Facing the current economic situation, a considerable number of people worldwide have decided to do their own small businesses online to support themselves and their families for economic balance and development. They are persistently struggling to forge new and innovative business setups to establish a reliable financial fort. Setting up an ecommerce you have to expend a very little amount compared to running a physical store. Also, it goes without saying that Internet is a place of freedom globally for all kinds of business. And this global business process what we called ecommerce business which can come from a startup to a well established business and from small to medium and large businesses.
2009 was surely a year of global recession in terms of unemployment, purchaser credence and general uncertainty prevalent, and many other economical disorders consequently. In spite of that, by negating the power of recession, ecommerce succeeded in and build as a best industry with 11% of economic growth rate ( equivalent to $ 155.2 billion) in that year. When the economic indicators were getting downward in 2009 this ecommerce business idea bring out a huge success considering that. Subsequently, the economic sales grew at a rate of 14.8% in to the U.S Commerce Department2010. According, online purchasers spent $ 165.4 billion in 2010. The pace at which the online retail sales are going on is indeed astonishing, and continues to grow as more and more people shift to the E-business paradigm.
According to a report, “U.S Online Retail Forecast 2009 to 2014”, Forrester Research states that “growth in online retail sales will continue to surpass the growth in offline retail sales, as low prices, convenience, and selection drive more shoppers online”. The report takes a look at the years from 2009 to 2014 and gives prediction for potential growth in ecommerce sales over the five years which includes the next to follow. The 2009 statistics of online consumers was observed to be 154 million, which made 67% of the overall number of online users. The rate was expected to grow 10 % annually the following year. But the number of online purchases was equivalent to $ 164.6 billion and corresponded to 4.2% of the total retail sales. This indicated a 7% rise from the sales in 2009.
According to Forrester’s Report, the online retail sales were expected to grow at a rate of 10% annually from 2009-2014, and the same statistical result is awaited over the next year. It is predicted that the number of online sales will grow to $ 250 billion by 2014. In another report, 162.6 million people in the U.S are predicted to buy products and services online, in 2014.
Though the online retail sales are not growing at the speedy rate they once were, but they keep growing on gradually. Forrester is relatively more hopeful about the rise of online retail sales in Western Europe, as of 2014. He expects an 11% growth rate, with an increment of $ 93 billion in 2009 to $156 billion in 2014. That makes online retail sales worth of 68 billion Euros in 2009 convert to $114.5 billion Euros in 2014. Online sales of prescription drugs, autos and tours are not part of Forrester’s calculations, however.
Other estimates regarding the U.S online sales forecast tell that:
- Three product types namely: Computers, clothing, mobile phones and other consumer electronics contributed to more than 44% of online sales in 2009.
- By 2014, online purchases will represent 8% of the overall retail industry sales in the U.S; making a rise of 6% from the sales incurred in 2009.
- 42% of the total retail sales including the online and web influenced offline sales were achieved in 2009. This equals to retail sales worth of $ 917 billion in 2009, according to Forrester report. By 2014, the rate is expected to grow up to 53% of retail sales. Till then the web is expected to influence in-store sales reaching to $ 1.4 billion approximately.
- 70% of the online users in U.S do a proper research about the products on the Internet before they seek out to buy them in offline stores.
More data given here, have a look:
- In spite of the recession, the UK e-retail market is currently growing at 16% per annul
- In the UK, the ecommerce market provides employment for over 730,000 people
- Every year more than one billion parcels are shipped from online purchases from UK
- 59% of SME’s offers eCommerce services report that international eCommerce was in a driver seat in their decision to sell online products
- Of SMEs current offer in eCommerce, a quarter show that the transactions of overseas make up 30-40% of income
- 74% of currently offline SMEs planning to offer eCommerce transactions within the next six months
- Beyond the UK, 78% of these businesses motivated by the selling potential these data collected from Global Exports.
Now have a check about table point about ecommerce sales statistics:
|Sales Year||U.S. Online Sales|
|Year||Global Online Sales|
Now have a look on online statistics about the customer buying choice:
|Online Shopping Statistics||Percentage of user|
|User who have made an internet purchase||83 %|
|User who have made a purchase multiple times||56%|
|Retail sales percentage that are made online||8%|
Resource collected from Statistics Brain.
Some Interesting Statistics for Ecommerce Entrepreneur:
E-commerce of the U.S. sales reached $56.99 billion the third quarter up 17.3% from $48.59 billion for the same period a year ago, according to figures released today by the U.S. Commerce department. Now have a look on the third quarter, 2011 e-commerce sales increased 3.7% from $54.94 billion in the second quarter and the statistics figure out to the department’s seasonally adjusted estimates.
When e-retail sales growth hovered just above 15%, the 17.3% growth posted for the third quarter that follows three quarters. When growth clocked in at 17.2%, the last time e-commerce sales growth was greater than 17% that seemed in the 2011’s first quarter. Source : Internet Trailer
As more and more purchasers are expected to spend considerably online in the future, the key growth drivers of Ecommerce businesses include:
Offline sales Cannibalization
There are as many as 161 million purchasers who prefer to spend a greater part of their budget using the web channel, annually. In a report, most of the online retail sales were escalated during the significant holiday season such as, Thanksgiving, when majority found online shops a great deal of help rather than visiting stores.
Great variety of merchandise
The Ecommerce business gives way to a wide variety of products and services you can choose from. Two types of retailers exist in the web market: Manufacturers who know how to provide a complete product catalog that cannot be provided or maintained by other retailer companies, and others are the small companies who sell unique collection and offerings, and make full use of strong site merchandising and excellent page layouts to drive more traffic, increase the number of purchases and drive sales.
Internet can be accessed from any part of the world, at any time. It allows cross channel communication and allows people to perform different activities as conveniently as possible; from social networking to online business, from buying and selling products/services online to communicating with your distant loved ones and much more. According to a survey, the continued increment in online shopping attributes to the use of Tablet PCs and Smart phones for mobile shopping.
New and improved commerce models
The introduction of new business models like daily deal sites and flash sites provide convenient ways for online users to buy more frequently online. The ‘limited offer’ model, ‘digital media content downloads ‘model and others are likely to turn the offline shopping trends downwards in the near future.
Hundreds of thousands of companies have started their online businesses, whether they are new to the business world or have already gained experience; so as to secure their financial life.