Google Answers Logo
View Question
 
Q: Examples of Incremental Sales from the Online Channel? ( Answered 5 out of 5 stars,   0 Comments )
Question  
Subject: Examples of Incremental Sales from the Online Channel?
Category: Business and Money > eCommerce
Asked by: tornell-ga
List Price: $100.00
Posted: 04 Jul 2003 14:28 PDT
Expires: 03 Aug 2003 14:28 PDT
Question ID: 225207
Hi, 

in the Grainger Factbook 2003, available on http://www.grainger.com,
the following is stated:
"Customers who order through the Grainger Web site – many of them
among the company’s best customers – buy more often, spend more per
order and buy from more product categories than customers who solely
use traditional channels."

This quote leads to my question: 
What other examples are there that converting customers to use the
internet sales channel in addition to other channels (stores, hotlines
etc) brings new additional sales? And what is the sales increase in
percent for these customers? Are there also examples of this effect on
customers that are using the web page only for information purposes
(no transactions).

I would like to have the answer limited, if possible, to direct web
site impact (not the impact of ERP-system-connections or EDI sales).
In order to be able to compare different customer groups, the question
only includes companies that have at least one off-line channel
(store, hotline etc).

Coming back to the Grainger Factbook 2003 to clarify the numbers I am
after:
"Grainger receives an 11 percent incremental increase in sales from
customers who begin using digital channels".
Calculation of "incremental sales":  [total growth of online customer]
- [average growth of other customers] = 13% - 2% = 11%

It would be great if you could provide me a list like this:
Company name and URL; "Incremental sales from online customers" (as
defined above); Source; Additional comments

The list that I have in mind includes some consumer oriented companies
as well as firms having mainly other companies as customers. It can,
but does not have to, be limited to the US.

Hope I made the question clear and that someone is willing to answer
it!

Regards, tornell

Request for Question Clarification by jbf777-ga on 06 Jul 2003 18:25 PDT
Hello again tornell!

Thanks for the pointer to this question.

As with the last question, we'd be facing a similar issue in terms of
getting hard numbers from companies.  As I've encountered, companies
don't normally break out online sales.  Moreover, this question would
be going one step further, probing for more detailed growth data and
conversion data.  So obtaining a breakdown from the companies
themselves is not really going to be possible.  I think what could be
done is to search the web for general "increased sales as a result of
going online" data.  But that unfortunately seems a bit watered down
from your original request.

jbf

Clarification of Question by tornell-ga on 07 Jul 2003 01:46 PDT
Hi jbf,

the big difference between this and the previous question - there is
no industry (or geographical market) limitation, which means that at
least public companies could provide some information.

I have a proposal to move forward: I cut the price down to $100, and
you check with some companies that could potentially reveal these
kinds of figures. If it works, you can move on (with a new question or
a huge tip). If it doesn't work, we just stop it there and you make
the general search you proposed.

What do you think?

Regards,
tornell

Request for Question Clarification by jbf777-ga on 07 Jul 2003 21:37 PDT
Hey tornell -

I will see what I can do...

jbf777

Request for Question Clarification by jbf777-ga on 09 Jul 2003 14:37 PDT
Hey tornell -

Tell me if I'm on the right track [these are excerpts; check out the
web sites themselves]:

Digex to Host Popular Auto Shopping Portal
http://thewhir.com/marketwatch/dig052302.cfm
"The company, which has provided auto parts via mail order since 1964,
said Internet sales now account for a sizable chunk of its business.
The company provides parts for numerous vehicles, including Porsche,
Mercedes, Ford, and GM.
"Our Internet sales grew 157 percent last year and now constitute
almost a third of our overall business," said Amer Kuric, eBusiness
Manager for Performance Products. "Due to increased online demand, we
decided to go with a managed hosted platform that lets us concentrate
on our business rather than on managing our Internet site."

Marketeer : Online marketing ecommerce shopping
http://www.marketeer.co.nz/
Since going online with Marketeer we have doubled
our Internet sales"

Xpress Press -- Brandsmall.com Sales Double since Opening in Dec.
http://www.prweb.com/releases/1999/3/prweb7524.php
And although good genes can't guarantee one's success in business,
Brandsmall.com has seen sales double each month since going online in
December 1998.

E-commerce: Disappearing ink
http://catalogagemag.com/ar/marketing_ecommerce_disappearing_ink/
E-commerce: Disappearing ink
Since going online, Lickton claims the company's gross sales have
increased 25%,
while costs have been cut in half, since it no longer has paper,
printing and

E-Commerce Success Story:Shades.com & Swiss Army Depot
http://www.ecommercetimes.com/success_stories/success-shades.shtml
"Our Internet sales have approximately doubled every year from 1991 to
1995. They increased 450% from 1996 to 1997. And they're up 370% this
year. We've had very rapid sales growth."

