Are Online Marketplaces the key to retail growth?
The offline retail industry is struggling to keep pace with it’s online siblings.
In recent years large retailers have scaled back and closed many stores to help improve profitability.
But with online retail growing year on year with a global value of $1.3 trillion how can the offline retailers compete?
Think Amazon and you’ll instantly understand what an online marketplace is. It’s marketplaces like this which represent a great opportunity for offline retailers to expand their offering along with dropshipping.
Josh Wexler the co founder of Revcascade explains this in much more detail below.
E-commerce is huge. E-commerce is growing. And E-commerce is here to stay. Today, e-commerce — the only trillion-dollar market in the world growing in double digits year-over-year — is just 7.7 percent of U.S. retail sales, according to the Department of Commerce. Yet the total U.S. retail market is a whopping $5 trillion.
That means that there is still enormous opportunity for e-commerce growth in U.S. retail sales and I have no doubt that over the next decade, at least 25 percent of retail sales in the U.S. will happen online.
Marketplaces are the next big thing. Online marketplaces already represent 40 percent of the $1.3 trillion global e-commerce market. The concept is sufficiently vetted.
Yet retailers are just catching on and there is still a huge opportunity available. In fact, while there are currently 100s of online marketplaces, I believe that nearly every retailer will operate a marketplace in the near future.
The potential is huge.
Image courtesy of:Shutterstock / Maxim Minaev
Read the full article: Drop ship marketplace sales represent 40 percent of global e-commerce.
It won’t be too long before the internet is dominated by the large brands being found in many different market places.
What do you think, will marketplaces really take over our internet shopping?
Add your comments below.