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Why E-commerce Selling

The E-Commerce industry is one of the fastest-growing industries in the United States. Accelerated by higher levels of disposable income and consumer's growing propensity to conduct services online, industry revenue is expected to rise. In the next five years, continued economic recovery and declining unemployment will improve consumer confidence, thus increasing consumers’ likelihood and ability to buy. The E-Commerce and Online Auctions industry has a moderate level of capital intensity.

IBISWorld estimates that for every dollar spent on wages, industry operators will spend $0.13 in capital investment in 2015. Capital investment is mainly in warehouse space, computer equipment and warehouse fixtures. Over the past five years, capital intensity has decreased due to the rising number of non-employers that sell small product batches and do not require extensive warehouse equipment. In addition, online shopping operators outlay capital on technology to establish, implement and maintain their websites.

According to eMarketer’s latest forecasts, worldwide business-to-consumer (B2C) ecommerce sales will increase by 20.1% this year to reach $1.500 trillion. Growth will come primarily from the rapidly expanding online and mobile user bases in emerging markets, increases in mcommerce sales, advancing shipping and payment options, and the push into new international markets by major brands. In 2014, for the first time, consumers in Asia-Pacific will spend more on ecommerce purchases than those in North America, making it the largest regional ecommerce market in the world. This year alone, B2C ecommerce sales are expected to reach $525.2 billion in the region, compared with $482.6 billion in North America.