Firms encouraged to do e-business
http://www.minority4business.co.uk/connews.asp?renleewtsapf=130
News - Firms encouraged to do e- ... 
Acme Whistles, a small firm that invented the first police whistle,
has seen its sales double year on year since going online.

FTD.com's path to profitability 
http://www.i-street.com/magazinearchive/yr2001/mn06/ftd.asp
"Since going online, the firm has dramatically increased the quality
of its products, and as a result, average order value has increased
from approximately $45 a few years ago to $57 an order in the second
fiscal quarter of 2001."

More Web Sites That Can Help Launch Your Hawaii Internet Store
http://www.cta.net/press.asp?article=51&selYear=2000
"Samudio told us she was “very pleased” with the service that
Freemerchant.com provides and that it was easy to use for people that
had no technical background. Most importantly she said that since
going online, the company’s business has improved by 10%. “Said
Sumudio, “the online presence provides an opportunity for our walk in
customers to come back to us on the Net if they find something they
really like.”

Clarification of Question by tornell-ga on 10 Jul 2003 02:33 PDT
Hi jbf and thanks for the research,

I think you're on the right track, but please limit the companies that
also have other channels than the internet one and what sales impact
the internet has on the business.

The following excerpts are defitely on the right track:
>Xpress Press -- Brandsmall.com Sales Double since Opening in Dec. 
>E-commerce: Disappearing ink 
>E-Commerce Success Story:Shades.com & Swiss Army Depot 
>Firms encouraged to do e-business 
>FTD.com's path to profitability  
>More Web Sites That Can Help Launch Your Hawaii Internet Store 

I think you can find some stats online, but I also think you have to
call a couple of marketing managers to find out the impact of the web
channel.

Regards,
Thomas

Request for Question Clarification by jbf777-ga on 10 Jul 2003 09:49 PDT
Would you consider something like the following to be an "incremental
sales" figure?

E-commerce: Disappearing ink 
http://catalogagemag.com/ar/marketing_ecommerce_disappearing_ink/ 
Since going online, Lickton claims the company's gross sales have
increased 25%, while costs have been cut in half, since it no longer
has paper,
printing and....

Clarification of Question by tornell-ga on 10 Jul 2003 10:55 PDT
Hi jbf,

yes, statements like that is exactly what I am interested in. Please
keep in mind that I am interested in bigger companies: net sales 25
million USD/year and up. What do you think, will you be able to move
forward? Should I rise the price for the answer to $200 now?

Regards,
tornell

Request for Question Clarification by jbf777-ga on 10 Jul 2003 22:00 PDT
Tornell -

Sure, you can increase it to $200... perhaps it is more doable than I
originally thought.

jbf

Clarification of Question by tornell-ga on 11 Jul 2003 00:23 PDT
Hi jbf,

sounds like you are doing progress! Just let me know when I should
change parameters.

Regards,
tornell

Request for Question Clarification by jbf777-ga on 11 Jul 2003 12:27 PDT
Hey tornell -

I've got a number of calls in.  How many are you looking for on this
particular question?

Request for Question Clarification by jbf777-ga on 13 Jul 2003 15:26 PDT
Still there? :)
Answer  
Subject: Re: Examples of Incremental Sales from the Online Channel?
Answered By: jbf777-ga on 16 Jul 2003 13:05 PDT
Rated:5 out of 5 stars
 
Hey Tornell -

As before, this answer is not finished until you're satisfied with it.
 If you require any additional information or clarification, please do
not hesitate to ask before rating this answer.

Well, I've received a response back from about 6 companies after
phoning over a dozen.  The closest I got was from Danskin, who said "a
significant increase on the retail side," but "no numbers I can share
with you."  The 6 companies represent significant players in the
grocery market, home electronics/personal items, pets,
bath/hospitality, and clothing.

Because there are millions of companies out there, there's no way for
me to know who is going to disclose this information and who isn't,
since it is so hit-and- miss, and looking up companies via Hoovers is
now much more difficult, since business category access as well as
basic searching is now unavailable.

I've talked to a couple players in the ecommerce statistics industry,
and they said that companies will be reticent to disclose this kind of
information, because it's more of a number that represents
effectiveness than a "percent of gross sales" number, and disclosing
that information could be dangerous in terms of competition.

