Is Online Sales Tax as Important to Consumers as Retailers Think?

Online sales tax has been a hot button issue over the past  year, but how exactly do consumers feel? Do they notice whether they pay sales tax, and how does it factor into their purchase decision? Bizrate Insights partnered with Sucharita Mulpuru of Forrester Research in order gauge consumer sentiment on online sales tax.

The full study can be downloaded for free here: Is Online Sales Tax as Important to Consumers as Retailers Think?

Key Highlights:
 
Online sales tax prevalence

  • 44% of online buyers reported paying sales tax on their order.
  • Health & Beauty purchases had the highest percentage of customers who paid sales tax (58%), while Electronics had the lowest percentage (28%).

How sales tax factors into the purchase decision

  • 59% of online buyers considered sales tax when making their purchase, though it is most often considered as a factor of total cost.
  • The importance of sales tax changes depending on the purchase for 67% of online buyers, while 9% always consider it important.
  • 22% of those who paid sales tax considered aborting their purchase, but factors other than cost ended up being more important to most of these customers.
  • Of those who did not pay sales tax, 36% would have purchase from the same retailer even if sales tax was charged, as their decision was based on other factors. For another 39%, the decision would be based on total cost as opposed to just looking at the sales tax.

Bizrate Insights reports record breaking 2011 Black Friday and Cyber Monday online sales volume

The numbers are in and WOW! Bizrate Insights’ U.S. and Canadian customer feedback program, with 5,000+ active retailers, saw double digit growth in Point-of-Sale survey volume for the entire Thanksgiving-Cyber Monday period this year as compared to the same period in 2010. Bizrate Insights’ Point-of-Sale survey is only offered on the order confirmation page post online order submission, and is therefore a proxy for online order volume.

2011 Black Friday - Cyber Monday sales volume

“Survey seen” is the number of times that a consumer saw page 1 of the survey. “Survey submission” is the number of times that the final page of the survey was submitted.

For this year as with last year, Cyber Monday topped Black Friday’s Point-of-Sale survey volume with 29.0% more surveys seen and 52.3% more survey submissions.

In record numbers, customers are ordering online and providing feedback to retailers with the goal of improving ecommerce. The year over year growth in our survey seen and submission numbers for Thanksgiving week, Black Friday, and Cyber Monday is a huge testament to the:

  • Importance of ecommerce in the retail spectrum;
  • Desire for consumers to give feedback through a simple process and actively participate in the development of ecommerce; and
  • Interest level of retailers in getting closer to the consumer, their wants and needs, via Bizrate Insights survey solutions.

Further demonstrative of these points is a closer look at the top 5 retailers who were also collecting customer feedback using our program in 2010– Cyber Monday same-store surveys seen grew by 26.7%!

Congratulations and Thank You to our participating retailers!

Please look for highlights on consumer sentiment regarding online shopping over Thanksgiving week, Black Friday, Cyber Monday, and Cyber Week through our joint study with Forrester Research’s Sucharita Mulpuru.

Same Medal, New Look: The Redesigned Customer Certified Medal

Here at Bizrate Insights we pride ourselves in not only gathering customer feedback for online retailers, but also in gathering retailers’ feedback on how to improve our tools and services. Based on this feedback and an update to our branding, the Customer Certified Medal is getting an upgrade!

Customer Certified Medal - Large and Small Sizes

What this means to you

Based on client feedback, we believe that the Customer Certified Medal will be even more widely adopted (beyond the thousands who already use it), increasing the recognition and the value of Bizrate Customer Certification to bolster consumer confidence in your website and brand. This is the first phase of our upgrades, so to take full advantage of the new medal, please use our most up-to-date medal code on your site.

How does the medal work?

The medal still updates daily and prominently displays the last date in which it was updated (today or prior day), showing that you are actively using the Bizrate Insights Buyer Surveys to gather customer feedback. The medal also still links directly to your Bizrate.com Report Card Page with Bizrate’s Smiley Scale™, allowing your customers to verify and gather detailed ratings.

The medal has 3 status levels so that you can always gain the benefits of participation: Customer Certified, Participating Store and Registered Store. Using our medal code properly ensures that your medal will automatically update to the proper status and date.

“Customer Certified” – This status is reserved for retailers who have received at least 20 Order Fulfillment (FF) surveys in the last 90 days.  The overall score for the past 90 days must also be at least 6.0 in the following areas:

  • Overall Satisfaction
  • Likelihood to Buy Again
  • On-time Delivery
  • Customer Support
  • Product Met Expectations

You may choose to use either or both of the two medal sizes available:

Customer Certified Medal - Large and Small Size

“Participating Store”- This status appears for retailers who have ratings data within the last 90 days, but do not meet the Customer Certified criteria.

