Highlights from the annual National Retail Federation survey of college, K-12, back-to-school spending.

• Families with children in elementary through high school plan to spend an average of $848.90 on school items, which is $59 more than last year.
• Total back-to-school spending is expected to reach a record $37.1 billion, up from $33.9 billion last year and an all-time high in the survey’s history.
• College students and their families plan to spend an average of $1,200.32 on college or university items, an increase of $141 over last year.
• Over half ($80) of this increase is due to increased spending on electronics and dorm furnishings.
• Total back-to-college spending is expected to reach a record $71 billion, up from $67.7 billion in 2020.
• The vast majority (76 percent) of K-12 shoppers were still waiting on lists for school supplies as of earlier this month.
• On average, consumers reported that they had completed only 18 percent of their back-to-class purchases so far by early July.

“Consumers are spending more on items like electronics and clothing as they make plans for students to resume activities in person this fall,” Prosper Insights executive vice president of strategy Phil Rist said.

Top destinations for K-12 shoppers

Online (48 percent)
Department stores (48 percent)
Discount stores (44 percent)
Clothing stores (41 percent)
Office supplies stores (27 percent)
Electronics stores (27 percent)

The top destinations for college shoppers

Online (43 percent)
Department stores (33 percent)
Discount stores (30 percent)
Office supplies stores (29 percent)
College bookstores (28 percent)

GettyImages

“(Customers) rely more on the internet to research and discover products to buy. For example, search interest for products like the “best exercise bikes,” “best ring lights” and “best air fryers” increased by 100% or more in the last year. Shoppers don’t just turn to Google for things they want to buy on the web; they also use Google to find what they need nearby. Over the past year, we’ve seen a significant increase in commercial intent across Google including Google Search, Google Maps and YouTube,”

Igor Liskovets
Google director online to offline ad solutions

Shopping Nearby with Google Search

Whether it’s to support small businesses in their community or ensure a nearby store has the item they need in stock, consumers are using Google Search to research their shopping trips in advance. 

Here are some examples of the phenomena.

• Searches for “local” + “business(es)” have grown by more than 80% year over year, including searches like “local businesses near me” and “support local businesses.”
• Searches for “who has” + “in stock” have grown by more than 8,000% year over, including searches like “who has nintendo switch in stock” and “who has gym equipment in stock.”

Google has seen an increase in online research before heading out to a restaurant or to get takeout.

At Google, the company recently found that:

• 66% | Percentage of dining consumers who said they used search to find food and beverage information during the pandemic.
• 57% | Percentage of dining consumers who said they discovered food and beverage information during the pandemic via online ads.

Exploring new products on YouTube

YouTube has become a part of not just the shopping process, but the local shopping process too. For example:

• 45% | Percentage of viewers say they watch YouTube to see a product demo before buying.
• 2% | Percentage of viewers say they are 2x more likely to go in-store or online to buy something they saw on YouTube versus the competitive average.

Starting their journey on Google Maps

Google Maps has become a more critical part of the local user experience, as people use maps to explore something they’re interested in, versus just for navigation:

• Searches on Google Maps for “curbside pickup” have increased 9000% year over year in the U.S.
• Searches on Google Maps for “discounts” have grown globally by more than 100% year over year.
• Searches on Google Maps for “gift shop” have grown globally by more than 60% year over year.

Visits to local stores and restaurants continue to be top of mind in the new year:

Top Generic Searches on Google Maps:

• restaurants
• hotels
• restaurants near me
• gas
• food
• food near me
• grocery store
• gas station
• coffee
• pizza

Top Brands Searched on Google Maps:

• walmart
• starbucks
• home depot
• target
• mcdonald’s
• costco
• chick fil a
• walgreens
• cvs
• bank of america

Source: Google Data, U.S., February 2021

Connect offline shoppers to your store.

1. Support your local small business: In 2020, Google helped drive over two billion direct connections, including phone calls, requests for directions, messages, bookings and reviews for U.S. businesses.

