Coronavirus (COVID-19) Coverage | Digital Commerce 360 https://www.digitalcommerce360.com/topic/coronavirus-covid19/ Your source for ecommerce news, analysis and research Thu, 21 Dec 2023 17:58:54 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://www.digitalcommerce360.com/wp-content/uploads/2022/10/cropped-2022-DC360-favicon-d-32x32.png Coronavirus (COVID-19) Coverage | Digital Commerce 360 https://www.digitalcommerce360.com/topic/coronavirus-covid19/ 32 32 US ecommerce sales rise in Q3, but growth remains flat https://www.digitalcommerce360.com/article/quarterly-online-sales/ Fri, 17 Nov 2023 15:00:55 +0000 https://www.digitalcommerce360.com/?post_type=article&p=819972 U.S. ecommerce sales in the third quarter of 2023 reached $271.7 billion, according to a Digital Commerce 360 analysis of U.S. Department of Commerce figures. That’s 7.8% growth over Q3 2022, according to Digital Commerce 360 data. U.S. ecommerce sales in Q3 2023 accounted for 21.4% — or more than a fifth — of total […]

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U.S. ecommerce sales in the third quarter of 2023 reached $271.7 billion, according to a Digital Commerce 360 analysis of U.S. Department of Commerce figures. That’s 7.8% growth over Q3 2022, according to Digital Commerce 360 data.

U.S. ecommerce sales in Q3 2023 accounted for 21.4% — or more than a fifth — of total retail sales.



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Meanwhile, total retail sales in Q3 reached $1.267 trillion, according to Digital Commerce 360 analysis. That’s a 3.2% increase from Q2 2023.

US ecommerce sales growth outpaces total growth

Year over year, U.S. ecommerce grew an estimated 7.7% in the first nine months. Total retail sales increased 3.9% over the same period.

“Ecommerce has been more important for retail growth this year than any year since 2020,” said James Risley, research data manager and senior analyst at Digital Commerce 360. “While in-store retail bounced back after pandemic restrictions lifted, shoppers are still turning to ecommerce more as it provides convenience and utility beyond avoiding disease.”

And U.S. ecommerce sales growth outpaced total growth in Q3 2023. U.S. ecommerce represented 41.0% of total retail growth for the first nine months of 2023. For the third quarter, online sales in the U.S. accounted for nearly half (49.7%) of total retail growth.

Still, U.S. ecommerce growth remained mostly flat in Q3 compared with the previous three quarters.

“Growth is still slower than pre-pandemic times, showing that while ecommerce growth is faster than overall growth, during the rough economic times we’re in, ecommerce is struggling along with the rest of retail,” Risley said. 

Compared with Q2, offline (in-store) retail sales declined in Q3. Offline sales cracked $1 trillion in Q2, but they didn’t in Q3, reaching about $995.5 billion, according to Digital Commerce 360 analysis. Risley said Walmart Inc.’s return to competing with Amazon Prime Day this year might have helped boost some of the online spending in Q3.

Amazon is No. 1 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American online retailers by their web sales. Walmart is No. 2 in the Top 1000.

How do we calculate ecommerce penetration?

Digital Commerce 360 studies non-seasonally adjusted Commerce Department data and excludes spending in segments that don’t typically sell online.

These segments include:

  • Restaurants
  • Bars
  • Automobile dealers
  • Gas stations and fuel dealers

U.S. ecommerce penetration reflects the share of dollars consumers could potentially spend online.

The Commerce Department defines ecommerce sales as the sales of goods and services where an order is placed by the buyer or price and terms of sales are negotiated over an internet, extranet, Electronic Data Interchange (EDI) network, electronic mail, or other online system. The customer may or may not make the payment online. The Commerce Department publishes estimates it has adjusted for seasonal variation and holiday and trading-day differences, but not for price changes.

Percentage changes may not align exactly with dollar figures due to rounding.

