Traditional retailers are grabbing more online dollar share of high-ticket items, especially consumer electronics.
Twenty-nine percent of online consumer electronics (CE) dollar sales in the United States were made through traditional retailer websites for the 12 months ending June, 2018. During this time-frame, they gained online dollar share primarily in high average sales price (ASP) segments, spanning products such as TVs, PCs, tablets, and printers, according to “Checkout E-commerce,” a study from The NPD Group.
According to data, traditional retailer websites made up nearly half (46%) of online U.S. CE dollar sales for these higher ASP items, up three percentage points from the year prior. Lower ASP items make up only 13% of dollar sales, as pure play online retailers still dominate this more “grab and go” segment.
Given their success in selling higher ASP segments, average online spend per purchase was nearly four times higher on traditional retailer websites ($233 per purchase) than through pure play online retailers ($60 per purchase). However, pure play online retailers are seeing an average of five additional annual purchases, when compared to traditional retailer websites, providing more occasions to sell.
“Across the retail landscape traditional retailers are finding success in bringing what they do well in store to the online channel. They are winning online in high ASP segments by leveraging their merchandising expertise and the strong product selections they have honed in store, on their e-commerce platforms to compete with pure play and DTC,” said Stephen Baker, VP, industry advisor for The NPD Group. “This approach is clearly paying off in the CE industry, as evidenced by growing online sales across a variety of categories.”