Keeping pace

in online consumer electronics sales

The outlook for online electronics sales is bright, with global sales set to surpass $300 billion in 2018, a 10.7% YoY increase. But retailers will need to work hard to secure their share of this competitive, commoditized market.

Promoting customer loyalty and offering an omni-channel multi-touch shopping experience will be key to maintaining margins and keeping pace with industry giants. In this infographic we reveal industry-specific shopping trends, and offer tips to help grow eCommerce revenue.

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The five year outlook: bright.

The three largest consumer electronics markets are poised for significant growth. By 2022, the Chinese market is projected to grow by 73%, with growth in the European and US markets projected at 48% and 30% respectively.

Source: Statista, 2018

2017 consumer electronics revenue

2022 consumer electronics revenue (projected)

US electronics sales are moving online

Ecommerce has long been a key channel for consumer electronics sales, and it’s importance is growing. By 2022, one out of every three consumer electronics purchases in the US will be made online.

Source: Statista, 2017

Online share of electronics orders in U.S. (2021 projected)

Returning customers make over half of online purchases

Shoppers can often buy an identical product, for a near identical price, from hundreds of online electronics stores. Ensuring that customers return to your store is at least as important as drawing them in in the first place.

Source: Riskified, 2018

% of purchases made by returning customers

Electronics customers hurry back

Compared to other industries, shoppers typically don’t wait long before making a repeat purchase from consumer electronics retailers. This means customer lifetime value is unusually high in this vertical, making a false decline extremely costly.

Source: Riskified, 2018

Average days between orders

Learn from Amazon - offer many avenues to shop

A crucial way for electronics merchants to broaden appeal, and keep pace with big players, is to offer a variety of shopping options. With Amazon leading the charge, customers are increasingly choosing to buy using smartphone apps, tablets and voice shopping.

Source: Statista, 2017

Share of U.S. Amazon orders by channel in 2017

Boost margins by fighting fraud

While the overall risk in electronics isn’t as extreme as some other industries, the fraud attempt rates for certain products can exceed 20%. Accurate fraud detection will reduce both chargeback and false decline rates, widening margins.

Source: Riskified, 2018

Fraud rate by product:

Low risk

Moderate risk

High risk

Very high risk

Low % of orders fraud attempts - 2017

Medium % of orders fraud attempts - 2017

High % of orders fraud attempts - 2017

Very high % of orders fraud attempts - 2017

Microwaves
Watches
Air conditioners
Dishwahsers
TV's
Cosmetics
Tablets
Headphones
Fashion
Smartwatches
Fitness Trackers
Laptops
Tickets
Travel
Gaming Consoles

Speedy fraud review pays off

Over 20% of online shoppers expect to get their shipments within two days–and in this competitive market you can’t afford to lose those customers. Manual fraud review jeopardizes your ability to ship fast by creating fulfillment bottlenecks.

Source: Survey of 2,815 U.S. Consumers. Internet Retailer, 2017

What’s an acceptable wait time for online orders?

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