E-commerce has been on the rise in the last several years, thanks in large part to titans in the industry such as Amazon and Alibaba.
And that growth shows no signs of slowing down in the near future. In fact, e-commerce will truly become the future of retail, as nearly all of the growth in the retail sector now takes place in the digital space.
BI Intelligence, Business Insider’s premium research service, forecasts that U.S. consumers will spend $ 385 billion online in 2016. Moreover, BI Intelligence predicts that number will grow to $ 632 billion in 2020.
This is hardly surprising considering e-commerce’s healthy growth. Though the U.S. retail average growth rate in the first half of 2016 was just 2% for total retail, it was 16% for e-commerce.
The number of online shoppers has grown by nearly 20 million from 2015 to 2016. And these 224 million shoppers are spending more, as the total amount spent online grew from $ 61 billion in the first quarter of 2015 to $ 68 billion in Q1 2016. Finally, these customers are transacting more frequently, as the number of online transactions has risen by 115 million from 2015 to 2016.
But all of this shopping online creates its own set of challenges, both for consumers and the companies that are trying to get their products onto shoppers’ screens and into their shopping carts. In short, you need a plan.
And to create your ultimate e-commerce battle plan, you need the right intel.
BI Intelligence is here to help.
Our team of industry experts has you covered on topics such as:
- Shopping cart abandonment
- Marketing effectiveness
- Merchandise returns
- Customer satisfaction
- Social media monetization
- Mobile payments
- Accommodating shoppers at the 11th hour
- And much more
To help you develop and/or fine-tune your e-commerce strategy, the team at BI Intelligence has developed an exclusive bundle of 10 reports entitled The E-Commerce Battle Plan Bundle.
Below are the extensively researched in-depth guides that are included from our team of industry experts which can help YOU excel in the competitive world of online retail:
1 & 2. The New E-Commerce Strategies Report & Slide Deck
No period of time offers a clearer window into how consumer and retailer shopping trends are shifting than the holiday season. The fourth quarter is always the busiest time of year for brands and retailers — it’s the period when retailers move from red to black.
The 2015 holiday season gave us the clearest indication yet that there’s never been a better time to be a consumer. The rise of online and mobile shopping has given consumers more choice, flexibility, and often better service, and retailers are shifting their strategies to keep up.
In this report and slide deck, we look at some of the top trends that affected retailers at each stage of the purchase funnel and how they’re responding to those shifts.
3. The Affiliate Marketing Report
Affiliate marketing now drives as many e-commerce orders in the US as email. Both channels currently account for 16% of US e-commerce orders, according to marketing firm Custora. This makes affiliate marketing one of the four largest sources of e-commerce orders, outperforming social commerce and display advertising.
Meanwhile publishers still generate the bulk of their revenue from advertising, but affiliate marketing is growing faster, per our sources. In an effort to balance editorial integrity and revenue needs, publishers are taking a more native approach to affiliate marketing by embedding product links within organic content and it seems to be working. Approximately 15% of the digital media industry’s revenue now comes from affiliate marketing.
In this report, we examine the changing face of affiliate marketing and take a close look at the key players. We also outline growth opportunities for affiliate marketing and how we see this industry developing.
4. The Shopping Cart Abandonment Report
Shopping cart abandonment — when shoppers put items in their online shopping carts, but then leave before completing the purchase — is the bane of the online retail industry.
But it’s also a huge opportunity: Approximately $ 4 trillion worth of merchandise will be abandoned in online shopping carts this year, and about 63% of that is potentially recoverable by savvy online retailers, according to BI Intelligence estimates.
In this report, we explain what leads a shopper to abandon an online purchase and how retailers can begin to combat rising shopping cart abandonment rates. We collected and analyzed data from top e-commerce companies, and spoke with industry experts whose job it is to reduce abandonment rates and boost conversions, to come up with a number of solutions that can help retailers recover lost sales.
5. The Customer Service Report
The quality of customer service consumers experience can significantly impact a retailer’s bottom line. In fact, 66% of US consumers are willing to spend more money with a company that provides them with excellent customer service, according to Microsoft, while 60% of consumers say they have not completed an intended purchase due to a poor customer service experience.
As consumers increasingly buy products online that they haven’t seen in person — leaving room for purchasing errors and buyer’s remorse — it’s now more important than ever to provide customers with positive customer service experiences.
In this report, we look at why customer service matters, which stalwart channels are still top performers, and which new channels have the most potential. We also take a look at why luxury retailers, or even just retailers with high-income consumers, need to be especially attuned to providing solid customer service help.
