Ecommerce Sales & Ad Spend Are Up During These Uncertain Times: Is Your Site Taking Advantage of It?
More People Are Buying More Necessities Online. How Can Sites Compete With Amazon?
For most people and industries the current state is scary. For some in the ecommerce space there may be a silver lining in what is happening around us. MediaRadar data indicates many ecommerce companies have boosted their ad spend recently in response to changing shopping habits. In fact, ecommerce ad spend doubled in the US over the four weeks starting February 17, 2020.
Ecommerce will benefit with physical stores closing and many people will spend extra time on the internet.
However, there is an 8,000-pound gorilla in the room. Amazon, representing 36.9% of all US ecommerce in 2019, and almost 60% of all ecommerce growth (Source: Digital Commerce 360), has already started quietly buying up lots of inventory in many categories.
How can you compete better with Amazon?
Youneeq AI can help!
One way is to provide a better online customer experience starting with the first visit, even before you know anything about the new prospect. A better and more relevant experience will drive increased engagement which is a key factor in conversion.
Only 22% of marketers are happy with their conversion rates. (Link: https://youneeqai.com/only-22-of-marketers-are-happy-with-their-conversion-rates-how-about-you/) However, most companies still spend a large percentage of their budgets on acquisition (ads) while most of their time and resources are spent on converting known visitors already registered on their site. They typically overlook their anonymous audience which can represent up to 98% of their website traffic according to Adobe.
This is the Anonymous Gap (Link: https://youneeqai.com/anonymous-gap/), a costly problem but worthwhile to solve now.
Youneeq addresses the anonymous gap with an AI-powered personalization and optimization platform that has been trained and optimized for anonymous visitors, the largest digital marketing segment. Some of our ecommerce results include:
- 10-50%+ increase in engagement (clicks, product views, calls to action, offers)
- 7-25%+ improved conversion rates (email signup, add to cart, account creation, loyalty signup)
- 5-15% higher revenue (revenue, revenue per user, average order value)
To help companies during these extraordinary times Youneeq AI is extending our pilot program by adding a number of new opportunities for companies in ecommerce to try before you buy.
Recent Ecommerce Stats
59% — US consumers’ purchasing and online search behavior was up 59% from the weekend of Feb. 29 to March 2 as compared to the following weekend of March 7 to 9. Cleaning supply purchases rose 32% week-over-week, and personal health sales rose 24%. – MediaRadar)
100% — Ecommerce sites doubled their ad spending from $4.8 million for a trailing four-week period starting on Feb. 17 to $9.6 million for the week of March 9. – MediaRadar
30% — Generation Z and millennials said they increased their online purchases 30% in the month leading up to March 12 (when the World Health Organization said we are facing a pandemic on March 11). 58% of people ages 18-39 had ordered grocery items online for store pickup. That compares with 34% of the general population that ordered grocery items for store pickup, and 25% who had increased purchases. – Acosta
General Ecommerce Stats
16% — Online spending represented 16.0% of total US retail sales in 2019 for the year and accounted for more than half – 56.9% – of all gains in the retail market. – Digital Commerce 360 analysis of Commerce Department retail data
36.9% — Amazon accounted for more than a third – 36.9% – of all ecommerce in the US in 2019 and more than half – 57.4% – of all ecommerce growth. – Digital Commerce 360 Year in Review
Check out some other stats on our Resources page (Link: https://youneeqai.com/resources/)