Online retailers top search results three to one
When you use the Internet to shop for a product, you are likely to get more search results from online retailers than bricks-and-mortar stores.
Libertyville-based Internet-Engine (www.internet-engine.net) released a study this week that found online retailers appeared at the top of search result lists at least three to one, compared to their traditional counterparts.
"An Internet search is a whole different way to reach consumers and traditional retailers are falling behind," said Thom Disch, CEO of Internet-Engine, a consulting firm founded in 1999 that has about 35 employees. "Consumers are more interested in getting the best features and the best price and they don't want to wait for retailers to catch up."
The three-year study used Google, Yahoo and MSN during the holiday season each year. The engines charge retailers a fee to have their particular products or companies appear at the head of search result lists.
The survey group conducted searches on popular items, including strollers, digital cameras, power drills, MP3 players, gaming systems, GPS systems, watches, TVs and other products.
A basic search involves three stages. The first involved a consumer's search for basic information about a particular category, say power drills, The second narrowed the field to find that product with particular features. The third would target specific models and prices while the consumer gets ready to buy, Disch said.
Even technology professor Raymond E. Wright Jr. of Roosevelt University in Schaumburg informally polled his students on their online shopping habits during the last holiday season. He found that 98 percent of his students said they were going to purchase items online and that the same percentage were not hesitant about buying online on a regular basis. "I would say that is a good indication of future shoppers' buying habits," said Wright.
Yet Disch found that traditional retailers don't take such shopping habits into consideration, since they don't spend their marketing dollars on search engine results. Online retailers with the most prominent list positions include Amazon.com, TigerDirect.com and Overstock.com. Those that dominate the search engine lists often found it translated into more sales, said Disch.
While the recession has battered traditional retailers, their lack of marketing dollars spent on well-placed search results contributed to their lower sales, Disch said.
In addition, the study found that shopping comparison Web sites are loosing steam. The amount of traffic on sites like Bizrate.com and Pricegrabber.com are dropping,
"They were a novelty in the beginning, but now we believe people can do it themselves," Disch said.