No longer a novelty, e-commerce growth is expected to slow down in 2019, up 12.4% for the year vs. 14.3% in 2018. As a result, competition is sure to intensify.
Understanding shopper intentions, of course, is key to standing out. To that end, Adobe recently conducted analysis using Adobe Analytics to determine how regional and demographic differences factor into online shopping spend and behavior. The main finding: Large cities are driving stronger e-commerce growth than smaller cities, largely due to the differences in population.
“We’ve found that even though cities with less than 100,000 people have higher revenue per visit, conversion rate, and average order value, more densely populated cities still drive the majority of online revenue growth for retailers,” said Vivek Pandya, managing analyst at Adobe Digital Insights (ADI), Adobe’s research arm. “With differential e-commerce growth, there may be a digital divide in the not-too-distant future. We could see a paradigm emerge where more populated cities are catered to through the variety of online marketplaces and efficient shopping experiences, while sparsely populated areas are left with limited brick-and-mortar storefronts that offer a more basic set product options.”
Consumers in large cities place slightly bigger orders with higher priced items in their shopping carts, the research found. However, conversion rates are higher in smaller cities (2.4% vs. 2%). Additionally, purchases via smartphones are more common in large cities, with $1 of every $3 spent online in large cities coming from mobile phones.
Large-market consumers also look for different products online than smaller market shoppers, the research found. Smaller markets are more likely to buy memberships, apparel, and accessories, and office supplies and professional services online. On the other hand, large markets are more likely to buy computers, phones, electronics, baby and toddler gear, as well as sporting goods online.