Customer Certified Medal (Participating Store) - Large and Small Size

“Registered Store”- This status appears for retailers who have an account, but have not received any customer ratings within the last 90 days.

Customer Certified Medal (Registered Store) - Large and Small Sizes

The next phase

We understand and appreciate the added value of Bizrate’s Smiley Scale™, we are therefore going to add a mouse-over component to our new Customer Certified Medal. The mouse-over will contain high level ratings information and our Smiley Scale. Please keep an eye out for notification of this addition so that you can update the version of the medal code that you have on your site.

Are you looking for more marketing mileage?

We welcome you to use one of our tools or get creative with the marketing of your seller ratings and reviews as we have heard it helps increase site conversion. Our plug-and-play Testimonials Widget is a quick and easy way to display customer reviews.  Or create your own widgets or images to display ratings and reviews – just be sure to stay within our Publishing Guidelines and forward us your uses of our trademarks for review.

Questions? Feedback? Email us at bizrateinsights@bizrate.com or via our Contact Us form.

Fresh ecommerce content for SEO…for Free

Google noted on its blog on November 3, 2011 that it is changing its algorithm to increase the value of fresh and recent (yet still relevant) content in SEO. This means that two weeks before the holiday season kick-off, retailers are left to figure out how to include fresh, recent and relevant content without jeopardizing everything that they have already put in place.

Bizrate Insights to the rescue.

Retailers can gather ratings and reviews from verified customers on the purchase experience and products for FREE with Bizrate Insights. Plus, Bizrate Insights can invite customers to share their new purchases on Facebook (for free, of course).

Tips for retailers already using our Buyer Surveys:

  • Post new customer ratings and reviews to your site daily, weekly, or as often as needed to maintain SEO rankings.
  • Add products purchased to your survey invitation code on the order confirmation page so that we can collect product reviews that you can publish and/or invite customers to share their products purchased on Facebook.
      • If you haven’t updated your POS code in a while, then do it now.

Tips for retailers not yet using our Buyer Surveys:

  • Using our standard code to collect ratings and reviews on the purchase experience is as simple as copy/paste. Open an account, grab the code from the interface, and paste it into the top of the body section of your order confirmation page.
  • Sign up for reports in the Subscription Management Center to gain access to ratings and reviews for publication.
  • Utilize the SKU fields in the order confirmation page survey invitation code to be able to collect product reviews and share purchases on Facebook.

In addition to providing retailers with easy-to-implement-and-collect fresh content that can be used for Google’s bots, Bizrate Insights also already provides Google’s Seller Rating’s feature with order fulfillment ratings and reviews from verified buyers. Bizrate Insights’ has two ways to help retailers get the most from retail searches on Google.

Questions? Email us at bizrateinsights@bizrate.com or via our Contact Us form.

Bizrate Insights’ Social Media Series Part 1: Year-Over-Year Trends in Social Media Usage (2009 – 2011)

Over the past few years, Bizrate Insights has been tracking online buyers’ social media usage, and more specifically, whether they interact with retailers. As more retailers increase their social media presence, the percentage of online buyers who “like” or “follow” a retailer via social media has grown significantly. As part of its Hot Topic program, Bizrate Insights asked several questions related to online buyers’ social media usage in both 2009 and 2010. In August 2011, these questions were pulsed again, this time as part of a study with Sucharita Mulpuru of Forrester Research.

The full study can be downloaded for free here: Year-Over-Year Trends in Social Media Usage (2009 – 2011).


Key highlights:


Social Media Usage

• Social media usage has increased from 54% in 2009 to 63% in 2011.
• Consumers “liking” or “following” retailers has grown significantly year over year, from 6% in 2009 to 19% in 2011.

Top 5 Reasons Online Buyers Follow Retailers via Social Media

1. To find out about special deals.
2. To hear about the latest events.
3. To give retailers their vote of approval or appreciation.
4. To read the latest news on the company.
5. Because they like having the retailer listed on their profile
 
Top 3 Reasons Online Buyers Do Not Follow Retailers via Social Media
1. It didn’t occur to them.
2. They are not interested.
3. They don’t see the benefit.

