Executive Briefings

Puttin' the Brakes on Online Shopping?

The growth of e-commerce may be slowing, as a majority of U.S. shoppers say they don't plan to increase their online spending over the next three years, a new report found.

Even though roughly three-quarters of consumers say they've bought an item from Amazon in the past year, between 78 percent and 92 percent won't be increasing online shopping frequency, according to new research from The Boston Consulting Group. The number varied by product category and in several – including baby products, food, beverages, fine jewelry, packaged goods and cars – more than 25 percent said they would decrease spending.

In fact, more than twice as many shoppers say they'll spend less online in the next three years than those who plan to increase spending. That intention crosses demographic lines and doesn't vary among millennials, Generation X and Baby Boomers.

"Consumers are notoriously unable to predict their spending patterns," said Michael Silverstein, senior partner at BCG. "However, the findings from this research certainly pour cold water on everyone's expectations for a continuously rising e-commerce world."

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Even though roughly three-quarters of consumers say they've bought an item from Amazon in the past year, between 78 percent and 92 percent won't be increasing online shopping frequency, according to new research from The Boston Consulting Group. The number varied by product category and in several – including baby products, food, beverages, fine jewelry, packaged goods and cars – more than 25 percent said they would decrease spending.

In fact, more than twice as many shoppers say they'll spend less online in the next three years than those who plan to increase spending. That intention crosses demographic lines and doesn't vary among millennials, Generation X and Baby Boomers.

"Consumers are notoriously unable to predict their spending patterns," said Michael Silverstein, senior partner at BCG. "However, the findings from this research certainly pour cold water on everyone's expectations for a continuously rising e-commerce world."

Read Full Article