e-Commerce - Recession Proof

04/06/2009

As the economic slowdown continues, one industry bucking the trend is e-commerce.

Even though average total purchases have declined for traditional retailers in the downturn, online purchases thrive. Recently, Amazon posted a net income of $177 million for the first-quarter of 2009, which represents a 24% increase from the same period last year. Although Amazon sits at the larger end of the e-commerce industry, small and medium sized e-tailers are following the same trend.

According to a survey conducted by Forrester Research for the National Retail Federation’s Shop.org, e-commerce is ‘better suited to withstand economic downturn’. So, what can this be attributed to? It could be because the UK internet population continues to grow with 70% of the total population currently being able to access the World Wide Web. It could be that advances in security, design and usability of websites ensures that a typical e-commerce browsing experiencing is a whole lot easier, friendlier and safer, encouraging a larger number of the public to purchase. It could be that, more people are staying at home, and impulse buying from the comfort of your sofa is very easy (a little too easy in the case of iTunes).

The outlook remains bright for the remainder of 2009, and historically businesses that survive such downturns thrive when end is finally reached.

Talk to us today about investing online. We offer a range of solutions including Magneto – the World Wide Web’s newest and most exciting e-commerce platform.

 

 

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