Bizrate Insights Announces the 2011 Bizrate Circle of Excellence Awards

84 Online Retailers with Exceptional Customer Satisfaction and Loyalty

LOS ANGELES – September 13, 2011– Bizrate® Insights, one of the largest sources of consumer review content in the United States and Europe, announced today the winners of its twelfth annual Bizrate Circle of Excellence for its Bizrate Insights North American Network. The award recognizes retailers that provided outstanding online customer experiences throughout the past one year period, as rated by their own, verified customers.

The 2011 Bizrate Circle of Excellence award, a symbol of trust and dedication to the customer, was earned by 84 online retailers, representing the top 1.7% of the Bizrate Insights North American Network of over 5,000 retailers.  Online retailers earning this prestigious award received significantly higher* customer ratings than the Network average across the seven key satisfaction indicators listed below. For the 2011 award year, Network averages for six of the seven included indicators were the highest seen for the last 11 years.  The increase in shoppers’ satisfaction ratings indicate that, as a whole, online retailers continued to improve the online purchase and delivery experience in the 2011 award year.

Among award winners, 27 retailers received the highest distinction, the Platinum Award, representing 0.5% of the Network.  The Platinum Circle of Excellence is awarded to retailers that achieved winner status and a score of at least 9.0 out of 10.0 in all seven key satisfaction indicators reviewed for the award.

Circle of Excellence Satisfaction Indicators

 

Point of Sale measurement Post Order Fulfillment measurement
Overall Satisfaction Repurchase Intent
Product Selection Product Met Expectations
Ease of Finding What The Customer Is Looking For On-Time Delivery
Customer Support

 

* Based on statistical significance. Customer feedback collected between August 2010 and July 2011

 

As high-touch customer service is part of the heritage of this brand, we are very proud of our sixth consecutive win of the Bizrate Circle of Excellence award,” said Alicia Sontag, Senior Vice President of Global Marketing for Bobbi Brown Cosmetics, an Estee Lauder Company. “These wins were earned based on our customers’ ratings and reviews, a testament to how we continuously develop and maintain customer loyalty through our products, service levels, and operations. We hope to market these consumer-oriented awards to acquire new customers for BobbiBrownCosmetics.com.” Bobbi Brown has been awarded the Bizrate Circle of Excellence Platinum level for 2011.

Bizrate was founded in 1996 on the principal that verified customer feedback is the best way for consumers to locate retailers that will offer good online customer experiences and for retailers to hear what their customers need to remain loyal,” says Bill Glass, CEO of Shopzilla, Inc., the parent company for Bizrate and Bizrate Insights. Bizrate Insights collects consumer ratings and reviews on behalf of over 5,000 retailers worldwide, providing these retailers with seller ratings and benchmarked, actionable feedback to grow their e-commerce businesses.  With over 40% of the largest online retailers utilizing Bizrate Insights’ services, Bizrate Insights amplifies the voice of millions of confirmed online buyers through reports, its websites, and syndication partnerships, such as Seller Reviews on Google Product Search.
Bizrate Insights congratulates the 2011 winners:

 

The 2011 Circle of Excellence Platinum award recipients (in alphabetical order)

4 All Memory Christianbook.com FRSport.com Steven Singer Jewelers
Abacus Private Store Crucial Technology Jo Malone The Hitch Store
AmericanMuscle.com Crutchfield LD Products The Perfume Spot
B & H Photo Video Dave and Adam’s Card World Lovelyskin.com The Spa Depot
BabySuperMall Discount Contact Lenses PersonalizationMall.com Top One Shop
Bobbi Brown DoMyOwnPestControl.com SafetyGlassesUSA.com Zappos.com
Bose.com FireFold SmartPak Equine

 

The 2011 Circle of Excellence award recipients (in alphabetical order)

123Inkjets Fisher-Price
1A Auto Parts Gotham Cigars
A Main Hobbies Guitar Strings and Beyond
Abt Electronics HealthWarehouse.com
AC Lens Jake Wilson
Adagio Teas Jimmy Beans Wool
Aeropostale Juststrings.com, Inc.
American Musical Supply Knitting Warehouse
AppliancePartsPros.com MidwayUSA
Austin Canoe & Kayak Motorcycle Superstore
Baseball Savings Musician’s Friend
Bath & Body Works NutritionGeeks
Batterymart.com PetGuys.com
BBCrafts.com Pyramid Air
Blue Nile Ringside Collectibles
CajunGrocer.com Rocky Mountain ATV/MC
Carl’s Golfland Sonic Electronix
Celebrate Express StreetSideAuto.com
Clinique SuperMediaStore
Condom Depot Teva Sport Sandals
CutleryAndMore.com The Golf Warehouse
Databazaar.com The Vermont Teddy Bear Co.
Diapers.com ThinkGeek.com
Dogfunk TSS_Radio
Eastbay Ugg Austraila
Etrailer.com USBPhoneWorld.com
Fairytale Brownies VitaminShoppe.com
Famous Smoke Shop zZounds
FiltersFast


