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Growing E-Commerce Markets

For the past several years, the growth of e-commerce has handily outpaced that of brick-and-mortar stores. The meteoric rise of e-commerce has prompted speculation that we're among a fundamental shift from physical to digital retail. In the United States alone, e-commerce is a $304.9 billion a year enterprise, growing by about 17 percent a year as of 2014. That e-commerce is on the rise is probably not news to you, but what you may not know is what specifically is fueling that explosion. Here are the locations and businesses driving the e-commerce phenomenon.

The Geography of E-Commerce

In examining the geography of e-commerce, we've identified the cities with the largest number of e-commerce companies or e-commerce shoppers. Unsurprisingly, Los Angeles tops the list of cities that are homes to e-commerce businesses. In fact, ranking by revenue, three of the top six American Internet companies reside in California. Texas ties with California for the most top-ten mentions (five) of any state in the United States. With New York, California, and Texas being almost invariably tied to the top three e-commerce markets, The Apparel Logistics Group North Texas facility being centrally located enables us service two of those markets very well.

Here's a list of the top e-commerce based on total merchant revenue:

  1. Los Angeles
  2. Austin
  3. Cleveland
  4. New York City
  5. Denver
  6. San Diego
  7. Chicago
  8. Houston
  9. Miami
  10. Salt Lake City

The top five e-commerce cities based on consumer purchases are:

  1. New York City
  2. Houston
  3. Chicago
  4. Los Angeles
  5. Miami
  6. Austin
  7. San Diego
  8. Dallas
  9. San Francisco
  10. Las Vegas

Internationally, Forbes recently called the Middle East the fastest-growing e-commerce market in the world. Experts expect e-commerce in the region to grow by 25-40 percent each year for several years, far outstripping the growth rate of even Latin America.

Fastest-Growing E-Commerce Companies

We all know the juggernauts of e-commerce in the United States, such as Amazon, Walmart, and eBay. However, if you look at growth rates, some lesser-known e-tailers step into the spotlight. According to the 2014 Internet Retailer Top 500 Guide, the fastest-growing top 500 online retailers in the United States and their growth rates are:

  1. Uniqlo: 341.3%. Clothing store Uniqlo (a contraction of "unique clothing") is the fastest-growing online retailer in the United States. Tadashi Yanai founded the company in Hiroshima in 1985 and is now the wealthiest man in Japan.
  2. TheRealReal.com: 296.8%. RealReal is the No. 1 online resale outlet for luxury goods. Consignors can sell their goods on the site for up to 70 percent of the item's sale price.
  3. NoMoreRack.com: 250%. This retailer sells kids', home, women's, men's, lifestyle, and electronic goods. Its business model combines flash sales with daily deals to drive revenue.
  4. Alex and Ani: 249.7%. Founded in 2004, Alex and Ani designs, produces, and sells jewelry such as rings, bangles, necklaces, and earrings. The company's multi-channel approach and a unique in-store mobile checkout system have helped set it apart from competitors.
  5. Google Play: 161.7%. As adoption of Android devices has grown more widespread, Google Play store's sales have exploded. More gamers are switching from PCs and consoles to mobile devices, which has also benefited Google Play.

The upward trajectory of e-commerce is likely to continue in coming years, as mobile online purchases stay on track to bypass PC online sales. Whether the top geographic and business markets will stay the same as it happens will remain to be seen. If you would like a free consultation about your e-commerce company's distribution and supply chain model, get in touch with us.

Posted: 2/10/2016 3:20:29 PM by Global Administrator | with 0 comments


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