2. If you run a business with physical stores: It’s crucial to make sure your customers can easily find you online. Check our Google’s best practices guide on how to drive offline sales with online ads. 

• GOOGLE ADS
• Thanks to Igor Liskovets, Google director online to offline ad solutions
• GettyImage
  
  
  

While the overall number of shoppers from Thanksgiving through Cyber Monday dropped slightly from 189.6 million in an unusually robust 2019, this figure is still significantly higher than the 165.8 million shoppers in 2018.

• Between Black Friday through Small Business Saturday saw tremendous growth in online activity.
• For the first time, the number of online Black Friday shoppers passed the 100 million mark, up 8 percent over last year.
• The number of online Saturday shoppers, typically associated with small business shoppers grew even more, up 17 percent compared with last year.
• Online-only shoppers increased by 44 percent for the entire weekend, for a total of 95.7 million.

38% | Percenage of shoppers who aid they checked off holiday purchases in the week leading up to Thanksgiving.

52% | Percentage of holiday shoppers who said they took advantage of early holiday sales and promotions this year.

53% | Shoppers who say that promotions over the weekend were the same as they had been earlier in the season.

Thanksgiving in-store shopping was down given both the state of the pandemic as well as the number of retailers who opted to close on Thanksgiving Day, according to the NRF.

With consumer traffic moving to online channels, the number of in-store shoppers on Thanksgiving Day dropped by 55 percent from last year.

Black Friday dropped by 37%

An earlier NRF survey found that 70 percent of holiday shoppers say they feel safe shopping in stores this holiday season given the precautions retailers have taken for COVID-19.

Over the five-day period, shoppers spent an average of $311.75 on holiday-related purchases such as gifts or decorations, down from last year’s total of $361.90 but comparable to 2018’s $313.29.

Of that amount, nearly three-quarters ($224.48) was spent directly on gifts.

51% | Shoppers said they were more interested in holiday decorations and seasonal items.

77% | Percentage of shoppers who indicated they were more interested in supporting small businesses this year.

“The growth in online activity this year was significant, particularly for Black Friday and Saturday shoppers,” Prosper Executive Vice President of Strategy Phil Rist said.“With the start to the holiday shopping season continuing to move up even earlier, consumers will further utilize these channels.”

Top gift purchases over the weekend included

52% | Clothing
32% | Toys
32% | Books, music, movies, video games
29% | Gift cards, certificates
27% | Electronics

Shopping destinations

39% | Grocery stores
33% | Clothing stores
31% | Electronics stores

Earlier this week, Squarespace, the website creation and hosting platform, expanded its “off-line” or “in-person” point-of-sale (POS) feature. The new off-line merchant-service capability is enabled by Square.

(Despite similar names, Squarespace and Square are separate companies that provide complementary web-related services. Squarespace is a website creation and hosting service. Square provides financial transaction services.)

If you are a merchant who does not need off-line credit card processing, there will be no charge or changes to your current Squarespace account.

Find more pricing and capabilities information at the Squarespace “Help Center.”

Illustration via Squarespace

No doubt about it: Americans are big-time online shoppers, according to a new survey by NPR and the Marist Institute for Public Opinion. And by “online shoppers,” most shoppers mean Amazon.com. But just because they’ve bought things online doesn’t mean Americans are turned off by shopping at small retailers or brick and mortar stores of any size. Most of those who have shopped online say they prefer shopping in a brick and mortar store. Here are some highlights of the findings of the survey. 

69% | Percentage of Americans who have purchased an item online

56% | Percentage of online shoppers who say they prefer to shop in a brick and mortar store
37% | Percentage of online shoppers who say they prefer to shop online

43% | Percentage of Americans who say they are regular online shoppers

For many, shopping online means buying from Amazon.com

Amazon shoppers trust the company with their personal information

67% | Percentage of online consumers report having either a great deal or quite a lot of confidence in Amazon to protect their privacy and personal information.

