Business Study : Ecommerce Industry Outlook

The Internet over the past few years has seen a huge increase in online businesses and consumers. Electronic-commerce is expected to generate $36 billion in revenue during 1999, up 140% from last year alone.[1] With such a huge amount of money to be made on the Internet it is becoming very appealing for small businesses and start-up companies to try and make their niche in e-commerce. The Internet is drastically affecting the way companies and people conduct business now. E-commerce encourages growth in existing as well as new businesses because of lower overhead costs, the huge consumer base and the freedom of information flow. However the online revolution has created a large

Evolution of E-commerce is a continuous process and it evaluate more and more as time passes.

In the era of smart businesses, the growth of e-commerce is driven largely by the internet and digital technology, the advent of smart-phones and the increasing disposable income of the people, especially of young working professionals. Moreover, the sedentary work culture and hectic routine life are compelling both consumers and businesses to go online - a revolutionary marketplace to save time as well as money. This is all about B2C companies; there are several B2B portals that assist start-up firms in expanding their reach, penetration and the overall revenue. According to the Forrester Research, B2B e-commerce sales is more than 200 percent of the size of B2C e-commerce and it is expected to touch the $12 trillion sales figure worldwide by 2020. Moreover, If we talk about India only, a study done by Walmart in 2014, tells that India's B2B e-commerce industry will grow to $700 billion by 2020.

From Tier-1 to Tier-2 cities, the Indian e-commerce industry has broken a number of stereotypes about how India shops and what India shops for. The number of Internet users in India grows by a staggering 32 percent annually and this growth rate is bound to increase exponentially as the reach of smartphones is predicted to aid the penetration of internet in every nook and corner

At CanGo it is obvious that the Internet has changed how society shares information, communicate, educate, shop and entertain them selves. Cushman & Wakefield conducted an extensive research during 2013 on the “online retail/ecommerce market”. The information published by Cushman & Wakefield is important to CanGo because CanGo’s business is part of the “online retail/ecommerce market”. The report has indicated that the growth has been an average of 18% during the course of three years (2009-2012) as opposed to the growth of the normal or traditional retail sales, which only grew 1.3% for the same period of time.

With the invention of World Wide Web, the corporate sector has evolved into new dimensions. The fast, quick, reliable, accurate and efficient internet systems of E-commerce have provided the world with new and unique business opportunities.

Online business using the internet has experienced significant growth over the last two decades. According to the Internet World Stats (2014) the number of worldwide internet users has grown from an estimated 16 million in 1995 to 2.9 billion in 2014. This world of interconnectivity has provided a way for people all around the globe to communicate with one another in a real time format. The internet has removed the distance between governments, industries, businesses and individuals. This interconnectivity has helped to establish the foundation for a globalized community.

Growth prospects e-commerce E-commerce has continued to be a business trend and it continued to grow in 2015. According to the data the Stefany Zaroban got from the U.S. Commerce Department, the web sales in 2015 totaled “$341.7 billion for the year, a 14.6% increase over 2014’s $298.3 billion” (Zaroban, 2016). This reveals that Amazon would continue to have the chance to increase their sales as well as an increase to bringing in more customers. According to the data that GlobalData received, U.S. had around “300 million internet users in the year 2014 which was an increase of 7% over the previous years” (GlobalData). These statistics show that with the increase of online shoppers every year and the definite advance in technology in the future, more people will shop online than to go to retail stores.

Ecommerce is one of the fastest growing markets in the world. Currently the United States is the largest online retail market. Based on the statistical data, retail e-commerce back in 2012

This study will prove that e-commerce has grown because it adds value to people’s lives. It will show that e-commerce will not disappear but evolve into something even greater than what it is right now.

The continuous development of Internet leads to the growth of e-commerce. The electronic commerce is growing constantly due to the continuously increasing number of mobile and online users in the market, primarily the emerging markets. Besides that, the development of the Information Technology (IT), such as the advance of paying processes and the improvements of shipping method also the main reason to cause the growth of electronic commerce (John Ingham, 2015). Most consumers accept e-commerce as their feasible alternative in the purchase of goods and

In the year of 2013, Asos sees a great revenue growth and profits all over the world. Asos continued its global expansion and in August of 2014, Asos received 61% of the whole sale from outside UK (Asos plc, 2014). According to the report released in 16th Sep 2014, the sales of Asos grew to￡975.5m in the end of August this year. Addition to that, the CEO Nick Robertson claimed that Asos will make even larger investments in the international pricing, technology and supply chain in order to gain more profits in the next financial year (Mintel, 2014). In the four driving forces of e-commerce, the customers’ love comes first.

In concert with high rivalry in the industry, the ecommerce industry has seen large brick-and-mortar retailers making moves to catch up with Amazon. Amazon came to dominate the ecommerce industry through technology, innovation, a laser focus on customer experience and efficient operations. The company had a first mover advantage, but today, as traditional retailers look at growth in the ecommerce market and see it beginning to chip away at traditional retail’s share of the overall market (Exhibit 3), these companies are making moves to further increase their own sophistication. In October, Best Buy brought in former Expedia president, Scott Durschlag, to head its ecommerce business and to “boost its online transformation.” In 2011, Wal-Mart acquired Koomix, hoping to apply “artificial intelligence to commerce.” It also hired the well-regarded Silicon Valley engineer who was instrumental in the development of eBay’s infrastructure as its Chief Technological Officer. Wal-Mart and eBay both announced this fall that they

Large eCommerce companies are facing challenges and disruption to their business models as they grow internationally. Walmart is another example of a brick and mortar company that extended its service base to online shopping involving ecosystems to enable users to purchase goods and services and suggest items based on past online behaviors. Integrated customer information will progress into electronic identities.

Organizations conduct transaction on a global scale, and they must adapt to the advances in technology to compete and succeed. E-commerce will provide a platform to promote growth and