Online retailing dominates the industry
London, United Kingdom (PRWEB) June 27, 2013
Retailing has undergone something of a revolution during the past five years, with online retailing emerging as a niche activity as little as a decade ago to become one of the most dynamic and relevant ways of connecting with customers today. The E-commerce and Online Auctions industry has switched from a catalogue and mail order business model to enthusiastically embrace the internet. Technological advances have led to rapid increases in internet speeds and the introduction of internet-enabled devices. This has increased the convenience with which consumers can shop for goods and made the process more secure and efficient. The rise of the connected consumer has introduced the concept of social shopping which makes use of technology and social media trends. “This has worked in favour of online retailers that are now able to create a customised shopping experience for customers,” said IBISWorld industry analyst Temitope Onabanjo. Over the five years through 2013-14, it is estimated that industry revenue will increase at a compound annual rate of 10.2%, to £21.7 billion; this will include a 12.3% increase in 2013-14.
The E-commerce and Online Auctions industry has a low level of market share concentration. This highly fragmented industry has seen rapid growth over the past five years and has attracted a significant number of new entrants that are fighting to gain a share of the online retail market. Amazon.co.uk and Shop Direct Group are the major companies in the industry. The industry has largely defied the subdued economic conditions and growth has been driven by demand from increasingly tech-savvy consumers. “Industry operators have profited from consumers who have less time-availability and seek a wider range of products,” added Onabanjo. The popularity of online retailing has led industry participants to expand their product ranges to include books, clothing, groceries and vintage items. Profit margins have grown steadily as retailers overcome the initial start-up costs and avoid the expenses associated with traditional store retailers. The growth in the industry has attracted new entrants and the number of enterprises is growing briskly.
As the economy slowly recovers and consumers loosen their purse strings, further expansion is expected. Technological advances will make it even easier to shop online, particularly on mobile devices, and this will be a key area for growth for the industry. The consumer base is likely to become broader as the wider population becomes more comfortable using the internet. However, growth is expected to slow down as the trend loses its novelty and growth rates lose their initial momentum. Revenue is forecast to over the five years through 2018-19. For more information on the E-commerce and Online Auctions industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Operators in this industry retail a wide variety of products over the internet, via mail order, radio, television and phone. Online auction sites are included, although the sale of motor vehicles and motor vehicle parts is excluded from the industry's operations. The industry also excludes retailers that primarily have a high street presence but also sell products through other channels.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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