Essay on The Rise Of E Commerce

973 Words Sep 10th, 2016 4 Pages
The rise of e-commerce cannot be overstated. E-commerce is now a $390 billion dollar market in just the U.S. according to Statista, and has grown at a rate of 17% annually in the past decade. The research company Forrester projects e-commerce to grow to $530 billion by 2020, while Statista is even more bullish, projecting e-commerce to reach more than $684 billion by 2020. Yet e-commerce in Western Europe is growing even faster, with sales projected to reach $191 billion by the final quarter of 2017. Brick and mortar stores are being phased out and squeezed by e-commerce. So who stands to benefit most from this rise in e-commerce? The obvious answer is Amazon (NASDAQ:AMZN). According to Forrester Research, Amazon accounted for roughly 60% of total U.S. online sales growth in 2015. That’s partially why it was no surprise that its shares rose 59.3% in 2015, and continue to shoot up in 2016. It’s the same story when looking at holiday spending; according to Slice Intelligence Amazon’s share of e-commerce spending between Nov. 1 and Dec 6 actually rose to 39.3% in 2015 from 37.9% in 2014. It’s no surprise at all to see Amazon continue to eat up a larger and larger chunk of the e-commerce market. An important element to Amazon’s rise is the relatively high barrier to entry in establishing a true e-commerce giant. Sure, there is almost no barrier to entry in establishing an e-commerce website, but attracting customers and establishing the requisite warehouse infrastructure is…

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