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The online retail sales in the US market will grow in excess of $506 billion in 2018 and by 2022 it is likely to cross $712 billion, quoting a research paper released by Forrester Research, a retaildive.com report said. According to the study, nearly all American adults, almost 98% already go online at least once a day. What is more, in excess of 53% of the $3.7 trillion US retail market will be driven through digital touch points by the end of the year, the report said quoting the researchers as saying. The e-commerce is also quickly moving into the devices in people's hands: more than $1.3 trillion of the US retail sales will impact by Smartphones in 2018, the report pointed out.
Dive Insight
For a while now, it's been pretty clear that the US shoppers expect lower prices online, and the research from Forrester found that 61% of adults here believe they find better value and deals online while roughly half also say that the product information found online is more useful than what is available in the store, the report said.
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That points to the importance of knowledgeable store staff. Other research has found that retailers are losing customers fast as frustration builds when store associates are nowhere to be found. A third of shoppers who experienced a problem at apparel stores were not able to locate sales help, for example, and 6% of all possible sales are lost because of lack of service, citing a report from the Massachusetts Institute of Technology’s Sloan School of Management late last year, the report said.
Web Optimization
The amount of time and dollars spent online is sending retailers scrambling: 71% last year planned to increase their investment in web optimization. But while shoppers may be heading to websites and apps for deals and information, where they begin and end their journey often involves a store, making it difficult to determine any more what "e-commerce" fully is, added the report.
Online Sales
In 2016, online sales of physical goods amounted to $360.3 billion and are projected to surpass $603.4 billion in 2021, according to statista.com report. Apparel and accessories retail e-commerce in the U.S. is projected to generate over $121 billion in revenue by 2021. The US rank behind several countries in terms of e-commerce sales as the percentage of total retail sales - in 2016, almost a fifth of China's retail sales occurred through the Internet, compared to only 8.1% in the US. The UK, South Korea, and Denmark are also ahead of the U.S. in terms of retail e-commerce share.
In 2017, the e-commerce sales as percentage of total retail sales in selected countries is as follows: China 23.1%, the UK 19.1%, South Korea 1.6%, Denmark 12.6%, the US 9%, Germany 7.9%, Japan 7.4%, Italy 3.2%, Brazil 2.7%, India 2.2% and Mexico 1.7%.
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