Bestbuy.com Analysis: Market Revenue, Growth & Sales by Category

Bestbuy.com Analysis: Key Insights

• Sales Trajectory: Our 2014-2024 data for bestbuy.com reveals a trend of steady growth, a sharp spike in 2020 due to the pandemic, followed by a gradual decline, indicating that the exceptional growth in 2020 was not a lasting trend. 

• Product Categories: The sales distribution of bestbuy.com highlights a significant dominance of Electronics while showcasing a broad array of other categories like Hobby & Leisure and DIY, reflecting the store's diverse appeal beyond just electronics. 

• Q3’24 Results: Best Buy's third-quarter results for fiscal year 2024 illustrate the volatile nature of online retail, with a notable decrease in online sales, underscoring a market trend towards stabilization after a period of rapid growth. 

• New Avenues: Best Buy's strategic partnership with DoorDash and foray into livestream commerce reflect its adaptive approach to counter recent sales declines and align with modern shopping preferences.

As a household name that evolved from a niche audio specialty shop to a consumer electronics powerhouse, Best Buy has been at the forefront of the electronics retail industry since its rebranding in 1983. With the turn of the millennium, in 2000, the retail giant launched bestbuy.com, an online storefront that extends their vast product offerings into the digital realm. 

Catering to a range of customer needs, from the latest in tech to hobby essentials and DIY tools, bestbuy.com has long entered into the everyday lives of consumers.

Bestbuy.com Sales More Than Doubled in 2020 

Starting with the sales data for bestbuy.com, we see significant changes over the 10-year period from 2014 to 2024. 

Back in 2014, the net sales were US$3.53 billion. Over the next few years, the numbers kept rising steadily. By 2019, the sales had more than doubled to US$7.64 billion.

Then came 2020, and sales jumped significantly to US$18.67 billion, with a 144.4% increase. This was, without a doubt, fueled by the online shopping surge the pandemic brought. After that peak, however, there has been a noticeable drop.

In 2021, bestbuy.com’s sales were at US$16.42 billion, and they kept going down to US$14.19 billion by the end of last year. Looking ahead, the forecast figures for 2023 and 2024 show a continuing downward trend, with sales expected to be US$13.74 billion in 2023 and slightly lower at US$13.57 billion in 2024.

This suggests that while the online store’s numbers remain high, the explosive growth seen in 2020 was an exception rather than the new normal.

Bestbuy.com Sales: Electronics Make Up Well More Than Half 

The surge in bestbuy.com's sales tells a story not just of numbers, but of changing consumer tastes and market dynamics. This shift leads us to explore the diverse range of products that have played a pivotal role in shaping the company's online success. 

In 2022, the online sales of bestbuy.com across different categories showed that Electronics dominated their sales, making up 62% of the total.

Hobby & Leisure products also had a significant share, accounting for a fifth (20%) of the net sales. Do-It-Yourself (DIY) items made up 8% of the sales, indicating a smaller but still notable market for home improvement and personal project products sold through bestbuy.com. 

Furniture & Homeware accounted for 7%, reflecting a modest selection in the home goods space, and Care Products contributed 3% to the online store’s net sales. This diversity in product categories shows that bestbuy.com isn't just an electronics store online but caters to a variety of consumer needs.

BestBuy.com: Online Sales Dip in Q3'24

Best Buy has recently released its third-quarter results for fiscal year 2024, highlighting the ebb and flow of online retail. 

The company's revenue hit between US$43.1 billion and US$43.7 billion, while in the digital sphere, bestbuy.com saw a 9.3% decrease in online sales, totaling US$2.75 billion. Online purchases made up almost a third (30.6%) of total domestic revenue, slightly down from 31% the prior year. 

The dip in online revenue is a stark reminder of the unpredictable nature of the digital market, which is finding its balance after a period of rapid growth. Best Buy's figures reflect a broader trend towards stabilizing online sales.

Holiday Shopping: Best Buy Partners with DoorDash 

In order to fully gear up for the holiday season, Best Buy partnered with DoorDash, branching out from restaurants to include a wide array of retail offerings. This collaboration aims to offer quick access to Best Buy's tech products, just in time for gift-giving. 

As competitors ramp up their delivery game, Best Buy is not only adding to its delivery options but also exploring livestream commerce, hosting a shopping series to connect with customers virtually. 

Facing a dip in recent earnings, Best Buy is adapting its strategy, hoping its new delivery and product initiatives will reverse the downward trend and meet the evolving demands of today’s shoppers.

Sources: Best Buy, Supply Chain Dive, ECDB