E-Commerce Sales Potential

IRI forecasted the future potential in e-commerce for each food and beverage category based on attributes that influence a shopper’s decision to buy in-store versus online through different delivery models (home shipment, click and collect, or home delivery).

Through the analysis, IRI identified categories that were poised to accelerate online. Historically, the most developed online categories were nonperishable pantry stock-up staples like tea bags or spices, which are easy to ship in bulk. However, unlike dotcom, the assortment available through click and collect and home delivery closely mirrors the in-store environment, and attractive service terms make these channels convenient substitutes for the weekly trip. IRI found that the categories shoppers buy every week will rapidly grow online — this includes both perishable and nonperishable snacks, breakfast foods and beverages.

For a manufacturer, knowing which categories are ready to grow online can help to maximize the return on investment. IRI evaluated each category’s potential and then mapped it against the manufacturer’s right to win and current sales position. The result was a comprehensive view of the highest-value opportunities that the manufacturer was best positioned to activate and an objective assessment of how much growth was realistically achievable.