It seems that e-commerce will continue to be a growing part of the U.S. retail market, as online sales will amount to $459 billion in 2017, according to Forrester. The projected sales figure will represent a 14% increase. Observers expect the country’s retail market to tally $3.56 trillion, up 3.8% year over year.
Online retailers should take advantage of this estimated growth by offering secondary financing options for their clients, as e-commerce’s share of the market will increase in the near future.
Online sales will likely account for 12.9% of total transactions in 2017, due to consumers buying clothes, consumer electronics, and computers.
By 2022, the sector’s market shares would balloon to 17%. While there are many players in the e-commerce niche, Forrester expects Amazon to remain as the dominant brand in the industry.
It based the assumption on the company’s net retail product sales that rose 19% year over year in 2016 when 83% of adults bought from the online platform and 55% used Amazon as a reference before buying something from the Internet.
Brick and Mortar
Despite the growing use of online channels, physical stores will still be a significant part of the U.S. retails sector, according to Forrester. However, observers attribute the traditional retail market’s current slump to a glut in stores.
The report showed that the country has an average of 24 square feet of retail space per capita, as opposed to 16 square feet in Canada and 4.6 square feet in the U.K. The abundance of stores in the U.S. has eventually led to several store closures with around 2,000 shutting down in 2016.
The emergence of online retail continues to grow, which is why e-commerce firms should find new ways on how to improve customer experience. By offering something innovative, companies can be sure to keep their business afloat and expand their client base.