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Scoop.it!
US eCommerce grows around 15% in '15Q1 and penetration% goes up to 8.6% (Note: total retail sales excludes Auto/Gas in my calculation). In Q4 pen% is likely to be up to 10%. Non adjusted US retail
Farid Mheir's insight:
Useful data and insights from the US census survey. Essential for anyone thinking of going into eCommerce, the data shows the steady growth of eCommerce but its different penetration by category. For additional information on apparel retail, see also http://www.marketresearchworld.net/content/view/4681/48/ The link to the US census data will provide you with the actual numbers in excel format. http://www.census.gov/retail/index.html
Scoop.it!
From
qz
Since supermarkets came of age in the 1950s, the American grocery store layout has largely been frozen in time. And for good reason. Every inch of the traditional track around US supermarkets—from the beautifully lit piles of produce and bounteous bakery section to the inviting prepared foods—has been honed to maximize the grocery industry's tried-and-true busines
Farid Mheir's insight:
This is not an article about grocery retailing but rather a demonstration of what the future holds for retailers and the stores they have.
With eCommerce, no longer do stores need to be mini warehouses with racks and shelves full of products. Today, eCommerce and automated picking can replace this more economically - remember Amazon mantra "your margin is my opportunity".
What retail stores will become is more like an Apple store than a costco: 1- a showroom for your products 2- a learning center on how to best use your products 3- a help center to get you out of trouble if that should occur
Exactly the layout of an Apple store. What would this look like in a grocery store? Well something like the picture in this paper 1- showroom for perishable products like meat, deli, seafood, produce, etc. 2- areas for cooking recipes, sampling, promotions, tastings, etc. 3- areas to prepare cooked meals to get you on your way without having to prepare a meal The rest - grocery products in boxes and cans - will be prepared automatically in a fully automated warehouse in the distance by robots who know what you've bought in the past and what you are missing in your fridge or need to prepare that recipe you just tasted. Delivered to your car's trunk in the parking lot.
Give it a few years and this should become reality....
Scoop.it!
From
qz
Amazon is joining forces with Britain's fourth-largest supermarket chain, ramping up rivalry in what's already a fiercely competitive market. By partnering with Morrisons as its food wholesaler, Amazon is taking on traditional supermarket chains for online shoppers. Until now, Amazon has stayed away from perishable items. The Morrisons partnership allows the company to sell shoppers fresh an
Farid Mheir's insight:
I had the intuition this was right as my personal experience with IGA very early showed growth of 25% YoY as the norm. This chart confirms it and may explain why Amazon and others have been trying to enter the market for so many years.
Grocery online is difficult to master: perishable products without barcodes mean picking an order is difficult to automate - not impossible but difficult... and costly! Remember that grocers have historically delegated the order picking to you, the client, pushing a cart across the aisles. eCommerce flips this model over its head and customers want grocers to pick and deliver their orders to their doors for the same price as before!
What happens: people start to think, start to innovate, start to transform the model. FreshDirect in NYC delivers high end high quality products - including perishables - but makes people pay for the service and the convenience. French grocers skip the delivery part and created in-store pickup service. Amazon looks at the whole thing and thinks, hmmm, if I can deliver groceries and break even then it means I have trucks on the road that can deliver all the rest of my orders for a marginal increment - that sounds like a great idea! Uber looks at this and says "hey, we have cars and drivers on the road already, we'll deliver the orders to your door in a few hours". And instacart is taking the uber model to send people to store to pick orders for you...
What does it mean? Growing at 30% a year, means it is on an exponential growth curve: things start slowly but when they become popular they explode. The hockey stick is near (or the singularity is near). Watch for it...
creation infoway's curator insight,
May 20, 2016 8:01 AM
SEO or search engine optimization is a much used word in the online community. Internet marketers value SEO because they are – free or low cost, gives a sustainable competitive advantage, and can achieve conversions or orders.
Scoop.it!
Consumers are shifting how they spend their money. A Commerce Department report Friday showed total US retail sales jumped 1.3% month-on-month in April. And apart from car dealers and gas stations, there was another clear winner: online retailers. The report showed that non-store retail sales — at places like Amazon and eBay — rose 2.1% in April from March. At the same time, department-store sales (excluding leased departments) rose 0.3%. But the year-over-year trend showed an even bigger outperformance gap. Online retail sales were up 10.2%, the most among major categories in the retail sales report.
