2010 ecommerce year in review


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2010's key takeaways in ecommerce.

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  • Introduction: Background Why we created them
  • 2010 ecommerce year in review

    1. 1. 2010 Ecommerce Year in Review: <br />One Hell of a Ride<br />www.volusion.com<br />onlinebusiness.volusion.com<br />facebook.com/volusion<br />twitter.com/volusion<br />youtube.com/volusion<br />
    2. 2. Takeaway #1: Recession? What Recession? Consumers Increase Spending<br />Takeaway #2: Price, Discounts and Promotions Dominate the Purchasing Process<br />Takeaway #3: Social Goes Bonkers, Becomes Legitimate Business Outlet<br />Takeaway #4: Mobile Matters, But Not as Much as We Thought<br />Takeaway #5: Ecommerce Becomes a Force to Be Reckoned With<br />
    3. 3. Takeaway #1:<br />Recession? What recession? Consumers increase spending.<br />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.<br />
    4. 4. 2010 began with fears of poor consumer confidence <br />and lackluster spending:<br />“Another major factor in the recovery process is consumer confidence. Unfortunately, it is trending downward.” – Senior VP, BB&T<br />“We expect the savings rate to rise, dampening consumer spending.” – Global Economic Forum Team, Morgan Stanley<br />“Consumers have learned they can get by with less, and that’s what they’re going to do for some time. “ – News Editor, CNBC<br />
    5. 5. We were wrong. <br />Consumer confidence was steadily higher than in 2009.<br />
    6. 6. We were VERY wrong: Consumer spending increased all year long.<br />
    7. 7. Takeaway #2:<br />Price, discounts and promotions dominate the purchasing process.<br />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.<br />
    8. 8. The bad news about increased sales? Customers only bought things with a discount.<br />Consider this:<br />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). <br />- Compete<br />
    9. 9. And this:<br />35% of online shoppers say they use comparison shopping engines when looking for products online. <br />- Compete<br />Eight out of 10 U.S. adults plan to continue using couponseven if economic conditions improve.<br />- Harris Interactive<br />
    10. 10. Is there a silver lining to increased coupon redemptions online?<br />You be the judge:<br />The average order value was $216 for shoppers who used a coupon, compared to only $122 for those who didn’t use a coupon. <br />- Compete<br />
    11. 11. How about these apples?<br />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. <br />- Compete<br />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. <br />- Internet Retailer<br />
    12. 12. Takeaway #3:<br />Social goes bonkers, becomes legitimate business outlet.<br />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.<br />
    13. 13. Facebook passes 500 million users, Twitter adds 100 million in 2010.<br />Nearly half of all Americans are now members of at least one social network, double the proportion of just two years ago. <br />- MediaPost<br />“The ROI of social media is that your business will still exist in five years.”<br />- Erik Qualman, Clickz<br />
    14. 14. Chew on these profitable tid-bits: <br />High product ratings will increase likelihood of purchase for 55% of consumers.<br />- eConsultancy<br />51% of active Twitter users follow companies, brands or products on social networks.<br />- Social Media Today<br />
    15. 15. Takeaway #4:<br />Mobile matters, but not as much as we thought.<br />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.<br />
    16. 16. Mobile commerce didn’t live up to its hype, at least not yet:<br />Foundation laid in 2010:<br />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%. <br />- ATG<br />19% of US smartphone users have purchased music on their phones, 14% have bought books, DVDs or games, while 12% have purchased movie tickets. <br /> - Compete<br />74% of online retailers either have in place or are developing an m-commerce strategic plan, while 20% have fully implemented their plans. <br />- Forrester<br />
    17. 17. Takeaway #5:<br />Ecommerce becomes a force to be reckoned with.<br />Online sales grew at a breakneck pace, steal share from retail, and substantially outpace retail sales in 2010.<br />
    18. 18. Online sales grew compared to 2009.<br />
    19. 19. Online sales made gains on retail in 2010.<br />
    20. 20. Online sales grew faster in 2010.<br />Quarterly Sales Revenue Growth Compared to 2009<br />*Q4 Data Based on Holiday Estimates from SpendingPulse<br />Q1-Q3 Data Courtesy: United States Census<br />
    21. 21. Main Ecommerce Takeaway for 2010:<br />It was one hell of a ride.<br /> See you in 2011!<br />Open your own online business with the trusted leader in ecommerce:<br />www.volusion.com<br />