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Internet Retailing in the US

United States internet retailing market: $315 billion industry by 2017

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2014-02-25 20:51:01 - Internet Retailing in the US - a new market research report on continued to be the undisputed leader in the United States internet retailing market in 2012, with a 17% value share. The company has increased its merchandise selection and services for both business and retail customers. In 2012, the company acquired Kiva Systems, a supplier of robotic automation of packaging and warehouse operations. Although Amazon already uses Kiva robots in its warehouses, the acquisition is expected to further increase efficiency in its supply chain, although it may create more uncertainty for other retailers and competitors that also use the machines.

The US population enjoys widespread access to the internet, with the majority of adults going online via personal computers and a broadband connection from home. Extensions and evolutions of e-commerce via



forms, such as mobile or social (known as m-commerce or s-commerce), are generating considerable interest. Over half of mobile phone users owned smartphones in 2012, and penetration of other mobile devices, such as tablets, is still growing, increasing access to the internet from anywhere with a wireless connection. Despite this growth, a sizeable portion of lower-income Americans do not have internet access or do not have a means with which to purchase products online, so continued expansion of access to internet retailing will likely also play a role in its future growth.

Sales through internet retailing are expected to post a CAGR of 12% on a constant value basis in the forecast period to reach US$315 billion in 2017. Growth will be higher than the review period average in constant terms as consumers shake off their worries and doubts that dragged them down during the recession period. Penetration of internet access will continue to grow, and consumers will demand greater functionality and access from websites and their mobile devices, which will push technology providers and retailers to create innovations and services that make this channel even more convenient and engaging. At the beginning of the review period, few would have been able to predict the advances that have created the current landscape, and many changes are expected still as the internet remains a dynamic frontier in retailing.

Key Headlines

- Internet retailing value sales grow 15% in 2012 to US$177 billion
- Increased investment in all aspects of internet retailing is paying off for retailers
- Video games hardware is the fastest growing category, with sales up 31% from 2011
- remains the undisputed leader in internet retailing with a 17% value share in 2012
- Internet retailing constant value sales are anticipated to grow at a CAGR of 12% over the forecast period to reach US$315 billion in 2017

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Mike King
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