Online Consumer Products Goods (CPG) sales are poised for tremendous growth. According to October 2012 data from Nielsen, online CPG sales were expected to grow at a 25% compound annual rate from 2012 through 2015.
Companies that understand the propensity for customers to convert from shoppers to buyers and to purchase additional CPG products online can take advantage of this expected growth to significantly boost their sales. Consumer propensity for conversion from online shopper to online buyer depends largely on his or her type of initial shopping “basket” of CPG, Durable or Mixed goods.
We analyzed more than 4.3 million online transactions representing more than $500 million in sales over the 60-day period from January 1 through March 1, 2014 on a network of Mass Merchant Retailers, selling a range of CPG and Durable Goods products. Key findings include:
- Consumers buy different types of CPG and Durables products online based on whether shopping exclusively CPG products (CPG Baskets), exclusively Durables (Durables Baskets), or mixed CPG & Durables (Mixed Baskets).
- Unit price of Durables is significantly higher in Durable Baskets compared to Mixed Baskets. This shows that when consumers buy more expensive, higher consideration products (such as a TV or vacuum cleaner), they are not as inclined to add CPG products to their transaction.
- Mass merchants are the most successful at converting online shoppers to purchasers in the Health and Beauty and the Baby and Toddler Categories.
Download the Convert Shoppers to Buyers for CPG & Durable Goods white paper here to learn more.