The Case for eCommerce — Consumer Side

According to the United States Census Bureau, eCommerce accounted for 8.3% of all U.S. retail sales in the 4th quarter of 2016. This activity represents $102.6 billion in goods and services, out of a total $1.2 trillion.

The data shows that eCommerce, as a percentage of all commerce, is steadily growing:

Even after the financial crisis of 2007–2008 which saw a decrease in total retail sales, eCommerce activity increased both in relative and absolute terms. It is safe to assume that eCommerce will continue to grow into the foreseeable future. Some of the factors driving this trend from the vantage point of the consumer:

Price — The Internet makes it easy for the consumer to compare the price of a particular product or service from multiple sources.

Information — Product specifications and reviews are readily available online, facilitating the purchase decision.

Convenience — The consumer may browse and purchase goods anywhere he or she has an Internet connection — the home, the office, public locations with Wi-Fi access, etc. Furthermore, eCommerce is generally available every day including holidays, and at all hours of the day and night.

Efficiency — Online stores have certain efficiencies compared with traditional bricks-and-mortar stores. There is no time wasted driving to an online store, or searching for a parking space, or standing in a checkout line.

Anonymity — Some consumers avoid the public eye and, if they are self-conscious about their purchases, may prefer to shop in privacy.

The Rise of Technology — Some forms or commerce (think music sales, computer sales, and stock trading) have evolved through technology and now exist almost entirely as eCommerce. New currencies such as bitcoin encourage eCommerce.

As technology evolves, eCommerce will likely develop greater consumer benefits and become more accessible. It should therefore continue to grow as a percentage of total sales. To what extent will depend on the relative merits of traditional commerce.

This article was first published by Bill Etienne endertechnology.com