The online marketplace has skyrocketed with retail sales over the last ten years and it isn’t going to slow down anytime soon. E-commerce has taken the place of many physical retail locations nationwide. From mall closings to the collapse of major retailers, companies that used to be consumer-staples, like Sears and Toys-R-Us, have shuttered stores across the nation or closed their doors altogether.
Major Closures in the U.S.
To name a few of these mega giants that are turning into vacant storefronts, Macy’s, K-mart, and J.C. Penney have taken the most hits. In 2017, 5,000 retail stores went out of business and approximately 4,000 are set to follow by the end of 2018.
In 2017, online retail sales grew at the fastest rate since 2011 according to a report from the U.S. Commerce Department. E-commerce accounted for 13% of total retail sales in 2017, which equates to a 16% increase in overall growth. Amazon takes credit for a large majority of sales.
Amazon has a vast selection of products available for purchase from clothing to car parts to groceries. This makes it an ideal marketplace for customers to find all of their needs in a one-stop online shop. Last year, Amazon’s portion of U.S. e-commerce and total retail sales amounted to 70.2%. This only leaves roughly a quarter or sales for other e-commerce retailers.
The Future of E-Commerce
Online retailers now shape the way consumers purchase goods. And as the marketplace turns to e-commerce, other industries are feeling the effects. The freight, parcel, shipping, and logistic industries must adapt to a commerce environment largely controlled by major online retailers.
Looking to the future of e-commerce, total global retail sales are estimated to reach 17.5% by 2021. This ensures steady growth over the next four years in the already booming realm of the Internet.
With the decline of mega-giants in the physical retail world, there has been an expansion on the web of other popular names. Business Insidernames Amazon, Ebay.com, and Wal-Mart’s online marketplace the top three largest outlets of online retail traffic. With Amazon taking first place, the company has created new approaches to how consumers shop on the web. They use innovative tactics such has two-hour delivery and a drone service to optimize shopping from the point of purchase to your front door.
In the age of e-commerce, businesses within the freight and parcel industries must be prepared to respond to a growing volume of packages and an increased demand for fast service. It is important to keep your business up to the speed of online growth. Increased efficiency and decreased downtime must become standards for your company.
Aegis Sortation combines superior products with proven sortation technology to aide operational efficiency. We strive to provide reliable designs that are sustainable and yield faster results in production. At Aegis, we use our modern technologies to simplify the warehouse and distribution industries.
If you’re interested in learning more about how Aegis Sortation can help you keep up with the increasing speed and volume of e-commerce, schedule a time to talk.