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US ecommerce Q2 sales indicate permanent COVID-19 boost https://www.digitalcommerce360.com/2023/10/06/us-ecommerce-q2-sales-indicate-permanent-covid-19-boost/ Fri, 06 Oct 2023 14:00:06 +0000 https://www.digitalcommerce360.com/?p=1310292 U.S. ecommerce sales in the second quarter of 2023 reached $277.6 billion. That is a 7.7% increase compared with the year prior, according to a Digital Commerce 360 analysis of U.S. Department of Commerce figures. “While overall retail growth has slowed as economic uncertainty looms, shoppers are still increasing online spending,” says James Risley, research […]

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U.S. ecommerce sales in the second quarter of 2023 reached $277.6 billion. That is a 7.7% increase compared with the year prior, according to a Digital Commerce 360 analysis of U.S. Department of Commerce figures.

“While overall retail growth has slowed as economic uncertainty looms, shoppers are still increasing online spending,” says James Risley, research data manager and senior analyst at Digital Commerce 360. “Despite just a fifth of retail goods spending taking place online, it accounted for nearly half of the year-over-year growth.”

The Department of Commerce’s estimated total retail sales, both online and in-store, for Q2 2023 were $1,798.2 billion.

Total vs. ecommerce growth

Non-ecommerce sales grew 2.1% over Q2 2022. Retail spending surged in July thanks to the release of the “Barbie” movie and a succession of sold-out Taylor Swift concerts across the country, reported CNN.

Ecommerce penetration increased just 0.9% year over year. That’s the highest growth since the first quarter  of 2021, when penetration grew 4.7%.

Ecommerce grow slows, but pandemic-related boost remains

While ecommerce growth is slow, it’s still above pre-pandemic levels.

“We still haven’t seen ecommerce’s share of spending dip to the levels we would have predicted for this time frame pre-pandemic,” Risley says. “This means that the COVID boost to ecommerce was a permanent change to how people shop, even if other pandemic changes have worn off.”

How do we calculate ecommerce penetration?

Digital Commerce 360 studies non-seasonally adjusted Commerce Department data and excludes spending in segments that don’t typically sell online.

These segments include:

  • Restaurants
  • Bars
  • Automobile dealers
  • Gas stations and fuel dealers

U.S. ecommerce penetration reflects the share of dollars consumers could potentially spend online.

The Commerce Department defines ecommerce sales as the sales of goods and services where an order is placed by the buyer or price and terms of sales are negotiated over an internet, extranet, Electronic Data Interchange (EDI) network, electronic mail, or other online system. The customer may or may not make the payment online. The Commerce Department publishes estimates it has adjusted for seasonal variation and holiday and trading-day differences, but not for price changes.

Percentage changes may not align exactly with dollar figures due to rounding.

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Walgreens slashes outlook as pandemic-driven demand fades https://www.digitalcommerce360.com/2023/06/27/walgreens-slashes-outlook-as-pandemic-driven-demand-fades/ Tue, 27 Jun 2023 15:06:17 +0000 https://www.digitalcommerce360.com/?p=1047428 Walgreens Boots Alliance Inc. slashed its fiscal-year earnings forecast, hurt by fading pandemic demand and a slow transition deeper into health care. Annual adjusted earnings will be $4 to $4.05 a share, the Deerfield, Illinois-based company said Tuesday in a statement, down from the earlier range of $4.45 to $4.65. Adjusted earnings for the third-quarter […]

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Walgreens Boots Alliance Inc. slashed its fiscal-year earnings forecast, hurt by fading pandemic demand and a slow transition deeper into health care.

Annual adjusted earnings will be $4 to $4.05 a share, the Deerfield, Illinois-based company said Tuesday in a statement, down from the earlier range of $4.45 to $4.65. Adjusted earnings for the third-quarter were $1 a share, short of analysts’ average estimate of $1.06.

Walgreens is facing a rapidly changing competitive environment. On Nov. 17, 2020, online retail giant Amazon.com Inc. said it would expand its push into US prescription drug sales.

Walgreens Boots is ranked #19 in Digital Commerce 360’s Top 1000, which ranks retailers by annual web sales.