Farid Mheir's insight:
Very interesting chart that shows eCommerce spend growing consistently since 2009, as opposed to in-store spend which remains stable or decreases.
WHY THIS IS IMPORTANT If you don't have an eCommerce offer then you are missing sales. Each retail category has a different eCommerce penetration, so your mileage will vary and you should adjust your investments accordingly. (http://sco.lt/6q1Ijx)
For example, if you sell electronics and apparel, then you should be online right now with an aggressive marketing and SEO strategy to stay on top of the market.
Conversely if you sell perishable food products, you can probably manage to leverage a prepackaged solution such as shopify.com and market your online offering to your existing in-store customers and a good mailing list.
Scoop.it!
Grocery stores are unique in that even in 2015 as you travel around the United States you will rarely find a standardized chain. Walmart Supercenters is probably the closest by definition, however
Farid Mheir's insight:
Millenials are shopping differently than older generations. They see the value that comes from eCommerce solutions. Retailers thus should rethink their business models along the lines that innovating companies such as amazon fresh do.
Here are the reasons this millenial calls "perks" for using amazon fresh vs. walmart or other grocers. Take note: - High quality produce
Arnaud Dubois's curator insight,
May 12, 2016 10:51 AM
I wonder if, in the future, online stores and supermarkets will be combined/fusionned... Some people are already doing it today. But, isn't it a bit frightening? Doing litteraly almost everything from your couch? Going back to the traditional way is maybe an "escape" ?
Scoop.it!
In a booming e-commerce market, you can rise above the pack by providing a mobile site or app with frictionless, simple experiences for omni-channel shoppers. From Google's UX Research Lead Jenny Gove and UX Design Lead Iram Mirza, here are 25 principles for designing a retail mobile site or app.
Farid Mheir's insight:
This guide by Google presents 25 design principles to use when creating a mobile app or website.
Scoop.it!
Online groceries seem set for significant growth this year, according to a Morgan Stanley survey. Could it become the next big driver of global eCommerce?
Farid Mheir's insight:
It will be 20 years since I launched the IGA eCommerce solution. I was too early for sure. Now it looks things may be moving in the right direction. Will online grocery be the last frontier for eCommerce? It sure looks like it!
Ganavika Ginni's comment,
July 4, 2019 4:05 AM
Hey Bangaloreans, We are Ginnibasket.com an Online Grocery Supermarket in Bangalore. Order Cheese Online from Ginnibasket at ever seen Lowest prices and also get free home delivery on minimum order of RS100.
Hit the Below Link to make your Order.https://www.ginnibasket.com/product-category/vegetables/ 
Kamiya Britton's curator insight,
June 15, 2020 11:06 PM
The fastest-growing businesses are online grocery shopping where customers are able to have less contact with employees and other customers. Online shopping has become the new wave of safer buying and shopping. Even before the pandemic, online grocery shopping was a way for those who have disabilities have a greater chance of receiving their groceries. The curbside pick-up was built into online shopping and businesses now are adopting this service as well.
Scoop.it!
La décision de Canadian Tire d’effectuer un retour au papier est saluée par Jean Rickli, conseiller principal associé au J.C. Williams Group. « Ils vont aller chercher différents types de clients. Les personnes plus âgées, moins habiles avec les applications, et les plus jeunes, qui voient t&hel
Farid Mheir's insight:
(in french, english here) Canadian Tire follows the likes of IKEA catalogue, real estate, technical publication, tourist guides and other applications to extends its paper catalogue with additional information using mobile phone technologies. Not sure the IKEA project received huge success but again this was 2013 and a lot has changed in the past 3 years.
With virtual reality (VR) being trumpeted as the next big thing, Augmented Reality (AR) may actually provide something more useful and less intrusive - thus leading to faster and larger adoption? Microsoft hololens project sure thinks that way.
http://conference.corp.at/archive/CORP2013_128.pdf http://www.inglobetechnologies.com/docs/whitepapers/AR_printing_whitepaper_en.pdf http://www.scoop.it/t/digital-transformation-of-businesses/?tag=Augmented+Reality
Scoop.it!
