Black Friday deals are looming as retailers extend promotions to capture early shoppers and lessen the strain on last-minute shipping. Keeping track of eCommerce trends and online shopping behaviors will help agile marketers capture an opportunity that comes their way.

We see some of the follow trends for October 2020 compared to October 2019:

• Food and Grocery eCommerce is growing at a rate unseen in a few months. While not hitting early March and April numbers from the start of the coronavirus pandemic, people appear to be preparing early for the holidays through triple digit increase in conversion rates, compared to last year.
• Orders by new shoppers are continually growing Y/Y across retail categories. Ensure a smooth transition for these new shoppers with a frictionless checkout experience. Engage new customers with surveys and on social media to understand their shopping experience with your brand.
• Mobile continues to play an increasingly important role in the online shopping experience. Consider offering mobile only deals to encourage impulse buys. Ensure your website has a mobile first approach to create a user-friendly experience.

The year-over-year changes from October 2019 to October 2020 are as follows:

Food and Grocery Ecommerce Trends

• Website conversions jumped 126%
• Transactions soared 70%.
• Average order value (AOV) rose 4%.
• Percentage of mobile orders rose 41%.
• Orders by new shoppers increased 74%.

Apparel Industry Ecommerce Trends

• Website conversions decreased 31%
• Transactions jumped 91%.
• AOV increased 3%.
• Percentage of mobile orders increased  ust 1%.
• Orders by new shoppers skyrocketed 128%.

Gifting Industry Ecommerce Trends

• Website conversions increased 39%
• Transactions rose 36%.
• AOV increased just 2%.
• Percentage of mobile orders dropped 4%.
• Orders by new shoppers rose 29%.

Home Furnishing Ecommerce Trends

• Website conversions increased 7%
• Transactions skyrocketed 63%.
• AOV dropped 3%.
• Percentage of mobile orders soared 172%.
• Orders by new shoppers jumped 64%.

Pet Supplies Ecommerce Trends

• Website conversions increased 2%
• Transactions increased 34%.
• AOV dropped by 6%.
• Percentage of mobile orders rose 12%.
• Orders by new shoppers jumped 60%.

Tools and Hardware Ecommerce Trends

• Website conversions fell 17%
• Transactions jumped 45%.
• AOV increased just 6%.
• Percentage of mobile orders jumped 29%.
• Orders by new shoppers increased 31%.

For a deeper dive into how Prime Day, Election Day, and the ongoing coronavirus pandemic impacted eCommerce and online shopping behavior, join NetElixir’s latest webinar on the Road to Recovery: Real-Time Data on eCommerce Trends + Updated Holiday Season Forecast. You’ll gain insights into:

• Charting a successful path to recovery, starting with a successful 2020 holiday season
• Latest online shopper behavior and patterns across seven retail categories and actionable insights for your marketing mix
• The updated holiday season forecast for November-December with NetElixir’s 2020 Holiday ECommerce Sales Calendar

During the webinar, we will be releasing our 2020 Holiday eCommerce Sales Calendar, which highlights the key online sales days and underlying forces that may have an impact on sales this year. Register now at https://stage.netelixir.com//webinar/. 

Further Reading into Holiday Insights

• B2B ECommerce Search Marketing Case Study
• Get Results with Progressive Web Apps (PWAs)
• 6 Reasons to Have a Blog for Your Business
• 2020 Holiday Season ECommerce Forecast

The post October 2020 Retail ECommerce YoY Insights appeared first on NetElixir.

Since February 9th, NetElixir’s Retail Analytics Lab has been analyzing and aggregating ecommerce data across seven retail categories: Apparel, Food and Grocery, Gifting, Home Furnishings, Home Decor, Pet Supplies, and Tools and Hardware. We split our data into sixteen, 14-day periods to track the year over year changes in online shopping behavior as we try to determine the impact that the coronavirus has had on ecommerce sales.

Impact of Coronavirus Pandemic on Ecommerce Trends

As marketers and retailers think about their 2020 holiday season strategy that will shortly be in effect, having access to the latest trends is crucial to optimizing on the fly to capture new customers and opportunities.

McKinsey found that ecommerce in the United States grew 10 years in just a three month span. As of Q1, 2020, ecommerce growth was at 33%, up from 16% in 2019 – an increase that Bose calls “absolutely abnormal.” While we will most likely not seeing growth skyrocket to 33% again for the time being, the percentage of ecommerce sales will never go back to just 16%. Currently, we see ecommerce growth settling at around 22% of total United States retail sales.

Online sales continue to grow at an explosive rate, detailed in the chart below:

The Apparel retail category had a slow start, but with the nice timing of the stimulus checks in mid-April and the anticipation of spring, Apparel’s ecommerce sales picked back up dramatically. Since the middle of April, Apparel’s sales have grown steadily year over year as more and more consumers invested in their wardrobe again.

The Food and Grocery retail category saw tremendous spikes from March to June, but has since calmed down to hold steady at an average of 35-40% year over year growth.

The Home Furnishings retail category is on an explosive growth track since the middle of April and leveraged out around the end of August. 

As the habit of panic buying seemed to calm down around the first week of May and people have adjusted more to the new normal, NetElixir has context to believe that online sales will continue to grow at a rate of 40-50% year over year. Overall, the pace of ecommerce is continually substantial.

With the explosive rate of online growth and high conversion rates, now is the time to invest in ads. CPCs are still trending downwards, evidenced by the chart:

Your marketing dollar can be stretched further as each click costs less and conversions are high. Nimble marketers can gain valuable market share by investing in capturing these new digital shoppers. 

New Online Shoppers

 eMarketer expects 7.4 million new digital buyers in 2020. But where are these buyers coming from? NetElixir’s Retail Analytics Lab isolated where the new shoppers within our select data set are shopping from, detailed below:

For both the Home Furnishings and Tools and Hardware retail categories, we saw the majority of new online shoppers come from the Southern region of America. Understanding where new shoppers hail from could open more markets for retailers to concentrate on this holiday season. 

