The growth trajectory of the eCommerce industry has only gone up and to the right since the dawn of the 90s. Currently valued at about $800B, that trend is showing no signs of slowing down. According to eMarketer, eCommerce sales are expected to increase by 18% in 2021, achieving sales milestones that were only projected to come to fruition by 2025.
There are a number of factors driving this growth, which we’ll cover throughout the course of this article:
- Millennials and baby boomers spending more, across longer periods of time
- Significant technological advances leading to an improved online user experience
- Increased prevalence and ease of mobile-based purchasing
- New social media-based shopping platforms with highly sophisticated advertising capabilities
- Covid-19
Where there is growth, capital follows. Private equity investors have increasingly targeted the eCommerce space, driving industry consolidation in what remains a highly fragmented, target-rich market.
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