Online and Mobile Shopping - US - September 2016

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
Amazon holds aces
Figure 1: Extent of online shopping conducted on Amazon, April 2016
New shoppers a rare find
Figure 2: Incidence of online shopping in past month, by device, April 2016
Grocery shopping not quite ready for prime time
Figure 3: Shopping for groceries online, by parental status, April 2016
The opportunities
Same buyers, more sales
Figure 4: Engagement with online shopping, April 2016
Young, high-income, and urban households load carts up
Figure 5: Median spend on most recent order, by selected demographics, April 2016
Social mandates boost sales
Figure 6: Fast-growing retailers with social mandates, 2015
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Sales double 2011-16
Trillions remain available at brick-and-mortar
Mobile the location of growth 2014-16
MARKET SIZE AND FORECAST 
Steady double-digit growth
Figure 7: Total US online retail sales and forecast, at current prices, 2011-21
Best-case scenario places sales near $1 trillion in 2021
Figure 8: US total online shopping sales and fan chart forecast, at current prices, 2011-21
MARKET PERSPECTIVE
Barriers remain in food, household goods
Figure 9: Categories avoided in online shopping, April 2016
In their own words
Shifting landscape for groceries
Figure 10: Shopping for groceries online, by gender and age, April 2016
In their own words
MARKET BREAKDOWN 
Mobile carries a third of sales
Figure 11: US mobile shopping sales vs online shopping sales via desktop, 2014 and 2016
MARKET FACTORS – TECHNOLOGY
Future growth in broadband households limited
Figure 12: US residential broadband subscriptions, 2012-15
Figure 13: Number of US household, 2005-15
Mid- and high-income households already broadband subscribers
Figure 14: Home internet subscription, by household income, October 2015-June 2016
Tablet ownership still rising
Figure 15: Smartphone and tablet ownership, April 2015-June 2016
Apps for phones, sites for tablets
Figure 16: Methods of internet access, June 2016
MARKET FACTORS – DEMOGRAPHICS
Households with children
Figure 17: Engagement with online shopping, by parental status, April 2016
Focusing on increasing sales among existing shoppers with children
Figure 18: Number of US households, by presence of children, 2005-15
Growing Hispanic population spending more online
Figure 19: Mean spend on most recent order, Hispanics vs non-Hispanics, April 2016
Ages 25-44 show elevated spending
Figure 20: Mean spend on most recent order, by age, April 2016
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Amazon pulls further ahead
Mass merchandisers, department stores see big gains
Rapid growth aligned with social mandates and category specialists
WHAT’S WORKING?
Amazon grows sales $12.9 billion in 2015
Figure 21: Extent of online shopping conducted on Amazon, April 2016
In their own words
Software, online debuts boost Apple’s online sales
Walmart prioritizes development of online resources
Figure 22: Interest in buying groceries online, by Hispanic origin, April 2016
Department stores see rising e-commerce sales
In their own words:
Figure 23: Selected online retailers with increases in sales of $500 million or more in 2015
WHAT’S STRUGGLING?
Declines linked to sector or brand-specific woes
Figure 24: Selected online retailers with sales declines in 2015
WHAT’S NEXT?
Ethical brands ring it in
Furniture begins transition to e-commerce
Everyday purchases
Figure 25: Selected online retailers with sales increases of 50%+, 2015
THE CONSUMER – WHAT YOU NEED TO KNOW 
Desktop dominates
Spending and frequency intertwined
Price comparisons top prepurchase activity
Young men, parents less concerned with shipping fees
USE OF DESKTOP AND MOBILE PLATFORMS
Desktop platform primary arena for conversions
Figure 26: Incidence of online shopping in past month, by device, April 2016
Desktop dominance holds in frequency comparisons
Figure 27: Frequency of online shopping in past month, by device, April 2016
FREQUENCY OF ONLINE SHOPPING
Two thirds make multiple purchase per month
Figure 28: Frequency of online shopping (any device), by parental status, April 2016
Hispanics devoted to frequent purchasing
Figure 29: Frequency of online shopping (any device), by race/Hispanic origin, April 2016
CART SIZE
Orders typically well above free shipping limits
Figure 30: Mean spend on most recent order, by parental status, April 2016
Urbanites carry more weight
Figure 31: Mean spend on most recent order, by location of residence, April 2016
Figure 32: Motivations for online shopping, April 2016
ATTITUDES TO SHIPPING
Avoiding fees priority for majority
Figure 33: Attitudes to shipping, April 2016
Parents more likely to splurge
Figure 34: Attitudes to shipping, by parental status, April 2016
Young men less sensitive to fees
Figure 35: Attitudes to shipping, by gender and age, April 2016
Frequent shoppers more liberal with fees
Figure 36: Attitudes to shipping, by online shopping frequency, April 2016
SHOPPING PREFERENCES
Some leeway available in price
Figure 37: Preferences and behavior in retailer selection, April 2016
Parents give thought to suggestions, service, subscriptions
Figure 38: Preferences and behavior in retailer selection, by parental status, April 2016
Hispanics consider more than price
Figure 39: Preferences and behavior in retailer selection, by Hispanic origin, April 2016
Frequent shoppers favor overall experience
Figure 40: Preferences and behavior in retailer selection, by online shopping frequency, April 2016
THE PURCHASE PROCESS
Price comparisons, review top prepurchase activities
Figure 41: Steps taken prior to online shopping purchases, by category, April 2016
In their own words
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Market Size definition
Fan chart forecast
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
Terms
APPENDIX – MARKET
Figure 42: Total US online sales, at inflation adjusted prices, 2011-21
Figure 43: Population by Hispanic origin, 2011-21
Figure 44: Population by age, 2011-21
APPENDIX – CONSUMER 
Cart size
Figure 45: Mean spend on most recent order, by household income, April 2016
Motivations for online shopping
Figure 46: Motivations for online shopping, by parental status, April 2016
Engagement
Figure 47: Engagement with online shopping, by area, April 2016
Purchase process
Figure 48: Steps taken prior to online shopping purchases, by product category, by frequent shoppers, April 2016