The E-commerce boom pretty much picked up steam when Ebay launched its services a quarter century ago. Since the Covid Pandemic hit, a debate has raged on raising questions like
So in Today's video, I'm going to explore how exactly e-commerce affecting physical retail stores?
So check this out, According to the U.S census bureau, E-commerce reached 1% of total retail sales in the third quarter of 2000.
The slow upward trend continued till 2019 when E-commerce sales amounted upto 11.3 % of total retail by the end of the year.
The Covid-19 Pandemic acted as a watershed moment for E-commerce in retail as lockdowns limited people to their home. Driving E-commerce sales up over 16% in the next 6 months.
The U.S consumers spent $861.12 billion online with U.S. merchants in 2020. A spectacular increase of 44.0% over a year.
The markets have gone through a correction since, but E-commerce is projected to grow further and achieve a share of 23% of total retail by 2023, according to Statista.
So many companies filed for bankruptcy due to the covid crunch - Chuck e cheese, GNC, Guitar Center, JC Penney, Jcrew, Niemen Marcus, and the list goes on.
The statistics don’t lie E-commerce is gradually taking over the brick and mortar retail market
So who survived? The sector of businesses that embraced selling online to cut costs and stay open adapted to Consumer purchase preferences (aka sitting on your butt while amazon brings you something tomorrow)
We all know more and more consumers are being attracted and getting used to ordering things like groceries online
So naturally, retail stores in 2021 and beyond are forced to make some changes in their business models. Its adapt or die.
Naturally, the importance of physical stores as a primary source of driving sales is diminishing. Retail stores are now part of a wider sales strategy underscored by a digital presence.
As retailers begin to come back to life and fight to bring customers to the physical stores and dabble their feet into the online spaces, they also have to contend with the reality that 60 percent of all online spending in the U.S goes to just one e-commerce giant.
Not hard to guess, It's Amazon.
So the rest of the market is really fighting a war for survival. But it's a fight they have to take on in order to stay afloat.
Let me know if you have any questions!!! Want to read about our ecommerce story, click here!