Mobile is driving more sales than ever before. In 2019, mobile sales accounted for 43% of all sales; in 2020, mobile sales now account for 48% of all sales. Retailers need to focus on ensuring their mobile site is optimized and user friendly, as NetElixir predicts that mobile sales could drive over half of all ecommerce holiday sales. 

2020 Holiday Predictions

1. 23-25% of all retail sales in Q4 will happen online. (Up from 16% in Q4, 2019). 
2. Incremental ECommerce Sales Projection for Q4 in the US (vs. Q4, 2019) is about $50B-$80B.
3. Holiday Shopping will start as early as in October first week. (That’s just 2 weeks away!)
4. Inventory stockouts will pose the biggest challenge this holiday season.
5. There is a possibility that instead of Cyber 5, we have Cyber 10 this year as retailers may stretch out the holiday season to reach more digital buyers and gain more online visibility.
6. Retailers will be lowering their sales promotions and focusing more on tapping into the demand surge by expanding their online visibility.
7. Over 5% of all holiday online revenue will be driven by new online shoppers (those who had not purchased anything online prior to the pandemic).
8. Enterprise and Large Businesses (>$250 MM revenue) will be increasing their digital marketing spend by upwards of 20% year over year to take advantage of the shift from stores to online.
9. Amazon’s share will increase from 43% of the total United States ecommerce to 45% this holiday season. The biggest driver for their holiday growth will be “faster shipping”. Amazon’s Prime Day 2020 will kick off a longer holiday season.
10. Buy Online Pick-up in Store (BOPIS) will be an important driver of ecommerce sales after December 10. BOPIS (includes curbside pickup) revenue will increase year over year by 50%+.

Even More Holiday Insights

What’s your #BiggestHolidayChallenge? Subscribe to NetElixir’s Youtube channel at https://www.youtube.com/user/NetElixirInc for weekly video installments as our holiday experts address your biggest holiday challenges. In short, digestible videos, we’ll share the latest data and insights to help guide your holiday season strategy. Tune in starting tomorrow as we answer What will the coronavirus-influenced holiday season look like?

• 2020 Holiday Data: Consumer Trends & Digital Marketing Strategies
• Strategic Views on Planning for Peak 2020 with UPS
• A Different Holiday: Opportunities and Challenges in a Covid World
• September 2020 Update on How the Coronavirus Continues to Impact Retail Ecommerce

The post Pre-Holiday Retail ECommerce Trends appeared first on NetElixir.

We see some of the follow trends for September 2020 compared to September 2019:

• The Apparel and Home Furnishing retail categories are now experiencing the highest growth for the first half of September 2020, compared to September 2019.
• New customers created a lot of revenue growth early on during the coronavirus pandemic; however, sustaining continually new customer growth can be difficult. This holiday season, however, people are open to trying new online brands so there are still chances for all retail industries to capture new market share.
• The covid customer will rely more on mobile for searching and shopping as the holiday season draws near, so ensure your mobile site is optimized and loads quickly.

The year-over-year changes from September 1-20, 2019 compared to the same timeframe in 2020 is as follows:

Food and Grocery Ecommerce Trends

• Website conversions increased 14%
• Transactions decreased 18%.
• Average order value (AOV) rose 11%.
• Percentage of mobile orders dropped by 1%.
• Orders by new shoppers decreased 47%.

Apparel Industry Ecommerce Trends

• Website conversions jumped 30%
• Transactions rose 18%.
• AOV increased 2%.
• Percentage of mobile orders increased 19%.
• Orders by new shoppers skyrocketed 57%.

Gifting Industry Ecommerce Trends

• Website conversions decreased 12%
• Transactions dropped 6%.
• AOV increased 5%.
• Percentage of mobile orders jumped 9%.
• Orders by new shoppers increased 2%.

Home Furnishing Ecommerce Trends

• Website conversions rose 32%
• Transactions skyrocketed 93%.
• AOV increased 5%.
• Percentage of mobile orders increased 3%.
• Orders by new shoppers soared 85%.

Pet Supplies Ecommerce Trends

• Website conversions increased 2%
• Transactions increased 30%.
• AOV dropped by 2%.
• Percentage of mobile orders rose 12%.
• Orders by new shoppers jumped 52%.

Tools and Hardware Ecommerce Trends

• Website conversions fell 8%
• Transactions jumped 42%.
• AOV rose 10%.
• Percentage of mobile orders jumped 20%.
• Orders by new shoppers soared 35%.

Interested in a more in-depth analysis of these pre-holiday trends? Join NetElixir this Friday at 1 PM ET for our new webinar, Pre-Holiday Consumer Trends & Retail Data Insights. During this short, insights-packed webinar, you’ll get an exclusive preview of the latest real-time ecommerce and consumer data analytics and NetElixir’s top 10 predictions for this holiday season. Register now at https://stage.netelixir.com//webinar/. 

Further Reading into Holiday Insights

• 2020 Holiday Data: Consumer Trends & Digital Marketing Strategies
• August 2020 Summary of Retail Ecommerce Trends
• A Different Holiday: Opportunities & Challenges in A COVID World

The post September 2020 Update Retail ECommerce Sales appeared first on NetElixir.

Kelly Thomas Nojaim, the RVP of North America Corporate Sales, and Milton Reis, the Global Corporate Sales Manager of North America for Microsoft Advertising joined NetElixir to share how Microsoft Advertising is expanding their search capabilities and campaigns to help retailers better engage with their customers.

Microsoft’s COVID Insights and Holiday Insights

Based on Microsoft’s search data and projections, most retail categories are expected to see decreased sales as the coronavirus crisis continues to impact the economy. However, there is growth in the Food and Beverage and Health, Personal Care, and Beauty industry.

