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eCommerce evolution: The State of Digital Retail
The document discusses the significant growth of U.S. ecommerce, highlighting a $517.36 billion sales figure in 2018, accounting for 14.3% of total retail sales. It emphasizes the dominance of major players like Amazon, which represents 53.5% of U.S. ecommerce, and notes trends such as showrooming and omnichannel strategies in retail. Overall, the report reflects on the ongoing evolution of digital retail, the impact of major market players, and the need for innovative approaches in customer experience.
eCommerce evolution: The State of Digital Retail
- 3. Ecommerce Evolution: The Stateof Digital Retail By: Justin R. Meats VP of Product, PriceSpider
- 4. $3.63 trillion 2018 RetailSales 3.9% Y-o-y Growth Source: Internet Retailer, Mar 2019 U.S. RetailSales
- 5. $517.36 Bn 2018 eCommerceSales 14.3% Of U.S. Retail 15.0% y-o-y Growth 51.9% Of US Retail Growth Source: Internet Retailer, Mar 2019 $261.21 $298.60 $342.96 $390.99 $453.46 $517.36 8.7% 9.5% 10.6% 11.6% 13.0% 14.3% 2013 2014 2015 2016 2017 2018 U.S. eCommerce Sales & Share of Total Retail In billions U.S. eCommerce
- 6. Top 10 USeCommerceCompanies 69.6% Top 10 Share 57.7% Top 3 Share All Marketplaces 30,510 Domains Monitored 7.7+ million Active Amazon, eBay & Walmart Sellers Source: eMarketer, Feb 2019; PROWL Data, Oct 2019 1.2% 1.3% 1.3% 1.3% 1.3% 1.7% 3.8% 4.6% 6.1% 47.0% Macy's Best Buy QVC, HSN, zulily Wayfair Costco The Home Depot Apple Walmart eBay Amazon Top 10 US Companies, Ranked by Retail eCommerce % of US retail eCommerce sales
- 7. $277 Bn 2018 USRetail Sales Source: Marketplace Pulse, Apr 2019 $149.79 $199.85 $277.00 38.30% 44.10% 53.50% $25.00 $75.00 $125.00 $175.00 $225.00 $275.00 $325.00 2016 2017 2018 U.S. Amazon eCommerce Sales & Share of eCommerce In billions 53.5% Of U.S. eCommerce 38.6% y-o-y Growth U.S. Amazon
- 8. 105 million U.S. PrimeMembers 82% U.S. Online Households 2.5X more Prime users spend/year 94 million Costco Members Source: Internet Retailer, Jul 2019 Amazon Prime
- 9. 71% Y-o-y growth 68% Increase onother Online retailers 89% US Online Shoppers Familiar 42% US online Shoppers Made Purchase Source: Internet Retailer, Jul 2019 $7.16 $4.19 $2.41 $1.52 $0.90 2019 2018 2017 2016 2015 Amazon Prime Day Sales in billions $7.16billion July 15-16, 2019
- 10. Holidays $2.50 $3.01 $3.05 $3.58 $6.24 $7.75 Sat after Thanksgiving'18 Sun after Thanksgiving '18 Thanksgiving Day '18 Amazon Prime Day '19 Black Friday '18 Cyber Monday '18 Sales of Shopping Events avg sales per day in billions 54% Plan to shop Online 46% Plan to shop In-store 52% Amazon 30% Google 24% Social Media Gift Inspiration Source: PwC, 2019
- 11. $160 Billion 2018 3PSales 57.8% Of Amazon Sales 23% y-o-y growth 8-15% Avg Commission 24.8% Total Average Fees 1.1 million Active 3P US Sellers Source: Marketplace Pulse, April 2019 U.S.
- 12. 87% Sell on otherplatforms 47% Based in US 11219 Brooklyn, NY Zip Code with most (7%) US Based Sellers 38% Based in China 14% List Phone Number 22% Change Name Source: Feedvisor, May 2019; Marketplace Pulse, Oct 2019; PROWL Data, Oct 2019 1% 5% 7% 8% 14% 23% 35% 47% 56% AliExpress Rakuten Newegg Sears Jet Brick & Mortar Walmart Own Website eBay Other Platforms Used By Amazon Sellers Amazon Sellers
- 13. $37.52 billion 2018 Sales 3.4% Y-o-ygrowth 7.3% Of U.S. eCommerce 1.9b+ Items listed 81% New 4-9% Avg Commission Source: Internet Retailer, Jan 2019; Racked, Oct 2017; Marketplace Pulse, Oct 2019 U.S. eBay
- 14. $21.4 billion 2018 EstSales 40% Y-o-y growth 4% U.S. eCommerce 8-15% Avg Commission 30.4k Sellers 60.8% y-o-y growth in Sellers 91% List Phone Number 14% Changed Name Source: CNBC, Feb 2019; Marketplace Pulse, Oct 2019; Zentail, Oct 2017; PROWL Data, Sep 2018 Walmart
- 15. New Marketplace: Target $5billion 2018 Online Sales 40% Growth 55 Merchants 115k Products Source: Marektplace Pulse, May 2019, Aug 2019
- 16. Industry Sellers WebsitesAmazon eBay Walmart DME 164 92 16 43 5 Hardware 272 97 45 112 6 Consumer Electronics 302 112 51 106 10 Outdoor 362 177 55 104 9 Automotive Parts 369 197 28 123 8 Housewares 593 143 115 294 15 Pets 626 172 120 299 13 Footwear 669 217 134 284 13 Average 346 122 55 142 10 Source: PROWL Data, Oct 2019 Average# Sellers byIndustry
- 17. Country 2019 Y-o-yGrowth US $365,207 15.7% Canada $25,425 7.9% Mexico $9,040 11.1% North America $399,672 Source: Statista, Oct 2019 2019 International eCommerce New, Non-digital Salesin USD UK $78,903 6.8% Germany $74,228 11.1% France $42,674 9.4% Spain $17,999 13.1% Italy $15,833 14.5% Europe – “Big 5” $229,637
- 18. Price Changes 53% URLs w/price changelast month 26% URLs have had multiple violations/day 13% Violations Off Hours 31% URLs w/multiple violations in a week Source: PROWL Data, Oct 2019
- 19.
