popular, even if the shopper buys offline at a local store. The is still good for ecommerce. It means that you can be noticed through your product offerings. A consumer may buy offline this time, but if s/he remembers that your ecommerce Web site was useful in the search, you could get the sale next time.

Interesting fact: The New York Times reports that 52 percent of people shopping online do product research at Amazon. But that still leaves nearly half for everyone else. And don’t forget that Amazon has programs that allow ecommerce businesses to sell products through the site.

Privacy is an issue for online shopping

Many ecommerce shoppers are concerned about privacy. They want to know that their information is safe. 57 report a high level of concern with regard to giving out credit card information. This will likely contribute to the increased popularity of third-party checkout options such as Amazon Pay Now, PayPal and Google Checkout. These services limit the number of places credit card and other personal information is stored. Ecommerce businesses that offer these, and other security measures, are more likely to attract shoppers.

That 57 percent, however, represents a number that is stabilizing. Ecommerce shoppers are not becoming more uncomfortable with giving out their credit card numbers. That indicates that online shopping is becoming accepted as a reasonably secure way to shop.

However, privacy remains an issue over all, reports the study:

The percentage of all respondents who reported the highest level of concern increased in 2007, and overall concern was the highest since the first year of the Digital Future Project.

Other points of interest from the Digital Future report:

• The number of ecommerce shoppers has increased 16 percent since 2006.
• 60 percent of Internet users at least 18 years of age bought online (spending less than $100 per month).
• The average number of online purchases during the year for those 18 and older is 36.

Tags: ecommerce, ecommerce shoppers, ecommerce businesses, Digital Future report,
privacy online shopping, online shopping, retail purchasing