World domination & record holiday sales 📈
This week’s Dose highlights: record-high holiday sales, Amazon's third place finish, and ecommerce domination.
Holiday sales could exceed $1T
Holiday sales between November and January are projected to increase by 5-5.6%, up to $1.1T. Of that projection, U.S. shoppers are forecasted to spend $119.99B online—a 15.5% increase compared to last year. Several factors would contribute to this record-breaking spend including: the U.S. ecommerce industry's growth, high consumer confidence, and an increase in online gift purchases.
What stood out to us? Mobile is making a headline appearance this holiday season. 68% of ecommerce visits and 46% of orders will take place through customers' cell phones. Even physical stores are experiencing the mobile wave—83% of shoppers are using mobile as part of the in-store experience.
What we heard? The Consumer Confidence Index celebrating an 18 year high.
Amazon: third-largest digital ad platform
According to eMarketer, Amazon's U.S. digital ad revenue will double this year—moving it to the number three spot behind Facebook and Google. This year, advertisers will spend $4.61B on the platform, accounting for 4.1% of overall U.S. digital ad spend. Although Google and Facebook control 37.1% and 20.6% of the market share, Amazon is expected to continue to grow and capture 7% by 2020.
What stood out to us? Amazon's accountants have been busy. Reports state an accounting change on Amazon's end is the reason for this major upswing. Advertising services are now classified as revenue rather than cost of sales. Even so, Amazon ad sales will increase 10-12% due to organic growth.
What we heard? How will Amazon Scout come into play?
Ecommerce empires: Amazon vs Alibaba
Recently, Website Builder Expert gathered data from 174 countries and identified the most visited online marketplaces ins each country. Amazon is currently the global leader in ecommerce, reaching 58 countries and more than 1.2B people. However, Alibaba is right on the global marketplace's trail with 1.1B users in 15 countries.
What stood out to us? These two A-level powerhouses currently dominate the U.S. and Southeast Asia, and the USSR and South America are taken by Naspers and MercadoLibre. With Ebay, Schibster, and Amazon having a strong hold in Australia and Europe, it seems like Africa is the only continent without a go-to giant.
What we heard? Amazon going over the rules of Risk with Alibaba.
In the Headlines
- Fasten-ating: Staples acquired competitor, Essendant, for $996M.
- Upscale 7-Eleven: Amazon is considering a plan to open 3K Amazon Go stores by 2021.
- C is for Conversation: Salesforce revealed new AI CRM assistant, Einstein Voice.
Because we can
Read this if 📖
you're currently fighting the urge to itch 3 bites on your ankle.
Listen to this if 🔊
you're investigating whether to divert those Facebook dollars.
Would you rather ⁉️
Would you rather work an unfocused 8 hours or a hyper-focused 6 hours?
Anxiety Consumerism 😬
Move aside insecurity and self-doubt. Capitalism wants your anxiety's undivided attention.
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See you next weekend! ✋
Media is sourced from: giphy