©2011 eMarketer Inc.

M A R C H 2 4 2 0 1 1

The Future of US Retail Ecommerce

Presented by:

Jeffrey GrauPrincipal Analyst

Sponsored by:

©2011 eMarketer Inc.

Agenda

Online Sales

Online Shoppers

Online Buyers

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Online sales

Methodology:eMarketer benchmarks

against the US Dept. of Commerce, for which the last year measured was 2010.

The DoC excludes sales of travel, digital downloads and event tickets.

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Retail ecommerce sales have rebounded from the recession

Online sales will have 10.3% CAGR from 2010 to 2015

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Forecasters are closer in agreement than meets the eye

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Ecommerce is growing several times faster than store sales

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Ecommerce’s share of total retail sales is small but growing

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Consumers shop online for price, convenience and selection. These benefits are even more compelling during the holidays.

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Ecommerce growth engine: mobile commerce

58.2% CAGR

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Ecommerce growth engine: social commerce

93.4% US CAGR

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Ecommerce growth engine: daily deal sites

35.1% CAGR

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Other factors driving ecommerce growth

Sophisticated merchandising techniques: augmented reality, online videos, product reviews and recommendations

Operational excellence: cross-channel shopping features and same-day delivery of consumer goods

Improved customer service: fast shipping, easy returns and knowledgeable customer service agents

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Online shoppers

Definition:Internet users ages 14+

who have browsed, researched or compared products online within the past year but have not necessarily bought online

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Most internet users have discovered the benefits of online shopping

Online shoppers will have 3.1% CAGR from 2010 to 2015

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Online research is now a mainstream activity.

Even the most resistant consumers in each group have high usage rates.

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Consumers usually shop online to check prices, find a retailer and compare product features

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Consumers have honed their online shopping skills

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Smartphones are a relatively new (but increasingly important) research tool in the online shopper’s toolbox

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Online buyers

Definition:Internet users ages 14+

who have made at least one purchase online within the past year

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Seven out of ten internet users are online buyers

Online buyers will have 3.9% CAGR from 2010 to 2015

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Most online shoppers have stepped up to become online buyers

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Online retailers who help consumers overcome their resistance to online shopping will be rewarded with higher sales

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Ecommerce sales per online buyer is growing faster than online buyers

Spending per online buyer will have 6.2% CAGR from 2010 to 2015

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Women heavily outspend men in several large categories. Men are not nearly as dominant in any of the categories shown

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Online buying drops off at each end of the age spectrum

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Teen girls are buying online at higher rates

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The online buying rate rises going up the income ladder

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Lower income online buyers are having a greater impact on ecommerce

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Takeaways for retailers

Ask what are the friction points that hold back consumers from spending more on your site

Monitor visitor traffic to uncover demographic trends

Multichannel retailers should use the web to leverage their greatest asset—their stores

Internet pure plays should offer features that build on-site engagement

© 2011 IBM Corporation

IBM Coremetrics Benchmark Holiday Campaign

2010 Holiday Resource Page with links to Black Friday & Cyber Monday data: www.coremetrics.com/holiday10

Visit the Coremetrics Voice of Reason resource site: www.coremetricsvoice.com

Stay tuned for the 2011 Holiday Readiness Report coming in June!

For questions and more information, send an email to info@coremetrics.com

© 2011 IBM Corporation

Highlights A Decade of Expertise in Web Analytics

and Marketing Optimization Acquired by IBM in July 2010 Portfolio of Marketing Optimization

Applications built on top of a Unified Web Analytics Foundation

Leading Marketing Optimization Solution – World-class Customer Service

Delivering business value to over 2,100 global brands

Named Leader in Forrester WaveTM 2009. Top scores for:

Strategy Reference Client Strength Integration

Cyber Monday 2010 performance data: 1.48B server calls 99.9% system availability

Leadership

… Coremetrics Benchmark is the gold

standard in online retail performance data.

- Top Business Publication

Recognition

Coremetrics, an IBM Company

© 2011 IBM Corporation

B2BB2B

FinServFinServ

Travel & HospitalityTravel & Hospitality

RetailRetail

ConsumerConsumer

Delivering Value to Global Brands

© 2011 IBM Corporation

IBM Coremetrics Benchmark

• Over 1300 Online Brands Participate

• Aggregate Index– Compare against industry– Compare against peers

• 4 Verticals– Retail– Content– Financial Services– Travel

• 18 Sub-Verticals in Retail• Apparel• Health and Beauty• Department Stores• Jewelry• Sports Apparel and Gear• and 13 others

www.coremetrics.com/holiday10

© 2011 IBM CorporationIBM Confidential

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The Future of US Retail Ecommerce

Questions & AnswersRegistrants will receive an email tomorrow that includes a link to view the deck and webinar recording.

For more discussion, please join us after the webinar on LinkedIn. Search for the eMarketer Group and click on Discussions.

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Presented by:Jeffrey GrauPrincipal Analyst, eMarketer, Inc.

Sponsored by: