Legends of the Industry

Please wait while JT SlideShow is loading images...
Global E-commerce Sales are Heading for the $1 Trillion Level
Global E-commerce Sales are Heading  for the $1 Trillion Level By Koral Kanca, EFURMEDIA
Worldwide e-commerce sales will reach $963.0 billion by 2013, growing at an annual rate of 19.4%, predicts Goldman Sachs in an annual report on online commerce. In the U.S., the investment bank predicts 12.4% growth during the next three years to $235.3 billion in online retail sales.

E-commerce is benefiting from several positive trends, including the continued rollout of broadband, increasing user comfort of shopping online and the decline of certain brick-and-mortar retailers and as well as mobile apps.

Online sales, e-commerce will benefit from the continuing pressure on traditional retail stores, including from the rise of smart phones mobile shopping exeperience. In fact the proliferation of mobile devices and mobile apps could have a profoundly negative impact on the business model of traditional retailers. Historically, getting a customer in the store was half the battle for a retailer. Mobile apps turn this dynamic on its head by giving more power to the shopper, even in-store.


Here are projections for international growth by region and worldwide, with 2010 and 2013 estimates in billions of dollars, and compound annual growth rate for the 2010-13 period:

USA : From $165.8 Billion to $235.12 Billion, 12.4% growth
From $195.2 Billion to $283 Billion, 13.2% growth
From $155.7 Billion to $323.1 Billion, 27.5% growth
From $55.8 Billion to $121.7 Billion, 29.7% growth

GLOBAL : From $572.5 Billion to $963.0 Billion, 19.4% growth

Globally, online sales or the e-commerce growth is being driven, by the growing middle class around the world, more broadband access, faster, secure services and the struggles of bricks-and-mortar retailers. Infact the recent unfortunate event that took place in London, England is believed to boost online sales in UK. People can stay in the confort of their homes to purchase everything ranging from grocery supplies to clothes to expensive electronic equipments.

However there are still remain some of the challenges of the e-commerce, such as the difficultis of the parcel delivery services in some markets, the country-by-country nature of payment systems and the threat of online fraud. As the online processors (Verify by VISA, Master SECURE) and the fraud management systems has been improving these issues will be minimized.

USA And EUROPE Will Experience A Double-Digit Growth on E-Commerce

USA And EUROPE Will Experience Double-Digit Growth on Online Retail Sales,Online retail in both the US and Western Europe will continue on a double-digit growth trajectory over the next five years, according to two new forecasts released today by Forrester Research, Inc. Both US and European online retail will grow at a 10% compound annual growth rate (CAGR) from 2010 to 2015, reaching $279 billion and €134 billion, respectively, in 2015. The forecasts include business-to-consumer sales excluding travel and financial services. The European forecast encompasses 17 Western European nations and includes a category-by-category breakdown of online retail across these markets.

The online retail market in both the US and Western Europe remains strong, despite the challenging economy. In fact, with consumer purchasing behavior returning to normal, US web sales in 2010 actually accelerated over 2009 compared with the prior year, growing 12.6 percent. In Europe, very strong growth in 2010 was fueled by new online buyers and higher spend per capita on the demand side, as well as the launch of transactional websites by established offline players.

Retailers are supporting consumers' increasing use of the Web in the US, helping to drive growth with new business models, such as flash sales and group buying, as well as improved merchandising to provide a broad selection of products available online. However, this growth comes at the expense of brick-and-mortar stores, as consumers increasingly spend on the Web, especially during critical shopping days such as Cyber Monday.

Koral Kanca, Publisher, E-commerce