Online Retailers to Up E-Commerce Tech Spend, but Not as Much as Last Year

August 28, 2008

This article is included in these additional categories:

Paid Search | Retail & E-Commerce

Though 72% of internet retailers plan to purchase e-commerce applications or services this year, they’ll be spending less than they expected to spend last year, according to Internet Retailer’s latest survey on e-commerce technology spending intentions (via Retailer Daily).

A whopping 73.6% of respondents say they plan to increase those budgets 15% or less, compared with 49.4% of respondents last year who said so; moreover, about half (47.2%) say plan to increase those budgets 10% or less, the survey found.

Below, additional findings from Internet Retailer‘s survey.

The top spending priorities of online merchants:

  • Replacing outdated e-commerce platform: 28%
  • Miscellaneous apps: 20.5%
  • Content management system: 11.9%
  • Web analytics: 11.8%
  • Order management system: 8.2%
  • Site search software: 6.8%.

Among the top new website features or applications to be implemented:

  • Customer reviews and ratings: 35.5%
  • Inventory availability tools: 34.2%
  • Blogs, forums or videos: 32.9%
  • Streamlined navigation using Web 2.0: 26.3%
  • Mouse-over tools: 25%

Most online merchants, however, intend to keep their current platforms and applications:

  • 67.1% intend to keep their rich media applications.
  • 61.7% don’t intend to replace their web analytics software.
  • 55.2% will continue to used their present content management system.
  • 55.2% don’t plan to buy site search software or service.
  • 52.6% will stick with their current order-management system.
  • 46% plan to keep their in-house or third-party platform.

Other highlights from the survey:

  • At two-thirds (67.1%) of e-retail companies, the official with the final word on tech purchases is the CEO; next are the CIO (9.2%) and CMO (6.6%).
  • The annual e-commerce tech budget is $50,000 or less at 51.4% of online retailers; that budget at 27% of retailers ranges from $50,001 to $200,000; 9.5% have budgets of $200,001 to $999,999; 5.4% have $1 million to $2.5 million; and 6.7% have budgets of more than $2.5 million.
  • 51.3% of the surveyed retailers don’t plan to hire a consultant or other third-party help for a major technology upgrade in 2008.
  • 73.7% run their own internal fulfillment program. Among the remainder that do outsource fulfillment, 65% plan to keep their third-party provider.

About the study: The survey was emailed in early June to subscribers of IRNewsLink, Internet Retailer’s e-newsletter; responses were collected and analyzed by Vovici Corp.; 92 web-only merchants, chain retailers, catalog companies and consumer brand manufacturers took part in the survey.


Explore More Articles.

Marketing Charts Logo

Stay on the cutting edge of marketing.

Sign up for our free newsletter.

You have Successfully Subscribed!

Pin It on Pinterest

Share This