ecommerce-marketplaces

E-Commerce Reaches a Tipping Point

E-Retailers

For the first time ever, e-retailers in the U.S. accounted for more than 10% of all retail sales, and America’s biggest and best e-commerce players grew their domestic web sales last year by 14.5%—nearly five times faster than store sales.  Internet Retailer’s all-new 2016 Top 500 Guide® ranks America’s 500 largest e-retailers based on 2015 online sales and reveals how America’s e-commerce market is changing dramatically and in ways that will impact the strategies of all e-retailers.

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There are a number of factors contributing to the growth, including Google Inc.’s increased push to drive consumers to click on ads instead of natural search results, consumers increasingly using their mobile devices to search, which is forcing retailers to devote more ad dollars to mobile search ads, and a more competitive e-commerce landscape that’s resulting in more players bidding on the same key-words.

 

 

As more consumers use their smartphones to shop, retailers are also increasingly turning to image-focused Products Listing Ads, which explains why spending on PLAs on Google more than tripled year over year, according to digital marketing firm Merkle. Advertisers vying for smartphone users’ attention helped drive the cost per thousand impressions, or CPM, up 57 % on Cyber Monday and 51 % on the day before Thanksgiving, which were the most dramatic smartphone display ads increases during the quarter.

 

The Amazon factor: The company has grown exponentially, it has become a dominant force in the retail world, and it continues to expand the reach of its universe. America’s e-retail leader keeps growing its market share. What impact is the web’s number-one player having on the rest of the e-commerce world? Amazon, omnichannel retailers making use of stores fuel growth. Online marketplace data helps Amazon find products it can launch and sell under the AmazonBasics brand, much to the chagrin of other merchants. Not only is Amazon.com by far the largest U.S. retailer in terms of online sales, it’s also growing faster than e-commerce as a whole. And e-commerce is growing must faster than retail sales in stores.

The marketplaces factor: Amazon’s and other online marketplaces are giving thousands of smaller retailers a huge new competitive tool for growing their sales. Find out how these rapidly growing marketplaces are impacting online retail.

According to source Forrester, online sales will eclipse $ 530 billion by 2020. Retailers making better use of their stores to fulfill online orders will help fuel growth.

The chain stores: More than any prior year, the Top 500 shows which leading retail store chains are building world-class e-retailing arms and which have been paying dearly for failing to prioritize their online business.

 

050316_OnlineSalesInUSWillTop530BillionBy2020_INSIDE

Source: Forrester, Internet Retailer

The Amazon factor: America’s e-retail leader keeps growing its market share. What impact is the web’s number-one player having on the rest of the e-commerce world? Amazon, omnichannel retailers making use of stores fuel growth. Online marketplace data helps Amazon find products it can launch and sell under the AmazonBasics brand, much to the chagrin of other merchants. Not only is Amazon.com by far the largest U.S. retailer in terms of online sales, it’s also growing faster than e-commerce as a whole. And e-commerce is growing must faster than retail sales in stores.

The marketplaces factor: Amazon’s and other online marketplaces are giving thousands of smaller retailers a huge new competitive tool for growing their sales. Find out how these rapidly growing marketplaces are impacting online retail.

 

092914_AmazonGrowsFasterthanUSeCommerce_INSIDE

Source: U.S. Department of Commerce, Internet Retailer, Amazon.com Inc

Retail Chains vs Web-Only:

In 2011, web sales of web-only e-retailers surpassed web sales by retail chains. The gap has continued to widen as the web sales of web-only retailers grow at a much faster rate than retail chains.

041516_RetailChainsVsWebOnly_INSIDE

Source: Forrester, Internet Retailer

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Mai Truong

I am passionate about helping companies create cultures that support and initiate Sustainability Development Goals for better living for the next future generation.

I provide Pragmatic Advice and Consultancy services to entrepreneurs and startups.
I have 26 years Professional experience in International Business Development, Market Research, Implementation Network Distribution for new Product in the new market. Mai is an Entrepreneur for over 18 years and wearing many hats from CEO/Founder/Sustainable Brands Consultant at Brand Building Consulting to contribute to the society as Pro Bono, Account Director at Taproot Foundation Organization for Non Profit Organization around the globe to focus attention on the pro bono movements, Member of Beverly Hills Chamber of Commerce, Practitioner and Member at Urban Manufacturing Ecosystem Los Angeles County.

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