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3. Online shopping companies are already delivering much higher growth
The chart below compares the world’s largest online retailer (Amazon) against the world’s largest traditional retailer (Wal-Mart) by revenue growth.
Market Consensus 12 Month
Revenue Growth
Infographic created in August 2017 by AtlasTrend (www.atlastrend.com)
Source: Reuters, 10 August 2017
If you online shop, your friends and family online shop, and you know with confidence you’ll online shop ever more over the next 5 to 10 years, investing in the online shopping sector is something you should seriously consider.
1. Online shopping has grown 7 times faster than the traditional retail industry
The U.S. online shopping industry is one of longest established in the world. From 2000 to 2016, U.S. online e-commerce retail sales grew on average 18.0% per annum compared to 2.6% per annum for non e-commerce retail sales, an astonishing 7 times difference. Similar trends are being seen in many other countries.
Even during the depths of one of the worst recessions in living memory when non e-commerce retail sales dropped 7% in 2009, online shopping sales increased by 2%.
2. There is ample room for online shopping to keep growing well into the next decade
China and the U.S. are the two largest online shopping markets in the world with total sales over US$1 trillion in 2016. However, in the U.S., only 8% of all retail sales are online while in China it is approximately 15%. In other words, well over 85% of the world’s two largest retail markets are still available for the online shopping industry to gain market share and profits.
Note: At the time of writing, the AtlasTrend Online Shopping Spree Fund and the AtlasTrend Big Data Big Fund both own shares in Amazon.
Statistics in this article regarding online retails sales were sourced from the US Census Bureau and the National Bureau Statistics of China.