It seems foolish to ignore the e-commerce market, and yet, many businesses still aren’t capitalizing on it. Sometimes whole countries are slow to adopt ecommerce tools, which means they are missing out. An infographic from DigitalExits provides evidence for the e-commerce opportunity, with some infamous examples of those that missed out.
The ecommerce business model has been validated as far back as 2007, with $175 billion in sales in the U.S. alone. Those sales numbers are expected to reach $370 billion by 2017, and as the global reach of the Internet increases, so will the potential customer base.
Many brick and mortar stores are struggling to compete with ecommerce, and this may be behind a wave of closures. According to the infographic, Staples is closing 225 of its locations this year, and Gap is closing 144. However, Staples is among the top five online retailers, and is a great example of keeping up with the times.
On the other side of the spectrum is RadioShack, which failed to keep up with the changing market and filed for bankruptcy in February of this year. RadioShack could be a case in point demonstrating how refusing to join the ecommerce market could mean the demise of other businesses.
Still, major companies remain skeptical about changes in the market, that have clearly already occurred. Only 20 percent of small and medium businesses had online payment options in 2014, despite plenty of evidence that the retail market is shifting. Famously, Blockbuster turned down a $50 million offer to purchase Netflix in 2000, and we’ve seen how that turned out.
While your business may not be Amazon, and earning almost $89 billion per year, it doesn’t serve your business to avoid ecommerce. Creating good ecommerce systems can also lead to the possibility of turning your company into a high value acquisition.
To see some of the biggest e-commerce acquisitions view the infographic below.
Top image courtesy of Shutterstock.