“We have seen changing market trends that have consumers prioritizing value in response to a more uncertain and challenging economic environment,” Chief Executive Officer Roz Brewer said on an earnings call. “There has been a steep drop-off in Covid vaccines and testing, and with the end of the public-health emergency we are also experiencing a slower profit ramp for US health care.”

After the pandemic pulled people into drugstores for vaccines and tests, cracks are starting to reappear in the business model that depends on pharmacy-driven foot traffic to sell higher-margin items like toothpaste and over-the-counter therapies. The end of the pandemic emergency has also seen states drop residents from the rolls of Medicaid, the health program for low-income people.

Savings Target

And while Walgreens is betting on an expansion into the wider health world —adding primary-care centers to US locations, partnering with insurers and moving into clinical trial recruitment — the transition hasn’t been simple.

“The health-care services segment is taking longer to stand up,” Bloomberg Intelligence analyst Jonathan Palmer said in a note, “which isn’t a huge surprise and at the same time, Walgreens’ ability to catalyze the unit by deploying capital is slowly drying up.”

Quarterly revenue in the US health-care business matched analysts’ average estimate of $2 billion.

Walgreens raised the target for savings from a cost-cutting program to $4.1 billion from $3.5 billion, and expects savings of $800 million in fiscal 2024. The company said in May that it would cut 10% of its corporate workforce, or about 504 employees, as it seeks to restructure to align better with a focus on patient care. Those job cuts were completed in about four months, Chief Financial Officer James Kehoe said on the call, saving more than $100 million.

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JD anticipates sales rebound after offering $1.4 billion in deals https://www.digitalcommerce360.com/2023/06/16/jd-anticipates-sales-rebound/ Fri, 16 Jun 2023 18:31:52 +0000 https://www.digitalcommerce360.com/?p=1047047 JD.com Inc. is on track to emerge from a record sales funk. A bounce-back in parts of China’s consumer economy and a $1.4 billion discounting program are helping revive its online commerce business, a top executive said. JD sales Retail chief Xin Lijun expects JD’s core ecommerce business to accelerate this quarter after the company […]

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JD.com Inc. is on track to emerge from a record sales funk. A bounce-back in parts of China’s consumer economy and a $1.4 billion discounting program are helping revive its online commerce business, a top executive said.

JD sales

Retail chief Xin Lijun expects JD’s core ecommerce business to accelerate this quarter after the company posted its lowest-ever pace of overall revenue expansion during the January to March period. JD Retail’s sales should return to growth, he said, after declining 2.4% last quarter. All that reflects a gradual, if uneven, rebound in consumer sentiment following China’s Covid Zero years that should underpin a broader recovery in 2023’s back half.

“You will see an upward curve of growth rate when we release the results for the second quarter,” Xin, who runs the main retail and commerce operations, told Bloomberg Television. “We are relatively optimistic and confident in the second half of the year, overall.”

Regional sales

Chinese retail sales grew 12.7% in May but were down from April and less than projected. Along with disappointing data on unemployment and investment, that suggests the world’s second-largest economy is struggling to regain its footing. Still, Beijing is prioritizing economic growth and once again allowing its giant private sector to expand, after a two-year clampdown that obliterated growth in sectors such as online commerce.

JD is wrestling with internal issues as well. Its chief executive — once the presumptive heir to billionaire founder Richard Liu — is departing just as the company grapples with intensifying competition from traditional rivals Alibaba Group Holding Ltd. and PDD Holdings Inc. as well as upstarts like ByteDance Ltd.

JD.com is No. 1 is in the Asia Database. That’s Digital Commerce 360’s rankings of the largest online retailers in Asia by web sales. Rival Alibaba Group Holding Ltd. owns Taobao, No. 1 in the Digital Commerce 360 database of Global Online Marketplaces. It also owns Tmall (No. 2). JD.com is No. 4 in the marketplaces database.

Heavy discounting

In response, JD kicked off a $1.4 billion discounting program in March — a costly effort to lock in consumers ahead of a broader sales recovery later this year. Consumers gravitate toward value for money products in a downturn, Xin said. That spending spree in turn signaled to investors that JD may be placing a market share grab before profitability, helping wipe 40% off its value since a January 2023 peak.

