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E-Commerce Market of 2016

The World’s Second Largest E-Commerce Market Rebounded Big Time in 2016.

 

E-commerce platforms are the lifeblood of retailers’ online sales success.

Today’s e-commerce platforms often incorporate technology that enables consumers to check real-time inventory counts across channels, track the status of their shipments, read product reviews and deliver streamlined navigation paths so they can quickly find the products they want.

Some platforms also enable retailers to coordinate marketing initiatives across online, mobile and, in the case of retail chains, store channels. Often, these are platforms that are hosted and accessed on the web, or cloud.

American e-retailers looking to grow by attracting new shoppers in a region where online retailing is growing faster than in the U.S.

Food & Beverage and Apparel are two of the fastest growing e-commerce segments. In these highly competitive industries, every actionable insight can be the difference between getting ahead or falling behind.

 

E-commerce has an edge in European retail sales

European e-commerce sales reached 455 billion euros last year (or more than $508 billion)—which makes Europe the second largest e-commerce market behind China. Trends vary by country, but the biggest web merchants in the region, or those ranked in the new Europe 500, grew online sales by 16.8%–faster than the growth in total European e-commerce sales, not to mention web sales in the U.S. (which grew 14.6% last year).

Salesforce to acquire e-commerce software provider Demandware

Salesforce will introduce a new e-commerce offering to go with its customer relationship management software.

Salesforce, the high-flying provider of cloud-based customer history software, announced today plans to acquire Demandware Inc., the leading cloud-based e-commerce technology provider to larger consumer goods brands and retailers.

Salesforce says the combination will provide Demandware clients with access to Salesforce marketing, analytics, sales and service technology, enabling them to provide consumers with more personalized service.

Saleforce is ranked as the No. 3 North American provider of cloud technology by Forrester Research, with projected 2016 revenue from its cloud service of $7.6 billion.

 

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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.

 

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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.

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Source: Forrester, Internet Retailer

E-commerce Marketplace.

E-commerce Marketplaces Resolution 2016

For E-commerce merchants, this can sometimes be a challenge depending on budget, manpower, and other potential obstacles that could stop you from working through some of the resolutions.

So how will you improve in 2016?

Whether it’s cleaning out clutter (or excess inventory), quitting procrastination (on order returns) or making new friends (on social media), we have 20 e-commerce goals we think you can easily meet.
Below are a few that you can work through that won’t cost you much and are easy to begin implementing now.
  1. Make it a priority to keep your data feeds updated, clean and accurate. Don’t let errors result in your listings being suppressed on eBay or Amazon; your business needs higher, not lower, seller ratings. And if you’re a persistent offender, you could even get kicked off a marketplace altogether.
  2. Grouping products together, you can make them stand out from the crowd, giving your potential customers more options and increasing your revenue. If your mobile phones are selling fast, for example, bundle them with a mobile cover and car charger and market them at a discount.
  3. Running promotions or offering vouchers to encourage customer loyalty.
  4. Transforming your product data in a central location and sends it out to many marketplaces around the globe with marketplaces.
  5. Listings your products with better picture quality are, on average, 5% more likely to convert. Which proves that first impressions count. So make sure your items stand out by using professional, high-quality images. Marketplaces have strict criteria when it comes to images, with requirements changing all the time, so keep up with those updates, or your listings could be suppressed. Be sure to use up your picture quota, too, and ensure shoppers can see your products from all angles.
  6. Marketplaces offer you a logical and simple route to overseas markets. Take advantage of export programs like Fulfillment by Amazon (FBA) Export and the Global Shipping Program (GSP) from eBay. With Amazon FBA, all you need to do is allow your items to be purchased by overseas buyers, and Amazon fulfills your orders via its network of international shipment centers. Amazon also takes care of all customer service and taxes on your behalf, so you don’t have the worry or stress of dealing with local language issues or paperwork. With GSP by eBay, retailers can expand to 64 countries with eBay’s help.2 Once an overseas buyer purchases from you, all you need to do is ship to a domestic fulfillment center and eBay does the rest. Recent additions to GSP include China, Hong Kong, Indonesia, Malaysia, Mexico, Singapore, South Korea, Switzerland, Taiwan and Thailand.
  7. Put your focus on mobile. Over the festive season last year, an estimated 50% of shoppers browsed online sites by tablet or smartphone.5 And while at present a smaller number make actual purchases this way, that’s predicted to change, rising from $57.3 billion in 2014 to $93.6 billion by 2015.
  8. Use reporting tools to help you review your performance at a glance, so you can identify where you need to make changes and quickly put them into place.  take note of your underperforming campaigns and ad groups. Then be assertive: Find them and pause them. And invest more in the campaigns that generated better ROI.
  9. Use the most important keywords in the first 20 characters of the product title to make sure they show up in the ad. And if the standard attributes in your feed aren’t sufficient to properly group your products, use custom labels.
  10. Have a presence wherever your customers gather. Are they on Facebook, Twitter, Pinterest, Houzz, Wanelo or Polyvore? That’s where your customers may be finding inspiration, sharing their favorite products with people in their network — and even buying. Depending on what you sell, social promotion could unlock a completely new customer base for you.