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ChannelAdvisor Reveals The Results Of Its Multichannel E-Commerce Study

Stocks in this article: ECOM

ChannelAdvisor Corporation (NYSE:ECOM), a leading provider of cloud-based e-commerce solutions that enable retailers and manufacturers to increase global sales, today announced the results of its Multichannel E-Commerce Study, a survey of more than 200 U.S. and U.K. online retailers that averaged $3-$5 million in revenue in 2013. The study identifies e-commerce trends, opportunities and challenges, and yielded significant results; 90 percent of retailers reported selling on marketplaces, and 64 percent of retailers reported using digital marketing.

ChannelAdvisor commissioned Redshift Research to conduct the study, which asked retailers questions about marketplaces, cross-border trade, digital marketing and more. The survey results provide insight into strategies retailers are using to optimize sales across multiple online channels. Below are some of the study’s most significant findings:

  • Marketplaces: More than three-fourths of surveyed retailers (84 percent) are currently selling on Amazon, and more than half of retailers (63 percent) reported selling on eBay. Retailers said that the most challenging aspect of selling on marketplaces is maintaining competitive pricing.
  • Cross-Border Trade: Nearly a third (30 percent) of retailers surveyed reported that 21-30 percent of their online sales come from international marketplaces. Retailers reported that global marketplaces are the number one point of sale for these international transactions. The majority of surveyed retailers (62 percent) think that Amazon provides the best opportunity to sell internationally.
  • Digital Marketing: Retailers reported that product listing ads are a top digital marketing strategy in terms of performance. Budget, confusion about options and the digital marketing landscape, and uncertain return on investment are the three most common factors preventing retailers from increasing their digital marketing spend.
  • Mobile Advertising: Almost half of surveyed retailers (40 percent) reported that 21-30 percent of their current web traffic comes from mobile devices. Most retailers (86 percent) think that web traffic from mobile devices will increase over the next two years. To prepare, 75 percent of surveyed retailers expect to increase their mobile advertising budget in the next two years.
  • Social Media: Retailers’ top three business goals for social media are to increase brand awareness, reach a new generation of customers and drive conversions. Surveyed retailers said Facebook is the social platform that creates the most conversions for retailers.

“It’s critical that retailers evaluate what the rest of the industry is doing so they can stay on top of innovations,” said ChannelAdvisor CEO Scot Wingo. “Finding success in a crowded e-commerce landscape is all about being visible on multiple channels. Our survey results show that retailers are taking a multichannel approach to increase their exposure in every stage of the consumer’s path to purchase.”

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