“It is easier to invent the future than it is to predict it.”
This variation of a quote by computer scientist Alan Kay was the last line of a 1994 job listing written by Jeff Bezos, and still holds true to this day. While Redstage’s team of forward thinkers possess a knack for accurate predictions, we’ve also helped shape the future of ecommerce through our mobile research initiatives.
Throughout 2018, our team made strides to advance the cause of B2B ecommerce, offering insight into new technology, mobile commerce, and the millennial customer experience. We remain dedicated to helping clients and readers alike stay informed of emerging trends and the strategies you can use to master them. With this said, here are the top insights and articles of the past year:
“B2B ecommerce has several types of customers, each with their individual requirements for how they define their success. These customer types include B2B consumers (the company plans to resell the product or service to them). Other customer types include wholesalers/distributors who will sell your products and services to other B2B companies and dealers who sometimes resell the company’s product for them. Knowing your customers, here’s a few things to consider when selecting the best e-commerce platform for your online store.” — Read More
“Will it be the illustrious AI, the illuminating abilities of augmented reality, delivery drones, or perhaps… chatbots? With the emergence of all this new tech, marketers are left to base their budget allocation for 2018 on speculation. As a result, I am inclined to believe that without a doubt, 2018 will be somewhat of a plateau for marketing; defined by a knowledge-gap surrounding new avenues for advertising and the deteriorating value of current methods. Here’s why…” — Read More
“At this very moment, it’s likely that retail executives around the US are screaming about their Black Friday and Cyber Monday sales performance. For some, these sounds resemble a triumphant war chant. For others, these are the shrill cries of defeat. The reason? Mobile-first adoption. No matter where you stand, this data changes the ecommerce landscape. Here are the latest stats and key trends from the long-weekend of holiday sales events.” — Read More
“The development of AI and Big data, in recent years, has given online retailers both opportunities and challenges. In the next decade, digital stores will be equipped more optimized tools based on AI, and through this, they are empowered to strengthen customer relationship and enhance customer retention. This is a technology competition and I believe that the one who wins the game will also win the customer’s heart.” –Read More
“Today, a single blogger has the same opportunity to get a million comments on a post as Walmart does. A mom and pop online store has the same chance of winning over customers as Amazon. Time, resources and budget notwithstanding, the Internet provides a fair medium for all business to compete, and we owe the state of our world to this universal marketplace of ideas… With the Net Neutrality repeal in effect, major changes are coming that will affect every businesses, especially in the world of advertising and ecommerce.” — Read More
Top Case Study of The Year!
Check out our most viewed case study of the year: White Mountain Footwear. If this were a blog post, it would hold the #3 spot above!
Top Download of The Year!
Take a look at our Digital Sales Engagement Ebook, our most viewed downloadable of 2018! Discover all the tools you can use to optimize your digital sales team and top tactics to revolutionize your digital acquisition strategy.
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At this very moment, retail executives around the US are likely screaming about their Black Friday and Cyber Monday sales performance. For some, these sounds resemble a triumphant war chant, for others, these are the shrill cries of defeat. The reason? Mobile-first adoption.
No matter where you stand, this data changes the ecommerce landscape. Here are the latest stats and key trends from the long-weekend of holiday sales events. We will update this article as soon as new data is released, so make sure you subscribe to be the first to know!
Thanksgiving Takes an Extra Helping
On Thanksgiving day, as of 7:00am Pacific Time, U.S. consumers spent $406 million. By 2pm, Adobe announced that this number skyrocketed to a whopping $1.75 billion, representing a 23% increase over sales in the same time period in 2017. By the end of the day, Americans beat out last year’s sales for the day by a shocking 28%, resulting in a shocking 3.7 billion dollar Thanksgiving. Adobe initially projected a $3.1B bottom line for the holiday.
Mobile Wins Big
Here’s a quick breakdown of the major events in bite-size chunks:
$2.1 billion or 33.5% of sales came from smartphones this Black Friday. Another 10% of sales, or roughly $627 million, came from tablet users. All in all, the day yielded an impressive $6.2 billion, a 23.6% increase over 2018.
Cyber Monday Breaks The Internet
Here’s the big one. Cyber Monday sales shattered all previous records for online sales… in U.S. history.
“Cyber Monday [topped] $7.9 billion by the end of the day, making it the largest online shopping day of all time in the U.S. This represents a 19.7 percent increase year-over-year (YoY) as of 7:00 p.m. ET. In comparison, Thanksgiving Day and Black Friday brought in $3.7 billion (28 percent growth YoY) and $6.2 billion (23.6 percent growth YoY) in revenue, respectively.”BusinessWire
Here’s the share of devices (as of ~1:30pm ET November 27, 2018):
Additionally, Adobe’s latest report notes that this November has seen 7 days where total sales broke the $2 billion mark (as of Nov. 28, 2018)… Thanks in no small part to the mobile sales spikes.
Omnichannel Adoption Drives Sales
The trend of “buy online, pick-up in-store (BOPIS)” continued, with the trend growing 50% during this past weekend over 2018. According to Adobe, this spells dollar signs for omnichannel merchants: “As the online and offline retail experience continues to blend, retailers with physical stores drove 28 percent higher conversions online.” While this trend helped retailers increase their share of online earnings, in-store sales lagged far behind.
