Author: Mintel Group Ltd.
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Online Shopping - US - May 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
The issues
Onward and upward
Figure 1: Total US online retail sales and fan chart forecast, at current prices, 2012-22
Still less than 10%
Figure 2: Percentage of total purchases online, March 2018
Old habits die young
Figure 3: Barriers to purchase, March 2018
Price can break old habits
Figure 4: Price-related attitudes and behaviors toward online shopping, March 2018
Grocery lags behind
Figure 5: Categories purchased online, March 2018
The opportunities
Increase shopping frequency among average online shoppers
Figure 6: Online shopping frequency, March 2018
Hone mobile and voice strategies
Figure 7: Attitudes and behaviors related to mobile and voice-command devices, March 2018
Consider the store’s role in the path to purchase
Figure 8: Role of online and stores in purchase journey, March 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
E-commerce represents less than 10% of total retail
Apparel sales quickly shift online
M-commerce boosts total e-commerce
Blurred lines between physical and digital
Digital natives will comprise a larger portion of US
MARKET SIZE AND FORECAST
Despite nearly doubling in the past six years, online sales comprise less than 10% of total retail
Figure 9: Total US retail sales and online sales, at current prices, 2012-17
Online sales set to double from 2017-22
Figure 10: Total US online retail sales and fan chart forecast, at current prices, 2012-22
Figure 11: Total US online retail sales and forecast, at current prices, 2012-22
MARKET BREAKDOWN
Apparel and accessories leads ecommerce sales
Figure 12: E-commerce sales by type of products, 2012 and 2017^
E-commerce growth fueled by mobile
Figure 13: M-commerce’s percentage of total e-commerce sales, 2018-22
Figure 14: Devices used, March 2018
Mobile sites favored over apps
MARKET PERSPECTIVE
Most shopping is not done online
Figure 15: Percentage of total purchases online, March 2018
Blending of physical and digital
Figure 16: Attitudes and opinions toward online shopping, October 2016-November 2017
Figure 17: Online shopping behaviors and preferences in relation to in-store, March 2018
MARKET FACTORS 
Nearly everyone shops online
Figure 18: Population aged 18 or older, by age, 2013-23
Smartphones gain universal appeal
Figure 19: Mobile device ownership, by age, June 2017
Parents shop more online, but households with kids on the decline
More ways to jump online
Figure 20: Personal and household technology ownership, June 2017
Figure 21: Devices used for digital activities, December 2017
Broadband reaches capacity while US household growth slows
Figure 22: Household internet service provider subscriptions, November 2012-17
Figure 23: Household internet service provider subscriptions, by household income, October 2016-November 2017
Higher income generally correlates with higher levels of online engagement
Figure 24: Median household income, in inflation-adjusted dollars, 2006-16
Social media platforms becoming more shoppable
Figure 25: Product research and purchases on social media, by gender and age, February 2018
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Amazon…and then everyone else
Online grocery shopping lags behind
Voice commerce emerges
Off to the fulfillment races
WHAT’S WORKING?
No end in sight for Amazon…
Figure 26: Top 10 online retailers, 2017
Figure 27: Percentage of online purchases on Amazon, by repertoire of online shopping frequency, March 2017
Figure 28: Use of Amazon and Google when shopping, by age, December 2017
Figure 29: Percentage of online purchases on Amazon prime membership and intent to renew, March 2017
…but it’s not all about Amazon
Figure 30: Top 20 retailers with highest 5-year CAGR, 2017
What’s driving growth?
Figure 31: Chewy postcard mailer, April 2017
WHAT’S STRUGGLING?
Select bookstores, department stores and office supply stores see losses
Figure 32: Top 20 retailers showing biggest sales decreases, 2017
Online grocery still not mainstream
WHAT’S NEXT?
Shopping with your voice
Figure 33: Online shopping behavior related to voice command ordering, by select demographics, March 2018
Augmented reality gets a little bigger
Beauty
Furniture
Apparel
Figure 34: Zara’s augmented reality experience, e-mail, April 2018
Future of fulfillment is fast and furious
More create-your-own holidays?