However, the pandemic is accelerating the adoption of online shopping: 

Almost all retail verticals are expected to see growth in their e-commerce sectors, even those who have been hardest hit during the pandemic. Reis notes that this e-commerce and digital growth is made possible across different search engines and media types. 

Despite the hardships presented by the coronavirus pandemic, there is hope among shoppers and retailers. Reis stated that during that financial crisis of 2008, consumers reported that they would spend 29% less during the holidays that year; in reality, they spent only 4.7% less year over year compared to 2007. The 2020 holiday season will certainly be different than any other year, presenting its own unique challenges, and we can certainly expect some dips in sales; however, consumers expectations of themselves may be worse than their actual shopping habits. 

“Search volume in and of itself has for sure increased,” Reis said.

The volume of searches across Microsoft’s networks during non-business hours (5 AM to 5 PM) has increased 11%, which is almost twice that of the volume growth during regular business hours throughout the course of the coronavirus pandemic to date. Searches on desktops have increased 8%, while table searches have increased 18%. Additionally, weekend search volume increased 12% – again, double that of weekday volume growth. Retailers should reconsider how and when they advertise, as they could be missing prime times. 

“It’s really important to know that the current landscape of how consumers are searching is very, very different.” -Milton Reis, Microsoft Advertising

While all marketing budgets are taking a hit during the pandemic, search is projected to take the smallest hit as consumers are increasingly at home and on some sort of internet-connected device. However, multitouch positions across display ads, television ads, and out-of-home advertising are still important. A cross-channel strategy of interconnectivity between different advertising campaigns will increase brand awareness and meet consumers wherever they are.

According to Reis, search is often the last channel people reach before making a decision. It may very well be one of the best hidden investments retailers can make this holiday season.

Key Dates of the 2020 Holiday Season for Advertising

We anticipate an early start to the 2020 holiday season. While the holiday season traditionally kicks off in November, early shoppers historically begin searching in October. The month of October does not reach the heavy traffic and sales of Black Friday and Cyber Monday, but searches in October increase brand awareness and help customers decide where to spend their holiday budgets.

According to Microsoft’s data, people begin hunting for Black Friday deals and sales information weeks before the actual date – start promoting your deals early to entice shoppers to visit your store on Black Friday. Cyber Monday searches generally ramp up about a week beforehand. Because the lead up to Black Friday is long, it is a peak opportunity for businesses to build brand awareness and start promoting their sales through strategic advertising. The Black Friday and Cyber Monday promotions should be cohesive; don’t turn one campaign off to start the next one, but build a connection between the two. 

The peak days of the holiday season aren’t just Black Friday and Cyber Monday. Microsoft compiled expected peak search dates based on last year’s data where advertisers could have invested more:

The Mondays and Tuesdays in December are valuable days to capture users post Black Friday and Cyber Monday to keep your holiday success ongoing. The time of opportunities is important, as Reis noted, “Holidays are not just Black Friday, they’re not just Cyber Monday, they are a trend that happens throughout those three months.”

The rising trend of BOPIS will most likely play a crucial role in this year’s holiday strategy. Microsoft reports that 82% of BOPIS orders are instant converters, meaning that people want the immediacy of getting a product they see is in stock and close by. Clothing and furniture are the top items for BOPIS sales. During 2019’s holiday season, almost 12% of consumers ended their shopping journey on a BOPIS page; during the first two months of the coronavirus pandemic alone, over 16% of shoppers ended on a BOPIS page. Reis said that numbers could reach 20% during the 2020 holiday season.

“We need to meet the consumer where they are, not just where we think they’re going to be,” Reis concluded.  

What’s New in Microsoft Advertising

Microsoft Advertising offers a search and native solution that includes an audience network to improve the reach and results of each campaign. Through advancements in AI-powered solutions, Microsoft is continuously improving ad performance and efficiency. 

Microsoft Advertising helps you reach your ideal customer, leveraging information from LinkedIn profiles for a more targeted audience. The global search share reached double digits, with one out of every three searches in the United States and one in five searches across devices happening on the Bing search network. 

This holiday season, it is critical to reach new audiences. Microsoft’s diverse audience network is composed of majority people under the age of 45, with 46% being married, 35% having a college degree, and an even split between men and women. 

With search playing an increasingly important role in this upcoming holiday season as consumers intend to research more and pre-plan their shopping trips, retailers need to meet consumers wherever they are.

Further Reading on Holiday Insights

• 2020 Holiday Data: Consumer Trends & Digital Marketing Strategies
• Google’s Digital Insights to Uncover Clues for Q4 Readiness
• The Holiday Season Starts Now
• Executive Panel Discussion: Holiday Season Insights Learned Over the Course of the Pandemic

The post Microsoft’s Near Future of Advertising appeared first on NetElixir.

Food and Grocery Retail Category

• Website conversions rose 7%.
• Transactions increased 3%.
• The average order value (AOV) rose 6%.
• Percentage of mobile orders jumped 57%.

As New Jersey recently became one of the last states to allow indoor dining to resume at a limited capacity, people across the states have resumed eating more meals outside their homes. While the restaurant business is not running at the same pace it was prior to the pandemic, the option for a variety in meals has prompted less of a demand for online food and grocery orders. While the Food and Grocery retail category still saw growth throughout August 2020, it is nowhere near as explosive as it was at the onset of the pandemic. 

However, as the holiday season quickly approaches – and is celebrated through a variety of shared meals and baked goods – food and grocery retailers should get an early start in promoting their products and delivery services. They can capitalize on the longer consumer journey by delving into recipe and food blogs to help inspire consumers to try new meals.

Apparel Retail Category

• Website conversions jumped 29%.
• Transactions rose 29%.
• AOV showed almost no change, rising just 1%.
• Percentage of mobile orders increased just 1%.

July 2020 was an overall stronger month for the Apparel retail category than August 2020 in terms of growth; however, clothing sales are still on the rise after a tumultuous start at the beginning of the pandemic. Between back-to-school and the end of summer sales, as well as opportunities for consumers to frequent restaurants, malls, and other social venues, retailers have more of an occasion to showcase their products. Several stores already started their Labor Day Sales, to help kick off a new holiday season.

