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Executives at a number of US retailers may be surprised to see Bloomberg’s headline on Friday: “Retail Sales Rise Most in a Year, Marking U.S. Consumer Comeback.”
This despite a number of America’s top retail chains reporting dire earnings reports and lowering their outlooks this week. Macy’s shares fell to a four-year low this week, with one analyst saying its woes could doom a third of US shopping malls. Kohl’s reported an 87% drop in net income for its most recent quarter. Nordstrom is cost-cutting following its drop. Gap Inc. may close more Old Navy and Banana Republic stores as its portfolio struggles. JCPenney shares sunk 10% on Friday morning after its disappointing quarterly report.
Kohl’s quantified its distress with the report of a sales drop of 3.7 percent and a profits plunge of more than half; sales at stores open at least a year were down by 3.9 percent. This followed an earlier report by Macy’s that first-quarter sales had fallen off by a huge 7.4 percent, while profit plunged by 40 percent; same-store sales were down by 5.6 percent, Macy’s fifth consecutive quarterly decline. Earlier, Gap said its comparable-store sales for the quarter would be down by 5 percent....
The cost of e-commerce is weighing heavily on brick-and-mortar retailers, who have successfully increased digital sales but thinned their margins in the process, according to a new study from retail strategy firm HRC Advisory released Tuesday.
That shift has led operating earnings as a percentage of sales to decline by up to 25%, in part due to the major investments retailers are making in e-commerce and omnichannel plus the higher cost of e-commerce fulfillment, the study found. Returns of online orders are particularly expensive and returned merchandise is difficult to resell at full value, HRC added.
Although brick-and-mortar retailers have successfully increased their digital efforts, momentum is slowing. Online sales growth for 11 public department store chains fell from 39.3% in 2012 to 18.6% in 2015, HRC said, while the online sales growth rate for 22 specialty stores declined from 17.5% in 2012 to 9% last year....
There are a bunch of aspects to running an e-commerce business but when you boil it down, everything comes back to how your website, brand, and products are perceived by consumers. You can have your own assumptions of what will work but how do you really know what’s going to drive a shopper to convert into a sale?
Our friends over at Bargain Fox have helped us all out with an in depth look at e-commerce consumer psychology. Are you ready for 65 stats that will help you transform your e-commerce marketing, website design, customer engagement strategy, and overall sales numbers? Check out this epic e-commerce infographic!...
Content creation in ecommerce isn’t something that is by any means easy to get right but when you do, the results will speak for themselves in terms of conversions, brand recognition and engagement.
2015 was a great year for brands beginning to really leverage content on their ecommerce stores and 2016 is set to continue this tradition as more and more become aware of its importance in the customer experience and journey. These days, it’s is a crucial component of remaining competitive within your industry and its importance will only grow.
Whilst content on ecommerce sites might not immediately be the thing that you think of when it comes to driving sales and conversions, there is a huge amount of value to be had in reaching users at earlier stages in the buying process. Larger retailers like Wiggle and REI are very strong examples for using content to position themselves as an authority, with various different objectives, but merchants of all sizes are now allocating large proportions of their marketing budget to content strategy....
Savvy retailers understand that content sells. It’s not enough to have a catalog — consumers spend a lot of time researching and learning about products long before they make an actual purchase.
Brands need to figure out how to integrate content into their e-commerce strategy. They need to create a voice for the brand and tell a story, strategically using content to drive purchases.
Unfortunately most e-commerce platforms do not provide the content management capabilities needed to manage content-driven commerce experiences. Content-based promotions, expert articles, media, community and other digital content play an important role in the modern commerce experience — but this requires alignment between your content management system and your e-commerce platform.
Let’s look at three ways integration of your web content management platform with your e-commerce system drives better digital commerce experiences....
The e-retailer, which has had trouble getting some apparel manufacturers to sell to it wholesale, is now selling apparel for women, men and kids under its own brands. Here’s a close look at these Amazon brands and their prospects.
Amazon.com Inc. over the last eight months rolled out a series of Amazon-owned private-label apparel brands. The lines follow through on plans previously hinted at by Amazon executives, and represent a way for Amazon to become a bigger force in apparel, a segment where it’s been limited by the reluctance of some higher-end fashion brands to sell to Amazon.