About Bizrate® Insights:

Bizrate Insights empowers retailers to achieve their end goal of growing sales and consumer loyalty by helping them listen to their customers.  For over 13 years, Bizrate’s consumer feedback and ratings platform amplifies the consumers’ voice in a way that is fast and measurable, resulting in insights, action, conversion, and consumer loyalty.  Bizrate Insights provides tools and reports to over 5,000 retailers worldwide to enlighten them about the customer experience and make them aware of the “why” in what consumers think and do. Visit bizrateinsights.com to learn more about our free and paid buyer and site abandonment survey and reporting products.

 

About Shopzilla®, Inc.:

Shopzilla, Inc. manages a premier portfolio of online shopping brands in the US and Europe, consisting of Bizrate, Beso, Shopzilla, TaDa, PrixMoinsCher, and SparDeinGeld. Shopzilla connects shoppers with over 100 million products from tens of thousands of retailers with its unique portfolio of engaging and informative websites.  Reaching a global audience of over 40 million shoppers each month through its Bizrate Insights platform, destination websites and affiliate network, Shopzilla is a leading source of sales and consumer feedback for online merchants and retail advertisers. With offices in Los Angeles, San Diego, and London, the company operates sites and business services in the United States, Canada, the United Kingdom, France and Germany. Shopzilla, Inc. is owned by Symphony Technology Group (STG).

 

Tapping into Tablet-owning consumers is a revenue opportunity in the making – learn more by downloading our free report!

Bizrate Insights recently concluded the Bizrate/Forrester Study: Tablet Usage Among Online Buyers, conducted in partnership with Forrester Research’s Sucharita Mulpuru. A free PDF data report of highlights from the study is available for download here – The Emerging Tablet Market: What Online Retailers Need To Know.

“What we find most exciting from this Study is that there is real revenue to be earned through the Tablet market, making an investment in its ecommerce experience a worthwhile undertaking,” stated Hayley A. Silver, Senior Director of Bizrate Insights. The report focuses on three key areas derived from the Study’s data:

  • Market penetration and demographics.

o   After the introduction of the iPad2, Tablet ownership among online buyers grew to 12%, up from 9% prior.

o   Most owners are Generation X or Baby Boomers, female, have an average household income of over $109,000 (56% greater than non-Tablet owners), and nearly half have children under 18.

o   26% of those who do not currently own a Tablet plan to purchase one within the next year.

  • Market value.

o   60% have shopped online with their Tablet; of these shoppers, 78% have placed an online order using their Tablet.

o   Tablet owners spent 28% more (on average) on orders placed during the Study than non-Tablet owners (irrespective of the device through which the online order was placed).

  • Tablet usage and points of frustration.

o   The Tablet is increasing the total amount of time spent online for nearly half of owners, while also shifting some activities from smartphones and computers to the Tablet.

o   However, more than half (56%) of online shoppers reported that online shopping through the Tablet delivered an inferior experience to the computer.

o  These shoppers cite the difficulties associated with clicking, form filling, and Flash use in general (iOS devices such as the iPad and iPhone do not natively support Flash).

o  Frustrations are more often cited by those with a retailer-specific app on their Tablet than those without such as app.

“It is important to note that while early adopters have shown a propensity to shop online, they have also identified shortcomings in the current ecommerce experience,” stated Sucharita Mulpuru, Vice President and Principal Analyst at Forrester Research. “Whether to go with an app or an optimized site right now depends on three main factors: whether your website relies on Flash or similar technology, whether you can build an app that delivers an expansive customer experience, and the likelihood of your customer base to download an app.”

Despite these initial shortcomings, early adopters of the Tablet how shown that they are a valuable segment for retailers to target. “The combination of consumer reported latent demand for Tablets, existing avid online shopping and buying among current Tablet owners, and a shift in online activities to the Tablet from other devices, points to a considerable ecommerce revenue opportunity in the coming years for retailers who can overcome challenges related to functionality,” concluded Ms. Silver.