If you'd like to invest in a $49 Hoovers account, I would be willing
to attempt to find and call some smaller companies, but it is my
personal feeling that I'm going to most likely encounter more of the
same reticence.

I have scoured the net for additional information and have been able
to uncover some more.  You'll most likely want to visit each of these
links, as I've only provided excerpts from them:

Crucial Component - QVC
http://www.miami.com/mld/miamiherald/business/national/3441990.htm
QVC estimates nearly 10 percent of its roughly $4 billion in annual
sales already comes through the Internet. QVC says customers who shop
on both its TV channel and its website typically buy three times as
much as those who shop only on TV, and seven times as much as people
who shop only on QVC.com.

B2B: Distribution
http://www.highroad.com/positive_ink/wall_street_journal_sept16.html
And when York International Corp., the York, Pa., maker of heating and
air-conditioning equipment, wanted dealers to be able to place orders
on the Web, it wanted to keep its 11 factory-owned and roughly 300
distributors in the loop.  Since the site was launched in November,
sales through the Web system have risen to about $10 million a month,
compared with about $70 million through the traditional ordering
channel.

Crucial Component - J Crew
http://www.miami.com/mld/miamiherald/business/national/3441990.htm
Online sales have already surpassed catalog orders at J. Crew,
accounting for 56 percent of the company's nonstore sales during the
first quarter of this year, a company spokeswoman said.  "Catalog
sales have declined from nearly $231 million in 1998 to $178 million
in 2000, while online sales have grown from $22 million to $107
million for the same period. The company expects to close 2001 with
about $120 million — $130 million in Internet sales and anticipates
continued growth ahead." [quote from "Mind Games"
http://opsandfulfillment.com/ar/fulfillment_mind_games/] They did $140
M in 2002.

Searching for the Retail Trifecta
http://www.thestandard.com/article/display/0,1151,19115,00.html
Even among brick-and-mortar retailers, JCPenney.com's traffic trails
only Barnesandnoble.com's. Penney's online sales have surged - from
$15 million in 1998 to $102 million in 1999 - and Paul Pappajohn,
president of JC Penney E-Commerce, says this year's sales are expected
to hit $300 million. Current projections call for profits in 2001 and
sales of $1 billion by 2002. Randy Ronning, president of JC Penney
Catalog and Internet, likes to say that while sales aren't yet high
enough to be of consequence to the $4 billion catalog division - much
less the $20 billion the stores generate - they are large enough to
lift the spirits of the company.

TicketMaster Launches Next Generation Online Service
http://www.ecommercetimes.com/perl/story/410.html
Ticketmaster Online sales have risen from $100,000 (US$) to more than
$10 million monthly, in the past 21 months. The site enables
entertainment fans to purchase tickets on a real time basis for most
events.  Ticketmaster, a USA company (Nasdaq:USAI), is the world's
leading computerized ticketing service. The company sells 70 million
tickets, valued at more than two billion dollars, for more than
150,000 events a year. Coverage includes the U.S., South America,
Canada, Mexico, Europe, and Australia.

15-07-2003: AirAsia's online sales a hit
http://www.theedgedaily.com/article.cfm?id=23206
Budget airline AirAsia Sdn Bhd's sales via the Internet were over RM60
million since it introduced its online sales facility 14 months ago,
chairman Datuk Pahamin A. Rajab says.The online sales account for 45
per cent of the total sales.

Retailing Off the Beaten Path - The Sportsman's Guide
http://www.fool.com/foolish8/2002/foolish8020513.htm
The company first opened its online store in 1998, and since then
online sales have grown to over $36 million in 2001. The percentage of
sales by Internet reached 23% in the fourth quarter of 2001, compared
to less than 1% for all of 1998. During the most-recent quarter (Q1
'02), Internet-related sales represented almost 27% of total sales."

Sony Hits the Button
http://www.asiaweek.com/asiaweek/magazine/2000/0707/biz.sony.html
"Net business is very price-sensitive," says Fukunaga Kenichi, a
spokesman for Sony Computer Entertainment. Online sales have soared to
about a third of the total. Now games and other video software are
touted on a daily menu of special offers.

How Not to Be an Online Grocer
http://www.stratvantage.com/news/071601.htm
In fact, Ahold’s been doing it online in Argentina since 1997. Disco,
one of the country's largest supermarket chains at 237 stores, has
become the country's leading e-commerce player. Its online sales have
grown to $40 million, which ain’t hay when you consider eCommerce in
Argentina is estimated by Accenture to be only $150 million. Online
grocering was merely an extension of Disco’s decades-old home delivery
service, which last year delivered a quarter of the company’s sales.