KeyBanc Capital Markets analyst Edward Yruma identified the brands in a research note released earlier this week based on his research. Amazon has not commented or confirmed the brands directly, but Internet Retailer located trademark applications filed by Amazon Technologies Inc. for six of the seven brands dating to March 2015. Amazon did not respond to inquiries....
Buyers can be a fickle lot, can’t they? Small and seemingly insignificant things can either encourage or discourage a purchase. And these things change all the time! What once told shoppers to buy, buy, buy may now send them running in the opposite direction.
Fortunately, these things are tested again and again to make sure marketers know what’s working and what needs to change. Right now, these design trends encourage buyers to click through to the checkout....
Beacons are driving mobile coupons and redemption rates are on the rise.
Several new studies are out indicating that the growth of beacons around the world is on the march and that when shoppers get a mobile coupon, offer redemption is right behind, sometimes in fewer than two minutes.
Beacons add a finer touch to location-based offers, since the small radio-transmitting devices can be located near specific products or in certain departments.
Brands have found that coupons with a location element typically enjoy far higher redemption rates than those without.
Many major retailers, including Macy’s, Target and Lord & Taylor, have installed thousands of beacons, many to learn the ins and outs of what works and what doesn’t....
5miles, the Dallas and Beijing-based challenger to Wallapop and Craiglist has secured $30 million in new investment as it celebrates its first year in business this month.
The 1-year-old 5miles mobile marketplace app has managed to attract more than 5 million users (averaging 30,000 downloads a day) and is continuously working towards becoming a major player in the local online classified advertising business that’s been long dominated by Craiglist.
Its list of investors now includes IDG, Morningside, Blue Lake, and SIG-China (part of the Susquehanna Investment Group). In addition, individuals who have worked with or have ties with e-commerce giants like eBay and Alibaba have also invested in the app....
If you want to sell online, then having a perfectly optimized website with a creative design is essential for attracting more customers!
Whether you have a huge online shop or you’re just a small business trying to sell a couple of products, these 22 eCommerce websites will surely inspire you!
In this list you will find both large and small websites, from famous and less popular brands as well. Also, there are various niches presented here, from fashion, furniture and electronics, to accessories, beauty and health shops!
These eCommerce website templates use various types of platforms. Some of the eCommerce platforms used here are OpenCart and WooCommerce....
While similarities exist across all age groups, some key differences emerge immediately. First the similarities: Most U.S. adults intend to spend the same amount or more while shopping online during this season as compared to a year ago. 85% of U.S. Adults 18 and older plan to do so, ranging from 86% of 18-54 year olds to 83% of those 55 and older. Additionally, most consumers across all age groups plan to spend at least as much as they did last year on the top retail categories of Clothing and Electronics. Roughly three-quarters of U.S. adults plan to spend at least as much this season as they did last year on Clothing and Shoes and roughly two-thirds of U.S. adults plan to spend the same or more on Electronics. However, Clothing and Electronics spending plans do vary by age group with younger shoppers more likely than older consumers to spend the same or more on Electronics (75% of A18-34 vs. 57% of A65+) and Clothing (82% of A18-34 vs. 71% of A65+ on Children’s Clothing, 78% of A18-34 vs. 63% of A65+ on Shoes).
Beyond spending plans, younger consumers are more prone to being influenced by digital and mobile media than older shoppers are in their Clothing purchases. Overall, 1 in 4 U.S. adults report that they are influenced by Email Ads and 1 in 5 by Internet Ads in their Clothing purchases. More U.S. adults are influenced by Email (26%) than Broadcast TV (21%) and more by Internet Ads (19%) than Cable TV (13%) in their Clothing purchases. Digital influence is more pronounced among 18-34 year olds shopping for Clothing: 1 in 3 are Influenced by Email Ads, 1 in 4 by Internet Ads and 1 in 5 by Social Media. This younger demo is also twice as likely as the general adult population to be influenced by Mobile Video, Blogs or Web Radio. 35-54 year olds parallel the general adult population in digital media influence on Clothing purchases and 55-64 year olds are a bit less influenced by these media. Fewer clothing shoppers 65 and older are influenced by any media but twice as many of them are influenced by Internet Ads (10%) than Cable TV (5%)....
