Monday, November 3, 2014

Major Retailers Will Fight for Unique Visitors This Holiday Season

As the holiday season approaches many retailers are gearing up to attract customers.  As online shopping grows, major retailers like WalMart and Target are competing against online e-commerce giant Amazon.com. According to USA Today, for the first time, Wal-Mart is offering free shipping on what it considers the season's top 100 hottest gifts, from board games to items related to Disney's hit film "Frozen", starting Saturday, November 8. The move comes as rival Target began offering free shipping on all items, a program that started late October and will last through Dec. 20.  ABC News reports that Wal-Mart unveiled some of the details of its holiday strategy as it considers matching online prices from competitors such as Amazon.com, a move that could help grab more customers but could also hurt profit margins.

So what role does WalMart’s website play in all of this? Well, during November 2012, comScore Media Metrix showed Walmart.com with 55.8 million unique visitors compared to 58.5 million unique visitors during November 2011. Walmart was ranked 18th on the top 50 list both years. Meanwhile, 6th ranked Amazon.com was shown to have 116 million unique visitors in November 2012 compared to 112.8 in 2011. 

It’s important to note that retail sites had a near-monopoly on the top-gaining categories chart in November, as the entire category grew 5% to 191 million visitors – representing 87% of the total U.S. online population. Toys ranked as the fastest-growing category with a 30% increase compared to October’s to 23.9 million visitors. Toys-R-Us sites led the category with 12.4 million visitors (up 54%), followed by The LEGO Group with 3.8 million (up 34%), Disney Shopping with 2 million (up 11%), AmericanGirl.com with 1.9 million (up 60%) and Fisher Price with 1.3 million (up 28%).

If WalMart wants to compete in 2014 online, they will need to increase their unique visitors, or at least stay even with the amount of unique visitors clicking their way to rival, Amazon.com.  According to 24/7 WallStreet, no matter how many times Wal-Mart Stores Inc. retools and re-launches its Walmart.com sites, it cannot make up ground on Amazon.com Inc. The same source also reported that in July (based on comScore data), Amazon had 95.4 million unique visitors among those who visited the site on desktops. Walmart’s figure was 34.1 million. (Globally and on portable devices could make the gulf wider.) While Amazon’s sales are all from e-commerce activity, Walmart public filings show that less than 5% of its $420 billion in annual sales come from online activity. 

The game changer for all retailers lies in the hands of mobile consumers. Exactly one-third of online visitors to the sites and apps of the top 10 retailers as gauged by total monthly unique visitors only use mobile devices (smartphones and tablets) to shop those merchants online, according to new December 2013 data from web and mobile measurement firm comScore Inc.

Internet Retailer reports that Amazon.com Inc. is the No. 1 online shopping destination with 178 million monthly unique visitors—29% of those visitors only shop the e-retailer via mobile devices, comScore says. Target Corp. is the No. 4 online shopping destination with 66 million monthly unique visitors—43% of those visitors only shop the merchant online via mobile devices, comScore says.


Measuring unique visitors is not only key for retailers to determine if their e-commerce strategies are working, but it is also a great way to figure out where those visitors are coming from. When marketers and retailers can optimize the user experience, it gives consumers a better experience. When they have a better experience, they usually tend to spend more money (or at least come back).

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