Xin said JD remains focused on the bottom-line over the longer term but needed to protect its turf now.

“In the long run, I think market share is necessary for the survival of every enterprise. When you don’t have market share, the profits are actually fake,” he said.

A litmus test for JD’s efforts is this month’s “6.18” bargains extravaganza, the summer online sales event often compared with Black Friday and China’s own Nov. 11 gala, when major names from Apple Inc. to Xiaomi Corp. ply shoppers with discounts.

“In the long run, I think market share is necessary for the survival of every enterprise. When you don’t have market share, the profits are actually fake,” he said.

A litmus test for JD’s efforts is this month’s “6.18” bargains extravaganza, the summer online sales event often compared with Black Friday and China’s own Nov. 11 gala, when major names from Apple Inc. to Xiaomi Corp. ply shoppers with discounts.

JD saw demand rebound in select categories such as cosmetics and apparel and its final transactions tally would be “a surprise,” Xin said without elaborating.

What Bloomberg Intelligence says

“Last month’s acceleration of mainland China’s sequential gains in online retail sales from pre-Covid levels raises the likelihood that the gross merchandise value which Alibaba and JD.com derive from the 618 shopping festival, now underway, will rise above year-earlier levels. The lift to online spending from ecommerce firms’ offer of higher perks, including perks from ByteDance’s Douyin, Kuaishou and Little Red Book, could fuel stronger sales gains online than in physical stores this month.”

— Catherine Lim and Trini Tan, analysts

Sale volume

In the first 10 minutes of the event starting late May 31, nearly half of the small and medium-sized merchants that took part tripled volumes from the prior year. The overall turnover of men’s and women’s clothing on the platform more than doubled, JD said. Taobao and Tmall, the marketplaces of JD’s larger rival Alibaba, also shifted the focus of this year’s 6.18 to smaller vendors versus mega-brands.

JD needs a solid result to convince investors keen for signs of a Chinese consumption recovery. The company has experienced slowing growth for its signature June event over the past years. Transaction volumes growth declined to 10.3% last year, from 27% in 2019 and 33.6% in 2020 during the pandemic.

“As long as the measures to expand our market share are reasonable, we should take them to serve more consumers and gain recognition,” Xin explained. “If we do, we’d gain long-term market share.”

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US ecommerce Q1 sales rise, but penetration is flat https://www.digitalcommerce360.com/2023/05/18/us-ecommerce-q1-sales-rise-but-penetration-is-flat/ Thu, 18 May 2023 17:05:44 +0000 https://www.digitalcommerce360.com/?p=1310322 U.S. ecommerce sales in the first quarter of 2023 hit $253.1 billion. That’s an 8% rise from $234.4 billion in the comparable quarter of 2022, according to a Digital Commerce 360 analysis of U.S. Department of Commerce figures released May 18. Those first-quarter sales figures suggest 2023 could be another record-setting year for ecommerce. In […]

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U.S. ecommerce sales in the first quarter of 2023 hit $253.1 billion. That’s an 8% rise from $234.4 billion in the comparable quarter of 2022, according to a Digital Commerce 360 analysis of U.S. Department of Commerce figures released May 18.



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Those first-quarter sales figures suggest 2023 could be another record-setting year for ecommerce. In February, Digital Commerce 360 reported that total 2022 ecommerce sales reached $1.03 trillion — the first time ecommerce revenue had topped the $1 trillion level.

Ecommerce penetration was steady at 21.7% in Q1 2023 compared to 21.2% in the year-earlier quarter, according to a Digital Commerce 360 analysis of the Commerce Department data.

 

 

While the record online sales spikes of the pandemic have faded, quarterly ecommerce sales have continued to grow, albeit at a slower pace.

In 2021 and 2022, ecommerce had its slowest share of total retail growth on record for two consecutive years. That’s an indication that offline sales are catching up with digital commerce after COVID lockdowns.

How do we calculate ecommerce penetration? 

Digital Commerce 360 studies non-seasonally adjusted Commerce Department data and excludes spending in segments that don’t typically sell online.

