The eCommerce Challenge

The eCommerce Challenge

Most of today’s retailers and their supply chain advisors understand the shift in retail sales to the online channel but, for many years, the inclusion of gasoline, groceries, and automobile sales in U.S. retail sales numbers masked the true extent of eCommerce penetration. This is a blog summary of a longer report.

Key findings

During the period 2012 to 2019, eCommerce sales are projected to grow at an annual rate of 14.9%, over five times faster than traditional “bricks and mortar” retail sales so that, by 2019, eCommerce will account for almost one fifth of applicable retail sales.

The threat posed by Amazon does not just arise from its market share, which is forecast to be almost 60% of eCommerce sales by 2019. The real threat from Amazon arises from the investment it has made in local fulfillment infrastructure and the incredible speed and delivery cost savings it can achieve as a result.

The MonarchFx Solution – Capturing the Power of an Alliance. The vision behind the MonarchFx Alliance is to capture the two significant strategic drivers of Amazon’s fulfillment efficiency, local presence and incredible scale and make them available to other online sellers.

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