The rapidly growing industry will benefit from improving incomes and greater internet access.
Los Angeles, CA (PRWEB) October 05, 2013
Every year, more than 100 million Americans purchase goods from the online retail marketplace, one of the fastest-growing industries in the United States. Since the start of the decade, revenue generated by the E-Commerce and Online Auctions industry has grown at an exceptional rate, outperforming most retail industries. Despite the brief recession-induced slowdown in 2009, industry revenue is expected to increase at an average annual rate of 11.6% in the five years to 2013; revenue is forecast to increase 10.0% in 2013 to total $278.5 billion.
According to IBISWorld Industry Analyst Natalie Everett, “As online shopping becomes more popular, retailers are expanding the products they carry to include common household goods like CDs, DVDs, Blu-rays, books, clothing, footwear and even groceries.” Hard-to-find niche products or products that are no longer being produced have also found homes online. As product ranges have grown, so has the number of industry operators; the number of enterprises is estimated to grow at an average annual rate of 10.3% in the five years to 2013 to an estimated 119,280.
In the coming years, continued economic recovery is expected to contribute to the industry's strong growth. According to Everett, “Rising disposable income and employment will improve consumer sentiment, increasing consumers' likelihood to buy.” Additionally, broadband internet adoption will grow in the next five years, boosting consumer accessibility to online retailers. The E-Commerce and Online Auctions industry has a medium level of concentration, as small companies make up almost half of the market. Industry concentration has increased over the past five years due to merger and acquisition activity. The major companies in this industry include Amazon.com Inc. and eBay Inc.
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IBISWorld industry Report Key Topics
The E-Commerce and Online Auctions industry encompasses retail businesses whose primary activity is selling goods online. The internet is the primary selling platform via either a retailer's online store or an auction site. Brick-and-mortar store operators that have also set up websites in conjunction with physical outlets are excluded from this report.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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