August 26, 2024 - Citrin Cooperman’s Private Company Performance Report respondents highlight e-commerce growth trends impacting diverse organizations across numerous industries nationwide. Private companies report that online e-commerce growth, e-commerce scale, and customer insights all contribute to the growth of their companies.
Online e-commerce growth
Online sales are a key driver of revenue for most of the report’s survey respondents. Forty-one percent say current online sales drive half to three-quarters of revenue. Thirty-one percent report that current e-commerce amounts to a quarter to half of their revenue.
The pace of online sales is steadily quickening. One in two respondents say online sales significantly grew year over year. Twenty-seven percent say online sales doubled in the past twelve months.
Our respondents report that e-commerce dominance (over half a company’s sales being generated online) increases substantially as revenues increase. This pattern makes sense as companies compete for relevance in a crowded internet.
Larger companies with more resources have set the bar high when it comes to building modern, clean, safe, and user-friendly websites, as well as selling through Amazon. These companies can dedicate more dollars to search engine optimization, best-in-class order fulfillment, and customer development personnel.
Benefits of e-commerce scale
Respondents have shown that the larger the company, the higher its concentration of online sales. Private companies with less than $50 million in sales reported that 16% of this revenue was generated from online sales. Online sales contributed to 58% of private companies with sales between $500 million and $1 billion.
What is most important to customers?
Private Company Performance Report respondents believe that customers find service, pricing, and product availability as the most important elements to their e-commerce experience.
Citrin Cooperman’s inaugural report covers comprehensive topics and aggregated responses from private companies across varied industries with a revenue size of under $10 million to over $1 billion. Access the full Private Company Performance Report for additional insights and commentary on the trends impacting private companies across the country.