- 20. Showrooming 72% Showroom 78% Webroom Source:Mi9 Retail, Mar2018; eMarketer, Apr 2018 9% 22% 69% Online w/ in-store pickup Online Brick & Mortar Store Purchases in a typical month % of U.S. Internet Users
- 21. Retail Apocalypse? 73% Of closingare by 16 companies 3,100 More retail stores in 2018 5.2 Retail stores opening For every one that closes 27% Department Stores Opening Locations 19% Department Stores Closing Locations Source: The Motley Fool, Aug 2019
- 22. Amazon Brick &Mortar 16 + 2 Stores Source: Amazon, Oct 2019 5 Stores 19 Stores 4 Stores
- 23. Omnichannel • Buy Online,Pickup In Store • Curbside Pickup • In-App Maps & Directions • Self Checkout JC Penny Lowe's Norstrom Kohl's Dick's Macy's Best Buy Home Depot Target Walmart Top 10 Omnichannel Retailers Source: Internet Retailer, Feb 2019
- 24. Free Next DayDelivery March Wal-Mart April Amazon October Macy’s
- 25.
- 26. In Summary • eCommercecontinues to grow • Retail innovation & disruption • Customer experience • MAP enables Omni-Channel • Manufacturers need to drive sales to the highest converting retailers
- 27.
Editor's Notes
- #5 https://www.digitalcommerce360.com/article/us-ecommerce-sales/ Total retail sales, not including the sale of items not normally bought online like fuel, automobiles and food at restaurants
- #6 5X https://www.digitalcommerce360.com/article/us-ecommerce-sales/
- #8 77.15
- #9 Prime is $119/yr 95 million Prime – Marketplace pulse 126 million households in US 75% $1500 vs 600 Begin product search https://www.survata.com/blog/amazon-takes-49-percent-of-consumers-first-product-search-but-search-engines-rebound/
- #11 Shift from 2015 – 58% In-Store & 42% Online
- #12 https://www.marketplacepulse.com/articles/amazon-has-added-three-million-sellers-since-2017 OCTOBER 10, 2019
- #15 Huge growth Est 35% this year, growing to 4.6% of all ecommerce 11.5 sellers added since last summit 30.4-18.9
- #16 2/3 fulfilled by stores last year Stores handled 80% of fulfillment Q1 Shipt Launched Marketplace in February with 30 sellers Smallest Marketplace run by retailers curated selection of products “Target Launched Marketplace it didn’t need”
- #17 Less is more
- #18 US https://www.statista.com/outlook/243/109/ecommerce/united-states CA https://www.statista.com/outlook/243/108/ecommerce/canada MX https://www.statista.com/outlook/243/116/ecommerce/mexico UK https://www.statista.com/outlook/243/156/ecommerce/united-kingdom DE https://www.statista.com/outlook/243/137/ecommerce/germany FR https://www.statista.com/outlook/243/136/ecommerce/france ES https://www.statista.com/outlook/243/153/ecommerce/spain
- #21 Amazon added retail store and bought Whole Foods
- #22 Media tries to sensationalize Older brands getting smaller or going away
- #23 4 Stores last year 3000 by 2021 Licensing to Airports & Movie Theaters – 100s of stores by end of next year 4th Amazon Go – 1st outside Seattle http://www.chicagotribune.com/business/ct-biz-amazon-go-opens-chicago-store-0917-story.html 3k stores by 2021 https://www.bloomberg.com/news/articles/2018-09-19/amazon-is-said-to-plan-up-to-3-000-cashierless-stores-by-2021
- #27 MAP removes price from the equation and empowers consumers to purchase in the channel they are most comfortable and from the retailer that is going to give them the best service. Our combined depth and breadth of monitoring provides manufacturers with the most comprehensive brand platform to track, protect and grow sales. What does the merger Mean? WTB – Drive people to the retail sites that convert the highest and don’t have MAP violations You are driving people to your website – make it easy to buy, not only from you but from your best retailers Merging tech – Nothing you will see but you will be able to feel