6. The Click & Collect Report
Click and collect — a fulfillment option that lets shoppers place an online order and pick it up at a store — is thriving in the UK. In fact, over half of UK shoppers report having used this method in the past year, according to a survey from JDA & Centiro conducted in April 2016.
However, the US is far behind on the click and collect trend, with just 27% of consumers using the service. This is largely due to slower growth in mobile commerce, and specifically, the hesitancy shoppers feel about using mobile retail apps.
Retailers in the US can look to the growth drivers in the UK to help drive up their own click and collect sales. Most notably, mobile commerce and adoption by grocery chains are driving shoppers in the UK to use click and collect.
In this report, we break down the growth factors behind click and collect in the UK. We discuss the retailers successfully implementing the fulfillment method, examine the of impact consumer behavior, and outline some key steps that US retailers can take to replicate the UK’s performance.
7. The False Declines Report
E-commerce merchants are dealing with rising fraud, and in response, they’re putting stronger safeguards in place to try to protect against these unlawful transactions. However, e-commerce companies often over-correct for the threat of fraud, leading to false declines, also known as false positives, which occur when a legitimate transaction is rejected.
These false declines are becoming a costlier problem than actual fraud — US e-commerce merchants will lose $ 8.6 billion in falsely declined transactions in 2016, according to our estimates. This amounts to over $ 2 billion more than the $ 6.5 billion in fraud they will prevent, meaning that false declines are undermining these merchants’ ability to effectively combat fraud.
In this report, we look at the rising cost of fraud and how false declines are actually a larger direct cost for merchants than fraud itself. We also identify the reasons why e-commerce and mobile commerce companies are particularly vulnerable to these trends. And lastly, we lay out some of the major causes of false declines and the most important solutions being put in place to try to combat this problem.
8. The Mobile Checkout Report
As millennials and younger consumers become larger parts of the key spending demographic, mobile devices like smartphones and tablets are quickly becoming consumers’ primary computing device. But for retailers, that poses a key challenge: Users are spending considerable time shopping on mobile, but making relatively few purchases.
As a result, social networks, payment processors and card networks, and retailers themselves, are all developing solutions that make it easier for users who shop on mobile to begin to buy on mobile, and then channeling funds into products that incentivize users to do so.
By presenting options like on-site buy buttons, single-click checkout, financing services, and unified offline-to-online commerce experiences, various brands are beginning to convert desktop shoppers to mobile. But mobile wallets are beginning to take hold, and if they can successfully combine multiple features that ease barriers to mobile purchasing into one payment platform, they could hold the ticket to retailer success in increasing mobile purchases.
In this report, we predict how e-commerce will change and m-commerce will grow, explain why users are shopping, but not buying, on mobile devices, look at how stakeholders are looking to attract these users, and showing how products like mobile wallets could be game-changing in terms of mobile retail.
9. The Mobile Marketing Report
Mobile marketing is getting more spotlight these days. Revenue from mobile advertising accounted for 30% of total ad spend in the first half of 2015, according to the IAB, and it’s on track to account for more than one-third in the second half of the year. Despite this growth, mobile ad spend still lags mobile time spent by consumers, indicating that marketers are still toeing the mobile marketing waters.
The technologies and communication mediums inherent in mobile devices offer marketers looking to reach consumers on mobile a wide assortment of options for sending the right message to the right consumer at the right time.
In this report, we take a close look at the different mobile marketing tactics being used today, spanning legacy mobile technologies like SMS to emerging capabilities like beacon-aided location-based marketing. We also identify some of the most useful mobile marketing technologies that mobile marketers are putting to good use as parts of larger strategies.
10. The Social Commerce Report
Social media may still only drive a small share of total online retail sales, but its impact is becoming impossible to ignore. Social-driven retail sales and referral traffic are rising at a faster pace than all other online channels.
The top 500 retailers earned $ 3.3 billion from social shopping in 2014, up 26% from 2013, according to the Internet Retailer’s Social Media 500. That is well ahead of the roughly 16% growth rate for the overall e-commerce market in the US.
Now new initiatives from a number of different social networks are making these platforms absolutely essential for retailers that want to drive sales and boost engagement.
In this report from BI Intelligence, we analyze social media’s role in online retail — whether that’s driving direct sales with the use of embedded “Buy” buttons on social media posts, or referring traffic to retailers’ websites and apps. We measure the impact social media has on e-commerce by looking at metrics such as conversion rates, average order value, and revenue generated by shares, likes, and tweets. We also outline the latest commerce efforts by leading social networks.
Access the 10 pieces of research referenced above today when you claim our exclusive E-Commerce Battle Plan Bundle. By purchasing the full bundle today you will save 79%. But act now, this is a limited-time offer.
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