The Continual Rise of eCommerce

Budco eCommerce TODAY A Online retail sales in the U.S. are projected to surpass $200 billion in 2012. But what is driving the continued growth in eCommerce? Who is shopping online, what are they buying, and how and when are they accessing the web? Answers to all these questions along with other important eCommerce facts are highlighted below. WHO IS SHOPPING ONLINE? WHO? 66+ 48% 18-30 54% BY INCOME <$30k/year 60% BY AGE $30k - $49.9k 76% 31-44 55-65 60% 68% $50k - $74.9k 83% 45-54 64% $75k+ 96% Of all U.S. adults, those with larger annual income use the internet more than those Ages 45-54 are the biggest spenders $$$ with smaller annual income. Global eCommerce growth is 19.4% per year and worldwide eCommerce totaled $572.5 billion in 2010. According to the National Retail Federation, 46.7% of consumers say they'll purchase holiday items online this season... an increase from last year. Rest of the World 10% 27% 46.7% Asia 29% U.S. 34% Europe UP 2.8% From Last Year WHAT EXACTLY ARE THEY DOING? WHAT? % OF U.S. ONLINE ADULTS WHO PARTICIPATE IN THESE ACTIVITIES: 25% 7% 25% 18% 6% 11% Sell things in online Read customer ratings & reviews Buy things in online auctions Sign up for free products & coupons Post Ratings & reviews Use auctions comparison shopping sites IN 2010, 60.2% Browse for gifts HOLIDAY SHOPPERS 50.7% Checked store hours/locations USED THEIR 32.5% Received texts and offers SMARTPHONES TO... 34.6% Read product reviews 26% Made purchases Looking for Discounts This Holiday Season? O 42.2% of consumers... Cite sale & price discounts as the most important factor in choosing a retailer. 59.9% of consumers... Say they intend to take advantage of price discounts & make non-gift purchases for themselves. WHERE ARE THEY SPENDING THEIR TIME? WHERE? HOLIDAY SHOPPERS 51% LAST YEAR SHOPPED Internet retailer ACROSS CHANNELS 45% ranks the top BtoC online retailers. 51% visited and purchased at the store Here's the top five: 45% Researched and purchased online O Amazon.com Staples Inc. 35% Researched online, purchased in store Apple Inc. 21% Researched online, looked Dell Inc. at item in store, then purchased online Office Depot Inc. 14% visited store first, then purchased online WHEN DO THEY SHOP ONLINE? WHEN? THIS YEAR, ONLINE SALES PEAKED THE WEEK OF BLACK FRIDAY AND CYBER MONDAY. CYBER MONDAY $1.367 BILLION OCTOBER NOVEMBER DECEMBER 75% of consumers started researching their holiday purchases in August this year 89% of those consumers started that shopping online WHY ARE THEY SHOPPING ONLINE? WHY? 71% 64% 64% Products Want to avoid the holiday crowds Easier to are only sold online compare item, features 60% 57% 48% Catalogs Easy to have gifts shipped to recipient Usually find the best deals online encourage online shopping "Free shipping was likely one of the key drivers that helped the 2010 season achieve such extraordinary growth." Diane Clarkson Forrester Analyst HOW ARE THEY ACCESSING THE WEB? HOW? AS DESKTOP SURFING LOSES POPULARITY, THIS QUESTION IS MORE IMPORTANT THAN EVER. MOBILE commerce sales SOCIAL $31B will grow from $3 billion in 2010 to $31 billion in 2016. 39% of consumers plan to look at social networks $19B and online discount $10B operators before purchasing holiday items this year. $3B 2010 2012 2014 2016 in SMARTPHONES livingsocial G 14.1% Will use it to complete a purchase 15.6% Will use apps to research or complete a purchase 52.6% of all smartphone owners say they will use it to help them shop this holiday season. 17.3% Will use it to redeem 31% Will use it for research or to coupons compare prices FOR 2011 HOLIDAY ONLINE RETAILERS TIPS 20% OFF Provide discounts Offer free shipping at some point for shopping online (3 wow! 4 Engage consumers quickly! The average time consumers Make your site as mobile friendly as possible. are spending on one site is steadily decreasing. April 2011:Avg time = 7:19. Sources: National Retail Federation · Forrester Research Inc. • Internet Retailer · IBM • Goldman Sachs · Pew Internet & American Life Project · BIGresearch · Epsilon • comScore Inc. • Google • GfK Custom Research For further information, please contact us: 1-888-BUDCO-40 Budco www.budco.com