No matter what niche you are in, setting up a successful ecommerce store requires both planning and a lot of smart work. If you take into account that customers now have around a gazillion of online stores to turn to for their shopping spree, you can understand why you have to develop both a short term and a long term strategy. From figuring out exactly what you have to sell to choosing the right platform for you (this comparison might be of use here), you have to take into account almost everything.
The following experts answered these two important questions: - In your opinion, what’s the one and most important thing any store owner should focus on right after they launch the website?
- What’s the worst mistake that would set a new online shop on the wrong path?...
As the 2016 year comes barreling towards us, it’s essential to look back at what you’e done with your business in order to establish a plan for the unexpected ahead. Even evaluating your entire ecommerce system is a wise choice, considering companies change, prices go up and offerings are not always what they once were.
Yes, the new year is a time for reevaluation, and the ecommerce world is no stranger to that. Therefore, keep reading to learn about the ten most interesting ecommerce trends for 2016 and beyond....
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A study from HRC Advisory finds that operating earnings as a percent of sales has declined by up to 25 percent for retailers due in part to a shift from in-store to online sales. The high cost of fulfilling e-commerce and omnichannel transactions also took its toll.
As part of the study, HRC analyzed the financial data of department stores, luxury, specialty apparel, beauty and off-price retailers as well as interviewing 15 c-level retail executives to gain their perspectives.
The study found that investments made in supply chain upgrades, digital marketing, IT, variable logistics costs and managing a high level of online returns generated incremental SG&A costs of two to three percentage points of sales. At the same time, real estate and wage inflation as well as declining in-store sales are resulting in a one to two percentage point reduction in physical store profit contributions....
Are you looking to build an online store? Want to know which is the best WordPress eCommerce plugin? Choosing the right eCommerce plugin is crucial for your business because a better platform means more opportunity for growth. In this article, we will compare 5 best WordPress eCommerce plugins for 2016
There’s no way around it—the past year has been rough for retail. Even the stalwarts have taken a hit: Nordstrom had a terrible run on NASDAQ; Macy's cratered, with its stock ending 2015 40% down for the year; and Walmart is shutting down over 250 stores nationwide. Why so much bad news, so fast?
Well, there are a few incidental reasons, such as an economy that has people saving instead of spending, and an unseasonably warm Q4 that kept families away from seasonal purchases, like a new space heater or down jacket. But, it’s also about a little company in Seattle called Amazon, which is steadily eating the world of retail. And when we say eating, we mean in one bite; according to The Motley Fool, about one of every three product searches begins at Amazon.
Just think about what this means for other retailers. A third of their potential customers are starting at their competitors’ front door, leaving them clamoring for scraps and losing costly acquisition dollars (and margin) to the likes of Google and, increasingly, Facebook. And as Amazon enhances Prime, their base of customers grows and becomes increasingly loyal....
Most retail outlets — whether conventional brick-and-mortar shops, digitally enhanced stores like Macy’s in the U.S. or Burberry in the UK, or online stores — assume a traditional three-stage consumption model. The customer experiences a need, shops to satisfy the need, and then consumes or uses the product purchased (I need shoes, I buy shoes, I wear them). TThe vocabulary of retailing reflects this model, assuming in particular that shopping is the central component of this model. Marketers will talk about shopping trips, shopping missions, shopping baskets, shopping lists, and destination trips. What’s more, current practice for the most part still rests on the idea that many decisions on which particular product to buy are made in the store — whether physical or online. Hence, brands engage in an arms race of persuasion and hard-sell tactics (prices, promos, presence) at the point-of-sale order to sway the customer when she is ready to transact. But winning in retailing today is less and less about control of the shopping experience because there is no longer a clearly defined shopping stage. The model is changing as new technologies allow people to bring the purchase of the product that satisfies their need closer to their first perception of it. And this makes the perception of the need — rather than the shop — the stage that marketers need to control. This paradigm shift — and it really is that — is apparent in three ways....
