Online Shoppers Looking for Ways to Save

With the holiday gift season upon us, many retailers and charitable organizations are in their busiest period. But with an economic crisis looming large over the nation, how are Americans juggling their priorities? Recent findings from PayPal's 2008 Holiday Study conducted by Ipsos Public Affairs takes a look at how online shoppers are coping this season.

Frugal Yet Generous

Many online shoppers are looking for ways to save this holiday season, yet more are planning on donating to charities than last year. Nearly three quarters of online shoppers (73%) are planning on giving to charity this year, up from 60% in 2007.

Charitable giving is strongest among older online holiday shoppers (45+: 83%) and among those with a household income of at least $100,000 (85%).

Additionally, few are scaling back their level of giving. Most shoppers (71%) who gave to charity last year plan to give about as much as this year and 10% actually expect to give more despite the current economic turmoil. Less than one in five (17%) say they plan on giving less than they did last year.

Pinching Pennies

Though the spirit of giving is still strong, seven in ten (69%) online holiday shoppers are trying to spend less this season. As such, nearly half of online shoppers (45%) consider themselves to be bargain shoppers, though nearly a quarter (23%) report that they shop year round for holiday gifts.

Among those who are making an effort to save money this holiday season, majorities plan to cut back by buying less expensive gifts (77%) and buying presents for fewer people (51%). Many also say they will spend less on decorations and parties (43%) or forgo travel plans this holiday season (33%) in an effort to pinch pennies.

While more than four in ten online shoppers (44%) traveled last holiday season, over a quarter (28%) say that gas prices are limiting their travel plans this year.

Many also see online shopping as a way to save, as more than eight in ten (84%) say that they will do more shopping online to take advantage of free shipping. This is particularly true for women (87%), parents (88%), and shoppers under 45 (86%). Additionally, free shipping is the holiday promotion that would most entice shoppers to purchase gifts online this season (54%).

One in five (19%) online shoppers plans to more of their holiday shopping online this year than last*, perhaps due to the various promotions that are being offered.

Alternative Holiday Gifts

Many online holiday shoppers plan on buying untraditional gifts this season, such as green or eco-friendly items (24%) and electronic gift cards (22%). Fifteen percent also plan on making a donation in someone's name.

Younger shoppers (those under 45) are more likely to go green, as 27% of younger adults plan to purchase eco-friendly items as gifts compared to just one in five (20%) of those who are older.

College graduates are more likely than those without a college degree to get alternative gifts including green items (28% vs. 19%), electronic gift cards (25% vs. 18%) and donations to charity in someone's name (20% vs. 10%).

These are some of the findings of an Ipsos online poll conducted October 13 - 20, 2008 on behalf of PayPal For the survey, a national sample of 1,000 online holiday shoppers aged 18 and older residing in the United States were interviewed by online. Quotas were used to ensure sample distribution by age and gender according to the online population. * Ipsos also conducted an accompanying telephone omnibus study which surveyed a random sample of 1,000 respondents nationwide from October 9 - 13, 2008. With a sample of this size, the results are considered accurate within 177 3.1 percentage points, 19 times out of 20, of what they would have been had the entire population of adults in the U.S. been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were weighted to ensure the sample's regional and age/gender composition reflects that of the actual U.S. population according to data from the U.S. Census Bureau.