Despite a healthy pace of 10.3% compounded annual growth rate from 2007-12, e-commerce only makes up a small percentage of the overall retail market. Sales via laptop/desktop computers make up the vast majority of e-commerce, but sales via tablet are increasing faster than sales through both laptops/desktops and smartphones. Tablet penetration is currently very low, not surprising considering its relative newness as a technology, but it is growing rapidly. Targeting these mobile-device users is important because of their higher than average number of purchases and spending amounts. The slow growth of e-commerce despite fairly high penetration suggests that online retailers should concentrate on building their sales through their existing customer base, as opposed to trying to attract new customers. Millennials are an important component of the existing online shopping contingent and tend to respond to low prices and peer/socially driven recommendations.

This report builds on the analysis presented in Mintel’s Online and Mobile Shopping – U.S., March 2012, July 2011 of the same name and Mintel’s Online Shopping – U.S., June 2010 and May 2009.

For the purposes of this report, the online and mobile shopping market has been defined as sales to consumers of merchandise conducted via the internet or other online system (including email, instant messaging, and smartphone applications). It covers web-only (“pure-play” retailers) as well as the online operations of brick-and-mortar retailers, catalog, television specialists, and other remote retailers. Market estimates implicitly include shopping via “apps” and smartphones.

The focus of this report is on tangible objects that require pick-up or delivery: digital media, travel, entertainment tickets, insurance policies, and other products that are not tangible are not the main subject of this report. Prescription drugs may be included in sales figures, but is also not a sector covered in this report.

Value figures throughout this report are at retail selling prices (rsp) excluding sales tax unless otherwise stated.

Market Size and Forecast: Sales based on data from the Census Bureau’s Monthly Retail Trade Survey. The Census Bureau defines e-commerce as “the sale of goods and services where the buyer places an order, or the price and terms of the sale are negotiated over an Electronic Data Interchange, the internet, or another online system (extranet, email, instant messaging). Payment may or may not be made online.”

The figures used in this report specifically refer to business-to-consumer e-commerce. The Census Bureau estimates this based on certain assumptions as there is no way of definitively identifying which transactions are made for business purposes through retail venues that are open to the public. Sales figures exclude travel purchases, financial services, and ticket purchases.

For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to identify consumer attitudes and behaviors toward online and mobile shopping. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted in March 2013 among a sample of 2,000 adults aged 18+ with access to the internet.

Mintel selects survey respondents so that they are proportionally balanced to the entire U.S. adult population based on the key demographics of gender, age, household income, and region. Mintel also slightly oversamples – relative to the population – respondents that are Hispanic or black to ensure an adequate representation of these groups in Mintel’s survey results. Please note that Mintel’s exclusive surveys are conducted online and in English only. Hispanics who are not online and/or who do not speak English are not included in Mintel’s survey results.

Mintel has also analyzed data from Experian Marketing Services, using the Summer 2012 Simmons NHCS Adult Study Full Year – POP. The study was carried out August 2011-March 2012, and the results are based on the sample of 19,261 adults aged 18+ with internet access.

For trending, the following older surveys have also been used:

• Experian Marketing Services, Summer 2009 Simmons NHCS Adult Study Full Year – POP

• Experian Marketing Services, Summer 2010 Simmons NHCS Adult Study Full Year – POP

• Experian Marketing Services, Summer 2011 Simmons NHCS Adult Study Full Year – POP

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (white, black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

Television advertising creative is provided by Competitrack, the leading U.S. competitive ad tracking provider. For Mintel reports, Competitrack monitors network, cable, spot, syndicated, public, and local television advertising.

For further information, or to order television, magazine, newspaper, online display, online video, radio, outdoor, viral, or cinema advertising, or alternative media, inserts, and circulars, please contact Competitrack at websales@competitrack.com, or call 718.482.4200.

The following abbreviations are used in the report:

Generations are discussed within this report, and they are defined as:

* also known as Generation Y or Echo Boomers

** previously known as Post-Millennials