These segments include:

  • Restaurants
  • Bars
  • Automobile dealers
  • Gas stations and fuel dealers

U.S. ecommerce penetration reflects the share of dollars consumers could potentially spend online.

The Commerce Department defines ecommerce sales as the sales of goods and services where an order is placed by the buyer or price and terms of sales are negotiated over an internet, extranet, Electronic Data Interchange (EDI) network, electronic mail, or other online system. The customer may or may not make the payment online. The Commerce Department publishes estimates it has adjusted for seasonal variation and holiday and trading-day differences, but not for price changes.

Percentage changes may not align exactly with dollar figures due to rounding.

Sign up

Stay on top of the latest developments in the ecommerce industry. Sign up for a complimentary subscription to Digital Commerce 360 Retail News.

Follow us on LinkedInTwitter and Facebook. Be the first to know when Digital Commerce 360 publishes news content.

Favorite

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Retailers adapt omnichannel offerings to suit hybrid shoppers https://www.digitalcommerce360.com/article/omnichannel-retail-strategies/ Tue, 18 Apr 2023 09:54:24 +0000 https://www.digitalcommerce360.com/?post_type=article&p=960387 Today’s shopper expects flexibility from retailers. No longer tethered to home due to COVID-19, today’s hybrid shoppers want the ability to shop both online and in physical stores. Merchants are strategizing what services to expand, such as curbside and buy online, pick up in store (BOPIS), and what to cut, according to Digital Commerce 360’s […]

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Today’s shopper expects flexibility from retailers. No longer tethered to home due to COVID-19, today’s hybrid shoppers want the ability to shop both online and in physical stores. Merchants are strategizing what services to expand, such as curbside and buy online, pick up in store (BOPIS), and what to cut, according to Digital Commerce 360’s 2023 Omnichannel Report.

While some retailers like Kohl’s Corp. discontinued its curbside pickup service in August 2022, and book retail chain Barnes & Noble removed designated parking spots for curbside, others are ramping up services.



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Tractor Supply Co. (No. 102 in the Top 500) is investing more in BOPIS and curbside. The retailer’s conversion rate for these omnichannel services is 60% higher compared with home delivery. Men’s big and tall apparel retailer Destination XL Group Inc., (No. 458 in the Top 500) prefers to use its stores as additional fulfillment locations “as a last resort.” And home improvement merchant The Home Depot Inc. (No. 4 in the Top 500) is investing in its mobile app to give shoppers the flexibility to research products while in store as well as navigate BOPIS and curbside.

Omnichannel report findings

US ecommerce growth falls as shoppers opt for in store

Retail chains are giving Amazon a run for market share. Amazon and its third-party marketplace sellers represented 35.7% of digital spending in the U.S. in 2022. That’s down from 36.9% in 2021. While the web giant accounted for a fifth — 20.7% — of all gains in U.S. ecommerce in 2022, according to Digital Commerce 360, that’s a big drop compared with 34.4% in 2021 and 35.1% during the pandemic-fueled ecommerce boom of 2020. There’s ground to be gained by retailers able to leverage technology and strategy — like omnichannel services — to convert a shopper who wants convenience and dependability online and in store.

Digital Commerce 360 projects U.S. retail sales will grow 4.2% in 2023 to $5.08 trillion. Online retail sales will increase 5.8% to $1.08 trillion — the slowest growth for total retail since 2019 and for e-retail since the banking crisis of 2008-2009.

Ecommerce growth has slowed, but it continues to take market share from brick-and-mortar stores. U.S. ecommerce grew 7.7% in 2022. That’s less than half of 2021’s 17.8% and still lower than pre-pandemic 2019 with 12.5% growth.

BOPIS and curbside availability shifts in the Top 500

Retail chains in the Top 500 in 2023 reflect a consumer more comfortable returning to in-store shopping while leveraging online buying capabilities. BOPIS for retail chains in the Top 500 reached 82.7% penetration in 2023, up from 76.3% in 2022.

