In just a short time, modern tablets have become potent shopping tools that generate an outsize effect on online commerce. 2011 was the year that the tablet became an online retailer’s best friend as it emerged as the preferred device for many shoppers to make purchases.
The traditional ways that retailers and merchants reach out to users and how they expect them to discover, shop and pay are getting disrupted by mobile and social. And that’s created really empowered shoppers, who are using these tools to augment and alter their buying patterns.
eCommerce spending grew +14% Y/Y in 2Q 2011 according to Scot Wingo, CEO of ChannelAdvisor (CA), which manages eCommerce for over 3,000 retailers including Dell (s DELL) and Nike.(s nke) Amazon (s AMZN) Same Store Sales of +52% Y/Y in July continues to far outpace the industry.
Growth is driven by a +26% Y/Y increase in buyer frequency and +56% Y/Y increase in unit sales due in-part to Prime and 3rd Party item sales. According to Forrester, eCommerce will be a $1T market by ‘14; the US will grow at ~11% CAGR, EU at 19%, and ROW at 29%. [UBS Research Note]
As I said earlier, we are spending more money on Amazon and are doing it more often.
Project Slice, which just raised $9.4 million, is introducing an app called All My Purchases for the new Yahoo Mail that organizes a user’s online receipts, shipping notices and daily deals and helps people make sense of it all like a Mint for online purchases.
Thanks to bigger selection, convenient return policy and addition of digital goods, Amazon is quickly sucking up more of our spending dollars. No it is not just me talking — data shows a sharp jump in per account spending and it is only the beginning. Bezos FTW!