U.S. Retail Industry: Ripe For E-Commerce
Posted by Matt Krautstrunk on April 8, 2011 in Business Management, Business News [ 1 Comment ]
Good news if you are an online retailer or a business looking to get in the industry; according to an eMarketer report, US retail sales will grow from $188.1 billion in 2011 to $269.8 billion in 2015. Consumers are becoming friendlier with the process of purchasing goods and services online. This, combined with the social media marketing efforts of retailers are pushing products out the door. This is especially important news for retailers that are not currently selling online.
E-commerce retail has never been as hot as it is now. According to the same eMarketer report, from 2008 to 2009 retail e-commerce only grew 1.6%, where growth in 2009-2010 reached 14.8%.
Here are some key figures from the eMarketer report:
- 35.1% of respondents shop online because of 24 hour shopping convenience
- 33.1% of respondents shop online because they are able to compare prices.
- US Mobile commerce industry will reach 28.7 billion in 2015. Currently? 5.3 billion
- 7 out of 10 Internet users are online buyers
- Ecommerce sales per online buyer is growing faster than online buyers themselves!
The scary thing about the eMarketer report, is that it likely failed to account for the impact that Facebook e-commerce will have. The largest social networking site recently announced an e-commerce platform integration, which will likely be a large portion of Facebook’s future plans.
The social element already positively affects retail sales, according Wall Street Journal, “Giantnerd.com a shopping site for outdoor gear, saw a doubling in revenue generate from Facebook within two weeks of adding the Like buttons. American Eagle saw users referred by Facebook spend 57 percent more than average on the site.”
The future looks bright for retailers; with social integration the online retail industry is primed for growth. Retailers are becoming better at merchandising online, learning from what doesn’t work and optimizing their efforts (more pictures, transparent sizing). They also are offering better customer service; lower shipping rates and often are able to offer same-day shipping. It remains to be seen how individual e-tailers are planning for the future, but many of them should plan for exponential growth.
To get compare e-commerce services from vendors, click here.
Image Credit: Openforum