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E-Commerce Tech Spend to Rise, But Not as High as Last Year


Add a surcharge, Mary.

Though 72 percent 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 percent of respondents say they plan to increase those budgets 15 percent or less, compared with 49.4 percent of respondents last year who said so; moreover, about half (47.2 percent) say plan to increase those budgets 10 percent 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  • Replacing outdated e-commerce platform: 28 percent
  • Miscellaneous apps: 20.5 percent
  • Content management system: 11.9 percent
  • Web analytics: 11.8 percent
  • Order management system: 8.2 percent
  • Site search software: 6.8 percent.

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

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

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

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

Other highlights from the survey:

  • At two-thirds (67.1 percent) of e-retail companies, the official with the final word on tech purchases is the CEO; next are the CIO (9.2 percent) and CMO (6.6 percent).
  • The annual e-commerce tech budget is $50,000 or less at 51.4 percent of online retailers; that budget at 27 percent of retailers ranges from $50,001 to $200,000; 9.5 percent have budgets of $200,001 to $999,999; 5.4 percent have $1 million to $2.5 million; and 6.7 percent have budgets of more than $2.5 million.
  • 51.3 percent 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 percent run their own internal fulfillment program. Among the remainder that do outsource fulfillment, 65 percent 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.

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