TECHNOLOGY

eMarketer: E-commerce to account for 9% of all retail sales in 2017, led by a surging Amazon

BY Marianne Wilson

When it comes to online market share, Amazon is in a class by itself. But Walmart is coming on strong.

E-commerce sales this year will grow 15.8% to $452.76 billion this year, representing 9% of total retail sales, according to eMarketer.

The undisputed ecommerce leader is Amazon, with the largest share (43.5%) of U.S. retail online sales, equating to $196.75 billion this year. The online retailer now represents 3.9% of all retail sales in the U.S.

In second place is eBay, which has stagnant growth and is losing share. Its e-commerce sales will grow to $30.66 billion by the end of this year, eMarketer estimates, but its share of total ecommerce sales will drop to 6.8%.

Walmart, in third place, accounts for 3.6% of U.S. e-commerce sales, but its sales are growing rapidly. Walmart’s online sales in 2017 will jump 46.8% to reach $16.21 billion.

Emarketer forecasts that total holiday retail sales will increase 3.1% over the same period last year to $929.15 billion. Online holiday sales will jump 11.5% this holiday season to $106.97 billion, representing 11.5% of total holiday retail sales — the largest portion ever.

The report also noted that mobile commerce will grow 38.0% this year to reach $156.28 billion. It will represent 34.5% of all e-commerce and 3.1% of total retail sales.

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J.Kush says:
Nov-21-2017 09:14 am

Interesting article! To be the first in e-commerce business you should follow all relevant tendencies. Read this to find out the important info about the next top influencers of 2018: https://roobykon.com/blog/posts/68-who-will-the-main-influencers-of-2018 Good luck!

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TECHNOLOGY

Chinese e-commerce giant invests in China’s top grocer

BY CSA STAFF

Alibaba is extending its push into brick-and-mortar retail in a big way.

The Chinese e-commerce giant will invest a total of HK$22.4 billion (approximately $2.88 billion in U.S. dollars) in Chinese hypermarket operator Sun Art Retail Group Limited, a move that will give it a major stake in the company. Alibaba is making the investment through an alliance with Auchan Retail S.A. and Ruentex Group.

Sun Art currently operates 446 hypermarkets in 29 provinces, autonomous regions and municipalities across China under the RT-Mart and Auchan banners. It also operates superstores and innovative unmanned stores under the Auchan Minute brand. The transaction will give Auchan Retail, Alibaba Group and Ruentex approximately a 36.18%, 36.16%, and 4.67% share in Sun Art, respectively.

The alliance coincides with Alibaba’s “New Retail” vision which leverages its web-based approach and new technology, while working closely with retailer partners to provide a seamless online and offline experience to consumers in China. It is also aligns with the alliance’s goal to introduce a new shopping experience to China’s 1.3 billion consumers.

“Physical stores serve an indispensable role during the consumer journey, and should be enhanced through data-driven technology and personalized services in the digital economy,” said Daniel Zhang, CEO of Alibaba Group. “By fully integrating online and physical channels together with our partners, we look forward to delivering an original shopping experience to Chinese consumers.”

In addition to combining the resources of the three companies, the new alliance will enable Sun Art to benefit from Alibaba’s digital ecosystem. Specifically, Alibaba will digitize and introduce new retail solutions at Sun Art stores, including online and offline integration together with modern fulfillment and personalized customer experience.

“This alliance with Alibaba stems from our shared vision for the future of commerce in China,” said Wilhelm Hubner, CEO of Auchan Retail. “Bringing together the leaders of in-store retail and of online retail will allow us to serve hundreds of millions of Chinese consumers a fully integrated, world-class shopping experience.”

This is not Alibaba’s first foray into brick-and-mortar stores. The company has invested approximately $9.3 billion in physical stores since 2015. It also has launched many unmanned concept shops in the past year, including grocery and coffee stores, according to CNBC.

Alibaba’s Sun Art announcement comes on the heels of last week’s record-breaking Singles Day event. The 24-hour shopping extravaganza, held on Nov. 11, brought in $25.3 billion in sales (or gross merchandise value) to Alibaba’s platforms, up 39% compared to 2016.

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TECHNOLOGY

Walmart unit says no to Black Friday

BY Marianne Wilson

ModCloth is breaking up with Black Friday.

The online retailer, which Walmart purchased earlier this year, is shutting down its site on Black Friday and giving its employees a day off so its workers and shoppers can focus on things that make them feel good — namely donating to charity, the company said. ModCloth is known for its quirky clothing and gifts.

“It’s easy to get caught up in the hustle and bustle of the holidays and we wanted to do something different and remind our community that this time of year is about friends, family and helping others in need,” explained Nicole Haase, ModCloth’s VP and general merchandising manager.

Instead of posts from ModCloth’s social media about Black Friday deals this week, the brand is asking its customers to nominate someone (using a special hashtag on social media) who is giving back to their community and deserves recognition. Participants could win $4500 to support their cause or project.

ModCloth is also donating a retail value of over $5 million in merchandise to Dress for Success, the organization aimed at helping women transitioning back into the workforce.

In deciding to be closed on Black Friday, ModCloth joins REI, which, for the third consecutive year, will close its 151 stores and process no online sales on one of retail’s biggest shopping days.

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