Traditional Retailers Are Gaining Ground in Online Sales of High Ticket Tech Items, Reports NPD's Checkout
According to NPD's Checkout, 29 percent of U.S. online CE dollar sales were made through traditional retailer websites for the 12 months ending June 2018.
PORT WASHINGTON, N.Y., Oct. 3, 2018 /PRNewswire-PRWeb/ -- According to NPD's Checkout E-commerce information, 29 percent of U.S. online consumer electronics dollar sales were made through traditional retailer websites for the 12 months ending June 2018. During this timeframe, they gained online dollar share primarily in high average sales price (ASP) segments, spanning products such as TVs, PCs, tablets, and printers.
Traditional retailer websites made up nearly half (46 percent) of online U.S. CE dollar sales for these higher ASP items, up three percentage points from the year prior. For lower ASP items they make up only 13 percent of dollar sales, as pure play online retailers still dominate this more 'grab and go' segment.
Given their success in selling higher ASP segments, average online spend per purchase was nearly four times higher on traditional retailer websites ($233/purchase) than through pure play online retailers ($60/purchase). However, pure play online retailers are seeing an average of five additional annual purchases, when compared to traditional retailer websites, providing more occasions to sell.
"Across the retail landscape traditional retailers are finding success in bringing what they do well in store to the online channel. They are winning online in high ASP segments by leveraging their merchandising expertise and the strong product selections they have honed in store, on their e-commerce platforms to compete with pure play and DTC," said Stephen Baker, vice president, industry advisor for The NPD Group. "This approach is clearly paying off in the CE industry, as evidenced by growing online sales across a variety of categories."
Source: The NPD Group, Checkout E-commerce, July 2017- June 2018 vs. July 2016- June 2017
*Traditional retailer websites are represented by brick-and-mortar retailers that sell consumer electronics both in-store and online
About The NPD Group, Inc.
NPD offers data, industry expertise, and prescriptive analytics to help our clients grow their businesses in a changing world. Over 2000 companies worldwide rely on us to help them measure, predict, and improve performance across all channels, including brick-and-mortar and e-commerce. We have offices in 27 cities worldwide, with operations spanning the Americas, Europe, and APAC. Practice areas include apparel, appliances, automotive, beauty, books, B2B technology, consumer technology, e-commerce, fashion accessories, food consumption, foodservice, footwear, home, juvenile products, media entertainment, mobile, office supplies, retail, sports, toys, travel retail, games, and watches / jewelry. For more information, visit npd.com. Follow us on Twitter: @npdgroup.
Checkout delivers the most comprehensive view of consumer purchase behavior for general merchandise categories, across all retailers over time, to help you understand how to adjust your marketing to fuel growth. Checkout E-commerce offers the most complete and accurate view of the online channel – including first and third-party sales for Amazon and other marketplaces, 400+ e-commerce retailers including direct-to-consumer, and an early read on emerging players. Information is collected from more than 3 million consumers, through data provided by our partner Rakuten Intelligence and NPD's own proprietary receipt-harvesting mobile phone app.
SOURCE NPD
Share this article