The Rise of E-commerce: How Online Shopping is Reshaping Retail in 2015

The retail industry is undergoing a significant transformation, driven by the increasing shift to online shopping. E-commerce has evolved from a convenient alternative to brick-and-mortar stores into a dominant force shaping consumer habits and business strategies. With more consumers turning to digital platforms to fulfill their shopping needs, traditional retailers are facing unprecedented challenges and opportunities.

The Shift to Online Shopping

Consumers are buying a wide range of products online, from clothing and electronics to groceries and household goods. In 2014, E-commerce sales in various categories revealed the growing preference for digital shopping:

• Clothing and Accessories: $51 billion in online sales, making it the most popular category for eCommerce.
• Electronics and Appliances: $26 billion, reflecting strong consumer interest in gadgets and home tech.
• Groceries: $16 billion, as more online grocery delivery services gain traction.
• Books, Music, and Video: $10 billion, with digital formats and online retailers disrupting traditional bookstores.
• Toys and Hobbies: $5 billion, driven by convenience and a broad selection.
• Office Supplies: $4 billion, highlighting the efficiency of eCommerce for business needs.
• Pet Products: An emerging category with significant growth potential.

Top Online Retailers

In the competitive landscape of online shopping, several key players dominate the market:

1. Amazon: The global e-commerce leader, offering a vast selection and fast delivery.
2. Apple: A powerhouse in electronics and digital content sales.
3. Staples: A go-to destination for office supplies and business essentials.
4. Walmart: Combining its retail presence with a growing eCommerce strategy.
5. Sears: A legacy retailer adapting to the digital marketplace.

B2C eCommerce Growth Worldwide

From 2012 to 2018, global B2C (business-to-consumer) eCommerce sales have shown remarkable growth. The market is expected to surpass $2.3 trillion by 2018, highlighting the increasing reliance on digital shopping. In the U.S., online sales account for a growing share of overall retail transactions, reflecting shifting consumer behavior.

Mobile Retail: A Game-Changer

Smartphones and tablets are revolutionizing how people shop, making mobile commerce (m-commerce) a vital component of eCommerce growth. In 2014:

• $12 billion in mobile retail revenue was recorded in the U.S.
• 101.7 million Americans shopped online using mobile devices.
• $58.5 billion in mobile commerce sales demonstrated its rapid expansion.

Why Are Consumers Shifting to Online Shopping?

Several factors are driving the increasing preference for eCommerce over traditional retail:

• Avoid Overcrowded Stores: Consumers can skip the hassle of crowded malls, especially during peak shopping seasons.
• Convenience: 56% of shoppers cite the ability to shop anytime as a key advantage.
• Price Comparison Options: 34% of consumers use eCommerce platforms to compare prices and find the best deals.
• Wider Product Selection: 38% of online shoppers prefer the variety available online compared to physical stores.
• Time-Saving Benefits: 16% of consumers appreciate the efficiency of online shopping.

The Impact on Brick-and-Mortar Stores

As online shopping grows, traditional retail stores are feeling the effects:

• 80% of U.S. malls are now classified as low-performing, compared to 5% in 2006.
• 30 million square feet of retail space is vacant, reflecting changing consumer habits.
• Since 2010, numerous retail chains have shut down, including bookstores, electronics retailers, and department stores.

How Are Retailers Adapting?

To stay competitive in the eCommerce era, physical stores are evolving:

• Adjusting to Consumer Preferences: Retailers are rethinking store layouts and integrating digital tools. For example, some bookstores now focus on in-store experiences and online sales.
• New Offerings to Compete with eCommerce: Companies like Starbucks and grocery stores are enhancing their digital and in-person shopping experiences.
• Enhanced Customer Service: Physical stores leverage customer service and in-store experiences to differentiate from online-only competitors.

The Future of Retail

With the continued rise of e-commerce, retailers must embrace digital transformation, omnichannel strategies, and innovative customer experiences to remain relevant. While online shopping continues to grow, traditional retail is not disappearing—it is evolving to meet modern consumer demands.

eCommerce really is retail’s new storefront. We created this infographic to give advertising and marketing strategists a heads up as to which industries are seeing the most online sales and insights as to why people are shopping online. Have your sales increased since the shift to online shopping? Or possibly you’ve seen sales decrease. If you are in the retail space or offer services that can be purchased online, this infographic is for you.

Peter Koeppel

The infographic below points to the number of retail outlets closing while space has been maintained. Retail stores are shifting from stocked shelves to showrooms where marketing and customer service must be optimized. If you have a retail outlet or an e-commerce site – but not both – you may be heading for difficult times.