Amid the threat of a new Internet sales tax being introduced in various countries around the world, ComScore has released eCommerce figures that show a massive 13% rise in the first quarter of 2013 in Internet sales and ecommerce sales. For many companies, including the likes of Next, eCommerce has helped to cover up poor performance while retailers like Marks & Spencer have set aside considerable budgets to further increase their own online sales channels. In the UK, Internet sales rose by a further 16% in April alone.
A ComScore report indicated that more than $50bn worth of purchases were conducted online in the first quarter of 2013; only the second time that Internet retail has hit such lofty heights.
A slew of UK retailers have reported improved online revenues:
• John Lewis recently reported that online sales topped £1bn for the first time and representing a 41% increase in its eCommerce sales figures.
• Tesco eclipsed even this, announcing £3bn in online sales; a 13% increase.
• Debenhams enjoyed a 46% increase in website sales which helped beat the slowdown experienced during the cold and snowy winter months.
• Next Group also reported poor high street sales but these were tempered by a 9.5% increase in online sales.
• Marks & Spencer have announced the opening of a 900,000 sq ft automated warehouse to help fuel further online sales.
A report from IMRG shows that the UK has benefited further, with an additional 14% increase in online sales in April alone. However, it was mobile commerce that was the real benefactor here with a 131% year on year rise that indicates the increasing likelihood that people are willing to make purchases from their mobile phones and other mobile devices.
However, it isn’t all good news for clothing ecommerce website, as the USA and France are among some of the nations that are looking to impose an online sales tax. Under the proposals, e-retailers would have to collect sales tax when purchases are completed and one study indicates that 44% of US shoppers would buy less if the bill is passed.
Ecommerce has taken giant strides in the past few years and major retailers are really beginning to invest heavily, in what has obviously become a massive contributing factor to business performance. Small retailers and businesses can also benefit greatly from an online presence. With the marked increase in mobile commerce sales, this is another area where additional effort and investment should be considered a worthwhile venture.