Supermarket chain Tesco has teamed up with mobile application IFTTT to automatically update shoppers’ virtual carts by prompting them to sign up for various triggers – such as product price changes – to add the appropriate item when the specified parameters are met.
Farid Mheir's insight:
The future of eCommerce where your fridge automatically adds salmon to your weekly grocery basket because it has just gone on special and you are low. Sounds futuristic but really it isn't. And much better than having to go through a catalog of product.
Retailers should thus emulate Tesco to make their product catalog more open and easier to connect to.
Scoop.it!
More than 70% of U.S. households with incomes of $112,000 or more have Amazon Prime.
Farid Mheir's insight:
When you make eCommerce and digital your central focus, as I do, you look for key trends to guide your strategies and roadmaps. This data is one of those key trends. It means that people find Amazon Prime to be convenient and cost effective.
If you are setting up for eCommerce and are struggling with delivery fees you should charge, then this should be your guide: people will pay to get "free shipping", and when they do they will spend more than twice what others will. You, as a retailer, win on both fronts.
Scoop.it!
Ecommerce designers, marketers and merchandisers should be just as obsessed with delivering phenomenal tablet experiences as for other devices. But is the optimal experience a scaled-down desktop experience, scaled-up mobile or something totall
Farid Mheir's insight:
Ecommerce illustrated is a great reference for what to do when creating an ecommerce website. Can't wait to see what the book looks like.
Gianluigi Zarantonello's curator insight,
April 3, 2016 2:00 PM
Ecommerce illustrated is a great reference for what to do when creating an ecommerce website. Can't wait to see what the book looks like. 
John Dilworth's curator insight,
April 3, 2016 3:47 PM
Ecommerce illustrated is a great reference for what to do when creating an ecommerce website. Can't wait to see what the book looks like.
Scoop.it!
Growing adoption of online food retail has made it imperative for conventional retailers to offer the option to their shoppers.
Farid Mheir's insight:
A great study to read!
Scoop.it!
Growing adoption of online food retail has made it imperative for conventional retailers to offer the option to their shoppers.
Farid Mheir's insight:
A great study to read.
Scoop.it!
A growing amount of evidence indicate Amazon is getting into the shipping and logistics business, an opportunity some analysts say is worth $400 billion.
Farid Mheir's insight:
This article suggests that Amazon is creating a UPS/FedEx competitor offer to distribute parcels to end users. The article provides some very interesting data, and links. Other links include
I don't agree Amazon would create a competitive offer. However I believe it makes sense for them to deliver packages in 2 use cases:
I wrote about this in the past here: http://www.scoop.it/t/digital-transformation-of-businesses?q=amazon
Jose Alberto's curator insight,
March 30, 2016 5:08 PM
Honestly I can't tell if this is digital transformation per se, but it clearly shows an example of "no-limits" transformation!!! 
Yendi Cohen's curator insight,
April 1, 2016 2:04 AM
Honestly I can't tell if this is digital transformation per se, but it clearly shows an example of "no-limits" transformation!!!
Scoop.it!
Over the past few years, UPS and FedEx have continued to increase their charges for delivering goods despite the fact that gasoline and diesel fuel have not seen a surge since 2011. The increase in charges primarily comes from consumers’ impulse buying and random purchases. As a result, the frequency of delivering smaller and lighter packages increases with separate shipments from different warehouses, which in turn creates the direct impact on the cost of shipping goods. In January 2015, both UPS and FedEx shifted their pricing metrics to dimensional weight on all ground shipments, which ultimately created additional pressure on e-commerce shipping.
Farid Mheir's insight:
Amazon is by far the largest online retailer. If its shipping costs are growing, as they appear to be, all other retailers should take note as they should expect the same.
This analysis suggests that we have started to use Amazon to buy smaller products more often, which in turns cost more to be delivered compared to the price of the item. Thus the surge. This may indeed be right, as Amazon Prime cuts down on the incentive to increase basket size to get free delivery.
So for Amazon the solution may be to increase the Amazon Prime membership price, open physical stores (as they have announced) or accelerate its deployment of local distributiuon centers to get closer to customers - thus reducing delivery costs, and delays. Or do all three!
For other retailers, the solution may be as simple as keeping the minimum order size to a high enough value that ensures sufficient margin to account for the free delivery costs.
over50time's curator insight,
March 19, 2016 11:37 AM
Amazon is by far the largest online retailer. If its shipping costs are growing, as they appear to be, all other retailers should take note as they should expect the same.
