A Look At eCommerce

Americans spent $155.2 billion dollars in online transactions in 2009. 6% of total US sales were online. 3 71% of adult Americans were online in 2009. 96% of households earning over $75,000 in annual income were online. Total Advertising Spending $22.4 billion dollars was spent on Internet advertising. Online Advertising Spending 10% of the total amount of advertising spending was spent online. First quarter 2010 e-commerce spending was up 14% from first quarter spending in 2009. Sales at brick and mortar stores only increased by 3.4%. 6 2009's top selling websites were: 1. 2. 3. DELL amazon.com. STAPLES 57% of all web-merchant only sales were with Amazon. The top five web only merchants in year over year growth were: Amazon grew 14 times faster 1. amazon.com. than the entire 2. e-commerce newegg.com market. 3. NETFLIX 4. CELEBRATING 50 YEARS Amway. GLOBAL 5. overstock.com The average online shopper spent $170.19 on Black Friday, 2009. This was a 35% jump from the average of $126.04 in 2008. Customers ordered an average of 5.40 items. Apparel and jewelry retailers had the biggest jumps in sales from 2008. Department stores reported a 151.7% increase in new customers. 10 2020 E-tail is projected to overtake offline retail in year over year dollar increases by 2020. Online Offline Sales are predicted to be $624.17 billion by 2020. E-commerce is growing at five times the rate of brick and mortar retail. Since 2000 e-commerce has achieved a compound annual growth rate of 19%. 11 8% of all first quarter 2010 transactions took place online, excluding groceries, restaurant and gas purchases. This is a .8% increase from the first quarter 2009. 12 30 The strongest e-commerce sector is apparel, with up to 30% of all online customers purchasing clothes every month. Among the weakest sectors is online grocery shopping. Only two national chain stores, Royal Ahold and Safeway, have embraced e-commerce. Luxury apparel has had surprising growth in spite of the recession. More internet users are seeing shopping as entertainment. 13 E-commerce is made possible by shopping cart software called platforms. Magento is currently leading the platform pack, having just secured 22.2 million dollars in funding. Magento has been downloaded over 1.5 million times and supports 60,000 online merchants. 1.5 Million Magento Downloads 14 British inventor Michael Aldrich is credited with inventing online shopping in 1979, when he used a telephone line to connect a modified television to a computer that recorded transaction. 1984 The first online shopper was Mrs. Jane Snowball. In 1984 Snowball used Aldrich's system to buy her weekly groceries from Tesco. 1987 The first 'merchant accounts' were launched in 1987, but were restricted to software developers hoping to conduct business with each other. 1991 Online commercial transactions were prohibited until 1991. 1994 Pizza Hut began offering online ordering. 1995 Amazon and Ebay were both founded. 2000 In 2000, Paypal began offering online payments for transactions. Paypal was acquired by Ebay in 2002. 15 Amazon didn't actually report a profit until 2002. Pre 2002 Post 2002 amazon.com. amazon.com. November The next big frontier is m-commerce, or mobile commerce. 17 Black Friday and Cyber Monday Numbers: DAYS 2008 2009 CHANGE Transactions conducted on mobile phones grew by 117% between 2008 and 2009. Nov. 1- 30 $11,870M $12,260M 3% Thanksgiving $288M $318M 10% Black Friday Mobile transactions processed on Ebay grew by 650% from 2008 to 2009. Black Friday $534M $595M 11% Weekend (Nov. 28-29) $769M S805M 5% Cyber Monday $834M $887M 5% 18 Online small businesses account for 7% of all U.S. shopping and is expected to grow to 20% by 2014. 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