The analysts forecast the online retail market in the US to grow at a CAGR of 15.85% during the period 2017-2021.
Online Retail Market in the US 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market. To calculate the market size, the report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
One trend in market is rising popularity of digital payment services. Digital payment services allow consumers to make payments at the point of sale through a mobile device. The transactions can be completed in a few steps on the phone. Total mobile payments in 2016 in the US reached approximately $8 billion, and this is expected to grow to more than $100 billion by 2021. Large players like Amazon, Google, MasterCard, PayPal, and Square are investing heavily in the technology.
According to the report, one driver in market is growing seasonal and holiday sales. Online sales during festive seasons and holidays have increased in recent years and are contributing to the growth of the market. Online holiday retail sales in the US crossed $95 billion in 2016, an increase of over 12% compared to 2015. Offers such as free shipping and steep discounts have motivated the US consumers to make purchases online. Holiday sales through online retail during November and December amounted to over $55 billion in 2016. In Q4 of 2016, online retail sales reached $105.69 billion, an 18.15% increase from that of Q4 2015. Thanksgiving, Black Friday, and Cyber Monday are the days that see high amount of online shopping. Apparel, footwear and accessories, consumer electronics, computer hardware, and toys are the largest gaining product categories during the holiday season. Cyber Monday of 2016 generated online retail sales of approximately $2.12 billion, while Black Friday generated sales of over $1.4 billion in the same year.
Further, the report states that one challenges in market is transportation and logistics. Transportation and logistics are the major two concerning factors for the online retailers. Product procurement or sourcing, shipment of ordered items, and delivery to the customers are the three major process where the intervention of transportation and logistics come into the picture. All these three processes require high investment of both time and money which challenge the efficiency and effectiveness of the retailers and their costing strategy. Higher cost incurred from transportation and logistics reduces the margin of the retailers and most of the time the retailers are unable to breakeven.
Other prominent vendors
Academy Sports + Outdoors
Eastern Mountain Sports
Key Topics Covered:
Part 01: Executive summary
Part 02: Scope of the report
Part 03: Research Methodology
Part 04: Introduction
Part 05: Country profile: US
Part 06: Categories of online retailers
Part 07: Digital buyers in US
Part 08: Market landscape
Part 09: Market segmentation by devices used for shopping