US ecommerce shoppers increased their spending by 16% Year-on-Year in the second quarter of 2013, according to web measurement firm comScore Inc.
According to comScore, ecommerce spending reached $49.84 billion, up from $43.15 billion in Q2, 2012. This is the 15th consecutive quarter where US ecommerce have grown positively and 11th consecutive quarter with double-digit growth.
In their second report on mobile commerce, comScore reports that the online spending via mobile devices saw an increase of 24%, which is roughly $4.7 billion(close to 10% of the overall spending)
“Increased spending growth for the quarter not only reflects the long term share shift towards digital commerce, but also the near-term signals of sustained improvement in consumer sentiment,” says comScore chairman Gian Fulgoni. “This strength is particularly significant since the second quarter tends to be seasonally lighter for e-commerce, and, as such, represents a positive indicator for the back half of the year.”
Five product categories have registered an increase of 19% or more in online sales – apparel and accessories, digital content and subscriptions, sport and fitness, consumer packaged goods and home and garden, comScore says.
Within the first four months in 2014, Investors (PE & VC) have already put in $141 million, which is almost half of last year’s investment of $295 million, according to research firm Venture Intelligence.
The $150 million investment received by Flipkart from various investors formed the lion-share of last year investments in the ecommerce industry.
$50 million by Kalaari capital Nexus Ventures, Samaa Capital and others in marketplace ecommerce firm Snapdeal, $14 million by Sequoia Capital India and Intel Capital in Health are some the major investments in 2013.
“The PE investment in brick-and-mortar retail has failed. Brands are also realizing that e-commerce is a better way to penetrate into the tier-II and tier-III cities as building the physical infrastructure is never going to be profitable,” says Arun Natarajan, CEO, Venture Intelligence.
The world’s largest retailer is making extensive use of its 4,000-plus store footprint along with mobility to achieve dominance in the digital sphere.
Walmart now credits revenues to brick-and-mortar stores for online purchases that are picked up there, reducing the sense of internal inter-channel competition, according to Neil Ashe, CEO of Walmart’s global ecommerce division. He added that about half of the merchandise ordered on Walmart’s website is shipped directly to a store, according to published reports, and that Walmart is also the only e-commerce site that allows its customers to pay cash for online purchases.
Chinese ecommerce giant Alibaba has decided to acquire 17% stake in Weibo, microblogging website owned by online media company Sina Corp, for $586 million. Both companies have also agreed on another term in which Alibaba will increase the stake to 30% over a certain period of time on for a mutually agreed valuation.
Both companies decided to forge partnership in the areas like online marketing, data exchange, online payment, and account connectivity. Weibo and Alibaba also looks to explore new business models in the social commerce arena to leverage their large user base in their ecommerce platforms.
Over the next three years, Weibo is expected to generate $380 million in advertising and social commerce through this deal. Read more
Forrester, the global research and advisory firm, predicts that ecommerce will create another 161,000 jobs over the next 5 years in addition to the existing 409,000 jobs. The new jobs will be created mainly in Customer Service, Technology and Fulfillment departments.
Baynote has created an infograhic to give a broader perspective on this:
Asda is planning to invest about £ 700 million ($1.07 billion) to bolster its ecommerce, as per Internet Retailer. This massive investment will create more than 2500 jobs within ecommerce, supply chain and other few areas.
“By focusing on their needs through accelerating our investment in the technology and infrastructure to make shopping more convenient, customers can shop for what they want when they want it,” said Andy Clarke, Asda CEO.
Much has been made in recent months about the phenomenon of ecommerce conducted over multiple devices. The age of the desktop PC as the main method of connecting to the internet in general seems to be on the wane.
People want ecommerce on mobiles and all the conveniences that retailers can provide. Such convenience generally comes down to mobile applications, or apps, used by consumers on their tablets and smartphones.
Arbitron recently noted in their research how Apple’s iOS, a mainstay on the company’s iPhones and iPads, leads Android-equipped devices in terms of usage of shopping apps. 67.5 percent of iOS users are using apps for mobile commerce in Arbitron’s mobile U.S. smartphone panel compared to 43.9 percent of Android users.
For those Apple devotees using mobile commerce apps, this translates into 35 online shopping trips per month, occupying 105.3 minutes of a consumer’s time on average. Android shoppers spent 87.6 minutes on their 29.5 sessions per month. Read more