ECOMMERCE

U . S . ecommerce sales totaled more than $ 270 billion in the third quarter of 2023 , up almost 8 % compared to the same period last year . That sounds like a lot of shopping , but it ’ s just 15.6 % of total retail sales for the quarter . At least 8 out of 10 times we buy something , we choose to push a real shopping cart , not an electronic one .

The American economy is driven by consumer spending . And all retail shopping activity is increasing . Online shopping , though still a collectively small bagful , is growing faster than brick-andmortar shopping . According to the U . S . Census Bureau , in the third quarter of 2023 e-commerce shopping increased 7.6 % from the third quarter of 2022 while total retail sales increased just 2.3 % in the same period .

That ’ s a lot of numbers so early into this story . Just one more . U . S . ecommerce sales have grown 88 % faster than general retail sales since September 2022 .

You may not embrace online selling , and we ’ ve talked to many OPE dealers who don ’ t . But the longer you choose to avoid ecommerce , the more sales you ’ ll be missing to competitors with online shopping options .

It ’ s not all about Amazon . com . While the company does control roughly 38 % of U . S . ecommerce sales ( Walmart is second with less than 10 %), Amazon ’ s share of the pie is not growing . Other retailers are increasing their ecommerce sales , and it ’ s a large group of retailers each holding small slices .

One of those is Home Depot , which is in the top 10 of ecommerce retailers , up there near Walmart and Target . And since HD is the largest power-equipment retailer in the U . S ., its ecommerce activity deserves attention .

In its OPE Market Trends Report for 2023 , industry analyst Traqline reports that , as of June 2023 , in-store shopping remains the most common sales channel for outdoor power equipment consumers , with 66 % of shopping taking place at a brick-andmortar location . That means nearly one-third of power-equipment shoppers are purchasing online ; that ’ s more than in the general retail number including apparel and consumer electronics .

In this story , we look at why people shop online , what some power equipment manufacturers are doing about it , and what dealers should do .

Why people buy online

Sharp readers will notice that we ’ ve used “ shop ” and “ buy ” online haphazardly so far – to make a point . Everyone , and we mean everyone , shops online . Fewer people buy online . ( Even if your dealership is not fully equipped for the buying part , your website better make it easy for people to do the shopping part .)

A 2018 Marist Poll found that 56 % of Americans prefer shopping in a physical store . However , being able to shop at any time ( 64 %), to find the item easily ( 62 %) and to save time ( 61 %) were all major reasons that could lead to people choosing to shop online .

Note that this poll was from 2018 , pre-pandemic . Since then , everyone has learned how easy ecommerce can be . Everyone , meaning both shoppers and retailers . So even though not all are choosing ecommerce yet , the “ convenience ” factor has surely increased for both sides of the commerce equation .

Ecommerce : Reasons why

# 1 . I can shop anytime . # 2 . It ’ s more convenient than traveling to a store . # 3 . I have more product choices . # 4 . I can find items at cheaper prices . # 5 . I can read product reviews while I shop .

Are you ready ?

“ Some customers shop online just to make parts lists , but then

16 OPE + March 2024 www . OPE-Plus . com