Pickup options continue to expand

Curbside for retail chains in the Top 500 declined to 47.5% adoption in 2023, down from 61.2% in 2022. The ability to schedule an in-store appointment also dropped, to 16.5% in 2023 from 24.5% in 2022. This suggests that consumers are returning to impromptu shopping as pandemic-related fears subside and people are no longer fearful of gathering in public.

This article is based on Digital Commerce 360’s 2023 Omnichannel Report. Digital Commerce 360 Gold and Platinum Members receive a complimentary copy of this report as part of their membership. Non-members can purchase a downloadable PDF of this report for $399. View the table of contents here.

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What online retailers can learn from Evite’s business model pivot https://www.digitalcommerce360.com/2023/03/13/what-online-retailers-can-learn-from-evites-business-model-pivot/ Mon, 13 Mar 2023 21:13:36 +0000 https://www.digitalcommerce360.com/?p=1039687 When the COVID-19 pandemic swept across the U.S., consumers postponed, delayed and canceled their events. This was a tough time for Evite, which provides digital event invitations and made most of its revenue from selling ads around those digital invites. Evite’s user activity plummeted roughly 95%, says Evite’s current CEO David Yeom, down to consumers […]

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When the COVID-19 pandemic swept across the U.S., consumers postponed, delayed and canceled their events. This was a tough time for Evite, which provides digital event invitations and made most of its revenue from selling ads around those digital invites.

Evite’s user activity plummeted roughly 95%, says Evite’s current CEO David Yeom, down to consumers sending about 1,000 invites a day. This is compared to normal pre-pandemic activity, with consumers sending 20,000 invites every day to 30-plus people, he says.

When the pandemic began, publicly traded media conglomerate Liberty Media Corp. owned Evite. As 2020 wore on and the COVID-19 pandemic raged, Yeom decided to buy out Evite with business partner George Ruan for an undisclosed sum in September 2020. As the new CEO and without public investors to please on a quarterly basis, Yeom used the lull in events as an opportunity to do a major rehaul of Evite’s customer experience and change its business model.

“What’s there to risk? User activity is down in the dumps,” Yeom says. “When you don’t have much to lose, in many ways, that gave us the opportunity to finally make the changes we’ve always wanted to make and get the business back on the path to greatness that it should be on.”

Evite pivots to revenue from premium upgrades from advertisements

Instead of relying on revenue from ads, Evite’s primary revenue stream now is from users upgrading to a premium invitation, which costs $15.99-$89.99. With premium, users have access to enhanced features, like hiding the guest list for an event, no ads on the invitation and access to premium designs, such as ones with a Disney character, premium fonts, animation, envelopes and a design-your-own feature. About 10% of its users pay for premium invitations and this accounts for roughly half of Evite’s revenue, Yeom says.

A third of its revenue is now from affiliate marketing. Evite showcases products that would be relevant to a party, such as paper plates or balloons for the host, or gift ideas for an attendee, from other retailers including Amazon.com Inc., Target Corp., Walmart Inc. and Etsy Inc.

That leaves the remaining roughly 17% of the revenue from advertising, which is now an automated program. Advertising used to be the primary source of its revenue. But the ads were getting in the way of the user experience, Yeom says. Typically, users saw an advertisement at each step in creating the invitation or RSVPing to an event.

“It was too much and everywhere,” Yeom says. “Basically 90% of all those ads are gone now.”

Evite’s move to generate revenue from premium features instead of ads is smart, says Paula Rosenblum, co-founder and managing partner at retail consulting firm RSR Research.

“Websites that are so filled with ads — mostly re-targeted, to boot — are incredibly annoying,” she says. “I’d gladly pay a little to stop the endless parade so I could take my time and peruse the products and/or services.”

But, Evite has to tread lightly with how it showcases its affiliate products, as those can appear just like an ad to a consumer. For example, in an email about a party, Evite will have a link to buy the host a gift from one of its affiliated retailers.

Or, after an invitee RSVPs to an event, Evite shows a pop-up to send the person a gift from one of its affiliates. Yeom says party-throwers have the option to turn this off and about a quarter of consumers elect to do so, he says.

Evite prompts party-goers to buy a gift from one of its affiliate retailers.

