Profitable Retail Study: The Internet to influence $1.3 trillion of all retail sales
eCommerce is driving retail profitability as companies become more innovative and overcome their technology hurdles.
Research firm, L2 presents an impressive report on the pace of eCommerce growth and the best practices making it happen. The 71 Specialty Retailers included in L2′s report have ramped up their digital spend significantly. Challenged by Amazon and understanding the potential of eCommerce, they are making serious investments in digital and mobile channels to drive online and brick and mortar sales.
According to L2′s report, eCommerce now totals 8% of retail sales in the U.S. It is expected to outpace brick and mortar stores over the next five years reaching $370 billion dollars in sale by 2017. Amazon, the leading specialty retailer, reached 14% of eCommerce sales in 2012.
Here are a few highlights from this study:
- 24/7 Online customer service: 28% of specialty retailers provide 24/7 customer service, up from just 18% a year ago.
- Live Chat: 10% more retailers are offering live chat this year than last year.
- PayPal Checkout: To ease the check-out experience of mobile devices and tablets, 46% of retailers now offer PayPal check-out, up 200% over last year.
- Free Shipping: 4 retailers are offering free two-day shipping via a partnership with shoprunner, in order to compete with Amazon Prime.
- Online Sales: They are projected to reach $262 billion dollars in sales in 2013.
- Influence of Online Sales: The internet will influence $1.3 trillion dollars in sales, 43% of all retail sales.
- Mobile Sales: By 2016 $689 billion dollars in retail sales will be influenced by mobile.
- Mobile Sites: 77% of index retailers now have mobile sites.
The following L2 video provides highlights of their report and features analysis of industry trends and best practices as well as several case studies.
With Specialty Retailers leading the way, what steps will you take and what innovations will you make to grow your retail brand?