Between 2010 and 2013, the same source expects the US e-commerce market to grow at a Compound Annual Growth Rate (CAGR) of 12.4 percent, with total e-commerce revenues hitting USD 235 billion in 2013.
As far as the global e-commerce market is concerned, J.P. Morgan expects e-commerce revenue will grow to USD 680 billion worldwide by the end of 2011, up 18.9 percent compared to 2010. The same source predicts that the global e-commerce market is likely to grow at a 19.4% CAGR between 2010 and 2013, with e-commerce revenue hitting USD 963 billion by 2013.
The number of people who shop online in the US is also on the increase, with 38 percent of US consumers buying at least once per month. Also, the percentage of people who don’t shop online is reported to have declined to 12 percent in 2010 from 20 percent in 2007. Higher income US consumers shop online the most often, with 34 percent of them making online purchases worth USD 100,000 or more at least three times per month.
While e-commerce spending may be growing, Kahn reports that the pace at which retail is moving online is less rapid than the online advertising space. As of 2009, e-commerce was only 3.9 percent of all US retail, however; online advertising represented 13.7 percent of all US advertising.
The report also highlights other unsurprising trends. For example, Amazon continues to gain market share, as smaller players have trouble competing with the e-commerce giant.
Kahn writes that the growth in mobile commerce could negatively affect brick-and-mortar stores and that one potential weakness in e-retail growth is the possibility of an internet sales tax.
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