Ecommerce Grows in a Withering Economy

The U.S. economy is in a precarious situation. We have the ongoing housing crisis, the increasing credit crunch, a continuous falling U.S. dollar and runaway inflation. It seems like a perfect storm waiting to hit. Despite these factors, there are areas of the economy that remain strong. The growth of the Internet is fueling the interactive industry and one the hottest sectors is ecommerce.

One of the prime ecommerce players in the marketplace, Amazon.com, just reported fantastic results. Their second quarter sales increased 41% to $4.06 billion compared to a year ago and their net income increased 102% to $158 million in the same period. Other big online retailers such as Ebay are reporting positive results as well. FreeShipping.org, just launched in December, has generated more than $250,000 in sales for major retailers. Traffic to its site has doubled every month since its launch.

Like it or not, rising gas prices are contributing to ecommerce sales. People are thinking twice before they get in their car to drive twenty to thirty minutes to the mall. It’s easier than ever to shop online; and now it’s cheaper to pay shipping than fill up your gas tank. When sites offer free shipping promos, it really makes it a no brainer.

It’s a prime-time to be an online retailer. Inexpensive online advertising options are plentiful and deals can be made with traditional media outlets since they are experiencing diminishing revenues. If you sell online, it’s time to ramp up your marketing budget and capture the growing customer base that’s shopping online. If you’re a consumer who loves to shop, save your money by shopping on the web instead of wasting it on gas. Don’t count on gas going down anytime soon. With these factors in play, expect ecommerce to experience explosive growth in the future.