CHICAGO, IL–Good news for anyone involved in eCommerce: United States eCommerce spending rose 3% in the fourth quarter of 2009, which was not only the first positive increase in four consecutive quarters but a major increase since the previous quarter.
As the declination rates of the rest of the economy began to slow and showed some signs of recovery, eCommerce–an industry that tends to remain a step ahead of most industries– actually showed positive growth.
“Total eCommerce spending for the quarter ended December 31, 2009, was $39 [billion], an increase of 3%, compared to $38.1 [billion] for the same period last year,” according to Computer Business World. “The eCommerce spending was $29.55 [billion] in the third quarter of 2009.”
This means, in just one quarter, the eCommerce spending jumped $9.45 billion dollars or an increase of 32.8%. Even accounting for the holiday season and end-of-year bonuses, this remains an extraordinarily high number. With the unemployment rate percentage still in the double-digits, this has an enormous impact on the economy in general but also for companies needing to pull themselves out of the dreaded red.
Of course, eCommerce is still down from the past year. According to Computer Business World, “For the full year 2009, total retail eCommerce spending was $129.8 [billion], decreased marginally compared to the previous year’s total retail eCommerce spending of $130.1 [billion].” But the last quarter increase shows signs of recovery, and if the numbers keep up, a 3% - 6% increase in 2010 does not seem unlikely.
This obviously has large implications for any company already involved in eCommerce, and positive implications at that. But it also has implications for those not involved in eCommerce: namely, that companies who are choosing to conduct business simply as brick and mortar shops without an online shopping component are missing out on one of the only recovering aspects of commerce.
As previously reported, Crabtree & Evelyn is just one company who has been saved from bankruptcy by eCommerce, and the trend is a growing one. With a positive economic boost in eCommerce, the need for online payment gateways continues to grow, and the need for safe, reliable and easily accessibly Internet payment gateways becomes more vital than it ever has before.
It’s important to keep customers safe if this eCommerce economic boost continues.
Not all are optimistic that it will, though. Gian Fulgoni, chairman of comScore, thinks the boost will subside as the economy continues to remain in shambles.
“As we head into 2010, there is reason for guarded optimism for online retail spending to continue to gain share of consumers’ wallets,” Fulgoni said. “At the same time, I expect absolute growth to be stymied by continued high unemployment and the deleveraging that is occurring in the economy as consumers exercise their new-found propensity to save.”
But as Payleap previously reported, “According to the Wall Street Journal, German economic efforts will strengthen in 2010 and the economic recovery in Japan, while slowing down a tad, is expected to continue.” Not to mention that the United States economic recovery is expected to show a large boost in the final quarter of 2010 as well, some even predicting it will return to its pre-recession state.
The future remains uncertain, but one thing is sure: eCommerce is seeing a rise in spending. It is saving businesses and was one of the least hurt industries by the recession.
As cliched as the expression is becoming, it’s cliche for a reason: eCommerce appears to be the future of commerce.
Tags: credit card processing, ecommerce payment gateway, internet payment gateway, Online Payment Gateway
