Sramana Mitra writes about the e-commerce gold rush.
According to some analyst estimates, nearly 20,000 entrepreneurs now open online storefronts every week, and growth in e-commerce sales continues to outstrip that of sales in physical stores. Early online players such as Dell and Starbucks are now joined by luxury watchmaker Longines and clothing designer Roberto Cavalli.
In 1998, online retail sales accounted for about 0.5% of all retail sales in the United States. Dell was one of the only companies truly succeeding with online retailing in the mid-nineties. By the end of 1997, Dell was the first company to record $1 million in online sales.
Forrester predicts that the U.S. e-commerce market will increase from $176.9 billion in 2010 to $229.1 billion in 2013.
During the gold rush, the entrepreneurs who steadily built fortunes were not only those who sought gold, but also those who made the shovels.
Forrester Research also released a five-year forecast for the e-commerce industry in March 2010. According to this report, apparel, computers, and consumer electronics represented more than 44% of online sales ($67.6 billion) in 2009.
Today, the U.S. economy still gasps after the great recession, with only census jobs being added to the country’s payroll. People tired of looking for jobs that do not come are taking destiny in their own hands. In their bedrooms and basements, e-commerce companies are cropping up everywhere.