Study: Mobile to dominate online holiday sales
The forecast for holiday 2018 is…mobile.
Smartphones will account for 68% of all e-commerce visits during the upcoming holiday shopping season, according to new research from Salesforce. More orders and visits to online sites will be made on phones than any other device.
Cyber Week will account for 40% of the entire season’s online sales, up 8% from 2017, the report noted, and e-commerce traffic from Instagram will increase 51% over last holiday season. AI-based product recommendations will drive 35% of all holiday revenue.
“Mobile is undoubtedly the most disruptive force in retail since the onset of e-commerce,” said Rick Kenney, head of consumer insights, Salesforce. “We’ll see more visits from phones this season than total e-commerce visits across the entire 2015 shopping season. And even those in-store shoppers are mobile — 83% of shoppers aged 18-44 are using their phones while in a physical store.”
Here are the key takeaways from Salesforce’s 2018 Holiday Seasons Predictions and insights report:
• Cyber Week — the seven-day period beginning the Tuesday prior to Thanksgiving (Nov. 22) and running through Cyber Monday — will account for 40% of all digital revenue for the shopping season globally. Black Friday will again be the top digital shopping day of the season, capturing 10% of the season’s revenue, while Cyber Monday will contribute 8% of sales.
• The top five digital shopping days (ranked by global revenue) will be Black Friday, Cyber Monday, Cyber Sunday, Thanksgiving and Cyber Saturday.
• Fifty percent of holiday shopping will be complete by Dec. 2, a day earlier than the 2017 holiday season.
• For the first time during the holiday season, shoppers will place more orders from their phones than computers or tablets. Mobile phones will account for 46% of all orders, edging out computers (44%), and far outpacing tablets (9%):
• Mobile will deliver 68% of all e-commerce traffic this season, an all-time high, which reflects 19% year-over-year growth.
• Mobile traffic share will peak on Christmas Eve, when shoppers will turn to their phones to make 72% of all visits and 54% of orders.
• Free shipping will prove to be a mandate this season, as 72% of all orders will ship for free, a slight increase over last year.
• Instagram will emerge this holiday season as the fastest-growing social channel for referring digital traffic to retail sites. Instagram traffic will grow 51% year-over-year, while Facebook will see a 7% decline. Health and beauty shoppers are the most likely to tap from Instagram to an e-commerce site.
• AI-based product recommendations will drive more growth. Revenue driven from AI-powered product recommendations will grow by 25% since the 2017 holiday season AI-based product recommendations will drive 35% of all revenue.
“Retailers who infuse AI into the shopping experience can better understand customer needs and drive increased revenue with capabilities like personalized product recommendations,” said Kenney.
Prime members ready to buy Rx from Amazon
Amazon is primed to grab a healthy share of pharmaceuticals sales.
According to a study from Deutsche Bank, 85% of insured Prime members would be comfortable buying drugs straight from Amazon, posing a huge opportunity for the e-commerce giant, according to CNBC.
Growing interest from Prime members combined with Amazon’s acquisition of online pharmacy PillPack could position the online retailer to become a strong force in the healthcare segment.
“Amazon has a history of starting small, testing the market and fine-tuning the service, before launching a full-fledged commercial operation. As such, we believe it is a question of when and where — and not if — Amazon enters the healthcare space more forcefully,” Deutsche Bank analyst Lloyd Walmsley said in the report.
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Alibaba reportedly enters e-commerce deal in Russia
A new partnership will give Alibaba a foothold in Russia.
The Chinese e-commerce giant entered a deal with the sovereign wealth fund of Russia, the Russian Direct Investment Fund (RDIF), mobile operator MegaFon, and Internet group mail.ru. The partnership will enable the companies to establish a one-stop destination for consumers to communicate, socialize, shop and play games, according to CNBC.
Alibaba will contribute its local e-commerce arm, AliExpress Russia to the partnership — a move that could expose the company to a larger audience in Russia. It also said it would look at investing money into the venture, the report revealed.
According to CNBC, Alibaba will also cede control of its Russian business to form the partnership. The e-retailer will own 48% of AliExpress Russia with the Russian entities taking 52%. The agreement, expected to be formalized in the first quarter of 2019, will use Russia’s payments system known as Mir.
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