Higher back-to-school spending opens up e-commerce opportunities

This story was delivered to BI Intelligence "E-Commerce Briefing" subscribers. To learn more and subscribe, please click here.Parents are forecasted to spend an average of $1,642 on back-to-school products this year, a 33% YoY increase from 2015, according to American Express latest Spending & Savings Tracker.The estimated YoY increase in back-to-school spending is the largest ever reported by American Express, and represents an opportunity for e-commerce players to capitalize on this increasingly lucrative shopping season by converting customers with competitive prices during the online browsing process.Greater use of technology in the classroom is a driving force behind the increase in back-to-school spending for parents. About 92% of parents reported that their kids use technology for learning, compared to 82% in 2015. In fact, approximately six out of 10 parents will purchase an electronic item during the back-to-school season, spending an average of $505 on technology. Parents are spending more on higher-priced items, including computers, tablets, and smartphones rather than traditional back-to-school items, like school supplies and apparel.E-commerce could threaten back-to-school shopping at traditional brick-and-mortar stores.Retailers are highly dependent on the success of key shopping seasons throughout the year, including back-to-school and the holidays. Given the influx of shoppers and traffic during these time periods, retailers fiercely compete on price to convert as many prospective customers as possible.This year, increased spend on higher-priced items like new technological goods could encourage these shoppers to start price comparing online, at which point large e-commerce players like Amazon could funnel consumers to their marketplaces to find the lowest-cost product option.And e-commerce continues to gain traction on a broader scale.E-commerce sales in the US totaled over $97 billion during Q2 2016, representing nearly 16% YoY growth,according tothe US Department of Commerce, which marked the highest YoY increase in e-commerce sales since Q3 2014. These high-level numbers show that e-commerce is gaining viability as a shopping method, making it more likely that a shopper will feel comfortable executing a purchase online during the back-to-school season.To receive stories like this one directly to your inbox every morning, sign up for the E-Commerce Briefing newsletter.Click here to learn more about how you can gain risk-free access today.Join the conversation about this story
Click here to read full news..