Online Shopping - US - June 2014
Scope and Themes
 
What you need to know
With a 16% CAGR (compound annual growth rate) from 2010-13, e-commerce is a central piece of consumer retailing. This report aims to help e-tailers (including both web-only and those with brick-and-mortar stores) to become more competitive in drawing online sales. Subjects include perceptions of safety in making online purchases, interest in automatic reordering, purchase of groceries, and sentiments regarding the advantage of online shopping vs in-person shopping. The report also provides an in-depth examination of the online research process that leads toward purchasing. These subjects are covered by age groups, income groups, racial and ethnic groups, and, where applicable, by the frequency with which respondents make online purchases.

Definition
This report builds on the analysis presented in Mintel’s Online and Mobile Shopping – US, June 2013. For the purposes of this report, the online shopping market has been defined as sales to consumers of merchandise conducted via the internet or other online system (including email, instant messaging, and smartphone applications). The report is inclusive of all online purchasing, whether the purchase is made on a PC, tablet, smartphone, or other device, with distinctions in purchasing habits via mobile devices covered in Mintel’s upcoming Mobile Advertising and Shopping – US, July 2014.

The report covers both the online operations of brick-and-mortar retailers, web-only retailers as well as catalog retailers, television, specialists, and other remote retailers. Market estimates implicitly include shopping via “apps” and smartphones. The focus of this report is on tangible objects that require pick-up or delivery: digital media, travel, entertainment tickets, insurance policies, and other products that are not tangible are not the main subject of this report. Prescription drugs may be included in sales figures, but is also not a sector covered in this report.

Value figures throughout this report are at retail selling prices excluding sales tax unless otherwise stated.

Data sources
Sales data
Market Size and Forecast: Sales based on data from the Census Bureau’s Monthly Retail Trade Survey. Data presented cover sales of goods and do not include sales of services. Sales data include intangible digital media (eg music, e-books, movies, video games) though these are not the subject of commentary. Figures are for e-commerce as defined by the Census Bureau as sales “where the buyer places an order, or the price and terms of the sale are negotiated over an Electronic Data Interchange, the internet, or another online system (extranet, email, instant messaging). Payment may or may not be made online.”

The figures used in this report specifically refer to business-to-consumer e-commerce. The Census Bureau estimates these figures because there is no definitive means to identify which transactions are made for business purposes through retail venues that are open to the public. Sales figures exclude travel purchases, financial services, and ticket purchases.

Consumer survey data
For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to identify consumer attitudes and behaviors toward online shopping. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted in March 2014 among a sample of 2,000 adults aged 18+ with access to the internet.

Mintel selects survey respondents so that they are proportionally balanced to the entire US adult population based on the key demographics of gender, age, household income, and region. Mintel also slightly oversamples – relative to the population – respondents that are Hispanic or Black to ensure an adequate representation of these groups in Mintel’s survey results. Please note that Mintel’s exclusive surveys are conducted online and in English only. Hispanics who are not online and/or who do not speak English are not included in Mintel’s survey results.

Mintel has also analyzed data from Experian Marketing Services, using the Fall 2013 Experian NHCS Adult Study 6-month. The study was carried out April-December 2013, and the results are based on the sample of 11,620 adults aged 18+. For trending, the following older surveys have also been used:

●	Experian Marketing Services, Fall 2011 Experian NHCS Adult Study 6-month, carried out April-December 2011, and the results are based on the sample of 11,948 adults aged 18+.
●	Experian Marketing Services, Fall 2012 Experian NHCS Adult Study 6-month, carried out April-November 2012, and the results are based on the sample of 12,305 adults aged 18+.

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

Abbreviations and terms
Abbreviations
The following abbreviations are used in the report:

CAGR 	Compound Annual Growth Rate	
CPI 	Consumer Price Index	
e-commerce 	Electronic (online/web-based) commerce	
e-tailer 	Electronic (online/web-based) retailer, including brick-and-mortar retailers that have an online presence	
NCS 	National Consumer Study (Experian Marketing Services)	
NHCS 	National Hispanic Consumer Study (Experian Marketing Services)	
PC 	Personal computer, including any computer regardless of its brand or OS (ie including Apple computers, Linux, etc)	

Terms
Digital native	Person who came of age with access to the internet.	

To provide inflation-adjusted price value for markets, Mintel uses the CPI (Consumer Price Index) to deflate current prices. The CPI is defined as follows:

CPI 	The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
The CPI and its components are typically used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts. In addition, and in Mintel reports, the CPI is used as a deflator of the value of the consumer’s dollar to find its purchasing power. The purchasing power of the consumer’s dollar measures the change in the value to the consumer of goods and services that a dollar will buy at different dates.
The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase, at today’s prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period. It is also the best measure to use to translate retail sales into real or inflation-free dollars.
Based on Bureau of Labor Statistics definition.