Inventory information regarding sizing and color options should be readily available on your website so shoppers know what to expect when browsing your site. 

Gifting Retail Category

• Website conversions increased 21%.
• Transactions jumped 40%.
• AOV increased just 3%.
• Percentage of mobile orders rose 19%.

The Gifting retail category has had a breakthrough over the course of the coronavirus pandemic, offering a fun and unique way for people to stay in touch with each other and share moments of love and compassion. Amid the uncertainty of the holiday season, the role of gifting will continue to play a prominent role in how consumers communicate with loved ones. 

A streamlined mobile store and gifting options organized by occasion will help casual searchers and new to online shoppers easily navigate your website to find the perfect gift.

Home Furnishing Retail Category

• Website conversions increased 12%.
• Transactions skyrocketed 83%.
• AOV decreased by 3%.
• Percentage of mobile orders dropped 5%.

The Home Furnishing retail category has been experiencing phenomenal growth over the past few months and ends summer with a strong number of conversions and transactions.

Labor Day is a great opportunity for Home Furnishing retailers to attract new customers with deals on furniture. With the holidays anticipated to be largely homebound this season, people may want to redecorate their homes as they host celebrations. As these shoppers will most likely plan ahead of the early holiday season, it is important for retailers to get a jumpstart on sharing design inspiration and reaching new customers. 

Pet Supplies Retail Category

• Website conversions rose 7%.
• Transactions increased 39%.
• AOV decreased by 3%.
• Percentage of mobile orders increased 8%.

The upcoming holiday season is a special time for our pets as well as for us – and it’s a special time we can share with our pets. As the coronavirus pandemic prompted a dramatic increase in the number of fostered animals, this holiday season is a unique time for new pet parents. Optimized content on caring for new pets and basic products can go a long way to help Pet Supplies retailers find these new pet parents who are searching for tips and beginner supplies to make their pet happy and comfortable. 

Tools and Hardware Retail Category

• Website conversions decreased by 1%.
• Transactions jumped 65%.
• AOV rose 14%.
• Percentage of mobile orders rose 13%.

The coronavirus pandemic kickstarted an interest or renewal in various hobbies as people had more time to cultivate their garden, spruce up their home, design model kits and cosplays, and more. These new facets could play an important role in the upcoming holiday season. As mobile orders rose year over year between August 2019 and August 2020, retailers of the Tools and Hardware category could benefit from offering mobile sales to capture impulse buyers. Time limited deals off a nice incentive to get consumers clicking, so research the best time of day when your shoppers are converting to capture their attention.

Further Reading into Holiday Insights

• Ensure Your E-Commerce Site is Ready for the Holiday Influx
• Google’s Digital Insights to Uncover Clues for Q4 Readiness
• Forget ‘Content is King’ – Content is Actually Queen

The post August 2020 Retail Ecommerce Trends appeared first on NetElixir.

Road To Recovery: Real Time Data On Ecommerce Sales and Online Shopper Behavior

Since early February, NetElixir has been compiling the daily data of ecommerce sales and online shopper behavior to track the impact of the coronavirus on online retail. With over five months of research behind us, we are leveraging our data to build some forecasts for the end of the year – although nothing this year can be certain. 

Based on Bain & Company’s Elements of Value Pyramid, we see customer preferences are changing weekly as they adjust to the new normal. Retailers should be cognizant of shifting values and why consumers may gravitate toward certain products over others. Certain customer values, such as the functionality of safety and security, are assuming a higher significance – and will be likely to persist post-pandemic. Think, NetElixir’s CEO and Founder Udayan Bose says, about our relationship with hand sanitizer. The product is likely to be a permanent fixture in our lives, both personally and publicly. As we have been navigating through this crisis for over five months, habits have started to build up. The changes in shopping behavior and consumer actions could become permanent. 

Online sales continue to grow at an exceptional rate across categories. NetElixir’s Retail Intelligence Lab, backed by our proprietary customer analytics tool LXRInsights, compiled daily data across seven retail categories over fourteen, two-week periods. Our data tracks the year over year increase from 2019, starting from February 9th through to August 8th. The growth in online sales is detailed below:

The Home Furnishings retail category has surpassed the Food and Grocery retail category in terms of consistent growth, sustaining triple digit year over year growth since the middle of April. Sales for Food and Grocery have fallen, but still maintain a high double digit year over year growth that is sure to pick up again during the holiday season as people prepare more at home meals. The Apparel retail category, which struggled to gain traction at the onset of the pandemic, is now steadily growing week to week. Gifting has been a breakout category and Bose believes that this holiday season will be a great opportunity for new gifting categories.

“There is a clear and perceptible increase in online sales across categories,” Udayan Bose says.

New to Online Shoppers Offer Unique Opportunity for the 2020 Holiday Season

Because shoppers turned to ecommerce platforms throughout the course of the coronavirus, a new population segment has been created. Bose explains that once the initial threshold of that first online order is made, new to online shoppers purchase more frequently as their comfort level increases. NetElixir’s Intelligence Lab saw a surprising increase in the 55+ age group and their frequency of purchases.

“Once you are able to get a new customer to cross that mental barrier of oh gosh, can I really shop online?, once that barrier is broken, after that we have seen very clearly consistent frequencies,” Bose explains. 

The coronavirus pandemic continues to substantially drive that shift online. The order contribution of new online shoppers rose from 37% of total ecommerce transactions in 2019 to 41.2% to date in 2020. While that may not seem substantial at first glance, it is a critical turning point in bringing shoppers online who may never have tried without the lockdowns limiting their options. New shoppers purchase 18%-27% faster than, conduct 30% more purchase instances, and spend about 12% more in average order value than the pre-pandemic shopper. These shoppers are a valuable opportunity.

