There are various reasons why e-commerce has experienced surging popularity. Across the world, convenience is an ever-increasing need for many households located within uber urban environments where traditional grocery shops aren’t always in the question. A lack of taxation online also ensures that retail growth will not likely be impaired. One retail website can house a plethora of vendors and types of products not previously possible in a brick and mortar operation. While markets within the online retail growth trend may experience fluctuation, e-commerce will likely continue to grow. Direct retail markets are still growing in under developed countries such as Africa and India, however in growing economies, brick and mortar operations are experiencing a downturn in profits due to fierce competition.
Industry titans like Amazon have long set an example of intelligent e-commerce strategy. Amazon consistently provides a secure and intuitive experience for online shoppers, giving users incentives to through loyalty perks and personalized recommendations based on shopping history. Amazon Prime is one such program. Recent data states that 60% of US consumers are Amazon Prime users. Many industry observers feel that e-commerce is the future of retail, with the majority of retail sector growth seeming to take place in digital space. It’s plausible that 2017 will follow the same trend as growth continues to happen; the National Retail Federation (NRF) also states expectations for total retail sales to hit 3.7-4.2% in 2017. This is excluding cars, gas stations, and restaurant sales.
Consumer electronics has traditionally been lucrative for online retailers. These online companies have usually benefited in a big way from e-commerce due to increased availability of already in-demand products. Secure payment is longer an issue, thanks to platforms like Paypal, allowing consumers to buy high-ticket items with little or no effort involved save the click of a button and some diligent research.
One new and unusual market to rise in numbers has been that of retail groceries. Traditional grocery shopping, built around judging physical quality of product, may be supplanted by the rising desire for convenience and new, advanced product-viewing technology. A new reports reveals that grocery shopping, a necessity in all households throughout the world, is taking e-commerce by storm within Chinese, South Korean, and UK markets.
There are other factors in favor of rising e-commerce. The NRF reports higher consumer confidence due to rising income, lower unemployment, and strength in the housing market. Besides offering convenience and being more secure than ever, e-commerce development is also growing in accordance with the market. BI Intelligence, Business Insider’s research service, predicts US consumers will increase spending will grow to $632 billion by 2020, supporting belief the e-commerce is set to dominate retail industry. This isn’t suprising as e-commerce has made up a considerable percentage of growth, despite volatility in markets. This trend was noted in 2016 when total retail experienced 2% growth, with 16% of it being related to e-commerce.
The future of mobile development will grow with e-commerce. Already, there are a variety of apps and online services for purchasing online or pre-ordering items. Online shoppers have seen an approximate 20 million increase from 2015 to 2016. These shoppers spend more than previous has 2015 online Q1 was $61 billion but grew to $68 billion in 2016. The convenience of e-commerce seems to be a contributing factor as customers are able to transact frequently, with the number of these transactions increasing by millions from 2015 to 2016. Companies in the e-commerce software industry are already benefiting from this boom. This is due to the fact businesses need a constantly evolving suite of software tools to create smooth and enticing transactions that sell consumers on the online purchasing process. The demand for integrated software is set to increase as internet traffic accelerates and e-commerce software improves a number of features, such as fulfillment or shipment.
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