It’s time to join the mobile-first movement. As Adam Morris, Redstage CEO notes, “Cusotmers are no longer expecting an in-store Black Friday and Cyber Monday, but instead, an omnichannel experience.” While many retailers successfully ramped up their omnichannel strategies for this holiday, the data shows this trend is here to stay, and more work is needed.
If you want to reduce mobile checkout friction before the holidays are over, contact us asap! To see the results we’ve achieved with our recently launched Magento Community Initiative, find the latest data here.
These extravagant stats spell success for an industry racing to close the mcommerce gap. It’s seems the industry is all-aboard the mobile-first customer experience wave. As Internet Retailing points out, retailers may have finally reached ‘always-on‘ mobile consumers. Now it looks like the key areas for improvement are streamlining mobile checkouts, and optimizing omnichannel experiences.
For the first time in PayPal history, mobile payment volume topped $1 billion, and did so on both Black Friday (November 23) and Cyber Monday (November 26). – PAYMNTS
Adobe reports U.S. shopping carts averaged $138.00 during Cyber Monday, a 6% bump over last year.
49% of Black Friday traffic came from smartphones, driving 30% of online sales.
“In the [PYMNTS] Checkout Conversion Index report, the 30 merchants with the fastest, most streamlined online checkouts ranked well. Conversely, the 30 merchants with the lowest scores offer a widely inconsistent checkout experience…”
Our partners at BigCommerce identified a few additional trends in their Cyberweek 2018 Trends Report. Key findings include:
While online stores continue to have the highest AOV for any sales channel, Facebook took second place, accounting for “70% of total GMV” for Fashion and Jewelry brands using the channel. Home and Garden brands selling on Facebook came in at 16% GMV.
“The Fashion & Jewelry and Toys & Games verticals saw the highest GMV increases over 2017.
With every new store display that goes up both in the physical and online stores, we are reminded the holidays are here. Online retailers put in a lot of effort to prepare their store for the holidays because of the potential increase in purchases (especially last-minute). The increase in customer traffic means there are potential increase in challenges; how you effectively deal with these challenges, can either make or break you to cement your online presence. Here are some of the challenges that you may face and how to address them:
#5: Increased website traffic
This is a great part of the holiday season but could have a negative effect on your store. It’s good because increased traffic can convert to increase in sales, however, unpredictable traffic could mean surges which may make your store go offline, something you obviously do NOT want to happen. To avoid this coordinate with your hosting company and your technology partners to ensure your disc space and bandwidth are increased appropriately. There are cloud hosting options and many other solutions to ensure that your store stays up and running during the holiday rush.
#4. Shipping Demand
The last thing your customers’ need to worry about is whether their items will be delivered on time. Not meeting your delivery schedule results in an unhappy customers who could take theirs and other business elsewhere. Evaluate your shipping options to see where it lacks and ensure it meets all potential customer demands. Any and all logistic issues with shipping products also increases your customer service requirements and taxes your staff causing mistakes and furthers the discontent of your customer base.
This doesn’t only effect small or medium sized ecommerce businesses. Just recently, we heard an internal story of a holiday related snafu with regards to Walmart. Their system shipped out a product incorrectly and it took a Redstage staff member 3 lengthy customer service calls to get it sorted out! This type of customer experience is why sites lose customers and what can stifle growth. Make sure your systems are running smoothly and your staff is trained to avoid these types of problems.
#3. Bad User Experience
Customer expectation for the look and ease of use of your online store can be very high. It is important to exceed this expectation to ensure that the user experience (UX) for the customer is memorable but most of all easy to use. Your products should be easy to find via navigation or search and contain enough product information to convince the customer to complete their purchase. Mobile optimization for your store is especially important in this day and age since a large percentage of shoppers use their mobile devices to shop online. Work closely with your web team’s designers and developers to optimize your store’s UX.
#2. Payment Fraud
The increase in online purchases during the holiday season also means you and your customers are more at risk to be victim to payment fraud. It is important to your customers to know that your website is secure since their card and bank information can be easily stolen if a merchant does not take the proper security measures. According to the National Retailer’s Federation, the average retailer loses 0.68 percent of revenue to fraud. This does not include the cost to you for fees, time and overhead and the loss of customer trust. Customer trust can cascade exponentially to ruin your brand and lose you much more than the industry average over time. To effectively manage this risk ensures that your store is in Payment Card Industry Security Standard Council (PCI) compliance, monitor customer daily transactions to look for any red flags in customer spending, use the address verification system and the Credit Card Verification Value (CVV).
Also, make sure that your software platform is up to date – We’re looking at you Magento 1.7 users! The security issues that can arise from out of date software need to be fixed immediately to protect you and your customers from hacking and fraud.
#1. Stock Control
It’s important to have sufficient stock to meet customer demand for the holiday season, it is also just as important to ensure you are not left with a large amount of holiday stock going into the new year. Make sure to monitory inventory ensure you have adequate amounts of stock for potential orders and storage is not an issue. Pull a report on your best-selling items in the last few months to ensure you’ve ordered the appropriate stock levels in time for Christmas. If you’re running any flash sales or pushing deeply discounted loss-leader items, you should have the data to support the inventory levels and not run low or end up with massive overstock.
Overall, these challenges aren’t impossible to overcome. If your company is facing any of these holiday difficulties or in general need any help or support with your store, please get in touch with Redstage anytime. You can reach us at 1-888-335-2747 or email us at [email protected].