Service retail and auto

Delivered February 25th, 2018. Contributors: Ramadhani, Patricia, Sarah, Dan and

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Online purchases

The following brief discusses the most recent data available on the average number of online purchases per customer, per year in the United States and also provides insight on the average value of these online purchases. This data is gleaned from worldwide consumer studies from reputable consulting firms and online statistics portals. To provide more context, the brief begins with a look at e-commerce sales trends then proceeds to give an overview of consumer spending habits US. The questions of average number of online purchases per customer, per year and the corresponding average order values are then addressed.
E-commerce Sales Trends in the United StatesAccording to the US Census Bureau, e-commerce sales rose by 16 percent from 2016 and reached approximately $453.5 billion in 2017. This was nearly four times the overall retail sales growth average for the same period which was only 4.4 percent. Furthermore, e-commerce sales increased their share of total sales to 8.9 percent in 2017, up from 8 percent in 2016.
Consumer Shopping habits in the United States BigCommerce, an e-commerce platform provider, published results of an in depth study of US consumer shopping habits across retail channels. The first insight from their report is that Americans do 36 percent of their shopping online. When it comes to which sites appeal the most to Americans, large retailers are in the lead at 74 percent. They are followed by e-commerce marketplaces at 54 percent, webstores at 44 percent and "category-specific" online retailers at 36 percent. The most purchased items from online marketplaces include apparel at 44 percent, electronics at 34 percent, beauty products at 29 percent, entertainment products at 44 percent and gift items at 14 percent.

BigCommerce's survey provides insight on how different generations of Americans shop. Sixty-seven percent of Millenials prefer online to in-store shopping compared to 56 percent of Generation X. These percentages reduce further for older Baby Boomers at 41 percent and Seniors at 28 percent.

Shopping frequency statistics show that Americans shop online with some regularity. Eighty percent of Americans say they shop online every month, while 30 percent do so every week and 5 percent shop online daily. According to BigCommerce's survey, the average American shops online for at least 5 hours each week.
Average number of online purchases per customer, per year in the United StatesGlobal consulting firm KPMG International surveyed 18,430 consumers across 50 countries to gain an understanding of consumer's expectations of online shopping, and subsequently published their findings in 2017. What they discovered was the average number of online transactions per person, per year for North America is 19. This was second only to Asia with 22.1 transactions. North America is followed by Western Europe with 18.4 transactions, Australia and New Zealand with 16.1 transactions, Eastern Europe and Russia with 11.9 transactions, Africa and the Middle East with 11 transactions and finally Latin America with 9.2 transactions. The North American figure of 19 transactions is indicative of the US, which is the dominant online market in the region.
Average online order value Online spending statistics for 2017 from online statistics portal Statista, indicate that the average online order value for the first quarter of 2017 stood at $82.50. This value subsequently rose in the third quarter of 2017 to $84.10. The average online order value for 2017 can therefore be estimated by averaging the first and third quarter numbers using the following formula:

(Quarter 1 average order value + Quarter 3 average order value)/2
= $(82.50 +84.10)/2
= $83.30
ConclusionThe average number of online purchases per customer, per year in the US is 19. On average, Americans make purchases worth $83.30 online. E-commerce sales in the US reached $453.5 billion in 2017.

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Price changes

While there is no pre-existing information to fully answer your question, we've used the available data to pull together the following key findings. For many products, price drops are steady and calculated over time, starting the day it the product is launched. Electronics are some of the products with the sharpest price drops. Refunds for customers who see a price drop (of any percentage) within 14 days of purchase are offered by many stores, as well as by credit cards, banks and start-ups. 

Below you'll find an outline of our research methodology to better understand why information you've requested is publicly unavailable, as well as a deep dive into our findings. 
METHODOLOGYIn order to answer your query, we searched for consumer insight reports, consultancy studies and surveys and specialized media articles on consumer's experiences with price drops after purchases in sources like Consumer Reports, Nielsen, AdWeek, Bankrate, Forbes, The Balance, Tech Radar, BGR, Bain, Insites, and Mintel.

While we located some data on price drops within 14 days for some products, including specific percentage drops, none of the sources consulted included any information on the percentage of customers that experience seeing the drop after making the purchase, or average percentage of the time this situation happens.

We did find lists of retailers offering refunds for these situations, and several for purchases in which the price drops within the next 14 days, which suggests that this situation does happen with some frequency, but none of these stores, or any publicly available independent study, has published numbers on the percentage of customers that request refunds.

Below we offer some insight on the products that usually experience price drops, as well as a list of stores that offer refunds for price drops after purchase. 

USEFUL FINDINGSFor many products, price drops are steady and calculated, starting the day it is launched — with a different pace depending on the exact product. The sharpest drops in price, applicable to all products (though in different percentage depending on the specific sector) happen at specific times of the year — such as Black Friday or Christmas, or events like the Super Bowl.

Electronics are the products that experience the most price fluctuations. TVs, for instance, are among the easiest products to predict in terms of price drops — according to Bankrate, 30% of TV models see a 5% price drop within 10 days of release. If we look at 25 days after release, the drop goes up to 25%. Therefore, TVs are among the products for which consumers claim refunds due to sudden price drops the most — Amazon still offers this kind of refund, despite having stopped giving refunds for price drops on any other products.

