eCommerce: The Given Advantage

    The Internet has created new ways for us to get the things we want out of life, and has it has become the best way to the American Dream. Today, eCommerce has grown into a huge industry with online retail generating $175 billion in revenues in 2007. It is the quickest and most convenient way to buy goods and services. And it has increased our purchasing power, giving us more for our money.
   From travel services to electronics, from books and media distribution to sports and fitness. More than 70% of the country are using the internet on a daily basis. And the world is catching on more and more. eCommerce growth is increasing with plenty of opportunities to get in on the increase of wealth.
    In the last decade, many start-up eCommerce companies have rapidly stolen market share from traditional retailers and services providers, such as Walmart, Target, and Best Buy. Forcing some of these major players to begin their own commerce websites or to change the way they do business. As traditional retail companies continue to lose market share to eCommerce players, they will likely see a continued decline in their revenues, operating margins, and profits.

Its important to know that eCommerce has a competitive advantage to traditional retailers. They have lower operating expenses and better inventory management due to operating via internet. For example, Amazon.com has revenue per employee of nearly $850K while its retail competitor, Best Buy generates revenue per employee of only $270K, This is a very huge difference and clearly eCommerce vendors will have the advantage and the most to gain if they successfully disrupt retail customer acquisition and under price retail establishments.