Trust of online retailers, in general

52% | Percentage of online consumers who don’t have very much, or no confidence at all, in most online retailers to keep consumers’ personal data secure.

Reasons shoppers give for shopping online instead of making an in-store purchase

88% | The ease in which one can find the product for which they are looking
84% | Saving time
84% | The breadth of product choices
78% | Lack of lines and people
78% | Availability of product reviews by other shoppers
76% | Cheaper prices

Online shoppers avoid paid shipping

90% | Percentage of online shoppers who prefer free shipping even if an item takes longer to arrive.

Brands aren’t dead, but the brand requires greater effort to rise above the noise of so many product choices.

73% | Online shoppers who say they set out looking for a particular brand
18% | are more likely to just be guided by a recommendation from the online retailer.

Brand vs. Deal

When asked about what motivates their choice of products purchased online, the survey participants split their response.

48% | Are more concerned with getting the best deal
47%  | Are more concerned with getting a specific brand.

What shoppers have purchased online

When provided with a list of products, survey respondents say they have purchased these types of products

58% | (Percentage of survey respondents who say they have purchased…) clothes or shoes
48% | (…) Electronics such as TV’s, computers, speakers, or headphones
26% | (…)  Vitamins or supplements
19% | (…) Pet food or supplies
19% | (…) Household basics such as batteries, toothpaste, or garbage bags
18% | (…) Pharmacy basics such as over-the-counter medicines or lotion
14% | (…) Non-perishable groceries
12% | (…) Prescription drugs and health products such as contact lenses

The most expensive item a shopper has purchased online

Online shoppers surveyed say that the most expensive item they have purchased was between…

22% | $100-$249
21% | $250-$499
18% | $500-$999
18% | $1,000-$2,500

More findings: NPR.org

Amazon today issued a “Small Business Impact Report” highlighting details about the million+ small businesses* that sell products on Amazon.

The Small Business – Amazon Ecosystem

As SmallBusiness.com has often shared, when it comes to Amazon and small business, there’s a unique and unprecedented form of coopetition. We’ve even shared a counter-intuitive theory that competition between big-box book retailers and Amazon ended up helping small independent bookstores grow in number.

Today, for reasons we can only guess, Amazon issued an infographic that attempts to show how the company has impacted small businesses in positive ways during the past 20 years.

Here are some highlights, primarily focused on the number of small businesses (including individuals and “medium-sized” businesses*) that sell products on Amazon.

50% | Half of all items purchased on Amazon come from small businesses

50 | The number of states where small businesses are selling on Amazon
1 million | The number of U.S. small business selling on Amazon

300,000 | The number of small businesses that started selling on Amazon in 2017
20,000 | The number of small business that surpassed $1 million in sales during 2017
$1 Billion | The amount lent to U.S. small businesses in 2017 through the Amazon Lending Program

130 | The number of countries where small businesses are selling on Amazon
189 | The number of countries where there are customers who purchase products from small businesses who sell on Amazon
900,000 | Amazon’s estimate of the number of jobs that have been created worldwide by small businesses selling on Amazon

Top product categories sold on Amazon by small businesses

• Health & Personal Care
• Home
• Electronics
• Beauty
• Apparel
• Sports
• Toys

State-by-State Stats | U.S. Small Businesses Selling on Amazon

But Wait, There’s More

There are many ways, the small business – Amazon coopetition is carried out daily, ranging from fulfillment services to cloud computing solutions. Bottomline: Unlike big-box retailers impact on small, local retailers, the relationship between small businesses and Amazon is still shaking out. For some small businesses, Amazon may be a killer threat. For others, it may be the source of small business creation and success.

