E-Commerce – Looking at Your Bottom-Line Numbers

Wednesday, June 09, 2010

ecommerce_woman_smallBased on the 2009 retail numbers, Forrester Research posted a five year forecast for e-commerce growth. The numbers are reflecting US retail data, but market trends South of the border are viewed as a fairly accurate in terms of predicting what is happening here in Canada and Vancouver BC.

Online sales are steadily chipping sales volume away from offline stores. Currently, online sales represent about 7% of total retail sales volume.

What makes e-Commerce an absolute must for most retailers is the fact that e-Commerce online solutions influence currently 42% of total retail purchases and that number will grow to 54% by 2014. So, in case of 54% of all retail purchases, shoppers will go online to check products, prices, offerings and reviews. Very soon, the majority of the shop-window experiences of retail customers are going to come from an on-line environment.

Some further insights to consider:

Research finds that growth of online sales is impacted by two major trends. A growing number of consumers expect their favourite brands to have an e-Commerce presence beyond their brick and mortar store front. This trend is somewhat tempered by another trend, namely, that many retailers find it difficult to respond efficiently to the expectations of consumers. This signals an opportunity for early adapter retailers: retailers that are successful online and offer a good online shopping experience to their customers, exploded their online sales by more than 25%!