TRILLION DOLLAR BUSINESS - Interesting Article That talks about our "niche"

3 replies
If you haven't seen this article, it is worth the read:

Why Online2Offline Commerce Is A Trillion Dollar Opportunity | TechCrunch

It brings up a good point, 1 that I will start bringing up to potential local clients..

quote: "Your average ecommerce shopper spends about $1,000 per year. Let's say your average American earns about $40,000 per year. What happens to the other $39,000? (The delta is higher when you consider that ecommerce shoppers are higher-income Americans than most, but the point is the same). Answer: most of it (disposable income after taxes) is spent locally.

Enjoy.

Ryan
#article #business #dollar #interesting #niche #talks #trillion
  • Profile picture of the author localvseo
    I think it's a good point. If you really want a strong sales presentation if you are going to use this data, I would do a little more digging and come up with some more specific percentages of where income is spent. There are a lot more things that are arguably not spent locally out of the "$39,000". Between housing cost and insurance (which may or not be local) we are talking a lot less money. My point is, come in with strong data to make your case, find out what the average amount consumers spend locally on things such as groceries, dining out, clothes etc. and use those numbers in your presentation depending on who you are targeting. If someone just pulled the $39,000 number out like this to me in a pitch I really would tune out because that is just leaving so many basic living costs that may not be local services out of the equation and I would just say that it is a somewhat meaningless number. If you showed me x% is spent on these local services out of the post tax money (x% on groceries, x% on entertainment etc.) , then I could relate to how much each customer could potentially be worth to me if I can capture more market share.
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  • Profile picture of the author RentItNow
    Interesting article. Sort of off-topic but related to your quote below, is a business owner's fixation on beating his competitors when in fact I would be more worried about beating ANYTHING else a customer is going to buy with the money they would have used for their product. In other words, they should be more concern about convincing a potential customer to buy their new car because it saves you thousands in repairs and gas per year which you could buy more food for your family instead of saying "IT'S BETTER THAN A HONDA" or whatever.




    quote: "Your average ecommerce shopper spends about $1,000 per year. Let’s say your average American earns about $40,000 per year. What happens to the other $39,000? (The delta is higher when you consider that ecommerce shoppers are higher-income Americans than most, but the point is the same). Answer: most of it (disposable income after taxes) is spent locally.
    Signature
    I have no agenda but to help those in the same situation. This I feel will pay the bills.
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  • Profile picture of the author ryanmckinney
    Localvseo I agree, it just gave me more data to "mine" and another angle, all local businesses want a piece of that spending pie! Our job is to get them in front of the spenders via SEO / PPC / SMS or whatever your poison is that you have picked.

    Rentitnow - I am focusing on helping getting new customers, and helping with "repeat" customers, not just simply "ranking your website on the first page" , but diving more into the nitty gritty of what makes their business tick.
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