Evite prompts party-goers to buy a gift from one of its affiliate retailers.

“We want to have good balance, and not fall back in the traps of what we used to be as a business,” Yeom says.

Yeom says the affiliate product links are meant to be helpful to planning or attending an event, whereas a banner ad may not be. RSR’s Rosenblum says many affiliates have successfully provided links to other merchants without annoying users.

This overhaul in revenue, however, was a tough change, as half of Evite’s employees were either on the sales team or supported the sales team. At the end of 2020, Evite eliminated its sales team and those employees were let go or received a new role.

Many employees had an “if it’s not broke don’t fix it” mentality about the ads, Yeom says. But that attitude had to go, he says.

“There’s a better way, and you don’t have to compromise the experience for guest or host,” Yeom says.

The new Evite launches

The rebranded Evite launched in April 2022, when many U.S. consumers had already resumed their normal pre-pandemic activities. And that includes going to events, celebrating milestones and going to parties. Meaning, Evite has regained its 100,000 annual active users, who send and receive Evites.

A year after this pivot, Evite turned a profit for the first time in a decade, the company says. Plus, in the birthday category specifically, user activity “has never been higher,” with users sending 25,000 birthday invites every hour, Yeom says without sharing more.

User feedback has been “phenomenal,” Yeom says, and Evite plans to continue adding upgrades to its premium service.

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Online conversion rates hold steady even as shoppers return to stores https://www.digitalcommerce360.com/article/how-to-increase-conversion-rates/ Mon, 13 Mar 2023 14:53:17 +0000 https://www.digitalcommerce360.com/?post_type=article&p=995642 Even as the pandemic faded and shoppers were free to return to brick-and-mortar stores, online retailers managed to hold their gains in conversion rates. In fact, if there is a single takeaway from all the data that Digital Commerce 360 collected about conversion rates in 2022, it is this: Not much changed. No matter which […]

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Even as the pandemic faded and shoppers were free to return to brick-and-mortar stores, online retailers managed to hold their gains in conversion rates.

In fact, if there is a single takeaway from all the data that Digital Commerce 360 collected about conversion rates in 2022, it is this: Not much changed.



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No matter which merchant type, retailer size or product category we examined, the large swings we saw during the pandemic are no more. When there was change in 2022, it was incremental. And looked at in aggregate, conversion rates have held steady for three years at 2.8%.

The highest conversion rate in 2022, as in the two prior years, was among what we call “direct marketers.” There are 36 such retailers in the Digital Commerce 360 Top 1000. These are mostly retailers with roots in selling via catalogs, along with a handful that market their wares via TV shopping shows.

 

Conversion report chart

Looking at conversions by category, we see a similar situation: Rates remained largely unchanged no matter what a retailer sold in 2022.

However, it’s worth noting that the total conversion rate for Top 1000 retailers was higher than that of Top 2000 retailers (2.8% vs. 2.6%), suggesting that the larger players benefit from having the resources to invest in conversion-driving tactics and technologies.

This article is based on Digital Commerce 360’s 2023 Ecommerce Conversion Report. Digital Commerce 360 Gold and Platinum Members receive a complimentary copy of this report as part of their membership. Non-members can purchase a downloadable PDF of this report for $399. View the table of contents here.

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Why small business now counts more than ever on B2B ecommerce https://www.digitalcommerce360.com/2023/02/03/why-small-business-now-counts-more-than-ever-on-b2b-ecommerce/ Fri, 03 Feb 2023 21:20:50 +0000 https://www.digitalcommerce360.com/?p=1037164 Small businesses counted on ecommerce to get them through the pandemic. Now that it has, growing sales online remains a top priority, says a new survey data from Alibaba.com. “2022 brought significant challenges for micro, small and medium enterprises (MSMEs), brought on by volatile energy prices and soaring inflation,” says Alibaba vice president Andrew Zheng. […]

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Small businesses counted on ecommerce to get them through the pandemic. Now that it has, growing sales online remains a top priority, says a new survey data from Alibaba.com.

