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Earlier this month, Forrester Research announced release of the firm’s online retail forecast through the year 2022. Citing key findings from the report, Digital Commerce 360 explained that Forrester expects E-commerce sales to continue to grow at a robust pace over the next five years, increasing E-Commerce’s share of total retail sales to 17 percent in 2022, up from 10.6 percent in 2015, 11.7 percent in 2016 and an estimated 12.9 percent in 2017. Forrester expects 2017 online sales to increase by 13 percent – a rate that’s roughly five times that of the growth brick-and-mortar stores will experience.
Not surprisingly, Forrester expects Amazon will continue to play the starring role in the growth of E-commerce. The online juggernaut accounted for more than half of last year’s overall growth in online sales, according to Slice Intelligence. In the Forrester report, Susan Wu – a Senior Analyst with Forrester – wrote that “83% of U.S. online adults made a purchase from Amazon in 2016,” reported Digital Commerce 360.
According to data from Internet Retailer – a Digital Commerce 360 property – online growth expectations remain high, especially for housewares and home furnishings. The online channel accounted for 13.5 percent of the segment’s total 2016 sales – 2.5 points higher than the year prior.
The 800-pound gorilla in the online home furnishings segment – Wayfair Inc. – is expected to be a key beneficiary of the global shift to E-commerce. The firm just reported that second quarter E-Commerce revenue increased 45.9% year over year. Medium and small online competitors are also benefitting from the trend to online. For example, Butcher Block Co. – a privately-held, niche-oriented e-tailer selling kitchen furniture, live edge tables, equipment and accessories, is enjoying year-over-year sales growth in excess of 20%, says the company’s VP of Marketing and Operations, Kathleen Grodsky.
“While it’s true that a rising tide can help, it doesn’t necessarily raise all boats,” Grodsky cautioned. “Competition in the online space is fierce. To succeed you need continuous improvement in every aspect of the business – your website, brand and product offerings, content marketing and social media presence.”
About Butcher Block Co. – BBC is a leading online seller of live edge tables, wood countertops; kitchen islands, tables and carts; and cutting boards, knives and knife blocks.
Release ID: 231435