Not a Limited Time Offer: Direct Shopping Networks are Here to Stay

Shopping network channels

It generally goes uncontested that online shopping is the new normal. Shoppers will often spend days browsing products online before making a purchase, and many choose to make their purchases from the comfort of home. In the midst of such a major logistical shift, shopping network channels, the predecessors to the online shopping experience, appeared to have fallen by the wayside. However, many direct shopping networks have recently made updates to their marketing and procedures that have brought television shopping back into vogue. In fact, television shopping is now a $7 billion industry in which 12% of the population participates.

The three most popular direct shopping networks on TV have remained consistent for the last several years. The Home Shopping Network (HSN), ShopNBC, and QVC all own a substantial part of the television shopping market share. A study by FutureBlind found that QVC possesses 60% of the home shopping market, HSN possesses 30%, and ShopNBC possesses 10%. Remarkably, the statistics associated with each business show that direct shopping networks have a much larger reach than you might anticipate.

Direct shopping networks don’t generally earn very much per household, however, what they lack in per-sale profit, they make up for in sale volume. Last year, QVC brought in an average of $40 per household, while HSN brought in an average of $25 and ShopNBC earned slightly less than $15 per household. However, each network reached millions of viewers. QVC reached the most with 88.4 million households. Direct shopping networks certainly have an audience, but statistics are showing that their audiences are changing their patterns of interaction.

Phone orders remain the most common types of sales for each network, but web sales have quickly come to represent a considerable fraction of shopping network purchases. HSN saw 16% of its sales come from the web last year, and QVC saw 13%. So what can direct shopping networks expect from the future? Most experts expect that direct shopping networks will see more and more revenue coming from internet purchases. QVC launched its internet shopping site in September 1996 and introduced mobile apps in 2009. Since then, social networking and an online presence have become increasingly important to the company’s operations.

Direct shopping networks aren’t going anywhere, as long as they keep up with America’s changing expectations for home shopping. Never fear, dedicated home shoppers. There are plenty more can’t-miss offers coming down the pipe.

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