“2022 brought significant challenges for micro, small and medium enterprises (MSMEs), brought on by volatile energy prices and soaring inflation,” says Alibaba vice president Andrew Zheng.

Using ecommerce was the top strategy for survival, with 36% of small businesses attempting ecommerce or digitalization.

The survey of 1,000 small business owners finds that:

  • 70% of small companies surveyed said the impact of COVID-19 drove them to make greater investments in digital technologies.
  • B2B online sellers will likely see greater competition in 2023 as businesses continue to adapt to the rising need for digitization.
  • Businesses with the smallest number of employees were more negatively affected by last year’s challenging market.
    • 25% of survey respondents with under 10 employees shut down completely.
    • Only 13% of respondents with over 250 employees had the same results.
  • Small businesses got creative to keep sales up and survive the post-pandemic pressures.
    • Using ecommerce was the top strategy for survival, with 36% of small businesses attempting ecommerce or digitalization throughout and directly following the pandemic.
    • Many flocked to B2B ecommerce marketplaces and continue to use those resources in today’s market.
    • 54% of small businesses surveyed responded that B2B ecommerce platforms remain critical to their current operations.
  • To capture more sales and increase customers, over a third (32%) of small businesses took to expanding sales channels in order to survive the pandemic’s effects. Other tactics used included:
    • Cutting expenses (13%).
    • Seeking support from local governments or institutions (11%).
    • Investing in research and development to upgrade products (8%).

“Digital selling provided an opportunity for these businesses to reach customers locally and globally without stretching operating budgets,” Zheng says. “But B2B sellers must stay ahead of digital export trends in 2023 to find continued success.”

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Sign up for a complimentary subscription to Digital Commerce 360 B2B News, published 4x/week. It covers technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, senior vice president of B2B and Market Research, at mark@digitalcommerce360.com. Follow him on Twitter @markbrohan.

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The most popular online retail stories of 2022 https://www.digitalcommerce360.com/2022/12/30/the-most-popular-online-retail-stories-of-2022/ Fri, 30 Dec 2022 19:02:09 +0000 https://www.digitalcommerce360.com/?p=1034814 As online retailers forge ahead into 2023, let’s take one last look back at online retail in 2022. After three years of COVID-19, consumers continue to shop online with no signs of stopping. For the full year 2022, Digital Commerce 360 projects U.S. online retail sales will top $1 trillion for the first time, reaching […]

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As online retailers forge ahead into 2023, let’s take one last look back at online retail in 2022.

After three years of COVID-19, consumers continue to shop online with no signs of stopping. For the full year 2022, Digital Commerce 360 projects U.S. online retail sales will top $1 trillion for the first time, reaching $1.03 trillion. That would be a 7.7% increase over $960.44 billion in 2021.

But it was a tough year for online retail. Many retailers struggled to post year-over-year online sales gains, inflation hit record highs, surplus inventory levels soared and supply chain woes persisted.

But despite these challenging macroeconomic factors, online retailers continue to innovate and provide a top online shopping experience. Brands like L’Oreal used artificial intelligence to spot trends. A number of merchants committed to greater representation and continued support of the Black community. And retailers worked to make fulfillment more sustainable.

What’s more, online holiday sales may have been strong enough that merchants can put 2022 down in the win column. Over the Cyber 5 period (Thanksgiving through Cyber Monday) online sales reached $35.27 billion, a 4% year-over-year gain.

Below are more 2022 headlines, both news and in-depth features, that were the most popular on DigitalCommerce360.com.

Thank you for your readership in 2022. We look forward to another exciting year of online retail in 2023.

Most-read news stories in online retail

Most-read in-depth stories in 2022

The seven feature-length stories below received the most page views in 2022 on DigitalCommerce360.com. These articles, free to Digital Commerce 360 Strategy members, detail the topics our readers found most relevant this year. They include an in-depth piece on returns, how consumer brand manufactures need to remake their ecommerce playbook, True Religion’s path to profitability, how retailers can improve their marketing strategy on Amazon, how to manage customer data across platforms, the advantages of advertising on connected TV and how online retailers cater to their young, mobile shoppers.

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