to order online (see Statista chart, at right).
According to several surveys, the percent of e-commerce shopping among the
millennial generation is as high as 50 percent (see smarterHQ chart, page 39).
Consumer behavior is changing from
trips to brick-and-mortar to shopping from
home. As a DR media company, we should
benefit from in-home shopping.
Peter Feinstein, Higher Power Media: The
trendline toward online retail purchases is
clearly upward, with no real cap in sight
— but online sales aren’t dominant … yet.
The buzz these days, however, seems to be
more about some people in online media/
marketing being more intent on bending
the truth than being of service, in order to
persuade product marketers into believ-
ing that everything in retail sales is only
happening online. Product marketers, for all their innate intel-
ligence, are still relatively easy prey: they’re sales people, who
love to be sold! They’re always seeking answers to the age-old
question, “How do I sell more of my better mousetrap?”
So, while the buzz may be that e-commerce is really the only
retail sales environment that matters, it’s false. The numbers
reveal the truth. And while the present 1: 11 ratio will likely
shrink, the truth today is that online retail sales are not the
panacea and should not be treated as such. It’s important that
the light of reality gets shined on the truth so that everyone in-
volved has the opportunity to help maximize sales.
The reason, I suspect, for the gap between actual dollars
spent online vs brick-and-mortar, can be found in examining
the kinds of goods purchased online. In order for the 1: 11 ratio
to be real, online purchases must be for much smaller ticket
products, which even bought repetitively, don’t come close to
equating to the dollar-spend of higher-ticket products like major
appliances, artwork, cars, or even computers.
Peter Koeppel, Koeppel Direct: Despite these comparative statistics, retail storefronts are closing by the thousands. It could be
that the cost of rent in relation to dollars-per-square-foot at traditional retail is just grossly out-of-whack. The migration to e-commerce has been slow but steady. I would liken it to cable television in the 1980s and 1990s: audiences built slowly, but over
time the collective audience for cable surpassed the big three
networks. This is happening at retail — a growing preference for
e-commerce’s selection, convenience, and pricing model.
Fern Lee, THOR Associates: The definitions offered in this question by the Census Bureau may be accurate, but they also may
not be in alignment with output of reporting.
According to Statista, “The number of paying Amazon
Prime members in the United States as of September 2017 is
estimated to be 90 million, up from 63 million in June during
the previous year. On average, Amazon Prime members spent
$1,300 on the e-retail platform per year. June 2017 data also
states that non-Prime members only spent $700 annually.”
According to One Click Retail data, Amazon was responsi-
ble for about 44 percent of all U.S. e-commerce sales in 2017, or
about 4 percent of the country’s total retail sales figure. The dis-
crepancy between this number and the question above in itself
explains the difference in buzz vs. reality.
Bill McAlister, Top Dog Direct: Fake statistics. Overall retail percentages are misleading. Category numbers are relevant for marketers. If you are considering retail sales of gasoline, groceries, or
books, it makes a difference.
Richard Stacey, Northern Response Intl. Ltd.: It’s important to look
at the growth rate of the market, not just the absolute size.
Amazon Prime just passed 100 million members. This type of
growth creates a lot of buzz, and when you compare it to the
growth of legacy retailers, you can see why the buzz is justified.
Store closures are receiving media attention.
How can marketers wade through this cycle
and find three ways to create a successful
in-store strategy in 2018 and beyond?
Besasie: The best retail strategies are rooted in the fundamentals. These three things are crucial.
First, minimize out-of-stocks. Out-of-stock inventory at the
point of purchase results in a lost sale. The easy answer is to
place more product at retail and obtain more shelf space, but retailers eschew back stock inventory-carrying costs and have limited shelf space and restocking manpower. To combat this, mar-