The proof is in the numbers – Consumers prefer to shop with ecommerce retailers versus in brick and mortar stores!
By: Catherine Perry
Here’s a question for you—who likes to go to a mall? We don’t mean just during the holiday season—we know you probably hate that, with the parking issues and crowds. No, we mean anytime. You’re very busy taking care of your family and your life, right? Especially if your children are of the age to still be at home. And, even if you’re retired, you may go to the mall to walk, but do you go to the mall to shop? The majority of us just don’t have the time to stroll through the mall and shop. Gone are the days where the mall was a source of entertainment, as it was in the first few decades of its existence.
Yes, folks, today more and more of us are shopping online from either our computers or mobile devices. In fact, ecommerce retail spending growth is outpacing traditional brick-and-mortar retailers. And, this is not a trend that is going to go away. Shopping online is quick and it’s accessible wherever we are, so it’s convenient. OK, maybe we’ll go to a brick-and-mortar (BAM) location after doing our research online. Sometimes we just want to see and touch and try on before we make the purchase. But, often now we’ll go back to our computer or mobile device to actually make the purchase, especially if there are special deals and discounts online.
The Facts of Ecommerce Strong Growth
Statistics back us up that ecommerce retail is outpacing brick-and-mortar retailers in growth. InternetRetailer.com cites the U.S. Department of Commerce in comparing year-over-year growth from the first quarter, 2015 through first quarter, 2016. They looked at the the following…..
Web-only (also known as “non-store”)
They concluded by saying, “Total retail sales increased a relatively healthy 2.5% in May compared with May 2015, and non-store sales increased 12.2%.” They go further to say that non-store growth in May, 2016 was the fastest of any month so far in 2016. Just in the first quarter of 2016 e-commerce grew 15.2%!
In a U.S. Census Bureau News data report for May, 2016 we find that total retail sales for the first quarter of 2016 saw a decrease of 0.2% from the 4th quarter of 2015. However, “the first quarter 2016 e-commerce estimate increased 15.2 percent (±1.8%) from the first quarter of 2015 while total retail sales increased 2.2 percent (±0.4%) in the same period. E-commerce sales in the first quarter of 2016 accounted for 7.8 percent of total sales.”
OK, we know this is dry reading, but we want to give you the statistical facts to back us up when we tell you that ecommerce growth is outpacing brick-and-mortar retail. The growth in ecommerce is happening NOW! Ecommerce has been growing for the last decade and, based on these statistics, it isn’t slowing down.
Mobile Devices are Prevalent
We think this year will be even stronger. Why? Because more and more people are shopping online using both their computers and also their mobile devices. The mobile device, as a way to shop and purchase online, is growing exponentially.
InternetRetailer.com has this to say about people using mobile devices to shop:
“In the new mobile economy, many U.S. consumers’ home desktop PCs are fossils gathering dust as these consumers rely almost entirely on smartphones and tablets to access the Internet. In fact, 10% of U.S. Internet users only access the Internet on mobile devices, according to new January 2015 data from comScore Inc., an Internet and mobile measurement firm. And there are more mobile-only shoppers than mobile-only Internet users: 13% of Internet users accessing retail destinations (sites and apps) only use mobile devices to do so, comScore finds.”
We think these are compelling numbers. If you want to pursue a business that is part of one of the strongest trends since the Industrial Revolution, ecommerce is it!
Get Ready for the Holiday Shopping Season
Now, let’s talk about the holiday season. We’re halfway through the year (we know, it’s hard to believe).If you are a retailer, this is the time to think about the holidays. Statistics from the holiday season of 2015 showed huge increases in ecommerce sales. If you’re an ecommerce owner or are considering becoming one, now is the time to get ready for the holiday season. Get your inventory and products ready. Get your marketing campaigns ready. Get your social media posts ready.
So, if you’re considering becoming an ecommerce business owner to be a part of this huge growth in our retail economy, now is the time to start! You have several months to prepare your website for the holiday shopping season. Look at these statistics and do your research. Let Pure-Ecommerce help you to get started!