ABI Research forecasts E-commerce share of total retail sales to reach 25% by 2025

Various barriers will continue to exist in the online and offline worlds.  As last-mile delivery capabilities increase, there will be further encouragement to make purchases online, but as in-store experiences become more entertaining, experiential, and value-added, certain retailers who adopt these practices will thrive.  E-tailers who are opening brick and mortar stores understand the need to have both so that customers have both shopping options, if the two are seamless.  If one chooses to buy online, but wants to return a product that day, having a store nearby will ensure they stay within the retail brand and not shop elsewhere.  Examples of retailers who demonstrate these capacities include Warby Parker who started as an e-tailer and now has 61 physical stores to accommodate its customers.  Amazon, the largest online marketplace in the U.S. also knows connecting back to brick and mortar is vital.  They recently partnered with department store, Kohl's to provide free Amazon drop...

Various barriers will continue to exist in the online and offline worlds.  As last-mile delivery capabilities increase, there will be further encouragement to make purchases online, but as in-store experiences become more entertaining, experiential, and value-added, certain retailers who adopt these practices will thrive.  E-tailers who are opening brick and mortar stores understand the need to have both so that customers have both shopping options, if the two are seamless.  If one chooses to buy online, but wants to return a product that day, having a store nearby will ensure they stay within the retail brand and not shop elsewhere.  Examples of retailers who demonstrate these capacities include Warby Parker who started as an e-tailer and now has 61 physical stores to accommodate its customers.  Amazon, the largest online marketplace in the U.S. also knows connecting back to brick and mortar is vital.  They recently partnered with department store, Kohl's to provide free Amazon drop off and shipping to capture the physical store shopper and to continue having them buy on their platform.

"ABI Research predicts that E-commerce will continue to take share from physical stores and occupy a market share of over 25% of total retail sales," says Andy Sweis, Principal Analyst at ABI Research. "As various technologies allow for seamless shopping between physical stores to online, this will encourage purchases from both channels, rather than choosing one of the two.  Global retail revenues will continue to grow single digits between now and 2025, but E-commerce growth rates will continue in the teens and eventually in the 20%+ rates.  Regions such as Southeast Asia will have rapid growth in internet access and mobile device accessibility, encouraging E-Commerce purchases and accelerating growth rates."   

These findings are from ABI Research's Smart Retail – Technologies report. This report is part of the company's Smart Retail research service, which includes research, data, and analyst insights.

About ABI Research

ABI Research stands at the forefront of technology market intelligence, providing business leaders with comprehensive research and consulting services to help them implement informed, transformative technology decisions. Founded more than 25 years ago, the company's global team of senior and long-tenured analysts delivers deep market data forecasts, analyses, and teardown services. ABI Research is an industry pioneer, proactively uncovering ground-breaking business cycles and publishing research 18 to 36 months in advance of other organizations. For more information, visit www.abiresearch.com.

 

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