It’s the end of the holiday shopping season for another year and many of

us are dealing with credit card payments we would rather send through the

garbage disposal. This year’s shopping had a significant new element,

however, that of online shopping.

So the question is, wow, is this just a fad or is it the start of a radical shift

in the way people shop? I would venture the latter, and the impacts will be

monumental.

But rather than just throw in all opinion, here are some recently

released facts about this year’s holiday shopping. AOL released an estimate that said

its members totaled $2.5 billion dollars in sales for the period between

Thanksgiving and Christmas. That is 25% of AOL’s annual retail shopping total.

They go on to add that roughly two-thirds of its members – 13.2 million –

shopped online for the holidays with the average spending per person topping out

at nearly $300.

Remember, as of now a lot of online retailing contributes no state taxes

of any kind. And for every dollar spent online, it’s one less dollar available in

the local market.

Another recently released report listed the top five retailers online and

their holiday sales figures. Amazon.com topped the list at $5.69 million,

followed by eBay at $4.07 million, eToys at 1.6 million, Barnes and Noble at

$1.52 million and Toys R’ Us at $1.48 million. Although these numbers may not

be significant now, remember, only about five percent of us are shopping online.

But what are the important factors in helping us determine when and

where to shop? Well, price and customer service have to be the top two. If the price

is significantly lower, than many shoppers will forego customer service. If

the price is a little higher, the shopper tends to factor in customer service. Third

is convenience, and with the ability to shop in your bath robe, sitting at

your computer in an office or living room, it doesn’t get much more convenient

than online.

But small business owners still have the advantage. They typically

offer exceptional customer service and niche products, not readily available in

their own markets. In addition, online retailers aren’t as likely to make a donation

to the local little league, or Children’s Services as the local retailer.

So for those small business owners out there, keep in mind there is a

new competitor and it isn’t the other florist down the street. Look at ways online

to expand your business. For government officials trying to develop

ordinances that will guide their community, keep in mind that small businesses have

a tremendous amount of pressure to feed the family and online competition

isn’t likely to help. It’s obvious in some recent circles that without small

business experience many officials can’t comprehend the efforts put forth by small

businesses.

And to the consumer shopping for that perfect music CD or a bouquet

of flowers, keep in mind that customer service at a local business will be far

superior to that of an online retailer and if online shopping is your desire, look

at the possibility of local online retailers.

The environment is changing; are we all ready?

Jim McKiernan