Ecommerce Sales Growth as % of Retail United States 2020

U.S. E-commerce sales as a percentage of total Retail sales have experienced a hockey stick growth in 2020. This comes as the U.S. government urged everyone to stay at home due to the pandemic outbreak, moving most of the consumption online. 

The ecommerce sales growth trend has been upwards since 2009, growing by ~1.5% each year, reaching 16% in 2019. However, the change since the start of 2020, in just 8 weeks has been +11% absolute ecommerce growth, bringing the U.S. e-commerce sales penetration up to a whopping 27% compared to total retail sales!  (Bank of America U.S. Department of Commerce, ShawSpring Research, 2020).

Young daughter with smartphone smiling and showing in laptop to elderly lady with credit card while shopping online at home together

Such significant ecommerce sales growth is expected to have a lasting impact even after the end of the pandemic as it is a shift in consumer habits and thus behavior. As the lockdown in many states has lasted for an extended period, spanning over several weeks and continuing, that according to several behavioral scientists, is enough time for consumers to form new shopping habits. Even if one traditionally has been shopping in physical retail stores, a new habit is being formed of ecommerce shopping. Once the initial hurdle of overcoming the digital barrier has passed, accounts set up, online payment connected. Then, what’s left in many repeat purchase cases is simply to click a button and repeat purchase or order anew. Thus, the initial barrier to entry is passed and what’s left to enjoy is the convenience of shopping without waiting in ques, carrying bags, and 24/7 opening hours. 


What this means for your business

If your business is in the U.S., that means that now more of the business takes place online and ecommerce sales are booming. It is now more than ever it is important to capture the attention and eyes of the target audience of your business. The excellent news is that due to the advancements in technology, especially, AI, digital advertising is now more precise, cost-efficient, and effective than before. The key digital channels that offer online advertising, like Google(incl. Youtube and 90% of the Internet through GDN), Facebook/Instagram and Amazon, have had massive amounts of data going through their machine learning algorithms that have allowed their algorithms to become more sophisticated in predicting users interests, behavior, and likely purchases. 

Plus, every campaign and interaction is fully traceable, making it easier to understand what works and what doesn’t. Once data has been collected, remarketing allows you to spend the advertising dollar on those who have shown interest and action. 
As consumption habits change and more and more consumers move online, businesses have the opportunity to engage with their target audiences online in a measurable and cost-effective way. 

If you are interested in increasing the ecommerce performance of your website, get in touch with us now!


Amazon Advertising is Changing the Product Search Ecosystem

Why Amazon Platform is Becoming More Important 

The digital consumer behavior is ever changing. In 2018 Amazon reached dominance and switched places with Google for online product search. In 2018 54% of the product searches were started on Amazon and the rest 46% on Google, which is the opposite of 2015, with Google then dominating at 54% and Amazon at 46% (Jumpshot, 2018). 

Amazon Demand Side Platform is Amazon’s programmatic marketing solution that allows advertisers to get more qualified leads by using the open ad exchanges on Amazon owned platforms. By running sophisticated analysis on consumers shopping behavior, including purchase histories, product search, page visits without purchase and more, Amazon predicts certain customers to be located lower down the funnel, who obtain the highest likeability to convert. In addition to this specific targeting, Amazon DSP also allows to move consumers away from their platform directly to the advertisers site. 

In September 2019, Amazon introduced its Sponsored Display Advertising functionality to retarget Amazon consumers who searched for products without purchasing, thus nudging those consumers to convert. 

Our expert advice 

Amazon is challenging the digital marketing duopoly between Google and Facebook and advertisers should be aware of this shift. It is recommended for advertisers and businesses to reevaluate the options that Amazon platform is offering to reach their target audience as search behavior is shifting towards Amazon. Our Amazon marketing agency in the UK is seeing more and more of our clients adapting to these customer behavior shifts and expanding their market reach by selling their products on Amazon. GAE agency has successfully tested Amazon’s new remarketing feature and helped our clients increase revenues on the platform.

If you’re looking to expand into this new channel or improve your Amazon performance reach out via our contact form for a free initial Amazon Marketing Services consultation.


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