Online Shopping Numbers Signal Rush to Ecommerce
A recent Nielson survey predicts that online shopping purchases of packaged consumer goods, such as baby diapers and processed foods, will grow to more than double its current market size, reaching levels of $25 billion by 2014. Online shopping currently accounts for roughly 2% of all current packaged goods transactions, and the gaudy projected growth numbers have wholesalers and retailers lining up to establish digital markets for these goods.
Big name grocers such as Kroger (NYSE:KR), and Wal-Mart (NYSE:WMT), are currently developing online shopping outposts, with a number of high profile competitors looking to swoop in and capitalize on the brimming market. Safeway (NYSE:SWY) has been offering online delivery for more than a year in the Portland area.
Amazon (NASDAQ:AMZN) is reportedly looking to expand its legion of online sales offerings to include groceries and consumer goods, even recently testing a web-based grocery delivery service in Seattle. Despite rapid growth in the market, many company’s remain skeptical of an e-grocery industry, as a swath of businesses that attempted to offer such services in the first .com boom failed miserably. WebVan, one of the last of the breed of such companies currently standing, also recently closed its operations.
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