According to the US Census Bureau, e-commerce has shown signs of flatlining from 2021 to 2022.
E-commerce has been growing at an average of 16% annually since 2011. After growing 32% in 2020, the growth rate has decreased significantly to 14% in the past year.
In the second quarter of 2022, e-commerce sales accounted for 14.5% of total sales, a large percentage still pointing towards brick-and-mortar retail. From Q1 to Q3, there was only a 2.7% increase in e-commerce sales, and a 3.0% increase in Q3. A tell-tale sign that e-commerce will continue to flatline and possibly decrease as we approach the end of 2022.
Signs indicate there are multiple reasons for this flatline, including the frictions of e-commerce, the ongoing demand and need for brick and mortar, and the evident switch that pure players are making towards physical footprints.
Source: US Census Bureau
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