E-Commerce is doing just fine, thank you very much. While overall US Retail sales (offline + online) declined 0.4% in January 2014 compared to last year, according to the US Department of Commerce, e-commerce sales grew a healthy 8%. This is based on The Custora Pulse's latest US E-Commerce data, tracking e-commerce transactions from over 100 US retailers and 70 million shoppers.
All key e-commerce indicators exhibited substantial growth in January '14 compared to January '13: Traffic to e-commerce stores was up 6%, and the average conversion rate grew to 2.2% (vs 2.1% in 2013). These factors combined resulted in a strong 7% growth in online orders.
Encouragingly, Average Order Value, or AOV, was up as well in January: It grew 1.3% over January 2013. This indicates that the e-commerce environment remained stable and did not become more promotional and discount-driven compared to last year.
While mobile shopping continues its unabated growth, driving a third of online transactions in January, Android devices took us by surprise, accounting for 20% of mobile orders (up from only 14% in January last year).
The share of US online sales out of all retail sales has grown from less than 1% in 2000 to 5.9% in Q3 2013, according to the US Department of Commerce. If physical retail continues to decline, while online retail continues growing at close to double-digit rates, it will be interesting to see how much market share online stores "steal" from brick and mortar in 2014.
More where this came from: Check out the Pulse and sign-up to receive our email updates for holidays, seasonal reports, and industry performance.
About Custora and how we can help Custora provides a customer-centric marketing platform that helps e-commerce teams make customer acquisition and retention programs more profitable. Custora’s software uses advanced statistical models to identify distinct customer segments and predict how customers will behave in the future. This enables e-commerce companies to deliver more relevant and effective communications that promote long-term customer relationships. Custora is proud to work with some of the world’s leading e-commerce retailers, including Etsy, LivingSocial, Bonobos, Revolve Clothing, and One Kings Lane. If you’re interested in learning more about Custora, you can request a demo here.