IRCE Kick-off… No big surprises, Only big names

#IRCE2015 started off with a flurry of big names and big numbers.  In short, Amazon is huge and is outpacing practically everything and everybody when it comes to growth.

  • 278 Million Buyers
  • Number 1 Online Retailer
  • Number 2 in Overall Retail Industry
  • 59% of Amazon market is in the US and 34% is international (apparently 7% are extra-terrestrials)

One interesting viewpoint on Amazon however was it’s overall strategy to move everything to third-party sales and down-play its 1st person sales network. (Amazon Owned products)  Even with all of it’s infrastructure in place to reach all corners of the earth and all the marketing data in-house, Amazon sees it as more profitable to make 2% on a sale and shuffle digital transactions rather than control the whole sale and turn a higher amount of revenues.

Speaking of revenues and profits, check out some of the profit numbers shared at this year’s conference:

Average Per Sale Net Profit Levels for Popular Online Retailers

  • Target – 6.2%
  • Walmart – 5.6%
  • Best Buy – 3.7%
  • Amazon – 2.0%

So, when I look at some of my small-store profits and they are in the double digits, I feel pretty good!  Now to just get the volume!

Other big names that are taking center stage, Magento, BitPay, BorderFree, Brunto and Alibaba. Software companies are here in force with a massive number of vendors in the shopping cart / e-commerce management arena. If you can’t find a cart solution here, you can just go home and close up shop.

There are also several companies focused on logistics and packaging.  All of which are leveraging the high level of UPS, Fedex hatred spurred by rate hikes and fee overload most merchants are experiencing.  Sprinkle in a few creative financing companies and a handful of international booths promoting online trade within their country and you can get a feel for what the show entails.

Of course if you need a break from all the geeking out, there are super-size jenga, pool tables and corn-hole in the back of the trade show to share with your new found friend or foe over an adult beverage or two.

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Posted in IRCE Chicago

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