eCommerce Sales on the Rise in 2016

Buy anything on Amazon lately? Most of us likely have. I’m fond of used DVDs, myself; great way to get the movies and TV shows you can’t find just anywhere. Those joining me in shopping online are a rapidly-growing number, based on the results of a study from the US Commerce Department. Just in the second quarter of this year—known for Mother’s Day, Father’s Day and various graduations—eCommerce sales were up 15.8 percent over the same time the previous year.

What’s more, that gain meant that eCommerce sales accounted for just over a dime of every dollar made, with 10.9 percent of all retail sales being made online. That rise is actually the second highest since the last record, when 2014’s eCommerce sales saw a rise of 16.2 percent. Online retail sales reached a gross total of $91.24 billion, a staggering number by any measure. Meanwhile, regular retail sales—not counting food service—only climbed 2.1 percent against last year. That suggests there’s indeed a bit of a rising tide effect going on to lift all boats, but this is only a trivial impact against the totals involved.

It’s a development that’s having a major impact on the overall economy, as brick-and-mortar stores increasingly feel the pressure from online alternatives and even, in some cases—as Macy’s was reportedly noted to do—cut back the brick-and-mortar presence in favor of expanding to those online alternatives instead.

This is prompting a lot of companies to change the way they look at business, and that means the further development of mobile apps, mobile wallets, and mobile payment alternatives. Though this isn’t coming without some trouble; the loss of brick-and-mortar facilities commonly comes with lost jobs, and as we’re seeing, the system isn’t making much headway in replacing those lost jobs. That’s a potential hit to the wider overall economy, and the kind of thing that may slow the whole thing down as we get away from local jobs and move toward fewer online-based jobs.

Whatever the ultimate impact, what’s immediately clear is that mobile payments are one of the biggest factors in altering this landscape; the online store needs an equally online payment method, and we’ll likely only see these two sectors gain ground the farther in we go.