Spikes & Dips May 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 750mn 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

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Product listings online continued to rise up by 10% across the main categories MoM, during May.  The product listing in the Home & Décor category though, increased only by 4% in May, compared to April’s 70%, ending the bull run of the category. Fashion and Electronics categories remained unchanged from the previous month. The Beauty & Care and Food & Grocery categories saw a big decrease at 13% and 7% respectively in May.

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 May.

 

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Categories where most SKUs were added.

 

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Nearly 62% of the total US catalogue was listed under the categories Fashion, Home & Décor and Electronics. Fashion and Home & Décor categories remained at 30%- 35% in May.

Average Price & Discount

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

 

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Fashion vertical witnessed the highest increase in average price at 22% in the average price MoM in May. The Home & Décor category saw an average price drop from 30% in April MoM to 11% in May MoM, almost is a65% plunge. The Food & Grocery category fetched the second highest price rise at 16% in May MoM.

 

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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.

 

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The Electronics category trended most with an increase of 6% MoM in May. Home & Décor and Fashion categories saw an increase in trend index as well. Food & Grocery and Beauty & Care categories saw a decrease in trend index MoM at 10% and 13% respectively.

 

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Insights by Player: Amazon vs. Walmart

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Prices across all the categories including the major categories were dominated by Amazon in May MoM. Across the major categories, the overall average price on Amazon was 23% higher than Walmart.

 

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Conclusion

The activity graph climbed up in May. This was expected, as retailer focus was on stabilizing assortment and pricing. The May Spikes & Dips Series built upon the movements we saw in April, as retailers actively started focussing standardizing promotions and pricing.

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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