Figure 35: Wayfair’s Way Day promotional e-mail, April 2018
Figure 36: Overstock.com spring black friday e-mail, April 2018
THE CONSUMER – WHAT YOU NEED TO KNOW 
Three quarters of consumers are average to heavy online shoppers
More savings, more time
Physical stores preferred out of habit, to see products
Marketing doesn’t end with the purchase
Working with the store, not against it
ONLINE SHOPPING FREQUENCY 
Finding the shopping moments
Figure 37: Online shopping frequency, March 2018
A closer look at the online shoppers
Figure 38: Repertoire of online shopping frequency, March 2018
Heavy online shopper profile
Figure 39: Heavy online shopper profile, March 2018
Light to non-online shopper profile
Figure 40: Light to non-online shopper profile, March 2018
Average online shopper profile
CATEGORIES PURCHASED ONLINE 
Apparel and electronics top categories purchased online
Figure 41: Categories purchased online, March 2018
Over a third of men are buying personal care, household goods online
Figure 42: Categories purchased online, by gender and age, March 2018
Rural shoppers in line with suburbanites and urban dwellers
Figure 43: Categories purchased online, by Area, March 2018
PURCHASE DRIVERS
What drives a consumer to shop online instead of in-store?
Figure 44: Purchase drivers, March 2018
Figure 45: Purchase drivers, by repertoire of online shopping frequency, March 2018
Convenience and savings remain universal drivers regardless of category
Figure 46: Purchase drivers, by category, March 2018
PATH TO PURCHASE
Consumers compare prices and read customer reviews before buying
Figure 47: Pre-purchase process, March 2018
Everyone appreciates a good deal
Figure 48: Pre-purchase process related to price savings, by household income, March 2018
Social media provides inspiration for young buyers
Figure 49: Pre-purchase process related to social media, by gender and age, March 2018
Showrooming still occurring
Figure 50: Percentage who visit a store before buying online, by age and repertoire of online shopping frequency, March 2018
More involved categories equate to longer path to purchase
Figure 51: Pre-purchase process, by category – Part one, March 2018
Figure 52: Pre-purchase process, by category – Part two, March 2018
BARRIERS TO PURCHASE
Why wait, when you can get it now in the store?
Figure 53: Barriers to purchase, March 2018
Figure 54: Barriers to purchase, by repertoire of online shopping frequency, March 2018
Barriers can vary by category
Figure 55: Barriers to purchase, by category, March 2018
OPPORTUNITIES FOR RETAILERS AND BRANDS
Define mobile moments
Make items shoppable through social media
Figure 56: Online shopping behavior related to social media, by gender and age, March 2018
Become more personalized and personable
Figure 57: Online shopping attitudes related to personalization, by select demographics, March 2018
Maintain transparency, especially at checkout
Figure 58: Online shopping behaviors related to price transparency at checkout, by household income, March 2018
Test tactics to lure cart abandoners back
Figure 59: Online shopping behaviors related to cart abandonment, March 2018
Simplify the returns process
Consider reordering and/or subscription services
Figure 60: Online shopping attitudes related to reordering, by parental status/age of child, March 2018
Figure 61: Online shopping attitudes related to online subscription services, by household income, March 2018
Enhance product descriptions and images
Improve integration across devices
Figure 62: Online shopping attitudes related to cross-device integration, by age, March 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET 
Figure 63: Total US online retail sales and forecast, at inflation-adjusted prices, 2012-22
Figure 64: E-commerce sales by type of products, 2012-17
Figure 65: Number of households, 2007-17
Figure 66: Households, by presence of related children, 2007-17
Figure 67: Disposable Personal Income change from previous period, January 2012-February 2018
APPENDIX – KEY PLAYERS 
Figure 68: Overstock.com spring black friday e-mail campaign results, April 2018
APPENDIX – THE CONSUMER 
Figure 69: Attitudes and opinions toward online shopping, October 2016-November 2017
Figure 70: Time spent online at home, October 2017-November 2017
Figure 71: Average online shopper profile, March 2018
Figure 72: Categories purchased online, November 2012-17
Figure 73: Websites ordered from, October 2016-November 2017
Figure 74: Online home delivery subscription service, by household income, October 2016-November 2017
Figure 75: Online activities, October 2016 – November 2017

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