E-commerce Market Share Expected to Plateau at 35% in Next Decade
- US online retail sales to reach $1.2 trillion this year, according to FTI Consulting
- E-commerce market share expected to plateau at around 35% in the next decade
- Several product categories have already reached the plateau including toys and hobbies, office supplies, consumer electronics, music and videos, books and magazines, computer hardware and software, home furnishings, and sporting goods
- E-commerce is maturing and returning to pre-pandemic normalcy
- Online retail sales projected to reach $1.6 trillion by 2028, comprising 28% of total U.S. retail sales according to Forrester report
FTI Consulting’s research reveals that US online retail sales have surpassed previous projections, reaching $1.2 trillion this year and are expected to continue growing in the coming years. E-commerce market share is predicted to stabilize around 35% within the next decade. Several product categories have already reached this plateau, including toys and hobbies, office supplies, consumer electronics, music and videos, books and magazines, computer hardware and software, home furnishings, and sporting goods. J.D. Wichser, senior managing director at FTI Consulting, stated that e-commerce is in a maturing phase as it returns to pre-pandemic normalcy while emphasizing the importance of omnichannel integration and technological innovation for businesses to maintain a competitive edge. The retail industry is adapting by shifting stores to fulfillment centers, closing underperforming locations, using AI, and blending online and offline experiences. A Forrester report projects US online retail sales will reach $1.6 trillion by 2028, accounting for 28% of total U.S. retail sales.
Factuality Level: 9
Factuality Justification: The article provides accurate information from reputable sources, presents data and projections related to e-commerce growth, and discusses the strategies businesses are using to adapt to changing consumer demands.
Noise Level: 3
Noise Justification: The article provides relevant information about the growth of e-commerce during and after the pandemic, as well as predictions for future trends in the industry. It also mentions some strategies businesses can use to adapt to changing consumer demands. However, it could benefit from more analysis or discussion on the long-term implications of these changes and potential consequences for various stakeholders.
Financial Relevance: Yes
Financial Markets Impacted: Online retail sales, store-based retailers, and companies in the e-commerce industry
Financial Rating Justification: The article discusses the growth of e-commerce sales and its impact on traditional retail stores, as well as projections for future online retail sales. This has implications for financial markets as it affects the performance of e-commerce companies and brick-and-mortar businesses, and can influence investment decisions in these sectors.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
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