Industry Analysis & Industry Trends
The E-Commerce & Online Auctions industry has experienced exceptionally rapid growth since the beginning of the decade, outperforming most retail sectors. As internet use becomes more commonplace, consumers are more likely to purchase goods from online retailers. Growth in this industry is also due to consumers becoming more comfortable purchasing items online. In particular, internet payment systems like PayPal have made buying online easier and more secure, helping retailers sway security-minded consumers and attract repeat buyers... purchase to read more
Industry Report - Industry Investment Chapter
The E-Commerce and Online Auctions industry has a medium level of capital intensity. Investment requirements mainly include warehouse space, computer equipment and warehouse staff. For every dollar spent on labor in 2013, the average operator will spend $0.23 on capital investments. E-tailers spend more on wages than they do on equipment because the value of fixtures needed to run the business is marginal compared with the man-hours needed to manage websites and sales.
In addition, online shopping operators outlay capital on technology to establish, implement and maintain their websites. Establishing and maintaining databases requires computers, printers, software programs for electronic payment system, firewalls and more... purchase to read more