May 7, 2008 Jupiter Research Study Finds Multichannel E-Commerce Expansion Vital to Online Retail Success
Jupiter Research Study Finds Multichannel E-Commerce Expansion Vital to Online Retail Success
Savvy Retailers Cite Greater Overall Success with Third-Party Outsourcing
Research Triangle Park, NC – May 7, 2008″ ChannelAdvisor, the leading provider of e-commerce channel management solutions, today announced the results of a JupiterResearch study on marketing and sales strategies for online retailers. Sponsored by ChannelAdvisor and conducted by independent research firm JupiterResearch and Internet Retailer, the study provides in-depth insights into the fundamental issues driving multi-channel online retailing.
Seventy-five percent of online retailers surveyed cited multi-channel expansion as a key component in their marketing strategies. Ninety-eight percent report they market on at least two online channels.
“The results provide actionable information for retailers who are evaluating online programs including paid and organic search, and comparison shopping engines,” said Brad Wolansky, Vice President Global E-Commerce of The Orvis Company. “We partnered with ChannelAdvisor for solutions to help us manage our paid search and comparison shopping engine initiatives and they have provided good value including higher ROI and predictable rates of success.”
The recent findings deliver a unique perspective on how online retailers are capitalizing on the full spectrum of e-commerce channels and explore the benefits and the challenges of expanding their reach. It also focused on the area of third-party outsourcing and how to measure its success. Those retailers who choose to outsource should look to their e-commerce partners to develop performance metrics that demonstrate their long-term worth including lifetime customer value, product margins and customer retention.
“This survey suggests that ChannelAdvisor has a unique opportunity to help retailers assess where they in the multi-channel life cycle and the implications for moving forward,” said Scot Wingo, CEO of ChannelAdvisor. “Clearly, going multi-channel is the first step. To be truly successful, they need to define what they expect from their e-commerce solution providers in terms of marketing spend and efficiencies to judge the overall profitability of the relationship.”
Highlights From Survey Results
Among those retailers who reported using multiple online channels:
- 75% enjoy increased sales.
- 80% realize increased customer acquisitions.
- 71% report significant growth in qualified customers.
- 73% operating in six or more online channels require additional support staff.
- Over 60% cite the ability to target new demographics or enhance lifetime customer value.
- 55% of those surveyed outsource some marketing initiatives.
Among those retailers who reported outsourcing their multi-channel initiatives:
- 69% report increased sales while 65% report increased customer acquisition.
- Nearly 60% experience higher returns on marketing spend.
- 70% report quicker adjustment to market changes and new initiatives.
Undertaken in March of 2008, JupiterResearch conducted a formal survey of online retailers regarding the use of online marketing and selling tactics. A total of 115 qualified online retailers completed the survey. Respondents received an email invitation to participate in the survey with an attached URL linked to the Web-based survey form. JupiterResearch worked with monthly national business magazine publisher Internet Retailer to develop a sample of online retailers and to assist in the technical tasks of survey fielding.