Our last DigiBix event, held in October, was all about the future of ecommerce. We had some fantastic speakers delivering well-researched predictions on the future of our industry and reflecting on the current ecommerce marketplace.
As you know, DigiBix is for retailers only, so we feel it's only fair to share some of the insights discussed with our loyal 'browse' readers. So here's a roundup of some of the staggering statistics shared by Andrew McClelland, Head of Industry Insight at IMRG. As well as some stats we've gathered from other sources that all come together to paint a vivid picture of online retail in 2015. From here, we can predict what's likely to evolve and grow in 2016 and beyond.
The Ecommerce Landscape
E-Retail sales broke the £100bn mark for the first time in 2014, reaching £104bn. This means E-Retail now accounts for 24% of the total retail market and it's predicted that by the end of 2015 the market will have grown by 12% as shoppers spend £116bn online (source: IMRG and Capgemini).
Econsultancy predicted that on average, UK consumers will spend £1,174 online throughout the whole of 2015 , which would make us Brits the most frequent online shoppers in Europe (source: Econsultancy).
However, we are significantly behind Hong Kong, who are the biggest online spenders, with the average consumer spending $2,868 (£1,900) per year online shopping (source: Entrepreneur).
The average basket value in the UK in 2015 is £78 and the average conversion rate was 4.7% (source: IMRG and Capgemini).
Year on year growth for online-only retailers has been increasing steadily in 2015 while for multichannel retailers, the rate has been more erratic.
What To Expect From Black Friday
In 2014, 17% of total online Christmas sales were during Black Friday week (estimate £3.7bn).
£810m was spent online, with a further £720m spent online on Cyber Monday.
There was an unprecedented spike in volume of sales over the Black Friday / Cyber Monday weekend, with sales 30% above expected volumes (source: IMRG and Capgemini).
The graph below charts traffic to retail websites over the Christmas period (source: Experian).
The following graph shows conversion rate by channel (source: IMB's Holiday Readiness Report).
Here are some Christmas spending predictions for 2015 (source: Experian and IMRG)
Black Friday – £1.07bn, up 32% year on year (from £810m)
Cyber Monday – £943m, up 31% year on year (from £720m)
Manic Monday – £733m, up 10% year on year (from £666m)
Christmas Day – £728m, up 11% year on year (from £658m)
Boxing Day – £856m, up 22% year on year (from £699m)
New Year’s day – £638m, up 33% year on year (from £478m)
James Miller, Senior Retail Consultant at Experian Marketing Services, said:
“The 2015 Christmas period is on track to be another record year for online retail in the UK. We expect that Black Friday will continue to break new ground for online shopping, passing the billion pound mark for the first time. With consumers now expecting great bargains and trouble free service, retailers must ensure that they have planned their marketing strategies and logistics around these key dates, with carefully prepared cross-channel campaigns, engaging the right customers, via the right media.
The different types of customer driving the pre- and post-Christmas sales rush must also be taken into account. Retailers should be aware of the strain that will be placed on delivery networks in the run up to Christmas, and also provide a good level of in-store support for the Boxing Day and New Year’s Day rush.”