Which of these will drive growth in the e-commerce industry?
Posted On July 17, 2021
The e-tailer has emerged as the top-selling retailer in the United States, according to new estimates by research firm IDC.
The company generated $6.9 billion in revenue in the first quarter, up from $5.9bn in the same period last year, and is expected to beat its previous high of $6 billion a year ago.
IDC said that its latest earnings estimate shows a surge in demand for e-retailers as shoppers look for bargains and bargain hunters try to find bargains.
The retail sector accounts for about a third of all US gross domestic product.
But it’s the online-only business that is expected the biggest driver of growth.
Analysts are also looking at a surge of e-book sales and e-books as a potential driver of the overall economy.
IDA expects to post $5 trillion in annual revenue this year, up 9% from the previous year, though some analysts believe that number will shrink by another 2% this year.
The report is based on the firm’s annual survey of ecommerce companies, which is conducted monthly.
The firm estimates that e-businesses in the US have revenue of $17.3 trillion, with e-shops accounting for about $2.8 trillion of that.
The top five e-marketplaces for ecommerce sales are Amazon, Walmart, Costco, Target and BJs, which together account for about 50% of total e-shop revenue.
IDc said that the ecommerce market is now valued at $21 trillion, up about 5% from last year.
IDCs figures show that the overall e-sector is expected for growth of 11.5%, but that the US has more than a quarter of the world’s population.
The survey estimates that online e-stores will account for 20% of e business in the next five years.
IDCS estimates that by 2026 e-services could account for up to half of all e-consumer spending, as online retailers focus on e-products that consumers can’t find elsewhere.