Holiday Season Observations Based on 2020 Holiday Data

While no one can claim to predict what the 2020 holiday season will bring us, the data we have collected to date sheds some light on what we may be able to expect. Mobile will continue to be a driving force: the contribution of mobile sales has increased from an average of 48% to 59% across categories. Bose expects a permanent shift of about a 4% increase skewing mobile sales over desktop, with total mobile contributions most likely not dropping below 55%.

The top online shopping dayparts have changed across categories. Pre-pandemic shopping dayparts were skewed toward 6 PM and from 9 PM to midnight; now, transactions are spread more evenly throughout the day.

As gifting has emerged as a popular category, Bose says, “I’m overwhelmed to see the amount of compassionate outpourings and people giving out giftings. Gifting has really become a lot more populous especially among the 18-24 year old age groups.” The unboxing and cleaning off of packages offers retailers opportunities to create a unique unboxing experience that promotes safety and sanitization.

Q4 could add $50 to $80 billion in incremental ecommerce. Bose makes this judgement not from a “crystal ball, but based on prior data and current trends” that showcase a massive opportunity and increase in demand.

Having learned from shipping delays throughout the months of the pandemic so far, customers will most likely start their holiday shopping early. Last minute shoppers – classified as those who typically start their holiday shopping after December 15 – will most likely lessen as consumers give more leeway for deliveries. 

2020 Holiday Resources

To succeed this holiday season, retailers need to be flexible, nimble, and ready for anything with a 24/7 ‘always on’ approach. They should be monitoring their customers’ shopping habits, keeping track of inventory so as not to be advertising on a sold out item, and ensuring a seamless shopping experience. To help guide retailers, NetElixir compiled consumer insights, four months of research, thoughts and experiences from retail industry leaders, and strategic perspectives from academics into our eBook, Along the Road to Recovery.

The more pieces of information that you have, the more you can connect the dots for a stronger 2020 holiday plan. Our Connect the Dots conference may be over, but the holiday season is just beginning. The holiday help continues in our new webinar series Connect the Dots: Holiday Strategies from Retail Leaders. On Thursday, September 10th, NetElixir will be joined by Lenovo’s founding executive of global online strategy, Ajit Saviadasan, to discuss A Different Holiday: Opportunities and Challenges in a Covid World. Register now at https://stage.netelixir.com//webinar/.

The post 2020 Holiday Data: Consumer Trends & Digital Marketing Strategies appeared first on NetElixir.

July 2020 Retail Ecommerce Updates

• Retail sales, digital and physical, are the backbone of the economy. Retail overall is helping to refuel the economic recovery, reports the National Retail Federation. Retailers need to ensure their online business is operational and accessible to consumers to entice people to continue shopping.
• The Apparel, Pet Supplies, and Home Furnishings retail categories had a triple digit increase in the number of new online orders for the month of July 2020, compared to 2019.
• Except for the Food and Grocery and Tools and Hardware retail categories, all categories experienced a year over year decrease in the average order value (AOV). However, no category exceeded a 10% year over year decrease, making July 2020, on average, see some of the lowest change in AOV.
• Apparel is quickly seeing a rebound in ecommerce sales as the warm weather and outdoor dining options have us showing off more clothes than a work-from-home Zoom cal.

Read more below to see how retail ecommerce sales for July 2020 compared to sales for July 2019.

Food and Grocery Sales in July 2020

• Over 100% increase in website conversions.
• A 68% increase in the number of transactions.
• A 24% increase in AOV.
• A 28% increase in the percentage of mobile orders.
• And a 72% increase in new online orders.

Apparel Sales 

• A 42% increase in website conversions.
• A 102% increase in the number of transactions.
• A 6% decrease in AOV.
• A 34% increase in the percentage of mobile orders.
• And a 111% increase in new online orders.

Gifting Sales 

• A 14% decrease in website conversions.
• A 30% increase in the number of transactions.
• A 9% decrease in AOV.
• A 16% increase in the percentage of mobile orders.
• And a 71% increase in new online orders.

Home Furnishings Sales

• A 32% increase in website conversions.
• A 98% increase in the number of transactions.
• A 2% decrease in AOV.
• A 163% increase in the percentage of mobile orders.
• And a 164% increase in new online orders.

Pet Supplies Sales 

• A 14% increase in website conversions.
• A 44% increase in the number of transactions.
• A 6% decrease in AOV.
• A 12% increase in the percentage of mobile orders.
• And a 106% increase in new online orders.

Tools and Hardware Sales

• A 5% decrease in website conversions.
• A 51% increase in the number of transactions.
• A 7% increase in AOV.
• A 12% increase in the percentage of mobile orders.
• And a 65% increase in new online orders.

2020 Holiday Season

This holiday season, it will be important to connect the dots across a wide range of different scenarios and outcomes this year may bring. Retailers and marketers should have various holiday strategies. NetElixir is proud to announce our first virtual holiday readiness summit. Connecting the Dots: Holiday Readiness Summit for Retailers is a ½ summit that brings together preeminent retail industry leaders, channel marketing specialists, supply chain experts, and strategic thinkers from Google, Microsoft, UPS, Columbia Business School, and more. Through this webinar, we aspire to help retail and business leaders rethink their holiday approach and innovate new strategies to move forward during this unpredictable year. RSVP for this summit on August 13th to learn 10 key holiday takeaways for this year.

Read More On Retail ECommerce Sales During the Coronavirus Pandemic

You can join the conversation on social media using #NxInsights. If you have any further questions, please feel free to email us at shareinsights@netelixir.com.

For further reading, you can see our prior retail analytics updates on retail e-commerce and online shopping behavior:

• Navigating through a Shifting Environment
• June 2020: How the Coronavirus is Impacting Retail Ecommerce 
• Fashion and Apparel During the Coronavirus Pandemic
• Road to Recovery: Lessons from Mid-Size Retailers

The post July 2020 Retail Ecommerce Sales appeared first on NetElixir.

