8/16/13
E-commerce accounted for 5.4% of total retail sales in the U.S. in the fourth quarter of 2012, up from 3.6% in first-quarter 2008, according to Nielsen. E-commerce spending by U.S. consumers is expected to grow 8.5% annually through 2016, nearly double the rate of any other single retail channel.
Computers and televisions accounted for a quarter of U.S. e-commerce spending in 2012, according to Siemer & Associates. The next-biggest categories for online spending are clothing/jewelry and sporting goods/entertainment.
Amazon accounted for 85.5% of all U.S. e-commerce in 2012; eBay for 2.4%. Almost six in 10 online shoppers worldwide (59%) will abandon their shopping carts unless the online retailer offers free or discounted shipping. By 2016, 155 million Americans are expected to be shopping via smartphone, up 55% from 2013.
Mobile commerce makes up 12% of total e-commerce revenue worldwide. U.S. consumers spent a total of $25 billion via mobile in 2012 and are expected to spend nearly $40 billion in mobile purchases in 2013. Purchases made via mobile totaled almost $172 billion globally in 2012 and are expected to more than triple by 2016, to $617 billion.
U.S. shoppers who make purchases via smartphone are expected to spend an average of $262 on mobile purchases in 2013. Tablets are expected to account for 62% of total m-commerce in 2013 and are projected to reach 70% in 2016.
Just over a third of online retailers (36%) currently have dedicated mobile commerce websites, and 18% have mobile commerce apps. Four in 10 (40%) plan to build mobile commerce sites, and 20% plan to build mobile apps.
Among consumers who use digital media (online and/or mobile) in at least one stage of their shopping process, there are six distinct behavioral segments, according to a study of consumer electronics purchasers by GroupM Next. There are no significant differences in age, gender balance, income, education, or race/ethnicity among the groups, and the average purchase price per transaction is similar among all the groups as well. Currently the largest segment is Basic Digital Consumers, but the Digitally Driven Segment is expected to become the largest group within the next five years.
Profiles of the six behavioral segments of digital shoppers:
Basic Digital Consumers: Use online search, retail websites, and brand websites in their shopping process. These consumers are comfortable with online shopping and product research but do not use mobile or social media for shopping activities. More than seven in 10 (73%) say they’re looking for promotions; they’re more likely than any other segment to remember display ads.
Retail Scouts: Use online search, retail websites, and mobile for shopping. These consumers have a short decision-making process. They’re more likely to use mobile for shopping-related activities at home than on the go or in-store. They’re tablet users and are responsive to ads on tablets. Although they’re comfortable buying online, they have no preference for on- or offline purchasing.
Brand Scouts: Use online search and brand websites. Like the Retail Scouts, they have short shopping processes. More than seven in 10 (72%) start shopping with a specific brand in mind. They visit brand websites to learn about product features. They’re less price-driven than other segments but want free shipping and returns when purchasing online. They’re the most likely of all segments to watch video, including video ads. They’re also most likely to prefer purchasing in-store.
Digitally Driven: Use all aspects of digital media in the shopping process, including online search, retail websites, brand websites, mobile, social media, local offers, and portals. These consumers are more likely than any other segment to purchase online; they believe prices are better online and that it’s faster to shop that way. They also prefer the privacy buying online affords and appreciate being able to shop without salespeople or crowds. They’re 30% more likely than other shoppers to consider ads valuable.
Calculated Shoppers: Use online search, retail websites, brand websites, mobile, social, and portals. They take their time making purchase choices and finding the best deal. Almost one in four (24%) watch product videos on manufacturers’ websites (more than any other group). They’re likely to use their mobile devices in-store to compare prices and are the second-most active users of social media for shopping. Almost two-thirds (65%) have made more than one consumer electronics purchase in the past six months.
Eternal Shoppers: Use online search, retail websites, brand websites, and social media in shopping process. Members of this segment have a longer purchasing process than those in any other segment. They’re extensive researchers and have no particular urgency to make a purchase, but they’re receptive to email ads and loyalty programs.
Nearly one in five digitally researched or aided paths to purchase (17%) include visits to Amazon.com. In many cases, Amazon is used as a research tool rather than a final purchase destination. Only 4% of all digital purchase paths include visits to brand sites/pages on Facebook or Twitter.
SOURCES: “State of the Shopping Center,” May 2013, Nielsen, Meg Chari, Communications Analyst, Retail, 85 Broad St., New York, NY 10004; 800-864-1224; meg.chari@nielsen.com; www.nielsen.com. Price: Available online at no charge.
“eCommerce Report,” Spring 2013, Siemer & Associates, Vanessa VanderZanden, Marketing Manager, 1333 2nd St., #600, Santa Monica, CA 90401; 310-861-2100; www.siemer.com. Price: Available online at no charge.
“The Digital Consumer Journey: The Six Types of Digital Consumers,” May 2013, GroupM Next, Chris Copeland, CEO, 111 Westport Plaza, #350, St. Louis, MO 63146; 314-682-2055; also, Cindy Kerber Spellman; cindy.spellman@groupm.com; www.groupmnext.com. Price: Available online at no charge.
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