We (marketers) have all been waiting for this moment for the last decade: The moment social media goes from being an engagement platform to a revenue generation tool.
Yes, for years now, businesses large and small have had to struggle to defend their social media spends. After all these years, just 36 percent of all CMOs claim that they see clear quantifiable results from social media marketing. Questions like ROI, revenue attribution, last mile conversions have dogged the platform like a heavy albatross around its neck. Long-winded methods are adopted by various firms to showcase the impact that social media has on the bottom lines of businesses.
No more. Finally, enough factors have come together to prove the naysayers wrong. Now we have tools that can directly produce the results that marketers were hoping social media would be able to influence someday. Transactions are no longer limited to e-commerce sites, they happen right here on social media now. So what are these five ingredients that are responsible for this perfect storm?...
AT Kearney released a report – The 2015 Global Retail E-Commerce Index. Their research analyzes retail e-commerce around the globe and ranks countries according to its proprietary Global Retail E-Commerce Index.™
The biggest news for this year’s index is that e-commerce continues to grow strongly in big markets and small with only a few exceptions. The index ranks countries by several criteria: online market size (40%), consumer behavior (20%), growth potential (20%) and infrastructure (20%) weighted to arrive at an overall Online Attractiveness Score....
Growing an ecommerce business often requires a broad set of skills. An online merchant may need to be equal parts bookkeeper, marketer, and developer. Fortunately many of the necessary skills can be developed online for little or no cost.
Here is a list of educational resources for online merchants. There are resources for specific subject areas, such as inbound marketing, coding, and mastering Google Analytics. There are also broad education sites, with many useful courses in business and technology, and many other topics.
As the 2016 year comes barreling towards us, it’s essential to look back at what you’e done with your business in order to establish a plan for the unexpected ahead. Even evaluating your entire ecommerce system is a wise choice, considering companies change, prices go up and offerings are not always what they once were.
Yes, the new year is a time for reevaluation, and the ecommerce world is no stranger to that. Therefore, keep reading to learn about the ten most interesting ecommerce trends for 2016 and beyond....
Coupons are quickly growing as a significant component of beacon-enabled proximity marketing thanks to strong redemption rates, with brands and retailers forecast to deliver 1.6 billion coupons a year by 2020, according to a new report from Juniper Research.
The results point to how proximity marketing is gaining traction as retailers look to engage more deeply with consumers in and around their stores, prompting the volume of beacon-enabled coupons to grow quickly from the 11 million expected to be delivered in 2015. However, the research also underscores the potential danger of turning beacons into nothing more than another offer channel, which is likely to cause shoppers to lose interest....
A/B Tests aren't for every website. If you have a high value item that only 20 people see a week, but when it converts it means a bigger return, A/B testing would be a lot harder to implement in a way to get return on investment. A/B Tests and multivariate tests are perfect for websites where you have a solid amount of traffic coming in so that you can reach statistical significanc.
A/B Tests are only as good as your assumptions and guessesSo a deep dive into what has worked for other eCommerce websites is a prerequisite for implementing any meaningful change on your website. Familiarize yourself with many sources of information about eCommerce sites and come up with the tests that you feel are most likely to move the meter as far as revenue goes.
Two of the crucial moments on a website are when a visitor lands on your homepage and product page/buy button. So many of the case studies, I've read and implement changes around these crucial areas....
User reviews are a proven sales driver, a survey has revealed, so what are people really searching for and what decisions does this lead to?
Well, this infographic from PeopleClaim explains exactly how user reviews affect consumers’ decision-making when buying a product.
This infographic shows: - If an issue is handled quickly, 95% of customers will return - 70% consult reviews before purchase - Reviews drive higher loyalty and purchase satisfaction....
After researching for more than two weeks, it’s finally done! Here are the best 100 business blogs about ecommerce, SEO, conversions and marketing, and the most popular articles from each one. It’s a comprehensive list of tremendous resources, so please make sure you bookmark it for later reference if you don’t have 48h straight to binge it right now. Also, please consider to tweet or share it on Facebook if you think it’s a valuable resource.
OK, let’s get the party started...
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Big retail is suffering, but online sales are gaining traction and omni-channel strategies will grow in importance