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Shopping cart abandonment is one of those dreaded issues both online and omnichannel retailers hate. There are many reasons for customers to just leave a webstore after they have picked their products, instead of completing the order.
Some customers find better prices elsewhere, some fail to navigate the store but most (56%) give up on their order when they are presented with unexpected costs.
Data gathered and compiled by the Payroll Blog shows that 68% of all consumers abandon their cart, leading to $18 billion in revenue lost each year but there are ways to avoid this. The infographic below outlines some of the most effective ways to avoid shopping cart abandonment and increase conversions.
The US Census Bureau released data on US retail and it shows ecommerce as a growth driver. Data shows that in the third quarter of 2014 Americans spent $78 billion online, compared to $67.1 billion in the third quarter of 2013.
a. Ecommerce has grown from 5.9% of total retail in 2013 (3rd quarter) to 6.6% this year.
b. Ecommerce sales have went up from $67.1 billion in the 3rd quarter of 2013 to $78 billion in the 3rd quarter of 2014:
c. Both growth and overall sales look great for online retailers but ecommerce really stands out when comparing total retail and ecommerce year on year growth. While total retail struggles with single digit growth, ecommerce is growing at double digits:
To get an overview of how the past two years add up to ecommerce growth in the US, have a look at this chart from Statista, showing yearly growth in ecommerce since 2002 ($72 billion) to 2013 ($322 billion):
Amazon – the biggest online retailer in the world has recently turned 20, and my, has it grown. In these short 20 years, the American wonder has managed to reach more than $70 billion in revenue. In its path to world dominance it began selling everything from books, to ebooks, to apps and recently even groceries.
From across the globe, Amazon’s hegemony itself has been challenged by AliBaba, a company founded in 1999 by former English teacher Jack Ma. Just like China’s economy and ecommerce spending, AliBaba has grown to match its mightiest competitor.
The Chinese company is the product of a splendid growth in China’s eCommerce, a market that is expected to reach $655 billion by 2020. Encouraged by these developments and pushed forward by global ambitions, AliBaba will take its IPO to the US, later this year.
Now how would these two companies look side-by-side? The good folks at SmartIntern decided the world was ready for a comparison between the two behemoths. Have a look at the infographic below. The full version opens in a new window.
For most online retailers, conversion rate is THE performance indicator. While many things can be said about conversion rate optimization, a picture is still worth a thousand words. Mixing facts and expertise, digital marketing company DPFOC have put together the infographic below.
Here you will first get a sense of what works and what does not work. You will understand the basics of conversion rate optimization, get tips and tricks, and see what online marketing experts have to say about CRO.
Click the image below to open the full-size infographic, in a new window.
Amazon turns 20 this month. Founded in July 1994 by Jeff Bezos, it has now grown into the largest online retailer.
As a sign of their appreciation, the folks at DPFOC, an online marketing company, created the infographic below. The company has also created an interactive timeline, showing the most important milestones in Amazon’s 20 year history. You can enjoy it here.
Two companies have redefined retail in the past 50 years. One is a company founded by Sam Walton in 1962. Mr. Walton opened the first Walmart in Rogers, Arkansas. The other is an Internet company, founded by Jeff Bezos in his small garage in Bellevue, Washington. This second company is Amazon, the largest Internet Retailer.
Both companies went on to be huge successes but in terms of revenue, Walmart has the upper hand. With $469 billion in 2013 revenue and 10700 stores opened worldwide, Walmart beats by far Amazon’s $74 billion 2013 revenue. If you look at the raw data Amazon is no match for Walmart. But pull back just a bit and the picture is changes. By comparing the track records for the two companies an interesting insight becomes clear:
The chart above is a comparison in terms of historic revenue. On one hand you have Walmart – the biggest and most successful retailer in recorded history. Employer of 2.2 million people, crusher of markets and destroyer of mom and pop shops. On the other hand you have Amazon, the brave new world of online retail. Both redefined their markets and both are leaders in their respective fields.
But one is unlike the other. See – I couldn’t even put together figures from the first years in Walmart’s history. Walmart’s revenues starts 6 years after the first Walmart opened, in 1968. That’s when the company reached a figure ($12.6 million) comparable to Amazon’s first year with recorded revenue (1996 – $15.7 million). 17 year after the company launch, Amazon registered $74.4 billion in revenue, while Walmart registered “just” $6.4 billion.
Both the trend and evolution show one thing – Amazon is on its way to become the biggest retailer in the world, a type of retailer the world has never seen. This might probably be a good time to reconsider your stock choices.
Last week we’ve had a look at world’s top 5 ticket sales and event management companies. To put things in perspective, below you’ll find an infographic showing some of the facts and figures you might not now about the leaders and challengers in the ticket sales market.
The infographic focuses on three companies – StubHub, Eventbrite and Ticketmaster. Beauties and the beast. Things you’ll find below: info regarding the business model, founding dates, growth numbers and such.
We had a look at how flash sales sites work and got into some details regarding their business model.
So, just to get a better understanding at their size and growth rate, I’ve prepared an infographic which I hope you’ll enjoy:
Achieving clarity in Omnichannel Retail is no easy task. Retailers, especially large ones, need to get all departments, all sales channels, suppliers and fulfillment operations on the same page. And that’s just the first step. Then comes the IT integration where legacy systems are connected to a central management tool that handles at least inventory transparency, CRM […]
What does it take to turn a store visitor into a loyal customer? Any retailer that can answer this question is surely a leader in its respective niche but it is not a simple question. There are a multitude of factors at play and we thought we might ask the experts. We’ve reached out to George Skaff, CMO of TouchCommerce, […]
Here are 5 companies whose combined online sales in 2011 amount to almost $75 Billion, US and Canada only. Let’s also have a look at their background and how did they manage to reach the top 5. The winner is one of the fastest growing companies in the world, a company born and raised online and […]
What better way to get advice on implementing and improving omnichannel retail than asking the experts. So we did ask the experts and we started with Mattias Pihlström, founder and omnichannel consultant at Brightstep AB. Mattias is experienced in implementing ecommerce, multi-channel and omnichannel processes with industry leaders such as ABB, Apoteket, Ericsson, SCA, Indiska, Interflora, TeliaSonera and […]
Shopping cart abandonment is one of those dreaded issues both online and omnichannel retailers hate. There are many reasons for customers to just leave a webstore after they have picked their products, instead of completing the order. Some customers find better prices elsewhere, some fail to navigate the store but most (56%) give up on their order […]
There is ongoing change in the retail landscape. Both offline and online retailers now migrate towards hybrid solutions. Just as brick and mortar retailers have shifted towards online retailing, so did online pure-plays started engaging customers offline. Retailers now need to combine the in-store pick-up options (which most online pure plays don’t have), an offline presence for […]
Henry Ford said “People can have the Model T in any color – as long as it’s black”, in the early 20th century. That’s when Ford’s innovation, the assembly line, vastly improved productivity thus reducing production costs. Lower costs meant companies could manufacture cheaper products and still be profitable. The assembly line made possible the mass […]