A number of companies are reporting that the web and e-commerce are accounting for more of their sales than ever before. These reports illustrate a constant trend that’s sure to continue: retailers and other business owners are finding that an increasing number of their sales are happening digitally, rather than in-store.
For instance, Internet Retailer recently reported that web sales for PetMed Express were up by 5 percent during the fiscal year 2014, which concluded at the end of March. The company’s total sales only increased by 2.5 percent, illustrating how online sales increases are significantly outpacing overall and in-store increases. The web previously accounted for 77 percent of PetMed’s overall sales, and now accounts for almost 80 percent.
“We were able to increase our gross margins for the quarter and decrease our operational expenses to improve our bottom line results for the fiscal year,” Menderes Akdag, president and CEO of the company, explained to Internet Retailer.
Internet Retailer projects, based on previous data, that the company’s web sales exceeded $184 million during the past year – illustrating just how much money a company can bring in by listing and selling its products via online point of sale terminals.
Other companies are seeing their web sales grow significantly, thanks to redesigns and other efforts
PetMed isn’t the only company reaping the benefits of online payment processing pages and e-commerce customers. Another recent Internet Retailer report detailed how online sales at Vitacost.com grew by 7 percent during the first quarter of 2014 alone.
According to the report, the company has been able to better serve its customers by rolling out a single-page checkout process, linked to an easy-to-use payment processing page that allows consumers to complete their transactions in just a few seconds. A spokeswoman for the company told Internet Retailer that this helped the company to achieve a “measurable decline in the rate of cart abandonment.” This illustrates to other retailers how a convenient online credit card payment processing page can help businesses to increase their sales rates, even if they’re already listing and selling their products via e-commerce.
“In the first quarter, we launched a national television advertising test and remain focused on increasing our reach to a wider base of customers,” Jeffrey Horowitz, CEO of the website, told Internet Retailer.Back To Blog