In: Psychology
According to research data, i am going to clarify you the
things.
As we know, Amazon is one of the largest companies in the world in
terms of capitalization. It has sparked a revolution in e-commerce
emulated by startups the world over. It is the benchmark for US
e-commerce companies. However, there are some business analysts who
consider its continuing growth as a reason for the decline of
traditional retailers.
Notably, Amazon is the largest e-commerce site in the US. For 2018,
an estimated 230 million Americans will buy online, resulting in
$474 billion in sales. This figure includes retailers like motor
vehicle and parts dealers, gas stations, supermarkets, and grocery
stores. These segments do not have a large impact on e-commerce
because online sales comprise only a small percentage equivalent to
roughly 9% of total retail sales. Excluding market segments with
limited online sales, e-commerce percentage would increase to
20%.
E-commerce is still growing. However, there are some segments of
sales where it might not be able to totally replace. One advantage
of e-commerce companies is their capability to diversify their
product and service offerings, and to do it quickly. This is either
through concessionaires or partnerships with established
brands.
Traditional Retailers
Contrary to trends, brick-and-mortar shops are not going to
disappear anytime soon. This is especially true for groceries,
including fresh produce and canned goods. People still buy from
traditional retailers. About 78% of American adults regularly
purchase from traditional stores. In comparison, only 5% make more
than six online purchases annually. In addition, only about 10% to
15% of US adults buy online at least once a week. This results in
online stores achieving less than 2% share of the market for
groceries and produce.
Statistics show that from 2001 to 2016, department stores lost 25%
of their jobs, equivalent to 448,000 workers. Warehouse clubs and
similar stores increased employment by 80%, equivalent to 841,000
workers. The retail industry had a flat growth but still managed to
hire a net 645,000 new jobs. E-commerce, in contrast, had an
increase of 334% over the 15-year period, which is equivalent to
178,000 workers. It is noteworthy that 75% of all e-commerce
companies only had three to four workers each.
E-commerce is the future of retailing. However, most startups will
be small and would continue to comprise the bulk of e-commerce
sites. E-commerce is still in its infancy, and its growth will
continue to outpace the rest of retail.