As a fanatically analytical digital marketing company, NetElixir aims to “share, almost relentlessly, updated insights,” explains our Founder and CEO, Udayan Bose.

Updated insights are crucial, especially during the coronavirus pandemic, as sales and behavior are constantly in flux. Satya Nadella, CEO of Microsoft, said, “We’ve seen two years’ worth of digital transformation in two months.” We have had to continually adapt, experiment, and innovate to navigate these uncertain and unpredictable times. 

Changing Customer Behavior

Consumer preferences are changing almost weekly as they adapt to the new normal. Why consumers buy is just as important as how and when. The Elements of Value Pyramid, by Bain and Co., categorizes consumer values based on emotional and psychological needs. Living through a pandemic upsets many of the average reasons why people would buy different products in the pre-pandemc times. 

We see consumers buying based on functionality, choosing products to simplify their lives to reduce their anxieties. Emotionally, consumers tend to buy more products that promote stress-reduction, wellness, and nostalgia. This nostalgia brings consumers back to past vacations, their childhood, memories from friends and family before dynamics were upset and future plans uncertain. Finally, consumers are buying more things that provide hope. Pivoting a marketing strategy on helpfulness and hopefulness could be a valuable strategy, especially as we veer closer to the holiday season. 

As marketers, we have to consider that the changes we are seeing in consumer behavior may become permanent. It takes, on average, 66 days to form a habit. That’s anything from mid-May on. Learning about your customers now will help you engage them better in the upcoming future.

Impact of the Coronavirus on Ecommerce Sales

Since the first two weeks of June, the Home Furnishings retail category has seen the greatest year over year growth, surpassing the Food and Grocery retail category. Home Furnishings has seen consistent triple digit year over year growth since the end of April. 

The Apparel retail category has seen positive year over year growth since the release of the stimulus check in mid-April. As ecommerce sales for Apparel continues to grow however, we do see a decline in the sales of other categories. During the first two weeks of July, Apparel has seen its biggest year over year increase, compared to the same time period in 2019, of just over 25%. The Apparel, Food and Grocery, and Home Furnishings categories all saw growth throughout the month of July to date. 

The Gifting retail category was what Bose called “one of most interesting [categories] in our dataset.” “Consumers showed an outpouring of compassion,” Bose continued, noting that consumers were in “active gifting modes since March for about two to three months.” Gifting can make a resurgence as we draw closer to the holiday season, so marketers may want to consider new gifting opportunities and products. 

Pet Supplies has remained steady in terms of ecommerce sales, as has the Tools and Hardware retail category. Our hobbies and our pets continue to occupy our time.

June sales were slower, on average, compared to May, but many picked back up in July. However, we still note many fluctuations so it is hard to conclude how summer sales will progress.

Ecommerce, though, will play a crucial role, as online sales are still booming across categories. According to the government census Monthly Retail Trade Report, ecommerce sales are continually and monumentally increasing month to month. Year over year, the census noted a 10% increase in ecommerce sales for the month of January; the month of June saw nearly a 40% year over year increase.

There is a huge opportunity for online retailers to participate in this ecommerce explosion. With great opportunity, however, comes extra considerations. Retailers may struggle to ship products on time and keep their inventory stocked. There is an increasing pressure on business models to meet shipping demands. Having an early expectation of these struggles will help business leaders pivot accordingly. 

Ecommerce Metrics

According to our dataset, website conversion rates have not been as strong in June and July as they were in April and May. Conversion rates for the Food and Grocery retail category peaked in April, though are still higher year over year from 2019. Across categories, conversion rates have decreased since May, as competitors are becoming more aggressive and thus increase the choices presented to consumers. The Apparel retail category alone experienced a slightly higher conversion rate in July 2020 compared to June 2020. The initial surge and panic related to shipping times and inventory urged consumers to shop more quickly and impulsively. As the situation has calmed, shoppers are browsing and researching more.

Amazon is driving CPCs on Google. Since June 10, we have noticed Amazon aggressively advertising on Google. As Amazon is a big market mover, more business are also advertising for the same keywords as Amazon. CPCs for the Apparel, Gifting, and Home Furnishing retail categories have increased more.

eMarketer projects an estimated 7.4 million new digital buyers in 2020, as the coronavirus pandemic continually accelerates the digital trend and convenience of ecommerce. Majority of these buyers are in the 55+ age group, opening a new demographic potential this holiday season. 

New online shoppers have contributed a larger percentage of total ecommerce sales across our dataset, from 37% in 2019 to 41% in 2020. Online shoppers who started online shopping during the coronavirus pandemic have more purchase instances than pre-pandemic new shoppers. Once these new shoppers got over the initial hump of getting and shopping online, once that barrier had been crossed, they became more lively and active online shoppers. 

It is important to track the percentage of new online orders to total orders and the behavior of these new shoppers. Consider a new customer satisfaction survey to gauge the likelihood of their loyalty and how to pivot a holiday marketing strategy to encourage their continued business. Analyze customer’s paths to purchase to ensure a seamless online shopping experience and reduce friction points.

Further Observations and Predictions Regarding Ecommerce Sales

Ecommerce sales will continue to grow at over 30% year over year throughout the rest of 2020. Mobile will drive a larger and larger percentage of these sales; mobile sales have already increased 48-59% across categories. Throughout the pandemic, we saw retailers experiment with developing and testing mobile only offers to drive sales. Mobile sales are often impulsive and consumers may respond better to time-limited discounts on mobile. 

The dayparts of when people search, shop, and buy have changed for every retail category. When people have searched and shopped in January and February is different than currently, so we expect continued fluctuations for when they will shop during the Cyber 5 hours – especially as more retailers announced that their stores will be closed on Thanksgiving Day. 

There is so much uncertainty surrounding this holiday season, including how much incremental ecommerce revenue will be added. We estimate a range from $50 to $80 billion in incremental ecommerce revenue will be available, making the holidays a financially critical time. 

