eBay Enterprise, a leading independent omnichannel operations provider for the world’s leading retailers and brands, today announced the findings of its Digital Commerce Index based on data from millions of orders processed in 2015. The data shows ecommerce order volumes fulfilled by stores increased 72% during peak season. The Index also reports drastic increases in omnichannel commerce sales and fulfillment capacity to mitigate out-of-stock situations, save sales and meet tight delivery timelines during the holiday season.
“It’s no secret that shoppers are moving online, but the physical store isn’t going anywhere if you leverage them differently,” said Tobias Hartmann, president of eBay Enterprise. “This is the year retailers are putting a stake in the ground by creating continuous shopping experiences, whether the checkout lane is a couch or store aisle. As the workhorse behind after-the-click commerce, we believe the transformational shifts in ecommerce and mobile present opportunities for retailers to leverage technology, processes and people to make this year a game-changing one for the industry.”
The eBay Enterprise Digital Commerce Index offers guidance on how retailers can increase profitability and customer loyalty in 2016. Data and outlook trends include:
Omnichannel fulfillment is more critical than ever to keep pace with ecommerce demand
Index data from November 23, 2015 to December 23, 2015 shows heavy reliance on stores to fulfill ecommerce orders during peak season.
- During this period, ecommerce sales fulfilled by stores reached $515 million – a 62% increase from 2014 – which can be largely attributed to consumers truly embracing a seamless shopping experience, particularly during the holiday season.
- Omnichannel fulfillment isn’t just a seasonal tool. Index data shows retailers rely on stores as mini fulfillment centers throughout the year with year-over-year total annual order volumes and sales increasing 43%.
Retailers must leverage Ship-from Store to mitigate out-of-stock situations
While many retailers are becoming more sophisticated in their use of omnichannel fulfillment, those capable of Ship-from Store are better able to meet out-of-stock conditions on high volume days.
- Last year’s Cyber Monday surpassed $3 billion in total digital sales, making it the highest volume in a single day; however, out-of-stock rates on Cyber Monday were twice as high as they were on an average day.* This is staggering, as it represents lost sales to retailers.
* Adobe Systems Inc.’s Adobe Digital Index
- Data from the eBay Enterprise Digital Commerce Index also showed a significant uptick in Ship-from Store orders on Cyber Monday – an increase of more than 30% in sales and order volume over 2014. Retailers that used Ship-from Store were able to respond to demand and leverage stores to eliminate a significant amount of lost sales due to out-of-stocks.
Meeting the industry standard for risk management won’t be enough to prevent online fraud
According to ACI Worldwide, ecommerce fraud attempts registered a 30% increase in 2015. In 2016, fraudsters will only continue to get more sophisticated and find new ways to execute attacks. EMV chip technology will also cause more fraud to move online. In November of 2015, eBay Enterprise’s Fraud Technology Lab released its first-ever Holiday Fraud Index that detailed how criminals are becoming more creative during peak season. A major way retailers can combat online crime is through the application of big data technologies.
eBay Enterprise’s risk management practices and processes significantly and consistently surpass industry averages:
- 1.54% manual review rate versus 27% industry standard*
- 99.73% average approval rate across verticals versus a 97.7% industry average*
- 50% chargeback recovery rate versus a 27% industry standard*
*2015 Cybersource Online Fraud Benchmark Report
Omnichannel gains popularity in Asia Pacific region
This region is an attractive location for retailers and brands looking to expand their operations, due to the number of potential new customers and already established brand recognition. The Digital Commerce Index shows a global footprint increase of 40% in 2015.
eBay Enterprise technology ‘turned on’ for leading retailers in 21 countries, with significant expansion into China, Japan, Singapore, Malaysia, Thailand and the Philippines.
About eBay Enterprise
eBay Enterprise is a global omnichannel commerce provider that delivers order management, store fulfillment, dropship, payments, and fraud protection and risk management solutions, and fulfillment, freight and customer care services. Hundreds of retailers and brands rely on eBay Enterprise to simplify commerce, connect supply to demand, and seamlessly integrate technologies, with speed and agility to increase profitability and customer loyalty. eBay Enterprise’s integration with Innotrac Corporation has created one of the world’s leading independent omnichannel commerce providers. Connect with eBay Enterprise at www.ebayenterprise.com.