Social networking sites to boost e-retailers this Christmas (UK)

This Christmas GBP 750m of sales will be generated by young people swapping tips on Bebo, MySpace and Facebook, according to a survey published today.

Research from the Royal Mail and thinktank The Future Foundation found that these social networking websites have now become a more powerful force in deciding what we buy than word of mouth.

“An online recommendation can be a lot more powerful,” said James Murphy, editorial director at The Future Foundation.

“Seeing something written down gives it added credibility, it hangs around for longer and people are able to compare and corroborate any advice.”

The poll of nearly 1,500 people found that 66 pct bought a product following an online recommendation, compared with 52 pct who made their purchase following a verbal tip off.

Social networking sites have been the internet success story of the past 12 months. Facebook, for example, expects to have more than 60 million members by the end of the year. MySpace already claims more than 200 million users.

The sites have been called the modern day equivalent of a night in the pub. Their appeal is based on the ability to quickly check in with family and friends, share photos, videos and internet links.

Chris Robinson, managing director of e-retailer Firebox.com said online recommendation is the most powerful marketing tool the company has.

He said: “It is the way the majority of consumers find out about us – much more so than any other marketing activity or catalogues.

“We’ve tried to build it into our business model by doing things to create those conversations, such as delivering our goods in brightly coloured boxes and adding in a free bag of sweets. It gets people talking.”

The report forecasts that by 2012, 84 pct of consumers will have access to the internet and 63 pct will be using it to buy goods online.