This analysis suggests that we have started to use Amazon to buy smaller products more often, which in turns cost more to be delivered compared to the price of the item. Thus the surge. This may indeed be right, as Amazon Prime cuts down on the incentive to increase basket size to get free delivery.
So for Amazon the solution may be to increase the Amazon Prime membership price, open physical stores (as they have announced) or accelerate its deployment of local distributiuon centers to get closer to customers - thus reducing delivery costs, and delays. Or do all three!
For other retailers, the solution may be as simple as keeping the minimum order size to a high enough value that ensures sufficient margin to account for the free delivery costs. 
Frédéric Leconte's curator insight,
March 21, 2016 3:51 AM
Amazon is by far the largest online retailer. If its shipping costs are growing, as they appear to be, all other retailers should take note as they should expect the same.
This analysis suggests that we have started to use Amazon to buy smaller products more often, which in turns cost more to be delivered compared to the price of the item. Thus the surge. This may indeed be right, as Amazon Prime cuts down on the incentive to increase basket size to get free delivery.
So for Amazon the solution may be to increase the Amazon Prime membership price, open physical stores (as they have announced) or accelerate its deployment of local distributiuon centers to get closer to customers - thus reducing delivery costs, and delays. Or do all three!
For other retailers, the solution may be as simple as keeping the minimum order size to a high enough value that ensures sufficient margin to account for the free delivery costs. 
Juan Ortega's curator insight,
May 20, 2016 4:48 AM
Amazon empezó con gastos de envío gratis... pero en la gráfica podemos observar como los costes han ido aumentando...
Scoop.it!
There’s no shortage of startups vying for share of stomach in the food delivery space. But while most of the competition focuses on delivering fresh goods, Thrive sells only non-perishables. Those products that makes up the center of the grocery store that go in the cupboard or medicine cabinet make up about half of a typical grocery bill, Green notes.
Farid Mheir's insight:
Thrive is a new online pure play eCommerce provider that uses Costco approach - small catalogue of products with lowest possible price and a yearly membership - to attack the supermarket's center of store products. All these items that sit on shelved in the grocery store.
Not convinced they have a business model until they get very low cost local delivery as I believe UPS delivery of a bag of flour and olive oil may not be viable. However, trucks running weekly delivery routes to customers along a pre-defined schedule may stand a chance of making money - but that requires scale that Thrive does not yet have, even at 100M$ in volume.
But keep watching them, you may be surprised...
Scoop.it!
This finding seems plausible given the shopping patterns that we see in today’s marketplace. The majority of consumers don’t stick to just one channel or the other; they alternate between online and in-store shopping. And so retailers are likely realizing that customers will be quick to catch on to different prices — and might be turned off if they see them. The increased consistency seen on pricing may also reflect a move by many stores to develop a more holistic view of their inventory. In the past, many retailers had separate silos for items to be sold online and items to be sold in stores. As retailers move to a single inventory pool, it’s likely easier for them to maintain uniformity on prices.
Farid Mheir's insight:
Retailers are fighting back against online pure plays, matching prices more often than not - especially when delivery costs are accounted for. This study compares the prices in a multitude of product categories and shows the price difference is shrinking.. The term omni-channel was introduced a few years back to demonstrate that customers often will move from on-line to in-store during their shopping experience. Retailer are adapting as they provide prices that are the same in both environments.
Scoop.it!
Amazon has never generated huge profits. It puts most of the money it generates back into the company.
Farid Mheir's insight:
Amazon must invest everything it has - all its profits - to create the tools, and technologies it needs to be relevant against established retailers. It underlines how much companies must invest when they go through their digital transformation: they must be ready to impact income in order to define themselves with digital technologies.
Scoop.it!
If Costco and Whole Foods had an online baby, it would look something like startup Thrive.
Farid Mheir's insight:
I've been tracking this years now and it seems to be happening. Stores will transform to become points of service rather than warehouses. All the commodity products found on shelves in the center of the store are best candidates for eCommerce.
Scoop.it!
Explore trends and the popularity of products across the U.S.
Farid Mheir's insight:
Great reference on shopping trends in the USA.
Scoop.it!
