• by Jack Loechner , Staff Writer @mp_research, April 29, 2010

According to the e-tailing group 9th Annual Merchant Survey, given the e-commerce  essential role for today's retailers, 59% are planning to invest somewhat more in e-commerce than the 36% who did so in 2009.

With a recovering economy and shifting channel priorities, 92% anticipate 2010 Internet revenues to increase over '09 with significant growth in the 6-15% range; just 8% report a flat or downward trend in their e-commerce business vs. 34% last year. 

In early 2010 e-commerce dynamics put forth a favorable climate for cross-channel optimization. Marketing plans are performing at or above plan for 47% of merchants up from 37% in the prior year while merchandising is moving beyond redesigns towards industry standards and category-centric differentiators.

Lauren Freedman, President of the e-tailing group, says "Seasoned sellers, emerging retailers and manufacturers are... positioning themselves for growth as the economy rebounds... taking a laser-like focus on performance... "

Conversion remains a proverbial challenge as 56% of respondents report that the conversion rate sweet spot is still 3% or lower, even more than the 48% in that range last year although increased online researching and value pricing may be contributing factors.

With an emphasis on margin and profitability, where both impact tactical feature selection, the top three impact points where analytics have successfully been leveraged are conversion (52%), search marketing (44%) and cart abandonment (38%) all providing ample opportunities for revenue generation.

To improve website performance 79% of the respondents report planning more targeted email, 72% will refine onsite search and 70% will be enhancing onsite merchandising. Beyond these top initiatives the following will also be contributing factors:

• Cross-sells/Up-sells rise 66% vs. 55% with AOV focus
• Merchants move beyond redesign/upgrades (60% vs. 67%) to embrace strategic merchandising  
• More than one-half are planning to invest in usability or A/B testing (58%) and/or web analytics (53%) to better guide decision-making
• Customer service (53%) remains an important initiative for over half of the merchants
• Personalization/Customization sees long-awaited attention for 52% vs. 41%
• Outreach efforts gain ground with social networking strategies being planned by 58% and blogs (32%)
• 39% vs. 19% last year are planning expenditures on mobile initiatives  
• Added to the list this year - videos (48%) see strong adoption

In conclusion, Freedman states, "Merchants must ensure that their e-commerce roadmap is clearly defined yet fluid enough to embrace new opportunities throughout the year... being proactive in securing the necessary funds... (for) future demands... keeps merchants on the fast track."
To read more of the topline data, please visit Exact Target here, or to acquire the complete, aggregated findings, contact e-tailing here.