eTail Velocity . . . What is this about?

This is a new site dedicated to educating you about ecommerce in this rapidly changing environment.  If you think ecommerce is just a passing fad, consider this:

  • Wal-Mart’s U.S. operations reported a 2010 decrease of (0.5%) in sales
  • U.S. same store sales declined (0.2%) for the year

For Wal-Mart, their growth numbers are coming from the international market increases, not U.S. operations.

On the other hand, Amazon reported:

  • 36% increase in sales
  • 8% increase in net income for the 4th quarter 2010

Amazon is growing internationally as well, but the bulk of their revenue and income gains come from U.S. operations.

These results aren’t just a representation of one quarter’s activity.  According to an April 5, 2010 article in Forbes, the second fastest growing retailer, online or other,  in 2010 is Amazon; Apple is first.

But Amazon is only one site.  The Retail Net group predicts that the volume of sales added by pure play online retailers will be nearly $40 billion.  And according to a January 17, 2011 article from Forbes, during the 2010 holiday season, online retailing accounted for 15.4% of overall retail sales.  This compares with Forrester’s report that 2009 online retail sales accounted for just 7% of overall retail sales.  This site is dedicated to showing you how to exploit the sales velocity of a critical sales channel.

Over the course of the next year posts on this site will discuss:

  • Creating a sales strategy (retail vs. online)
  • Starting the process of selling online
  • Increasing online sales
  • Key things to consider when thinking about different eTailers
  • Soliciting feedback from your consumers
  • Managing channel conflict

Many manufacturers are seeing triple digit year over year growth online, both for their channel and on specific sites.  The increase in sales velocity is addictive and we are always looking for new ways to continue the trend.  We welcome your input and look forward to the conversation as we explore these topics.

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