Amazon on Tuesday announced the arrival of devices that order their own refills from the online retailer.
Farid Mheir's insight:
Amazon introduce a small Internet connected device they called "dash" a few years ago to simplify replenishment of consumables such as laundry detergent via the push of a button. Now they have licensed their technology to manufacturers such as GE to embed the device right into their products. Welcome to the new world of shopping at home! Have you planned to introduce Internet connected devices and gadgets into your products or offer your products via those devices? Have you made such innovations part of your strategic plan? What are you waiting for?... Read the following for more insights on how Amazon dash plans to revolutionize the way we consume at home: http://www.scoop.it/t/digital-transformation-of-businesses?q=dash
Scoop.it!
For a legacy retailer like Canadian Tire, which infamously scrapped its original website in 2009 due to poor sales and relaunched it in 2011 with tires and general merchandise last year, getting e-commerce right the second time around has been even more critical.
Farid Mheir's insight:
Canadian Tire COO says out loud what most Canadian retailers are thinking: you need faith to get into eCommerce today because the delivery costs cannot yet be offset by cost reductions for brick and mortar retailers.
Scoop.it!
The Global Retail E-Commerce Index™ ranks the top 30 countries for their e-commerce potential, based on several variables that rate both a country's current market and its potential for growth. The findings provide a wealth of information for retailers to use in developing successful global e-commerce strategies and identifying emerging market investment opportunities. - See more at: https://www.atkearney.com/consumer-products-retail/e-commerce-index#sthash.4j8wE1WE.dpuf
Farid Mheir's insight:
eCommerce market and trends study by AT Kearney in 2015. The report highlights eCommerce penetration worldwide but also indicates the high variability of eCommerce penetration by industry sectors. Electronics, books and apparels top the list while grocery is a the bottom. No surprise here.
Farid Mheir's curator insight,
May 14, 2016 10:32 AM
eCommerce market and trends study by AT Kearney in 2015. The report highlights eCommerce penetration worldwide but also indicates the high variability of eCommerce penetration by industry categories. Electronics, books and apparels top the list while grocery is a the bottom. No surprise here.
Scoop.it!
The Global Retail E-Commerce Index™ ranks the top 30 countries for their e-commerce potential, based on several variables that rate both a country's current market and its potential for growth. The findings provide a wealth of information for retailers to use in developing successful global e-commerce strategies and identifying emerging market investment opportunities.
Farid Mheir's insight:
eCommerce market and trends study by AT Kearney in 2015. The report highlights eCommerce penetration worldwide but also indicates the high variability of eCommerce penetration by industry categories. Electronics, books and apparels top the list while grocery is a the bottom. No surprise here.
Farid Mheir's curator insight,
December 19, 2015 9:21 AM
eCommerce market and trends study by AT Kearney in 2015. The report highlights eCommerce penetration worldwide but also indicates the high variability of eCommerce penetration by industry sectors. Electronics, books and apparels top the list while grocery is a the bottom. No surprise here. |
Curated by Farid Mheir
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Jeff Bezos said during Code conference that Amazon will not get into the delivery business to replace partners - but will supplement it heavily.
I wrote before that amazon will get into the grocery food delivery business because it is the only way they can reduce their delivery costs - costs they have to give to fedex, purolator, USPS and others. So basically they will go into grocery business to break even and get free local delivery in certain key market areas.
Recently, Walmart has begun pilot tests to deliver groceries using UBER (http://www.reuters.com/article/us-wal-mart-groceries-idUSKCN0YP0H6?il=0). This sounds like a great idea, focussing on each other's strength (walmart = products & logistics, uber = delivery) with no investment to access huge volume. This option may not be as efficient as the Amazon model however but be a great solution in periods of high volume.
To see what I wrote about this, see http://www.scoop.it/t/digital-transformation-of-businesses?q=amazon+fresh
WHY THIS IS IMPORTANT
Delivery remains the biggest cost for online retailers. Between 10% to 20% of retailer costs are sunk into delivery. This remains a huge hurdle for both retailers and consumers compared to physical stores. I expect online retailer to be more and more creative on the delivery front to reduce costs and deliver faster.
Established eCommerce retailers should look for opportunities to improve delivery and newbies to never underestimate delivery as it is the CORE to make or break their online retail business. Mark my words...