The Age of eCommerce: Online Retail Surpasses $300B, Now 10% of Total US Retail
Posted: August 20, 2015
According to Forrester Research, US ecommerce will reach $334B by the end of 2015 -- representing roughly 10% of total US retail sales. The research firm expects US ecommerce to continue to grow at or above 10%, reaching $480B by 2019.
We believe Jet.com will accelerate the growth of online retail marketshare as it enables savings by steering shoppers to add to their carts items shipping from a nearby warehouse. This brings into play the consumer staples that previously had no place being bought online -- you know, the products you normally have to get in your car to pick up from your local Walmart, Target, or CVS. Amazon Prime, with fulfillment centers strategically located near major urban markets, is aggressively going after this market as well.
As impressive as the transformation of the retail industry is, it shouldn't be a surprise to anyone involved in our industry. As Amazon.com celebrates its 20th anniversary, it's clear that the industry is still in it's infancy.
Initially, we wanted to create a longer post that dives into Amazon's growing share of the US ecommerce market, along with the share of other major marketplaces, but GMV (gross merchandise value) tends to be largely undisclosed for competitive purposes.
This is food for thought which we'll build upon in future posts. You're in the right industry, the tailwind is real, you just need the right strategy (branding, channels, niches) and tools to avoid or outmatch competition.