 

For complete data highlights and graphs from The Bizrate/Forrester Study: Tablet Usage Among Online Buyers, please download the free PDF data report here.

Study data collection

Bizrate Insights provides free, independent surveys for online retailers. Data for this study was collected from online buyers via Bizrate Insights’ surveys offered immediately after purchase. Part I was run across Bizrate Insights’ Network of over 5,000 ecommerce retailers in the US and Canada, from January 26th – February 28th, 2011, with over 28,000 consumers submitting surveys. Part II was run across this same Network from March 14th – April 5th, 2011, and included data collected from over 20,000 online buyers.

About Bizrate Insights

Bizrate Insights empowers retailers to achieve their end goal of growing sales and consumer loyalty by helping them listen to their customers. For over 10 years, Bizrate’s consumer feedback and ratings platform amplifies the consumers’ voice in a way that is fast and measurable, resulting in insights, action, conversion, and consumer loyalty. Bizrate Insights provides tools and reports to over 6,000 retailers worldwide to enlighten them about the customer experience and make them aware of the “why” in what consumers think and do. Visit www.bizrateinsights.com to learn more about our free and paid buyer and non-buyer survey and reporting products.

Bizrate Insights and Bizrate.com are part of the Shopzilla, Inc. network of websites that reach a global audience of over 40 million online shoppers each month.

M-commerce is picking up steam – are you on board yet?

Consumers are accessing online retail websites through their mobile phones at increasing rates! Is your site greeting them? Is it easy to navigate and does it have the functionality consumers are looking for? Or is it an exercise in futility for the visitor?

If you haven’t paid attention to the experience of your website and brand through a cell phone, then NOW is the time to do so. 56% of online buyers have an internet-enabled cell phone – and nearly a quarter of this group is visiting retail websites from a mobile phone.  This is up from ~ 17% in Q3 2009 – HUGE growth year over year.

In Q4 2010, leading shopping-related activities included browsing websites, locating nearby stores, and tracking existing orders. 14% are buying through their phones – up from 10% in 2009!

How Online Buyers use their cell phone

Almost as many customers who shop from their phone are posting items they like to Facebook. We therefore truly see mobile, social, and shopping converging among a respectable percent of customers, especially among the GenerationY and GenerationX set.

Mobile Device Outlook

Blackberry’s still rule the roost, with 27% of marketshare (defined as those who own an internet-enabled cell phone), followed closely by the iPhone at 24% in Q4 2010. This gap closed substantially compared with the previous year, however, where Blackberry had 29% of the market, while the iPhone had only 18%. Droid came in third, but most online buyers who did not own an internet-enabled cell phone are planning to get a Droid (27%), far more than the iPhone (16%). We will see how this changes given the most recent announcement by Verizon to offer the iPhone 4 in February 2011.

What type of cell phone do you currently own?

How this data can help online retailers:

Make sure that your site can be easily accessed and is legible from a < 2’’x3” screen. Be sensitive to the legibility and screen touch needs that might make order tracking and store location a challenge.

A web-enabled site will catch the most customers given the diversity of phones and the still ever-changing landscape. We are personally fans of sites that recognize that we are entering from a mobile phone and automatically adjust accordingly – removing anything that takes a long time to load and makes the rest of the page too small to read or touch.

We plan to run this Mobile Study again to continue to trend data and stay on top of consumer thoughts and intentions in the ever changing landscape. Let us know if there are specific areas or questions that interest you the most. Our goal is to make this insight into the minds of consumers as useful as possible to continue to grow ecommerce.

Bizrate Insights and Forrester Keep Retailers in Touch with Customers

In a second installment of our Holiday series, Forrester’s Sucharita Mulpuru posted some key findings (based on data collected through our consumer surveys) to her blog that span popular deals, popular means of communication (email still rules!), who is buying gifts vs. buying for themselves, and more. The post is short and sweet and we encourage you to read it. Have no time for the whole post? Then focus on the actionable recommendations at the bottom – email, what to market to men vs. women, and free shipping.

Let’s make 2010 the best Holiday season yet!

Bizrate Insights and Forrester Research Cyber Monday Post-Mortem

The first of many collaborative posts between Forrester and Bizrate Insights has been published! Check out Sucharita Mulpuru’s post on her blog. We found out what online buyers think about Thanksgiving Weekend, CyberMonday, and shipping during this holiday season. The most interesting point is that buying is shifting online, with 45% of online buyers saying “I shopped online instead of in stores because there were better deals online.”

Keep an eye on our blog – more like this to come!