Online Shopping Market
With the economy down shoppers have less time and or money to browse around your typical brick and mortal retail stores. According to Retail Traffic Magazine in 2009 online sales accounted for 6 percent of all retail sales. They estimate that by 2014 online sales will account for approximately $250 billion; 8% of retail sales.
As cell phone technology and online marketing keeps getting more and more advanced more retailers are adding applications or shortcuts for consumers to access their online retail stores. Retailers put coupons, deals, and other marketing tools to use to try and entice the consumer to enter the store weather it is online or in the actual store. According to Market Wire, 83 percent of consumers are shopping online at least weekly. That is a very high number ...view middle of the document...
According to Market Wire some the ways companies like CanGo can combat consumer’s negative issues with buying online is by offering incentives that are targeted at their issues. “Some of the top ways to encourage consumers to buy more products online are free shipping (87 percent), free returns (63 percent), and fast shipping (42 percent). In addition, the ability to use in-store coupons online is increasingly valued among consumers -- 51 percent indicated it is a motivator to make more purchases online -- up from the 19 percent reported in Q1 2010” (Market Wire, 2010).
The market for e-commerce has steady growth. According to the US census which was released on May 26, 2011; U.S. retail e-commerce sales reached $145 billion in 2009, up from $142 billion in 200 which is an annual gain of 2.1 percent. From 2002 to 2009, retail e-sales increased at an average annual growth rate of 18.1 percent, compared with 2.2 percent for total retail sales. In 2009, e-sales were 4.0 percent of total retail sales—up from 3.6 percent in 2008. As you can see from the census statistics the market for online shopping has steady growth and continues to show this as well. A bar graph below from the US census will show the e-commerce growth in graphical form from 2004-2009.
E-stats. (2011, May 26). Retrieved November 23, 2010. Retrieved from http://www.census.gov/econ/estats/2009/2009reportfinal.pdf
Feuer, S. (2010, May 1). Social shopping science. Retrieved November 25, 2011. Retrieved from: http://retailtrafficmag.com/management/experts/retail_social_shopping_science/index.html
Market Wire, (2010, August). Eight out of ten consumers shop online at least once a week. Retrieved November 25, 2011. Retrieved from http://findarticles.com/p/articles/mi_pwwi/is_201008/ai_n54932937/?tag=content;col1