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Los Angeles, CA (PRWEB) March 13, 2012

Every year, more than 100.0 million Americans purchase goods from the online retail marketplace, one of the fastest-growing industries in the United States. Since the start of the decade, revenue for the E-Commerce and Online Auctions industry has grown at an exceptional rate, outperforming most retail industries in the country.

Despite the brief recession-induced slump in 2009, industry revenue is expected to increase at an average annual rate of 10.4% in the five years to 2012, including an 11.9% jump in 2012 to bring revenue to $ 219.2 billion. As online shopping becomes more popular, retailers are expanding the products they carry to include common household goods like CDs, DVDs, Blu-rays, books, clothing, footwear and groceries. Hard-to-find niche products or products that are no longer being produced have also found homes online. As product ranges have grown, so has the number of industry operators. The number of enterprises is estimated to grow at an average annual rate of 1.5% in the five years to 2012 to an estimated 52,969.

In the coming years, continued economic recovery is expected to contribute to the industry’s strong growth. Rising per capita income and employment will improve consumer sentiment, increasing consumers’ likelihood to buy. Also, broadband internet adoption will grow in the next five years, boosting accessibility to online retailers. IBISWorld forecasts that these factors will cause industry revenue to grow over the five years to 2017.

The E-Commerce and Online Auctions industry has a low level of concentration, as small companies make up over 75.0% of the market. The two largest players (Amazon.com and eBay) are expected to account for about 11.4% of industry revenue in 2012, with no other company holding more than 5.0% market share. According to US Census data and IBISWorld estimates, most industry firms employ less than five employees, while non-employers (i.e. operators without employees) account for about 45.3% of all industry firms. The nature of the industry demands this sort of market share structure, as it is not very costly to start an online store, and virtually no skills are required. Over the past five years, industry concentration has increased. The main reasons for the growing market share of major players include plentiful recent acquisitions, and major players’ ability to expand their product mix to reach a wider customer base. While the industry is still in the growth stage of its life cycle acquisitions can indicate a maturing industry, as smaller companies are struggling to maintain their bottom line due to rising competition. For more information, visit IBISWorlds E-Commerce and Online Auctions report in the US industry page.

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IBISWorld industry Report Key Topics

The E-Commerce and Online Auctions industry encompasses retail businesses selling solely online (also known as pure play). The internet is the primary selling platform via either a retailer’s online store or an auction site. Brick-and-mortar store operators that have also set up websites in conjunction with physical outlets are excluded from this report.

Industry Performance

Executive Summary

Key External Drivers

Current Performance

Industry Outlook

Industry Life Cycle

Products & Markets

Supply Chain

Products & Services

Major Markets

Globalization & Trade

Business Locations

Competitive Landscape

Market Share Concentration

Key Success Factors

Cost Structure Benchmarks

Barriers to Entry

Major Companies

Operating Conditions

Capital Intensity

Key Statistics

Industry Data

Annual Change

Key Ratios

About IBISWorld Inc.

Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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