The Web @ Work / Eli's Cheesecake
http://www.elicheesecake.com/friends/wallstreet.html
Sweet Sensation: Since the company introduced c-cakes last year,
online sales have jumped 65% to about 2,000 cheesecakes every month,
Mr. Schulman says. Still, that is only a small part, about 3%, of the
business. Overall, direct sales account for only 10% of the total
business, with wholesale operations still accounting for 90%. Many of
Eli's customers, Mr. Schulman says, are people who have tried or heard
about the cheesecake before, but wanted an easier way to get it.

Finding the Recipe for Internet Success
http://www.radware.com/content/company/press/presscov/default.asp?_v=Read&document=2763
"In five years online sales have grown to the point where they now
account for 25 to 30 percent of our total business," says Butorac.

PTplace.com Records $5 Million in Online Sales Since April Launch
http://www.shareholder.com/rockwellauto/news/20000615-16977.cfm?ReleaseType=Company
Rockwell Automation announced today that more than $5 million in
online sales have been recorded since the April launch of their
business-to-business e-commerce site known as PTplace.com.

Global Online Retailing
http://www.advancedmanufacturing.com/Internet_report_PDF%20files/globalonlineretailing.pdf
Almost every responding company says it is meeting or exceeding its
financial goals for online retailing. Several of the
“bricks-and-clicks” companies say that their online channel is more
efficient than their store-based channel. And all companies we spoke
with say that online sales have been “very good” or “excellent.”

Electronic Commerce:
A Business Tool Whose Time Has Come
http://www.communication.gc.ca/publications/e-commerce.html
"Since it went online, Internet sales have tripled and the sales
figures for the 2000 fiscal year are expected to double next year,"
says Nathalie Leroux, E-commerce Manager of Thyme Maternity. This
increase can be attributed to experience and the improved performance
of the company's e-business unit.

Setting Their Sites
http://www.funworldmagazine.net/2003/Jun03/Features/Setting_Their_Sites/Setting_Their_Sites.html
Paramount Parks added online ticket sales in April 2000. “Sales have
more than doubled every year since they went online,” Taylor says. “We
were really surprised by that, and we’re anxious to see how 2003
weighs in on that curve.”

Shades.com & Swiss Army Depot Interview at eCommerceTimes
http://www.ecommercetimes.com/success_stories/success-shades.shtml
How have sales improved since you went online?  A Our Internet sales
have approximately doubled every year from 1991 to 1995. They
increased 450% from 1996 to 1997. And they're up 370% this year. We've
had very rapid sales growth.

Lillian Vernon Online
http://www.lillianvernon.com/webapp/wcs/stores/servlet/PressReleaseView?catalogId=10001&page=webrelaunch&storeId=10001
Lillian Vernon, Founder and Chief Executive Officer, stated, "The
Internet is playing an increasingly important role in our
multi-channel business. Since we went online in 1995, the web has
become the fastest growing segment of our business and an ideal
opportunity to market to a new demographic.

Small-screen entrepreneurial gem
http://www.msnbc.com/local/knews/kns_1651724.asp?cp1=1
He managed the launch of the America's Collectibles Network new site
two years ago [www.acntv.com]. Since then, online revenues have
increased 100 percent per year, he said. Soon, the company will roll
out an online video stream of its show to capture fans who can't
always be home on the couch.

Monopolize your Marketplace Bi-Monthly Newsletter
www.merchantibss.com/newsletter/060501.doc
Although shoppers can order furniture directly from Gallery
Furniture's Web site [www.galleryfurniture.com], many bring in
printouts of sofas, tables, and
other items they saw online. Since going online, the furniture store's
sales have increased by 20%.

WARNER VILLAGE CINEMAS IS WORLD'S FIRST CINEMA CHAIN TO LAUNCH ITS OWN
ON-LINE DIGITAL RADIO STATION
http://www.infinity-media-ltd.com/infweb/Business/infobusiness/pressbusiness/infrelease9.htm
"Warner Village Cinemas launched its website three years ago and,
since then, online booking sales have increased 200% year on year ·
Booking sales have topped the 2.8 million mark and the site is
obtaining an average of 4.3 million impressions, 420,000 visitors and
185,000 unique users a month..."

Digex to Host Popular Auto Shopping Portal
http://thewhir.com/marketwatch/dig052302.cfm
"The company, which has provided auto parts via mail order since 1964,
said Internet sales now account for a sizable chunk of its business.
The company provides parts for numerous vehicles, including Porsche,
Mercedes, Ford, and GM.
"Our Internet sales grew 157 percent last year and now constitute
almost a third of our overall business," said Amer Kuric, eBusiness
Manager for Performance Products. "Due to increased online demand, we
decided to go with a managed hosted platform that lets us concentrate
on our business rather than on managing our Internet site."

