Estimated eCommerce Holiday Spending for 2013

With the 2013 holiday season behind us, it is time to take a look at eCommerce data to see where opportunities lie and what trends can be expected in 2014. According to estimates from Custora, 2013 was not too different from 2012. The major change is that more consumers are using their mobile devices to shop online.

It is estimated that total eCommerce revenue in the U.S. generated during the holiday season, which is Nov. 1 through Dec. 31, is up 12 percent compared to 2012. When looking at the two largest shopping days of the year, Black Friday accounted for 16.2 percent of total eCommerce holiday spending and Cyber Monday accounted for 18.2 percent.

The average amount spent per order is estimated to have no change from 2013 to 2012, however eCommerce orders placed during the holiday season are estimated to have increased 12 percent in comparison to 2013. eCommerce conversion rates are also estimated to have increased from 2.4 percent in 2012 to 2.5 percent in 2013.

As mentioned, the largest estimated change relates to how consumers use their mobile devices to shop online. The estimated change of eCommerce orders placed using mobile devices increased from 20 percent in 2012 to 29 percent in 2013. Of those orders, 83 percent were done from an iOS device and 16 percent came from an Android device. Is your website mobile-friendly? To learn more about responsive design, which makes your website display in a user-friendly way no matter the screen size, click here.

Unique traffic to eCommerce websites is also estimated to have increased by 15 percent.
Custora also put together a report, “eCommerce Snapshot Holiday Edition,” that dug into 2012 data in regards to eCommerce spending during that holiday season. Some of the most important takeaways include the customer lifetime value of those acquired during the holiday season and also the importance of two four-day blocks of time in December that account for the same percentage of holiday spending as Black Friday and Cyber Monday combined.

The first major point gathered from the data shows that customers acquired during the holiday season have a lifetime value that is 15 percent lower than customers acquired during the rest of the year (January – October). That means these customers are less likely to become repeat shoppers.

Data also shows that while Black Friday and Cyber Monday draw huge sales, there are two other periods of time in December that are just as lucrative. In 2012, Black Friday and Cyber Monday sales combined accounted for 8.58 percent of total holiday spending. Also in 2012, from Saturday, Dec. 1 to Tuesday, Dec. 4, total sales accounted for 9 percent of all holiday spending. Then again from Monday, Dec. 10 through Thurs., December 13, consumer spending accounted for 8.49 percent of total holiday spending. So while Black Friday and Cyber Monday are important days to prepare for, don’t forget to incorporate a strong marketing strategy for these two four-day periods as well.

Struggling with Abandoned Shopping Carts? Consider These Tips to Lure Customers Back to Your Web Store

Every business with a web store knows the pain of abandoned shopping carts and probably why consumers jump ship. The top reasons being:

• High shipping costs
• The desire to shop around more
• Not wanting to create an account with the merchant
• A complex checkout process
• Preferred method of payment missing

**To learn more about why consumers abandon carts, read one of our blog posts from July, “How to Decrease Shopping Cart Abandonment and Increase Conversion Rates.”

While knowing the top causes of abandoned carts can provide some insight about how to increase conversion rates, there are some other tips that can be implemented as well.

First of all, since we know that consumers like to shop around for the best deal, make it easy for them to create saved carts or add items to wishlists that can be accessed at a later time. This makes it easy for them to return to your web store after they are certain your product is the best deal, and then make a purchase.

Another way to improve your conversion rates is with a strong follow-up marketing campaign. Provide customers with reviews of the product they have abandoned paired with images and a link. You could also consider offering them a special rate if they “act now” or try to sell them on free shipping. Timeliness is important with email too. Make sure you do not wait too long to remind customers of what they have left in their shopping carts. Don’t be afraid to test new ideas; different businesses in different industries have customers with varying demands.

Aside from regaining lost customers, try lowering shopping cart abandonment rates by:

• Streamlining your checkout process; don’t forget to make it mobile-friendly. One way to do this is with responsive web design. Learn more here.
• Show that your products are superior by displaying great customer reviews and providing thorough information.
• Don’t hide costs, like shipping.
• Make checkout a quick, easy process; consider asking the customer to create an account after a purchase has been made.

Abandoned shopping carts are a common pain point experienced by many businesses that sell online. Try implementing any or all of these tasks to regain lost customers and increase conversion rates.