*Amazon uses the term “small and medium-sized business.” As SmallBusiness.com believes there is no such thing as a “medium-sized business,” we keep it simple with the term “small business.”

istock

• Previously available to merchants in these countries | U.S., Canada, the United Kingdom, Australia, Germany, France, Italy, Spain and Brazil
• Additional countries availalbe | UK, Australia, Canada, Germany, France, Italy, Spain and Brazil.

Headquartered in Ottawa, Canada, Shopify currently powers over 600,000 businesses in approximately 175 countries. (Ed. note: Not bad, as there are only 195 countries in the world.)

If you’ve been following our recent stories about small business sentiment, you won’t be surprised that the largest bank in the U.S. (by assets), JP Morgan Chase, yesterday (2.21.2018) released its annual “business leaders outlook survey,” revealing the highest level of small business optimism recorded in years. The bank credited recent regulatory reform, corporate tax cuts and a steadily improving economy.

51% |  Small business leaders who are optimistic about the global economy, up 10 points vs. last year
63% | Are optimistic about the national economy, consistent with last year
60% | Are optimistic about their local economy, up 5 points vs. last year

Small Business Optimism Continued to Set Record Highs in January | 2018

In September, Shopify, an e-commerce platform popular with small business online retailers, will provide its merchants the ability to list and sell their products on Ebay, directly from their Shopify account.

• The Ebay channel is similar to existing Shopify sales channel integrations, including Amazon, BuzzFeed, Facebook, Pinterest, among others.
• Shopify competitor Bigcommerce Inc. has a similar integration with Ebay.

With the new integration, Shopify merchants will be able to market and sell their products to Ebay’s 169 million active buyers. According to the Shopify announcement, EBay and its shoppers will benefit from added selection and choice from Shopify merchants.

The integration will enable Shopify merchants to sync inventory information such as product titles and descriptions, item specifics, price and quantity, from Shopify to Ebay. Customer orders will also be imported to Shopify and allow merchants to fulfill orders from both platforms in one location. Messages from buyers on Ebay will also be visible within Shopify so their sellers won’t miss any customer communications.

According to Shopify, its EBay integration initially will be available only for U.S. customers selling in U.S. dollars.

istock

Also on SmallBusiness.com

GoDaddy Upgrades, Expands its Small Business Ecommerce Service

Etsy, the pioneering online marketplace for creators, crafters and other makers, is the subject of a Bloomberg/Newsweek report exploring the publicly-traded company’s battle with a shareholder group challenging the company’s priorities and corporate structure. 

Leading the challenge is Seth Wunder, a hedge fund manager based in Los Angeles. According to Bloomberg, after the company went public and started to decline in value, Wunder saw Etsy as a business that was fundamentally sound. Moreover, it also has a similar business model to one that has worked well for EBay Inc., which has made money for 21 straight years According to the Bloomberg report, Wunder wondered, “Why is Etsy not making more money?” He saw the answer in the way the company was being run.

Quote:

“Etsy’s general and administrative expenses amounted to 24 percent of total revenue. (EBay is about 10 percent of revenue on such expenses.) Etsy had been hiring like crazy, having increased its staff 55 percent since the end of 2014, and doling out all manner of perks: an elegant Brooklyn headquarters with Manhattan views, art installations, and a “breathing room,” along with salaries and benefits common at much, much more profitable tech companies.”

Wunder’s Black-and-White Capital began buying Etsy stock, eventually acquiring 2 percent of the company, enough to launch an activist campaign against the company, especially targeting its then CEO Chad Dickerson.

When the company went public, it had doubled in price, but soon dropped to one-half its IPO value. Then, last May, before what was going to be a lackluster shareholder’s report, Etsy announced that it was laying off 80 employees—about 8 percent of its staff—and that Dickerson had been fired also.

These changes increased revenue—Etsy brought in $365 million last year, on more than $2.8 billion in gross merchandise sales—but exacerbated tensions with sellers, who complained that the growth made it hard for truly distinctive merchandise to stand out.

Will Etsy return to a sales-based business model, rather than one which preferences seller services?”

Stay tuned.