According to J.P. Morgan’s 2011-2013 eCommerce revenue forecast, eCommerce revenue is expected to reach $630 billion worldwide, and $187 billion within the US alone, an increase of 18.9% and 13.2% from 2010, respectively. The forecast continues to an upward trend of $963 billion in global eCommerce revenue by 2013. Clearly this is a trend that retailers cannot ignore.
During this year’s Black Friday and Cyber Monday, traditionally the start of the holiday shopping season, consumers showed no sign of slowing down – online spending maintained its upward swing despite the lackluster economy. Consider these two statistics released by IBM: Online spending increased by 24.3% on Black Friday and increased by 33% on Cyber Monday.
Additionally, comScore released an initial report of $6 billion spent online between Monday, November 28, to Sunday, December 4 alone, totaling a staggering $20 billion spent online during November 1st to early December. This marks an overall increase of 15% over last year. Mobile traffic to retailers’ websites, meanwhile, has grown more than 200%.
The increase in online shopping revenue – particularly during this Holiday shopping season can be attributed to mass-market proliferation of smart phones and mobile devices as well. Several notable online shopping trends evidenced during Black Friday and Cyber Monday were the prominent use of mobile devices – iPhones, iPads, and Andriod phones – to visit retailers sites to make actual purchase, and the use of mobile devices to research online deals and then purchase using their mobile devices. IBM Coremetrics reported mobile traffic increased to 14.3% from 5.6% for Black Friday and 6.6% from 2.3% for Cyber Monday.
These staggering trends not only reinforce the need for brands and retailers to continue increasing their investment in the eCommerce space, brands and businesses now must respond agilely to keep pace with consumers’ adoption of mobile devices and social media for research, product comparison, and shopping. Furthermore, brands and businesses can be better positioned to increase their online revenue by investing more in the cross-channel commerce and brand commerce space, and enabling consumers by guiding them through the purchase-decision process through various touch points and channels.