Download
1 / 19
200 likes | 208 Vues
The Roots of E-Commerce. Although the birth of the Internet existed in its earliest form during the 1970’s, it wasn’t until 1998 that security protocols were developed that would allow for safe financial transactions online.
E N D
The Roots of E-Commerce • Although the birth of the Internet existed in its earliest form during the 1970’s, it wasn’t until 1998 that security protocols were developed that would allow for safe financial transactions online. • Initially, e-commerce was actually business-to-business transactions totaling approximately $700 billion during 2001, an amount that retail e-commerce in the US hasn’t even come close to achieving. • According to the US Census Bureau, since the end of Q1 2004, US e-commerce sales have increased from $17.10 billion to $92.80 billion for Q1 2016, a 447% increase during a mere 12 years.
E-Commerce Has Just Started • Despite the small percentage that e-commerce has captured of all retail sales, its influence and potential is much greater than its Q1 2016 7.80% share represents. • It delivers consumer convenience that is difficult, if not impossible, to match and is the major disruptor technology of the entire retail landscape. • Use this Special Report from THE MEDIACENTER to help your clients maintain the vitality and viability of their brick-and-mortar presence as they also benefit from all e-commerce has to offer them and their customers.
Another View • Forrester estimates total US online retail sales will reach $372.5 billion during 2016, and then increase 42.4% by 2020, to a total of $530.6 billion. • Forrester’s “bigger picture” of e-commerce also has Q1 2016 online retail sales accounting for 11.1% of all retail sales, compared to the US Census Bureau’s 7.80%. • (NOTE: Because the US Census Bureau and Forrester Research define retail e-commerce differently, Forrester’s estimated total sales is much larger than the Census Bureau’s.)
No Hiding from Amazon • To say Amazon dominates e-commerce would be an understatement. According to Forrester, Amazon generated $23 billion in US e-commerce sales during 2015, which was 60% of the total increase in US online sales. • Since Q2 2015, rental rates for prime warehouse space have increased 9.9% for the entire US and double-digits in many large metro areas. Green Street Advisors estimates that e-commerce is driving 20% of the new demand. • Traditionally, the supply-chain segment of the retail industry has been considered a cost of doing business, but Amazon is using its rapid expansion of distribution centers as a growth advantage that no other retailers can currently match.
Consumers Shop Differently on Different Devices • According to Bronto Software’s most recent survey on consumer device ownership, American adults owned an average of 2.9 devices, with the laptop as the most prevalent. • Approximately 90% of adults, 18–24 and 25–34, either owned or had access to a laptop, closely followed by adults, 35–44, at 79%, and those 55+ at approximately 72%. • More consumers shop and purchase from a laptop computer than any other device, with desktop computers second and smartphones a close third. More than half of the people who own a tablet does not shop or purchase from that device.
Changes in Shopping Habits by Device • From early 2015 to early 2016, 79% of people with a wearable shopped more frequently with that device, the highest percentage of six shopping channels. • Of all consumers surveyed, 30% said they shopped less frequently at brick-and-mortar stores, but 29% said they shopped more frequently. These nearly equal results are attributed to age and income differences. • 43% of adults, 25–34, and all adults with household incomes of less than $75,000 shopped more frequently at brick-and-mortar stores. Adults, 18–24, and those with household incomes of $100,000 or more shopped less frequently in physical stores.
Understanding the E-Commerce Consumer • According to King Retail Solutions’ Winter 2015 consumer survey, 67% of US adult smartphone owners had at least one shopping app on their phone, with Millennials and women having the highest percentage of those with 2 shopping apps. • The survey also found that more of the consumers in the standard gender and generational categories had an e-retailer app on their smartphone, with men the most at 51% and women the least at 37%. • In addition, 47% of adults said they used the shopping-related app on their phones both for shopping in a store as well as shopping online, compared to 14% for store shopping only and 38% for online shopping only.
The “Buy Online/Pick-Up in the Store” Option • During the 12 months prior to the survey, 40% of all adult participants said they used the “buy online/pick up in-store” option, but it was even higher among people with children, 48%; men, 45%; and Baby Boomers, 45%. • Electronics had the highest preference for this option among various categories of shoppers, with men at the top at 87% and women the lowest at 75%. • Fresh prepared meals and groceries scored lowest for this option, with Millennials the highest for fresh prepared meals, at 33%, and groceries, at 31%.
