Tag Archives: growth

Interesting Ecomm Data

8 Apr

Blatantly stolen from my boss’ blog and edited for my own nefarious purposes.  Just so much good data that is so hard to find normally…WARNING: some ChannelAdvisor horn tooting to follow.

“We spend a lot of time at ChannelAdvisor following the various datapoints and thoughts around e-commerce and today Forrester research (Sucharita Mulpuru is the analyst) came out with a joint report/survey with the great folks at Shop.org (I/we are an active member FYI).

The headlines of the report are good news for internet retailers:

  • Forrester sees e-commerce growing at 17% y/y in the US (This is good because comscore is starting to talk about 14% and maybe lower).  I’m an optimist and think that in early 09 the pundits will update the data to be more like 20%
  • This puts e-commerce at $208B for 2008, up from $174 in 07
  • e-commerce represents 7% of retail.
  • search engine marketing (what I call paid-search) drove 35% of sales and is still the top channel for retailers
  • 65% of retailers are experimenting with social networks
  • Forrester is predicting that growth will be driven by the computer, CE, auto and apparel categories.
  • Retailers spend $.50/click on average for paid-search and see $8.47 in incremental revenue (that’s a weird metric)

I downloaded the report and what’s neat is that shop.org/Forrester are finally seeing and reporting on the multi e-commerce channel trends we’ve been talking about for years.  For example, they have this figure from the survey section that covers the top channels for retailers (note these would be larger retailers, primarily with brick-and-mortar operations as well I would assume):

Shop_org2

Another interesting datapoint they have from the survey is they asked retailers for a variety of e-commerce channels what the cost per order for the channel is and the average selling price.  I’ve found that most retailers like to look at channel costs either as a ROAS (return on ad spend) or an ‘Effective Take Rate’ (ETR), which is more of a cost of sales kind of model which helps for margin-planning/forecasting.  So I took the Forrester data and splatted it into a spreadsheet to calculate the ETR.  I also added eBay and Amazon as marketplaces with their ETR’s and ordered the channels from lowest ETR to highest and this is the result: (Amazon/eBay are highlighted to indicate I added them)

Shop_org

The only datapoint on here that looks unusual to me is the CSE data, usually we would see this more in-line with paid-search so I’m going to go look at our data and see if there’s anything noteworthy there. ( editor’s note: while that percent does seem high to me, I would expect it to be in the 20-22% range)  Not to toot our own horn here, but my guess is the retailers surveyed aren’t watching their CSE programs very closely or using ShoppingAdvisor to optimize their CSE channel.

If you’d like to learn more, there are several news items out today covering the report:

Online Sales to Grow 17% in ’08

8 Apr

 AP Report

Online spending is expected to rise a robust 17 percent this year, despite a sluggish economy that has bruised many brick-based retailers, according to an annual survey to be released Tuesday.

Retail sales online, excluding travel purchases, are set to grow to $204 billion in 2008 from $174.5 billion last year, fueled by sales of apparel, computers and autos, according to a survey conducted by Internet analysis firm Forrester Research for Shop.org, the online arm of the National Retail Federation trade group. That projection is below the 21 percent increase seen in the prior year, but industry officials attribute it to the maturing of the business, not the sluggish economy.

E-commerce “is clearly the bright spot in retailing,” said Scott Silverman, executive director of Shop.org.

The upbeat report contrasts with the outlook for many traditional retailers, which have been paring down store growth and closing shops as they struggle with consumers who don’t feel like spending amid higher gas and food costs, a housing slump and a weaker job market. The exceptions are discounters and wholesale clubs, as shoppers turn to less expensive stores.

On Thursday, the nation’s retailers are expected to report at best flat sales growth in March, according to the International Council of Shopping Centers. Same-stores sales are sales at stores opened at least a year and are considered a key indicator of a retailer’s health.

Online retailers are not immune to the same economic challenges, but what has spearheaded e-commerce growth is a “tale of two shoppers that visit the Web for different reasons,” according to Sucharita Mulpuru, a Forrester Research analyst and lead author of the report.

There are the price-sensitive shoppers who appear to be buying more items online as they look for better prices. And then there are the more affluent customers, who have been increasing their online spending because of the convenience and vast offerings.

But those shoppers looking for a bevy of free online shipping deals may not find them as plentiful as they did last year. The study, which surveyed 125 online retailers in February and March, showed that merchants are less interested in using such promotions this year. While 85 percent of online retailers said they used some shipping incentive in the past year, just 35 percent said they would focus more on these types of deals in 2008.

Instead, retailers said they plan to invest more in advertising on social networking sites like myspace.com and facebook.com, according to the survey.

That may not be the best strategy, according to Mulpuru.

“It’s great for brand-building and for buzz, but it’s still unproven how social networking drives direct revenue” for retailers, said Mulpuru.

Consumer Electronics Sector to Grow 6.1 % to $171B in 2008

31 Jan

Jeff Buechler—HDTV, gaming and gps big drivers 
 

From a  CEA Press release:

“The consumer electronics industry is projected to post a healthy 6.1 percent increase in revenues in 2008, according to the semi-annual industry forecast released by the Consumer Electronics Association (CEA)®. CEA President and CEO Gary Shapiro announced the figures today in his opening remarks at the 2008 International CES®, the world’s largest consumer technology tradeshow.

“CE industry sales have exceeded our expectations once again, despite a challenging domestic economic situation,” said Shapiro. “It’s clear that the spirit of innovation will continue to sustain and grow our industry. Indeed, we are seeing this innovation on display here at the 2008 International CES. This is especially healthy growth when compared to that of any other industry.” ”

http://www.ce.org/Press/CurrentNews/press_release_detail.asp?id=11434

%d bloggers like this: