Holiday seasons are always a good time for retailers and manufacturers as they set their cash registers ringing. This past season has brought one more delight that has caught the attention of many in the retail sector.
Imran Khan, senior analyst at JP Morgan, has come up with a report which says that eCommerce has come up as a significant medium for people to shop. Further, he has suggested good forecast for the year 2011. The report says that eCommerce may rise to $680 billion in this year, a rise of 18.9%. the US ecommerce market is expected to grow the most by 13.2%. By 2013, the eCommerce revenue will hit $963 billion, it says.
More rich people now shop online with at least 3 purchases per month. Not just this, but the total number of people that shop online has also increased over the years to 38%. Further, in 2010 only 12% of the people don’t shop online, down from 20% in 2007.
Despite this, a report says that the rate of growth in retail is slower as compared to the advertising growth rate when it comes to online activities. In US, in 2009, online ads constituted 13.7% of the total advertising where as online shopping forms only 3.7% of the total retail shopping.
Expectedly, Amazon remains the top online retailer in the last year. This new trend is eroding the concrete shops slowly but surely.
All said and done, the chances of a internet sales tax may pose a danger to the profits of this market.
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