Web Takes More Business From Brick and Mortar
Wednesday, February 9th, 2011You may or may not remember the Internet landscape in 2001. At the time travel was moving away from Brick and Mortar and moving toward Internet only sites like Travelocity, Orbitz, and Expedia. Last year, Expedia overtook the top spot in annual travel sales according to Travel Weekly’s annual Power List report. Expedia jumped up and over two previous power houses, American Express and Carlson Wagonlit to land firmly at number one. The big 4 (Travelocity, Orbitz, Priceline, and Expedia) have had a firm hold of the top ten for years.
Oddly enough, YTB Travel Network was also founded in 2001 and made its own mark over the last ten years in the travel industry. (Much to the chagrin of traditional agents – who lost business due to both models.) All signs were pointing toward this massive market shift as technology made things easier, faster, far more accessible, and with the increase in competition, better pricing for the consumer. Some embraced it – others ignored it – while others tried to fight it.
In 2009, the parent company of YTB Travel Network (YTB International, Inc.) considered, and tested the waters with online retail. What we found was not only a brand new revenue stream, but another untapped market that was poised for massive growth. Early in 2010, YTB launched ZamZuu and has been in the driver’s seat with hundreds of online retail stores that add value to an already massive client base.
And the timing couldn’t have been better.
Internet Retailer, a leading authority for e-commerce, is reporting that early data analysis for Internet Retailer’s forthcoming 2011 Top 500 Guide — web-only merchants took business away from the rest of the market in 2010.
Without Amazon, No. 1 in the Internet Retailer Top 500 Guide which grew sales year over year by 39.5% to $34.20 billion from $24.51 billion, the remaining 54 online-only merchants grew revenue 27.6% to $5.27 billion in 2010 from $4.13 billion in 2009.
Even combined revenue from merchants who have both a brick and mortar location and web presence show money moving to the internet. Web sales increased 32.9% compared to their total retail sales which grew year over year by only 3%.
Internet Retailer ranks the Top 500 business-to-consumer retailers based on online sales, including retail chains, catalogers, web-only merchants, brand manufacturers and digital content sellers. The list is literally a who’s who in retail. While the 2010 listing is still being collected and crunched, these early numbers show a significant shift in how people shop in the modern era.
What I really like about the publication is the snapshot it provides on just how well retailers doing on the internet. (Both web-only and combined B&M with web presence.) It’s not just sales numbers, but how retailers market on the internet to generate sales. What type of affiliate program they have, or which affiliate network they use. (Be it direct like Amazon, or through Commission Junction or Google like Staples.) It also provides demographics and shopper profiles to help affiliates match up stores with their core audience demographic.
Like the travel sales we’ve seen shift to the internet, it’s no accident that retail is also making significant strides on the World Wide Web. The growth is quite impressive.
Fight it – ignore it – even justify it if you want. Like travel, it’s a battle and opportunity you’re going to lose out on if you’re not in the game.
The smart ones, not only see, but seize the opportunities that show this kind of growth and promise.
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Doug & Ronda Bauknight AKA: TravelPro Travel Agent / Networker Phone: 678.458.5812 |
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