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Posted: June 09, 2021, 13:27:04
Over the past few years, the online retail market has gained extreme popularity. People have started choosing online shopping over going to the markets. This shift has happened because everybody is starting to realize how convenient online shopping is.
In the US, Online’s share of total retail sales has steadily increased with e-commerce penetration hitting up to about 21.3% during the year 2020. This statistic has turned up from 15.8% in 2019 and 14.3% in 2018. COVID-19 has also proved to be a great boost for online shopping and retail. Since the covid19 pandemic, the figures have been estimated as an additional $174.87 billion in e-commerce revenue in 2020.
It can be confidently said that If it weren’t for the huge increasing bump in online sales from the pandemic, the $861.12 billion in e-commerce sales wouldn’t have been reached until 2022.
Many online retailers like Amazon, eBay, Best Buy, Walmart, etc. have faced a lot of ups and downs as a result of this increase in e-commerce revenue. Amazon is currently one of the biggest online retailers and the trends that have been seen in recent years have typically caused its rise in the market.
Here are some of the trends that the online market has seen over the past few years:
- With the rise of the online retail market, retailers like Amazon, Best Buy, Walmart have thrived and have been rising ever since. Nobody could have predicted that an online bookstore like Amazon would, in two decades’ time, become one of the world’s most dominant online stores, that offers literally everything from the books they started with to the high-end fashion clothing and styles!
- Today’s e-commerce market is very competitive and in order to survive the competition, every brand and store needs to come up with ideas to build clientele and thrive. The pressure of consistently catering to the customer’s needs is at an all-time high. The options for free or two-day shipping and other discount offers are some ways you can try–– just to compete in today’s competitive e-commerce market.
- In 2016, US e-commerce sales hit $362B, 14% of all US commerce sales, which was a significant rise in the e-commerce revenue.
- Since the launch of Amazon Prime in 2005, and fulfillment by Amazon for third-party sellers in 2006, Amazon’s revenue and client graph has barely come down. Amazon has not only launched a ton of services for its users, but it also provides the users with amazing Amazon Coupons and deals which is a very good strategy to attract customers. Amazon is now considered the leading e-commerce company, that too, worldwide. It has more than 500M SKUs in the US alone, accounting for about 53% of US e-commerce growth!
- Amazon also successfully completed its first drone delivery in the UK in 2016 which makes 2016 an important year for amazon’s significant rise.
- Soon after Amazon started to take the high road in the online retail market, BigCommerce announced native integration with Amazon, which was an attempt to simplify the way that small businesses can sell through the retail giant while maintaining their own store side by side, to get better exposure and increase their sales.
- In 2019, The United States online retail sales of physical goods amounted to 343.15 billion US dollars. This figure is projected to reach close to 476.5 billion US dollars by the year 2024. Apparel and accessories retail e-commerce in the U.S. to generate 153.6 billion U.S. dollars in revenue by 2024.
- In the last 2 decades, Amazon’s stock price has risen in equal measure, from $18 in 1997 to around $948 at the time of writing. This is about a 5,166% increase, which undoubtedly shows that Amazon’s reach has risen in the past few years.
- It is true that the internet and online sales came first, But these days, the situation has made it so hard to tell whether Amazon grows larger with online sales or if the internet and online sales grow larger as Amazon does.
- With Amazon, being the world’s 5th largest company, online brands have started to realize that trying to compete with Amazon is not an effective business strategy. So Instead, these brands have started growing sales and driving revenue through channels beyond their website.
- Walmart is also among the largest online retailers in the US. Subsequently, Walmart’s revenue has been reported to grow about 5.25% year on year, in the third quarter. This is lower than Walmart’s recent average Revenue growth of 5.34%. So this shows a negative trend in Walmart’s online sales even with the growth of online retail markets.
- Along with Walmart, eBay has also reported a fall in Sales and revenue in the 4th quarter, by -15% to $ 2,426.00 million, from the same quarter in 2019. In the Internet, Mail Order & Online Shops industry, 8 other companies have achieved higher Revenue growth than that of eBay’s in the fourth quarter.
- The overview of another online retail giant- Target corp’s revenue and sales in the third quarter show that pandemic-driven shopping is still surging heading into the holidays, and integration of different methods of shopping services is proving to be a fuel to the online growth even more. Its Online sales reached $3.51 billion during the quarter ended Oct. 31, up 153.9% from $1.38 billion in Q3 2019. Target’s e-commerce business grew even faster during the first nine months of the year: Online sales jumped 163.0% to $10.37 billion, up from $3.94 billion during the same period of 2019.
- This clearly shows that not all online retailers have had positive trends in recent years, while Amazon is constantly growing and conquering the online market in the US.
Online shopping has undoubtedly provided everything to customers with just one click. The growth of online retail markets was bound to happen because of the numerous advantages it has over the physical markets. It still doesn’t mean that the physical markets have shut down, but the shift towards online markets is very prominent.
Along with the comfort and ease that online shopping provides, another advantage is the plethora of offers and discounts that are available at various coupon aggregating websites. These websites make it possible for customers to amplify their shopping experience by getting the best deals on their favorite products. For instance, you can use Amazon Coupons to redeem up to 85% off on all major categories like Electronics, Appliances, Home Decor, etc.
The notion that Online shopping is a better and easier way of shopping is constantly proving itself true, so don’t miss out on the opportunity to save more and get great deals, and shop online, now!
Written By James Evans