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How important are brand’s direct Ecommerce websites?

Chart of the Day: New research shows the dynamics of digital marketplaces

When creating a digital marketing strategy, it's important to use the analysis time to accurately understand the dynamics of your digital marketplace. In my articles and visuals on digital marketplace analysis, I show how a methodology for summarising the online marketplace from a customer perspective through creating a marketplace map. The example map from ZenithOptimedia in that article shows a practical tool to summarise opportunities to interact and influence with consumers through their customer journey.

How important are brand Ecommerce stores?

One of the significant business model developments facilitated by the Internet is that brands can now sell direct to customers (sometimes know as a the direct-to-consumer D2C business model) either through their own site, e.g. the Nike.com Ecommerce store, or through marketplace stores on Amazon or eBay.

This new insight compares the relative popularity of these marketplace options for consumers and their importance to brands. The visual shows that for brand including Nike, Clinique, Michael Kors and Calvin Klein) that the direct website can be really important compared to major multichannel retailers such as Macys and Nordtrom in the United States.

Importance of brand marketplace purchases

Effectively, the direct website has become the single most important retail distribution channel for these brands, although from this chart we don't know the overall importance for the brand Ecommerce store compared to all the pureplay online retailers and multichannel retailers.

How is this data collected?

You may be wondering how, without access to the analytics of the brands, an insights company like Jumpshot can stitch together the customer journeys. The answer is that they use a panel of consumers you use 100 million devices tracks 5 billion actions a day to deliver insights into online behaviour from every consumer action wherever they are in the stage of their journey. To make this data representative of cross-device behaviour around half of the devices are desktop and half smartphone. They have data for around 30,000 manufacturer brands current.

Research source

By Dave Chaffey

Digital strategist Dr Dave Chaffey is co-founder and Content Director of Smart Insights. Dave is editor of the 100+ templates, ebooks and courses in the digital marketing resource library created by our team of 25+ Digital Marketing experts. Our resources are used by our Premium members in more than 100 countries to Plan, Manage and Optimize their digital marketing. Free members can access our sample templates here. Please connect on LinkedIn to receive updates or ask me a question. For my full profile and other social networks, see the Dave Chaffey profile page on Smart Insights. Dave is a keynote speaker, trainer and consultant who is author of 5 bestselling books on digital marketing including Digital Marketing Excellence and Digital Marketing: Strategy, Implementation and Practice. In 2004 he was recognised by the Chartered Institute of Marketing as one of 50 marketing ‘gurus’ worldwide who have helped shape the future of marketing.

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