Ecommerce still shows double digit growth in Q1 2014

Research firm ComScore has released its numbers for Q1 2014. As expected, the beginning of 2014 has seen growth in

Research firm ComScore has released its numbers for Q1 2014. As expected, the beginning of 2014 has seen growth in Ecommerce sales resulting in $56.1 billion.

Traditional desktop Ecommerce saw a 12% rise in spending year-over-year.  This is the 18th consecutive quarter which has shown Ecommerce growth. Q1 2014 is also the 14th consecutive quarter to return a growth rate in double digits.

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Due to the growing adoption of mobile devices Mcommerce also grew, resulting in a 23% rise year-over-year and added an additional $7.3 billion to the quarter. When looking closer at the devices themselves, mobile smartphones contributed to 62% of mobile sales while tablets were responsible for the remaining 38%.

Top performing products for Q1 2014 were Apparel & Accessories, Consumer Packaged Goods, Sport & Fitness, Digital Content & Subscriptions, and Home & Garden. All shopping categories grew by at least 13% vs Q1 2013.

“Q1 e-commerce and m-commerce spending growth have seen a modest acceleration versus the fourth quarter, which is a positive sign in light of overall softness in consumer discretionary spending across the broader U.S. economy during the early part of the year. As we look ahead to the remainder of 2014, we hope that signs of improved consumer sentiment and a strengthening job market will help further bolster digital commerce. In addition, with several key consumer tech product upgrade cycles and new product introductions expected in the back of the year, there would appear to be continued momentum for the market throughout the year barring any unforeseen economic troubles,” said comScore chairman emeritus Gian Fulgoni.

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The year-over growth rate did slow down however, with Q1 2013 returning a slightly higher 13%. It was expected that Ecommerce growth in general would slow down eventually, as the mass adoption of internet based sales has already taken place. With the moderation in growth and the decline of sales from traditional retailers, ComScore predicts more physical retailers will have no choice but to beef up their online presence.

The slowdown in desktop Ecommerce growth should not act as a deterrent, given mobile devices are replacing traditional computers. Mobile is still predicted to see a larger growth rate in the coming quarters as more people are turning turn to their smartphones and tablets for their Ecommerce needs.

 

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