2020 Holiday Season

“There is no precedence, no historical background,” Bose said, regarding 2020’s upcoming holiday season. 

Holiday shopping could start earlier this year, possibly around October 5 to 6. The delayed Amazon Prime Day will influence the holiday season start, as the Amazon market drives trends. During the coronavirus pandemic, there have been numerous shipping delays, including by Amazon itself: Prime orders, which usually took ½ days, were now taking an average of 8.2 days to arrive. Therefore, customers will compensate for the spring and summer delays by shopping earlier in anticipation of the holidays. 

This holiday season, it will be important to connect the dots across a wide range of different scenarios and outcomes this year may bring. Retailers and marketers should have various holiday strategies. NetElixir is proud to announce our first virtual holiday readiness summit. Connecting the Dots: Holiday Readiness Summit for Retailers is a ½ summit that brings together preeminent retail industry leaders, channel marketing specialists, supply chain experts, and strategic thinkers from Google, Microsoft, UPS, Columbia Business School, and more. Through this webinar, we aspire to help retail and business leaders rethink their holiday approach and innovate new strategies to move forward during this unpredictable year. RSVP for this summit on August 13th to learn 10 key holiday takeaways for this year.

Read More On Retail ECommerce Sales During the Coronavirus Pandemic

You can join the conversation on social media using #NxInsights. If you have any further questions, please feel free to email us at shareinsights@netelixir.com.

For further reading, you can see our prior retail analytics updates on retail ecommerce and online shopping behavior:

• July 2020 so far: E-Commerce Updates During the Coronavirus Pandemic
• June 2020: How the Coronavirus is Impacting Retail Ecommerce 
• App Store Optimization
• Fashion and Apparel During the Coronavirus Pandemic
• Road to Recovery: Lessons from Mid-Size Retailers
• Day by Day: Ecommerce Growth Across Categories

The post Navigating Through a Shifting Environment: Real-Time Data on eCommerce Sales & Online Shopper Behavior appeared first on NetElixir.

different parts of the country. With the reopening of brick-and-mortar stores on pause in some locations, online shopping once again becomes customers’ only outlet. NetElixir’s metrics for our six retail categories below account for the first two weeks of July, comparing daily data of July 1 to July 13, 2019 to the same time period for July 2020.

July 2020 Retail E-Commerce Updates

• Retail spending in both online and offline spaces has increased. The Wall Street Journal reports a 7.5% increase in United States retail sales in June as brick-and-mortar stores reopened. CNBC, however, forecasts a 5% increase in retail spending. Retail e-commerce continues to increase. 
• The average order values (AOV) continue to decrease year over year for most retail categories, while the number of new online shoppers and transactions increase across all categories within our dataset.
• Retail e-commerce continually attracts new customers. E-Commerce sales will continue to grow, especially as companies innovate new means to meet their customers. Ordering online for curbside pickup is a steadily growing new retail channel.
• The summer weather seems to have boosted the Apparel retail category’s e-commerce metrics, as the first two weeks of July saw the largest year over year increase in transactions and new online orders yet. 

Food and Grocery

• A 30% increase in website conversions.
• A 40% increase in the number of transactions.
• A 30% increase in AOV.
• A 60% increase in the percentage of mobile orders.
• A 33% increase in new online orders.

The Food and Grocery retail category is seeing some of its lowest growth yet, despite a year over year increase in all online sales metrics. With outdoor dining an option, there is less of a need for people to consistently cook within their own homes. Food and Grocery sales will continue to increase year over year, but most likely not at the rate we saw at the beginning of the pandemic, as eating and cooking within the home is no longer the only option for people.

Apparel

• A 50% increase in website conversions.
• A 138% increase in the number of transactions.
• A 9% decrease in AOV.
• A 28% increase in the percentage of mobile orders.
• A 137% increase in new online orders.

For the first time since tracking the online metrics, the Apparel retail category is seeing triple digit growth. With more and more locations reopening (including the reopening of malls) and even some offices, people want to sport new looks and refresh their wardrobe. After months inside, who can blame them?

Gifting

• A 16% decrease in website conversions.
• A 39% increase in the number of transactions.
• A 15% decrease in AOV.
• A 18% increase in the percentage of mobile orders.
• A 71% increase in new online orders.

As consumer attention shifts to restaurants, clothing, and home improvement, the Gifting retail category has suffered some setbacks throughout the course of the coronavirus pandemic.

Home Furnishing

• A 23% increase in website conversions.
• A 97% increase in the number of transactions.
• A 2% decrease in AOV.
• A 109% increase in the percentage of mobile orders.
• A 115% increase in new online orders.

The Home Furnishing retail category sees sustained growth and a dramatic rise in mobile reach and orders by new customers. It is quickly surpassing Food and Grocery as the fastest growing sector.

Pet Supplies

• A 13% increase in website conversions.
• A 41% increase in the number of transactions.
• A 4% decrease in AOV.
• A 12% increase in the percentage of mobile orders.
• A 81% increase in new online orders.

E-Commerce sales for the Pet Supplies retail category is holdy relatively steady month over month, from June to July 2020. There seems to be no shortage of new pet owners, as orders from new online customers continue to increase.

Tools and Hardware

• A 3% increase in website conversions.
• A 65% increase in the number of transactions.
• A 1% increase in AOV.
• A 12% increase in the percentage of mobile orders.
• A 80% increase in new online orders.

The Tools and Hardware retail category is the only one besides Food and Grocery to see all around positive e-commerce metrics for the beginning of July 2020. 

Upcoming Presentations

For the next Covid-19 E-Commerce Updates Webinar, join NetElixir with our partners at BWG Connect on Tuesday, July 28th at 12 PM for Navigating Through a Shifting Environment: Real Time Data on eCommerce Sales & Online Shopper Behavior presentation.

