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BizReport : Ecommerce archives : October 30, 2014

Reports show strong Q3, point to strong Q4

Retail had a strong Q3, especially for brands implementing strong mobile and social strategies. That could mean a stronger Q4, too.

by Kristina Knight

First, BigCommerce has released their Q3 ecommerce report, which credits the back-to-school season as pushing retailers' Q3 revenue lines higher. Their report shows a 25% increase in the average order size along with a 45% YoY increase in gross merchandise value.

These Q3 totals could mean a strong holiday shopping season, as well. According to PunchTab's report most shoppers (77%) will be spending more this year than they did in 2013, with Millennials leading the way - at least in the amount spent. Millennials, researchers found, 15% plan to spend more this year than last year while only about 10% of Gen Xers and Boomers will increase their spending. Other interesting findings from the report include:

• Most Millennials and Gen Xers say they'll do at least half their shopping online
• 46% of Boomers say they'll buy about half their presents online
• 40% say they'll begin shopping in November, 24% say they'll wait until December
• 56% report they'll shop Black Friday, 62% say they'll shop Cyber Monday
• 58% say they haven't decided if they'll shop the same stores they shopped in 2013

Meanwhile, MarketLive's Q3 Performance Index should encourage retailers to double check mobile strategy as we head into the holiday months. Their report shows that retailers who effectively implement mobile and social strategies are winning with engagement. Some interesting takeaways include:

• 62% increase in traffic from mobile devices to retail sites
• Smartphone-based revenue increases of 141%
• Social recommendations account for 2% of all traffic, 1% of revenue

"We've been watching social recommendations for some time, waiting for it to register a significant contribution to revenues at the cash register. We're finally seeing a small-but-tangible signal now in our Q3 Performance Index, and that result is corroborated by our recent Holiday Survey results as well," said Ken Burke, founder and CEO of MarketLive. "The strong performance in mobile is something we've been expecting, as mobile commerce has been growing dramatically for several quarters already. At this point, it should send a cautionary note to all merchants that a strong mobile strategy is no longer optional, but rather a necessary and critical component for brick-and-mortar and online retailers alike."

Image via Shutterstock

Tags: 2014 holiday spend, BigCommerce, ecommerce, ecommerce trends, MarketLive, online shopping, PunchTab

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