Spikes & Dips July 2016: State of E-commerce in the US

What is our Spikes & Dips Series?

Intelligence Node’s Spikes & Dips series tracks the retail price change of a basket of products spread across online retailers using our real-time retail analytics software. ‘Spikes & Dips’ covers the top 1000+ leading North American e-commerce retailers and is continuously monitored by proprietary market-monitoring algorithms. Intelligence Node’s algorithm processes approximately 1 Billion products daily and are taken from real-time, live data. All benchmark indexes are tracked in real-time, however, updates will be published in our monthly State of E-commerce newsletter.

The goal of our Spikes and Dips series is to put online retail price movements in the context of macroeconomic factors thus enabling retailers to understand how these macroeconomic factors influence their day-to-day retail pricing strategies.

 

Number of Products

no of products chart 1

 

Product Listings online cumulatively dropped by 19% across the major categories. Beauty & Care, Fashion and Home & Décor categories saw the largest decrease at an average of 22% MoM. The electronics category saw minimum decrease of 3% MoM.

 

Amazon retained top spot with the share of product listings of the entire US catalog going up to nearly one fourth of the combined catalog in July.

Chart 2

Categories where most SKUs were added.

chart 3-1 spikes and dips

 

65% of the total US catalogue was listed under the categories Fashion and Home & Décor.

 

Average Price & Discount

We studied the price movements in July 2016 vis a vis June 2016 to understand pricing changes in various verticals. This chart reflects the average price changes in May 2016.

chart 4 spikes and dips

Average Prices increased across all major categories after a steep decline in June. The average price grew by 15% and 14% across these fashion and Home & décor categories respectively. The electronics category surprisingly, remained the only major category with the least increase in average price at 3% MoM.

chart 5 spikes and dips

We studied the retailers who witnessed a rise in average prices. The table shows the % change in the prices by various retailers across categories.

What is Trending?

We looked at various price, discount and catalog movements to discover trends for various categories.

chart 6 spikes and dips

The major categories witnessed a slack increase in trend movement MoM. Beauty & Care was the only category to see a sizable increase of 7% in trend movement MoM. The Food & Grocery category witnessed a 10% MoM decrease in ranking.

chart 7 spikes and dips july

 

We studied the retailers who witnessed a rise in average prices. The table shows the % change in the prices by various retailers across categories.

 

Insights by Player: Amazon vs. Walmart

chart 8 spikes and dips july

 

Prices across all major categories rose significantly on both Amazon and Walmart in July MoM. Amazon witnessed prices higher than those on Walmart across all the major categories with Beauty & Care and Home & Décor at the top of the list. On an average, prices of the major categories on Amazon were 6% higher than those on Walmart.

chart 9 spikes and dips july

On average, the overall price on Amazon was 5% higher than that on Walmart.

Conclusion

The activity stabilised in July, in preparation for the heavy discount season to come next quarter. Retailer focus was on increasing profit margins and adapting to the holiday season. The July Spikes & Dips Series built upon the movements we saw in June, as retailers actively started offering even based discounts and offers.

Intelligence Node can provide highly targeted insights – including SKU based analytics – to help you monitor your competition in real time. Request a free demo and learn how to harness the true power of retail analytics to drive business success.

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