Retailers are eagerly waiting to see what Santa brings them in the way in sales on Cyber Monday, the day that quickly became the "traditional" holiday ONLINE shopping day. Be that as it may, it's imperative for retailers to know where they and Cyber Monday have been, in order to know where they're going, as well as what they're measuring against in terms of eCommerce Online Retail Competition. Best Computer Science Schools put together an excellent summary about the history and development of Cyber Monday. Armed with this background, retailers can get a better perspective of themselves in relation to the competition on this important online shopping day in 2013. (Infographic at end of the blog post).
First some facts:
A significant portion of online sales are earned from November to December, and on Cyber Monday in particular. Cyber Monday was conceived by a division of the National Retail Foundation, Shop.org, in 2005. Up to now, American dollars spent with online retailers annually: $186.15 billion. In 2010, Cyber Monday became the highest-grossing shopping day of the year. That was when online retailers raked in more than $1 billion in a single day for the first time in history.
In 2010, 2011, and 2012, Cyber Monday ranked among the highest-grossing shopping days of the year. (Shopping was predominantly done at: Amazon, 35 million visits; Walmart, 18.6 million, Best Buy, 9.3 million, Target, 8.7 visits, JCP, 5.3 million visits). American dollars spent with online retailers on Cyber Monday 2012 was $1.465 Billion.
In case you're comparing yourself (and I hope you're not): Amazon reported $61 Billon in total revenue in 2012.
*The number of items purchased from Amazon.com on Cyber Monday 2012 was (26.5 million), almost double that of Amazon's own tally in 2010. Amazon had the highest rate of sale of per second on Cyber Monday 2012.
What are the top categories of items being bought on Cyber Monday?
1. Digital media content and subscriptions
2. Toys and games
3. Consumer packaged goods
4. Consumer electronics
5. Video game consoles and accessories.
Bottom Line For A Retailers Bottom Line:
The simple fact is that we cannot all be Amazon, Walmart, Best Buy, Target, or JCP. So look at this from the viewpoint of your own size and competition. Here are some interesting statistics and information on which you can base your strategy for the best offense and defense for Cyber Monday:
1. 96% of customers cited free shipping as a motivating factor for shopping on Cyber Monday.
2. The percentage cost difference between buys made that included free shipping, and buys that required paid shipping was 42%.
3. The average number of items per order on Cyber Monday 2012, 8.34 items per order, was up 14% from 2011.
4. The average order value on Cyber Monday 2012 was $185.00 (Down 7% From 2011).
5. 47.1 of those Cyber Monday sales were made from work; 47.2% were made from home.
A couple other things that will affect future Cyber Mondays:
New Internet taxes:
By the end of 2013, 16 US states will collect taxes from online buyers.
Use of mobile devices:
*Mobile usage increased by 70% on Cyber Monday from 2011 to 2012. Sales in the same period doubled.
* In 2012, Americans spent $10 billion using their mobile devices.
* 18% of Cyber Monday shoppers reported using a mobile phone or tablet, for 13% of total sales.
* 90 percent of the minimum number of sales on Cyber Monday 2012 were attributed to iPad users.