NetElixir is proud to announce our first virtual holiday readiness summit. Connecting the Dots: Holiday Readiness Summit for Retailers is a ½ summit that brings together preeminent retail industry leaders, channel marketing specialists, supply chain experts, and strategic thinkers from Google, Microsoft, UPS, Columbia Business School, and more. Through this webinar, we aspire to help retail and business leaders rethink their holiday approach and innovate new strategies to move forward during this unpredictable year. RSVP for this summit on August 13th and follow us on social for more updates.

Read More On Retail E-Commerce During the Coronavirus Pandemic

You can join the conversation on social media using #NxInsights. If you have any further questions, please feel free to email us at shareinsights@netelixir.com.

For further reading, you can see our prior retail analytics updates on retail e-commerce and online shopping behavior:

• How Vigilant Organizations Gain an Edge
• June 2020: How the Coronavirus is Impacting Retail Ecommerce 
• Fashion and Apparel During the Coronavirus Pandemic
• Road to Recovery: Lessons from Mid-Size Retailers

The post July 2020 so Far: E-Commerce Updates during the Coronavirus Pandemic appeared first on NetElixir.

According to a McKinsey survey on consumer sentiment, customers are becoming more optimistic on the global economic conditions. It’s a cautious optimism, but consumers are regaining their faith little by little. With greater faith in the long-term future and in-store retail not in full operation across the country, consumers are still relying on ecommerce platforms to shop. How did retail ecommerce change or grow during the month of June?

June 2020 Ecommerce Updates

• Overall, the majority of the retail categories within our dataset continued to show positive year over year growth, when comparing June 2020 ecommerce metrics to June 2019. Employment and hiring rates rose in the month of June, compared to May 2020. This could account for, in part, the overall year over year growth in online sales.
• There appears to be no slowing down of new online shoppers. 
• The Food and Grocery and Home Furnishing retail categories continue to have the highest and most consistent growth across all ecommerce metrics within our dataset

Food and Grocery

Despite restaurants and bars reopening across some states, many people are still ordering their groceries and deliveries online. For June 2020 compared to June 2019, the Food and Grocery retail category saw the following increases:

• Website conversions rose 89%.
• The number of transactions increased 142%.
• The AOV rose 11%.
• The percentage of orders made through mobile rose 30%.
• Orders by new shoppers jumped 119%.

Apparel

The Apparel retail industry has been seeing positive year over year growth since late April. While not as bombastic as other retail categories, there is still a steady traction in Apparel ecommerce sales. For the month of June, Apparel had:

• Website conversions decrease by 11%.
• The number of transactions increase by 5%.
• The AOV drop 1%.
• The percentage of orders made through mobile rise 12%.
• Orders by new shoppers increase by 6%.

Gifting

Gifting’s early reign at the onset of the coronavirus pandemic has lessened after a peak in mid-April. As social restrictions eased, we can assume that people no longer felt the need to send e-greetings; they could meet more in person. Overall, for the month of June 2020, the Gifting retail category saw the following year over year changes:

• Website conversions dropped 11%.
• The number of transactions increased 30%.
• The AOV decreased 10%.
• The percentage of orders made through mobile dropped 6%.
• Orders by new shoppers rose 44%.

Home Furnishing

Since the beginning of May, the Home Furnishing Retail Category has shown the second highest year over year growth, week to week (after, of course, Food and Grocery). Home Furnishing continues to increase across all ecommerce metrics:

• Website conversions increased 17%.
• The number of transactions jumped 90%.
• The AOV rose 4%.
• The percentage of orders made through mobile skyrocketed 120%.
• Orders by new shoppers jumped 105%.

Tools and Hardware

Hobbies and recreational activities continue to occupy the majority of our time, even as the weather gets warmer. The Tools and Hardware retail category also saw a rise in their online sales metrics over the month of June. Comparing the daily data of June 2020 to that of June 2019, the Tools and Hardware retail category saw:

• Website conversions rose 19%.
• The number of transactions increased 77%.
• The AOV increased 11%.
• The percentage of orders made through mobile rose 12%.
• Orders by new shoppers jumped 74%.

Pet Supplies

Throughout the coronavirus pandemic, the Pet Supplies retail category has seen tremendous growth year over year. As we spend more time with our pets – and don’t want them feeling lonely as we begin to go out more – we see a continued increase in Pet Supplies online sales year over year. June 2020 saw:

• Website conversions increased 21%.
• The number of transactions jumped 52%.
• The AOV decreased 4%.
• The percentage of orders made through mobile rose 12%.
• Orders by new shoppers jumped 115%.

Upcoming Presentations

As we move further along the road to recovery and most states have transitioned through their reopening strategies, NetElixir is reducing our thrice-weekly retail analytics updates to once a week. Every week, we will update you with the latest data regarding ecommerce sales and online shopper behavior as the coronavirus pandemic continues. For the next Covid-19 Ecommerce Updates Webinar, join NetElixir with our partners at BWG Connect on Tuesday, July 28th at 12 PM for Navigating Through a Shifting Environment: Real Time Data on eCommerce Sales & Online Shopper Behavior presentation.

Our Reimagine Tomorrow series brings you experts from various fields to share their knowledge on new strategies, technology and innovations, and actionable insights for navigating the coronavirus and beyond. Professor George Day will speak at the third episode in our series, presenting on How Vigilant Organizations Gain An Edge on Thursday, July 9 at 2 PM ET. Register at https://stage.netelixir.com//experience/. 

Read More On Retail Ecommerce During the Coronavirus Pandemic

You can join the conversation on social media using #NxInsights. If you have any further questions, please feel free to email us at shareinsights@netelixir.com.

For further reading, you can see our prior retail analytics updates on retail ecommerce and online shopping behavior:

• Fashion and Apparel During the Coronavirus Pandemic
• Road to Recovery: Lessons from Mid-Size Retailers
• Day by Day: Ecommerce Growth Across Categories
• Meet the Panel of Retail Executives

The post June 2020: How the Coronavirus is Impacting Retail Ecommerce appeared first on NetElixir.