Besides Amazon, a handful of stores offer refunds if prices drop within 14 days, including Abercrombie, Ann Taylor, Anthropologie, Best Buy and Dick's Sporting Goods, as do a number of credit cards, banks, and start-ups — suggesting that this happens with some frequency.

CONCLUSIONDespite limited publicly available information to answer your question, we were able to find out that price drops are steady and calculated over time, starting the day it the product is launched.

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Car Ownership & Insurance

While there is no preexisting information to fully answer your question, I used the available data to pull together key findings:  I was able to locate that there are approximately, 269.7 million cars  registered in the US (as of 2017), that 90.9% of U.S. households own at least one vehicle and that 13% of motorists in the United States are uninsured. Below, you'll find an outline of our research methodology to better understand why information you've requested is publicly unavailable, as well as a deep dive into our findings. 

METHODOLOGY

I conducted an exhaustive search of government websites, market reports, white papers and trusted media sites.  Unfortunately, the only information published was with regard to car ownership by household, rather than by individual. When I attempted to calculate car ownership by individual, I was able to find that there were approximately, 269.7 million cars registered in the United States, as of 2017, and that the estimated population in the United States, as of February 2018 was 327.16 million.

If we take the number of registered cars/ the total population we can assume that 82.4% of people in the United States have a car.  (269.7/ 327.16 million= .824)

* However, there are limitations on this calculation because we are not taking into consideration the total number of people that have more than one vehicle in the United States.

HELPFUL FINDINGS

All information published was pertaining to the number of cars per household rather than individual.  According to data recently released by the American Census Bureau, "9.1% of American households didn’t have a car in 2015, compared to 8.9% in 2010, a 0.2% change that represents about 500,000 households." From this we can conclude that 90.9% of households in the United States have at least one vehicle.  (100%-9.1%=90.9%)
* This study is published every 5 years so this is the most recent information available.

I was also able to find that according to a 2017 study (the latest data available) by the Insurance Research Council (IRC), that "in 2015, 13% of motorists, or about one in eight drivers, was uninsured" in the United States.
* Unfortunately, there was no specific breakdown available of how many of these motorists were the owner of the vehicle they were driving.

CONCLUSION
To wrap things up, 90.9% of households in the United States own at least one vehicle and 13% of drivers in the United States drive without  auto insurance.  I hope that you find this beneficial!

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Car Insurance Competitors

The notion that you are paying too much for car insurance and the recycled slogans of "switch to us and you'll save a certain percentage on car insurance" have been broadcast through American advertisement for decades. The reality is that shopping around and switching to another car insurance carrier will likely save money. Many consumers don't believe they are overpaying, and yet a majority most likely are. Available insurance industry data demonstrates that 29%-30% of consumers switch policies to a cheaper rate. Average savings by these consumers is estimated to be 39%, or even upwards of 47%.

INDUSTRY DATA

BACKGROUND
We were able to find data from 2015, 2016, and 2017 to create a more comprehensive understanding of the percentage of time that people save money on car insurance and the amount of money saved. The bottom line is that most insurance carriers overcharge, many consumers could save money by switching, and the savings are in the hundreds of dollars range. There are practical steps consumers can take to save money on car insurance. These steps include annually checking rates, maintaining a good driving record, and understanding the policy, among other things.

STATISTICS
The percent of money saved per year was likely around 39% for 2017, saving consumers $707. Numbers from 2015-17 ranged from savings of 19% up to 47%. One industry report from 2015 found that American drivers could save 47% ($859) per year by shopping around for the best rates. Upwards of 70% of consumers have not changed insurance carriers in over 4 years, and during that time they may have saved an average of $3,436 by switching to a lower-priced insurer. Another industry report from 2015 showed slightly more modest savings of $388, which would be around 21%. A 2016 industry report showed slightly lower figures of an average saving of $356, which would be 19.5%. According to a 2017 study comparing 18 auto insurance providers, customers could save on average $707 per year. Assuming that the premiums charged remain relatively consistent from 2015-2017, $707 per year saved would be around 39%. 
     
The percentage of time that consumers could save money on insurance is less than the percentage that actually switch. In 2015, 29% of consumers switched and in 2016 30% switch. These percentages are slightly under the amount of consumers shopping around for lower rates. In 2015, 39% of consumers shopped for better rates, and in 2016 it was actually down to 33%. Many consumers do not shop around to compare quotes, and many believe the savings would not be as drastic as what the numbers indicate. It is possible that insurance carriers overcharge and that consumers remain relatively oblivious to this fact due to the unavailability of information. Data shows that consumers who switch policies are likely to save money on their premiums. This could be due to an assumption that the ones who end up switching are the ones who realized they could save money. Yet 15 out of the top 18 insurance carriers are considered to overcharge, and even lower rate carriers often overcharged.

CONCLUSION
The percentage of time that consumers could save money on car insurance by shopping around and switching is likely around 33% according to data from 2016. The percentage of those who actually switch is lower. The number of car insurance consumers who switched in 2017 could not be ascertained, but in 2016 it was 30%, slightly up from the 29% in 2015. Average savings could be around 39%, or $707 per year. Based on available data, from 2015-2017 consumers saved anywhere from 19%-47%.