Internet & Mail-Order Retail
Companies in this industry sell products directly to consumers via the internet, TV, or mail order. Major companies include Amazon, eBay, HSN, QVC, and Wayfair (all based in the US), as well as Flipkart (India), Otto Group (Germany), Rakuten (Japan), Taobao (China), and The Very Group (based in the UK).
Globally, retail e-commerce sales amounted to about $5 trillion in 2021 and is forecast to reach about $7 trillion by 2025, according to Statista. Growth is driven in large part by rapidly expanding online and mobile user bases in emerging markets, increases in mobile commerce sales, and the push into new international markets by major brands.
The internet and mail-order retail industry in the US includes about 40,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $520 billion. Over the past decade, the bulk of the industry's revenue has shifted from catalog to internet sales. While most brick-and-mortar retailers have an online presence and many also offer catalog sales, this profile focuses on retailers who use the internet or catalogs as their sole or primary sales channel.
Competitive Landscape
US e-commerce sales grew nearly $300 billion in 2022, according to Digital Commerce 360. Lessons learned by retailers and changes to consumer shopping habits during the pandemic are likely to further accelerate ecommerce growth versus relative to overall retail spending.
Amazon continues to grow its US sales by above average rates. Outside the US, Amazon's largest markets are Germany (where it competes with mail-order-and-internet-giant Otto Group), the UK, and Japan. Rakuten is Japan's largest online retailer and among the world's largest by sales.
Demand is driven by consumers' personal income. Profitability of individual companies depends on effective marketing to build a customer base. Larger firms enjoy central purchasing efficiencies and economies of scale in inventory management, customer service, and telecommunications. Smaller firms compete on outstanding customer service and providing niche products. The industry is concentrated: the top 50 companies account for about half of industry revenue.
Products, Operations & Technology
Although internet and mail-order retailers sell a variety of products and services, some of the largest product categories are medicines and supplements,
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Sales & Marketing
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Finance & Regulation
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Regional & International Issues
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Human Resources
Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms