The Fabulous Growth of E-commerce
San Franciscans live in a bubble of modern technology that consists not only of Amazon Prime but 1-hour delivery of goods and services via a multitude of apps. But 92 percent of retail sales in the US still happen in physical stores. And it is no surprise that retailers are faltering.
E-commerce Grows 16 percent in Q2 of 2016
E-commerce sales for the second quarter of this year were 97.3 billion, out of 1.2 trillion in total US retail sales, according to the statistics released by Department of Commerce today. Compared to the first quarter of this year there was an increase of 4.5 percent and a marked 15.8 percent increase versus the same period in 2015.
This is comparable to the fact that overall retail sales grew only about 2 percent year over year. Of course, this represents a much larger amount than all of e-commerce combined as the latter takes up only about 8 percent of total retail sales in the US. Yet, the dramatic growth of e-commerce is undeniable when compared to traditional retail.
I for one wholeheartedly prefer browsing selections from the comfort of my home in my pajamas as opposed to putting on clothes, going out to physical stores and feel like I’m being judged for taking too long poring over every detail of the dog food I’m about to purchase.
In a chain of shrinking physical empires, Macy’s, a leading major retailer, has announced that they will be closing 100 stores. Several online retailers, however, have posted excellent results recently. Amazon, for example, recorded 30.4 billion for the second quarter of this year, representing a whopping 31 percent increase compared to last year.
Although we will never stop wanting to try things on or enjoy a day of retail therapy now and then, this tide change to online retail is real and inevitable. Now is a very good time to drive your online business.