E-Commerce is Only 15% of Retail Sales
In this episode, Mark Mathis talks about keeping the e-commerce exuberance in perspective as you plan for the future.
Featuring:
Mark Mathis
Mark Mathis is Chief Creative and Strategy Officer. Transcription:
Mark Mathis: Hello, I'm Mark Mathis. This is the One Minute Marketer. And, you know, I was just thinking that one in 6.5 people are going to be really surprised by this podcast. For many of us, the internet seems like our number one store. During the pandemic, e-commerce was a lifeline to products. However, you have to keep the data in perspective, as you make decisions.
E-commerce sales were just under 4% of all retail sales in 2008. It's expected to top 15% in 2021. That's impressive growth, it's steady growth for 13 years. But it's still less than 1% growth per year, on average. Now, think of it in reverse. In-store sales make up 85% of all retail sales. Now that is a significant number.
What does 15% mean? Around 15% of Americans don't use the internet at all. Is that a big number? We tip 15% for service in a bar or restaurant. Is that a big number? It's not everyone and it's not no one. The fact is that today e-commerce makes up 15% of retail sales. What is noteworthy is that 15% Amazon makes up more than 40% of that number.
Walmart makes up 7% and between the two retail giants, they control half of all e-commerce retail sales. Amazon stock by the way, is around $3,000 a share. Now media usage is not retail sales. Our media mix is running around 60, 40% for traditional media to digital media purchases for campaigns. So, know that the 15% refers only to retail purchases and not how we get our entertainment, information or our news.
That is for a whole different post. This is how we buy products. And you'll see on charts by e-Marketers or CNBC, that e-commerce is expected to accelerate growth and be it more than 23% by 2025. However, if you do a quick survey, I think you'll find most people believe e-commerce is already at 23% and maybe even higher than that. Yet in 2021, e-commerce makes up 15% of total retail sales.
Let's all keep the e-commerce exuberance in perspective. Plan for the future, but take care of the customers who are still enjoying personal sales. Are you surprised? One in 6.5 people are surprised by these numbers. Is that a lot of people? It's about 15%. That is the One-Minute Marketer. My special, thanks to audio engineer, Bill Klaproth.
If you like this marketing thinking and strategy, reach out to us at amperagemarketing.com. We will move your needle.
Mark Mathis: Hello, I'm Mark Mathis. This is the One Minute Marketer. And, you know, I was just thinking that one in 6.5 people are going to be really surprised by this podcast. For many of us, the internet seems like our number one store. During the pandemic, e-commerce was a lifeline to products. However, you have to keep the data in perspective, as you make decisions.
E-commerce sales were just under 4% of all retail sales in 2008. It's expected to top 15% in 2021. That's impressive growth, it's steady growth for 13 years. But it's still less than 1% growth per year, on average. Now, think of it in reverse. In-store sales make up 85% of all retail sales. Now that is a significant number.
What does 15% mean? Around 15% of Americans don't use the internet at all. Is that a big number? We tip 15% for service in a bar or restaurant. Is that a big number? It's not everyone and it's not no one. The fact is that today e-commerce makes up 15% of retail sales. What is noteworthy is that 15% Amazon makes up more than 40% of that number.
Walmart makes up 7% and between the two retail giants, they control half of all e-commerce retail sales. Amazon stock by the way, is around $3,000 a share. Now media usage is not retail sales. Our media mix is running around 60, 40% for traditional media to digital media purchases for campaigns. So, know that the 15% refers only to retail purchases and not how we get our entertainment, information or our news.
That is for a whole different post. This is how we buy products. And you'll see on charts by e-Marketers or CNBC, that e-commerce is expected to accelerate growth and be it more than 23% by 2025. However, if you do a quick survey, I think you'll find most people believe e-commerce is already at 23% and maybe even higher than that. Yet in 2021, e-commerce makes up 15% of total retail sales.
Let's all keep the e-commerce exuberance in perspective. Plan for the future, but take care of the customers who are still enjoying personal sales. Are you surprised? One in 6.5 people are surprised by these numbers. Is that a lot of people? It's about 15%. That is the One-Minute Marketer. My special, thanks to audio engineer, Bill Klaproth.
If you like this marketing thinking and strategy, reach out to us at amperagemarketing.com. We will move your needle.