90% of sales still happen in-store.

Are you as surprised by that information as I am?  With all the hype surrounding the growth of e-commerce I would have thought it was higher, much higher.

But, according to the U.S. Department of Commerce in 1Q 2018 e-commerce sales were estimated to be $123.7 billion, an increase of 3.9% from 4Q 2017, up 16.4% versus 1Q 2017.  Very impressive.

Until you put it into perspective.  Total estimated retail sales for 1Q 2018 were $1,306.7 billion, an increase of .2% from 4Q 2017, up 4.5% versus 1Q 2017.

So we can see that while e-commerce growth is indeed out pacing growth as a whole we still have a long way to go before digital completely takes over our lives.

Of course those of us who buy almost everything online, (our apartment building gets over 150 packages a day) are left wondering what exactly accounts for the difference.

According to a study from Pew Research while the majority of Americans do shop online (79%) most do so infrequently, with only 15% saying they buy online weekly. Moreover, 65% of online shoppers say they prefer to make purchases in-store.  (Smith & Anderson, 2016)

And while people are happy to buy music, books and electronics online, 67% have never purchased packaged food or beverage products online, and 65% have no interest in ever doing so. (Redman, 2018)

Having just returned from shopping at the local Farmer's Market, I get that.

But unlike other Americans I do buy my health and beauty products online - only 29% do. (Kelly, 2017)

So the things that people buy most frequently - food and toilet paper are not being bought online in great quantities yet.  That certainly explains why Amazon bought Whole Foods. 

But it's also an important thing for marketers to remember as they increasingly spend all their marketing dollars on digital.  Sometimes we get ahead of ourselves.

https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf

Smith, A. & Anderson, M. (2016, December 19)  Online Shopping and Purchasing Preferences.  pewinternet.org.  Retrieved August 15, 2018, from  http://www.pewinternet.org/2016/12/19/online-shopping-and-purchasing-preferences/

Redman, R. (2018, May 25)  Many Americans unconvinced about buying groceries online.  supermarketnews.com  Retrieved August 15, 32018, from  https://www.supermarketnews.com/consumer-trends/many-americans-unconvinced-about-buying-groceries-online

Kelly, L (2017, May 25)  Key Insights Into Shopper Behavior on Amazon.  cpcstrategy.com  Retrieved August 15, 2018, from  https://www.cpcstrategy.com/blog/2017/05/ecommerce-statistics-infographic/

Have you shopped at the Better Homes & Gardens online store?

Last August, the venerable (92 years old) Better Homes & Gardens magazine, added a shop section to BHG.com enabling it to sell the products it recommends in its magazine and website to consumers.  With over 500,000 products available and 5.6 million monthly visitors it is well on its way to becoming an e-commerce powerhouse.  In fact the site’s traffic is already on par with Victoria’s Secret, Cabela’s and HP Shopping. 

Janell Pittman, general manager for BHG.com says “We are making it very easy for readers to buy what they see.”  (Enright, 2013)

It sounds like it.  So what do you think?  Will they buy?  And will marketers want to participate?

Enright, A.  (2013, April 24)  Magazines create their own form of e-retailing.  internetretailer.com.  Retrieved April 24, 2013, from http://www.internetretailer.com/2013/04/24/magazines-create-their-own-form-e-retailing