Online Fashion Shopping • According to Yotpo, a reviews and marketing solution company, the average order value (AOV) during the first part of 2016 for all online fashion stores was $97. • Interestingly, the stores with the fewest orders per month, from 1 to 1,000, had the highest AOV, or $108, while those with the most orders per month, 10,000+, had the lowest AOV, or $49. • Yotpo’s consumer survey also discovered that 41.5% of shoppers said they don’t purchase from new brands online because of a lack of reviews.
E-Commerce Still Big for Back-to-School • eMarketer projects that total retail sales during the 2016 back-to-school season (July and August) will increase 2.6%, to $828.81 billion from 2014’s $807.50 billion. • Retail e-commerce sales will increase more than 15% for the fifth consecutive year, totaling $65.42 billion. • Retail e-commerce sales during July and August 2016 will account for 16.5% of all 2016 e-commerce sales, 69.7% of all Q3 2016 e-commerce sales and 7.9% of all 2016 back-to-school retail sales.
Room for Online Grocery Shopping to Grow • A December 2015 survey and report from Unata and Environics shows that 2016 may be the breakout year for online grocery shopping. • Although only 8% of survey participants said they made an online grocery purchase during 2015, more than twice, or 17%, said they were “very likely” or “somewhat likely” to do so during 2016. • Of even greater significance, 93% of those who purchased groceries online during 2015 were likely to purchase online during 2016, and 72% said “very likely,” which translates to an excellent retention rate.
The Online Grocery Shopper • 18% of men are more likely to shop for groceries online during 2016, compared to 15% for women. • Those in the $100,000 category are 50% more likely to have shopped online during the past compared to the average. • During 2016, however, consumers with a household income of $50,000 to $100,000 will be the fastest growing segment of online grocery shoppers.
E-Commerce Is on the Move • eMarketer reports that retail m-commerce will increase 39.1% during 2016, to $123.13 billion, which will be almost (32%) one-third of all retail e-commerce sales. • Although the increase in m-commerce will decline to 16.1% by 2020, it will still generate double-digit growth during 2017, 22.7%; 2018, 18.0%; and 2019, 17.0%. • According to a Q4 2015 study from Nielsen, 62% of US smartphone shoppers and 63% of US tablet shoppers said that being able to see product pictures was the #1 factor for US mobile shoppers when choosing from where to shop.
Challenges and Priorities • US retailers are realizing that a strong m-commerce presence is mandatory. More of them are also recognizing the challenges they face and the major priorities to respond to their current and future customers. • First among these from a May 2016 eMarketer report was “Consumers expect to use mobile as part of their shopping experience, and we need to be there,” at 64%. • Second on the list was “Our competitors have raised the bar on mobile and we need to respond,” at 48%, and third was “We are seeing significant traffic from mobile sources and need to respond,” at 44%.
E-Commerce Holiday Shopping • According to comScore, total e-commerce sales during the 2015 holiday shopping season were $69.08 billion, or a 13.0% increase over 2014. • Compare this to total 2015 holiday sales of $626.1 billion, or a 3% increase from 2014, according to the National Retail Federation. • During early 2016, eMarketer forecasted an 13.3% increase in e-commerce sales for the 2016 holiday shopping season, which is essentially the same as its 2015 final increase of 13.4%.
Retailers’ 2016 Holiday E-Commerce Shopping Strategies, Part 1 • Offer more electronic payment options, such as the relatively new payment app, Venmo, to make the checkout process easier and quicker and to be one step ahead of the competition. • Survey customers to determine if they would like a subscription-based purchase option for the core products they are more likely to buy regularly. • Not only will they receive the products they need automatically, but also retailers will create a steady revenue stream with less effort.
Retailers’ 2016 Holiday E-Commerce Shopping Strategies, Part 2 • Guarantee delivery times of 48 to 72 hours in exchange for more customer information to enhance a retailer’s customer database or registering for a company newsletter or a subscription-based purchase option. • Equip salespeople with tablets and/or create freestanding tablet-based kiosks. Train salespeople to use these devices to show customers products that may not be displayed in the store, but are on their shopping list. • Offer free shipping or in-store coupon for these purchases, so customers don’t shop elsewhere.
