Analysts at Morgan Stanley have identified five disruptive forces that will instigate an e-commerce revolution, changing the way we think about and should measure retail sales data.
The e-commerce opportunity is large and is expected to accelerate over the next four years, breaking $1 trillion by 2016.
The five conclusions about where e-commerce is likely to go from here are summarized below.
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1. The right fulfillment infrastructure will drive scale, which will save shipping costs
2. Books and consumer electronics have the highest online penetration; food and home improvement the lowest
3. Amazon 3rd party unit growth has outpaced 1st party unit growth but 1st party growth helps set 3rd party market pricing
4. Mobile sales offer added customer convenience and simple yet sophisticated apps will be increasingly important
5. Online retailers benefit from brand awareness while traditional retailers depend on foot traffic and legacy branding
The analysts claim this report is different because of its scope and reach and because of the leveraged insights of the firm’s global internet and retail analysts.
You can see the presentation here
and learn the five disruptive forces that drove the above conclusions.