02 Aug

Are Online Markets The New Norm?

Posted in Small Business Advertising, Social Media, Synergy Suggestions on 02.08.16 by John Meloche

Over the past couple of years, we have seen an emergence of online transactions and E-commerce. It appears as though those fears people once had about online shopping have vanished. This sudden spike in E-commerce demand has sparked the debate over whether or not online markets are the new norm. So today we really look at the question: are online markets the new marketplace?

Let’s start this debate by looking at the facts. The U.S. Department of Commerce estimates that there will be $92,801 million in sales strictly from online shopping in the first quarter of 2016. Compared to $80,569 million from the first quarter of 2015. This is definitely a sign of prosperity for online shopping however these numbers are small when comparing it to the total market. Those numbers only represent 8 and 7 percent of total sales respectively. It’s clear online shopping is on the rise but when you look at the market as a whole it only represents a tiny sliver of all sales.

Now let’s look at some other compelling facts. But instead of looking at North America, let’s analyze different markets across the globe. Specifically let’s look at the major markets that impact the global economy the most. China is a huge country that’s a compelling figure in the global economic scene. Online shopping is practically the norm in China now. According to Statista, China had 46 million online shoppers in 2007, now they have over 400 million. Almost ten times as many people shop online compared to the number from 9 years ago. This trend is expected to continue at an even more exponential rate. It’s fair to say online shopping has skyrocketed in popularity in China. So with this information being present, it begs the question: If such a giant like China focuses on online shopping, then is it just a matter of time before online shopping really hits the North American market?

The debate of E-commerce becoming the primary marketplace is a good one. It’s very easy to argue on behalf of both sides. But do you actually see the North American markets adopting E-commerce? If so, when do you think that would happen? Let us know what you think. You can tweet us at @synergymkt or you can check us out on Facebook (just Synergy Marketing), and we’re on Instagram @synergymkt.

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