Xpress Press -- Brandsmall.com Sales Double since Opening in Dec.
http://www.prweb.com/releases/1999/3/prweb7524.php
And although good genes can't guarantee one's success in business,
Brandsmall.com has seen sales double each month since going online in
December 1998.

E-commerce: Disappearing ink
http://catalogagemag.com/ar/marketing_ecommerce_disappearing_ink/
E-commerce: Disappearing ink
Since going online, Lickton claims the company's gross sales have
increased 25%,
while costs have been cut in half, since it no longer has paper,
printing and

E-Commerce Success Story:Shades.com & Swiss Army Depot
http://www.ecommercetimes.com/success_stories/success-shades.shtml
"Our Internet sales have approximately doubled every year from 1991 to
1995. They increased 450% from 1996 to 1997. And they're up 370% this
year. We've had very rapid sales growth."

Firms encouraged to do e-business
http://www.minority4business.co.uk/connews.asp?renleewtsapf=130
News - Firms encouraged to do e- ... 
Acme Whistles, a small firm that invented the first police whistle,
has seen its sales double year on year since going online.

FTD.com's path to profitability 
http://www.i-street.com/magazinearchive/yr2001/mn06/ftd.asp
"Since going online, the firm has dramatically increased the quality
of its products, and as a result, average order value has increased
from approximately $45 a few years ago to $57 an order in the second
fiscal quarter of 2001."

More Web Sites That Can Help Launch Your Hawaii Internet Store
http://www.cta.net/press.asp?article=51&selYear=2000
"Samudio told us she was “very pleased” with the service that
Freemerchant.com provides and that it was easy to use for people that
had no technical background. Most importantly she said that since
going online, the company’s business has improved by 10%. “Said
Sumudio, “the online presence provides an opportunity for our walk in
customers to come back to us on the Net if they find something they
really like.”

Study: Online Sales Take a Bite Out of Traditional Retailing
http://www.ecommercetimes.com/perl/story/241.html


Search Strategy:
"online sales have" "the company"
"online sales now make up"
"online sales represent OR represented"
"percentage of sales from web"
since their web launch
"shop online" "store locator"
"since * went online" "sales OR orders OR revenue OR revenues have"
"since * online" "sales OR revenues have increased"
"since * web" "sales OR revenues OR orders have"
"since going online" OR "since * online" increased OR sales
"since * went online" "sales have"
"since * online" "sales have"
"online sales account for"


Additional Links:
Comscore
www.comscore.com

emarketer
www.emarketer.com

[both companes do research along these lines for a price]

Request for Answer Clarification by tornell-ga on 20 Jul 2003 12:49 PDT
Hi jbf, 

sorry that I haven't been online for a week, but you seem to have had
success even if the question is tricky!

I will go thru the answer in depth over the next couple of days, and I
will rate it afterwards. Maybe I need some clarifications as well.

Regards,
tornell

Clarification of Answer by jbf777-ga on 20 Jul 2003 15:02 PDT
hey tornell -

Well, I wasn't able to find information directly from companies
themselves, but yes, there seemed to be some information online after
scouring the web. :)

Request for Answer Clarification by tornell-ga on 21 Jul 2003 02:08 PDT
Hi jbf, regarding the price - do you think it is fair with 100 USD?

Clarification of Answer by jbf777-ga on 21 Jul 2003 07:50 PDT
Hey Tornell -

That's fine...

jbf

Request for Answer Clarification by tornell-ga on 21 Jul 2003 08:12 PDT
I have now printed all the articles and have some fun reading in front
of me! Regards, Tornell

Clarification of Answer by jbf777-ga on 21 Jul 2003 08:46 PDT
Hehe... let me know if you need anything. :)

jbf

Request for Answer Clarification by tornell-ga on 28 Aug 2004 08:57 PDT
Hi jbf!

Here is a new related question if you are interested:
http://answers.google.com/answers/threadview?id=393782

Regards, tornell

Clarification of Answer by jbf777-ga on 28 Aug 2004 15:40 PDT
Tornell -

Thanks!

jbf777
tornell-ga rated this answer:5 out of 5 stars
Very good internet research on a tricky question!

Comments  
There are no comments at this time.

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at answers-support@google.com with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  


Google Home - Answers FAQ - Terms of Service - Privacy Policy