2010 ecommerce year in review
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2010's key takeaways in ecommerce.TRANSCRIPT
2010 Ecommerce Year in Review:
One Hell of a Ride
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Takeaway #1: Recession? What Recession? Consumers
Increase Spending
Takeaway #2: Price, Discounts and Promotions Dominate the
Purchasing Process
Takeaway #3: Social Goes Bonkers, Becomes Legitimate
Business Outlet
Takeaway #4: Mobile Matters, But Not as Much as We Thought
Takeaway #5: Ecommerce Becomes a Force to Be Reckoned
With
Recession? What recession? Consumers increase spending.
Takeaway #1:
Contrary to initial belief, customers were willing to purchase more goods,
especially online. 2010 saw the fastest growth in ecommerce history, thanks
to increased confidence and familiarity with online shopping.
2010 began with fears of poor consumer confidence
and lackluster spending:
“Another major factor in the recovery process is consumer confidence. Unfortunately, it is trending downward.” – Senior VP, BB&T
“We expect the savings rate to rise, dampening consumer spending.”
– Global Economic Forum Team, Morgan Stanley
“Consumers have learned they can get by with less, and that’s what they’re going to do for some time. “ – News Editor, CNBC
We were wrong.
Consumer confidence was steadily higher than in 2009.
We were VERY wrong: Consumer spending increased all year long.
Price, discounts and promotions dominate the purchasing
process.
Takeaway #2:
Coupons, discounts and promotions had a huge impact on ecommerce in
2010. Free shipping was by far the most popular, and price-conscious
shoppers now expect discounts on all their purchases.
The bad news about increased sales? Customers only bought things with a
discount.
57% of consumers who used a coupon code during their last
online purchase said that if they had not received the
discount, they would not have bought the item(s). - Compete
Consider this:
35% of online shoppers say they use comparison shopping
engines when looking for products online.
- Compete
Eight out of 10 U.S. adults plan to continue using coupons
even if economic conditions improve.
- Harris Interactive
And this:
Is there a silver lining to increased coupon redemptions online?
The average order value was $216 for shoppers who
used a coupon, compared to only $122 for those
who didn’t use a coupon. - Compete
You be the judge:
91% of customers who used a coupon said they would make another purchase from that online
store, as opposed to 86% of shoppers without a coupon.
- Compete
Adults with a household income of more than $100,000 are twice as likely to
have redeemed coupons from an online source than adults with household incomes of
less than $35,000. This means that online shoppers using coupons have much more money
to spend.
- Internet Retailer
How about these apples?
Social goes bonkers, becomes legitimate business outlet.
Takeaway #3:
2010 showed us that relationship-building, along with reviews and
recommendations, are the new form of online marketing for ecommerce sites. No
more one-way marketing messages, it’s all about listening now.
Facebook passes 500 million users, Twitter adds 100 million in 2010.
Nearly half of all Americans are now members of at least one
social network, double the proportion of just two years ago.
- MediaPost
“The ROI of social media is that your business will still exist in
five years.”
- Erik Qualman, Clickz
Chew on these profitable tid-bits:
High product ratings will increase likelihood of purchase for 55% of consumers.
- eConsultancy
51% of active Twitter users follow companies, brands or products on social
networks.
- Social Media Today
Mobile matters, but not as much as we thought.
Takeaway #4:
Penetration of smartphones was impressive, as more and more consumers turned
to their mobile devices for product research. But growth in direct purchases from
mobile was less than expected.
Mobile commerce didn’t live up to its hype, at least not yet:
27% of all consumers used their mobile devices to
browse and research products at least four times over a
12 month period. For the 18-34 age group, this figure is 41%.
- ATG 19% of US smartphone users have
purchased music on their phones, 14% have
bought books, DVDs or games, while 12%
have purchased movie tickets.
- Compete
74% of online retailers either have in place or are developing an m-commerce
strategic plan, while 20% have fully implemented their plans.
- Forrester
Foundation laid in 2010:
Ecommerce becomes a force to be reckoned with.
Takeaway #5:
Online sales grew at a breakneck pace, steal share from retail, and substantially
outpace retail sales in 2010.
Online sales grew compared to 2009.
Online sales made gains on retail in 2010.
Ecommerce Retail
Q1 2010 +14.3% +6.3%
Q2 2010 +14.0% +7.5%
Q3 2010 +13.6% +6.0%
Q4 2010* +15.4% +5.5%
*Q4 Data Based on Holiday Estimates from SpendingPulse Q1-Q3 Data Courtesy: United States Census
Quarterly Sales Revenue Growth Compared to 2009
Online sales grew faster in 2010.
It was one hell of a ride.
See you in 2011!
Main Ecommerce Takeaway for 2010:
Open your own online business with the trusted leader in ecommerce:
www.volusion.com