Study analysts long term e-commerce growth
30 November 2011 - 10:11 by Simon Crisp
A new paper published by retail analyst firm, Transactis, has looked at the way that the growth of shopping online has developed over the years, gradually slowing from the peak rates of expansion in the middle of the last decade.
Back in 2007, the e-commerce market was expanding at a rate of 58 per cent compared to the previous year, but this has tailed off to a low of eight per cent in 2010.
However, the first six months of 2011 saw an upturn in online sales resulting in growth rates of around 14 per cent, as the impact of the global recession caused more consumers to seek the lower prices available to them via safe shopping online.
Between 2006 and 2010, the amount of money being spent online rose by 173 per cent across the areas included in the report, such as consumer electronics, clothing and home furnishings.
Interestingly, it is the youngest people who have contributed the most to the growth, with adults aged 18 to 24 spending 1076 per cent more via the web in 2010 than they did during 2006.
Twenty-five to 34 year olds also spent money in greater numbers last year, with a 314 per cent increase in online shopping basket values for this age group.
Part of the reason for the contraction in the growth of e-commerce is that a majority of youngsters are already involved in online shopping and thus the boom cannot continue at the same rate.
Eighty-three per cent of people aged under 35 shop via the web, according to the study, with 80 per cent of their total purchases originating online.
Interestingly, it looks like the study has found that people who contribute to more than one form of retail, harnessing both the high street and the web, are more valuable to retailers than those who shop solely via e-commerce sites.