{"id":1198,"date":"2016-10-14T00:00:00","date_gmt":"2016-10-14T00:00:00","guid":{"rendered":"https:\/\/www.motionpoint.com\/?post_type=blog&#038;p=1198"},"modified":"2016-10-14T00:00:00","modified_gmt":"2016-10-14T00:00:00","slug":"how-high-is-up-for-online-commerce","status":"publish","type":"blog","link":"https:\/\/www.motionpoint.com\/blog\/how-high-is-up-for-online-commerce\/","title":{"rendered":"How High Is Up For Online Commerce?"},"template":"","blog_categories":[4,107],"resource_categories":[],"targeted_localized_audience":[],"document_categories":[],"class_list":["post-1198","blog","type-blog","status-publish","hentry","blog_categories-e-commerce","blog_categories-translation-technology"],"acf":{"blog_short_description":"Our guest contributor\u2014who has built over 50 branded businesses in 25 countries as a P&G and Pillsbury exec\u2014offers straight talk about the future of e-commerce.","news_inline_styles":"","blog_video_id":"","article_body":"<p>No one knows \u201chow high is up\u201d in the world of online commerce. The fact that U.S. e-commerce sales grew 14.6% in 2015 is not a surprise\u2014nor is the fact that 2016 is tracking to 15% to 16% growth. What is more compelling is that online has been growing at this rate since 2010. There may be no other industry metric in history to expand at such a consistent rate over this length of time.<\/p>\n<figure style=\"text-align: center;\"><img decoding=\"async\" alt=\"\" src=\"\/\/www.motionpoint.com\/wp-content\/themes\/motionpoint\/images\/content\/news\/EcoomerceGrowth_LillyPost.png\"><\/figure>\n<p>  Another way to think of it: When you take out categories like fuel and automobiles, online sales growth in 2015 accounted for <b>all<\/b> retail growth. In other words, there was no retail sales growth on average in the brick-and-mortar categories of fashion, furniture, food, etc. At this compound growth rate, e-commerce will be half of these retail sales within a decade.<\/p>\n<p>  What\u2019s most surprising is that most Private Equity deals I\u2019m involved in haven\u2019t made mastery of online distribution a key \u201cHow\u201d for their business future. This is despite the fact that e-commerce deliveries are now half of UPS\u2019 entire business. Even some of our Early Stage companies are behaving as if selling through Target, Ferguson Plumbing or local car dealerships is the way it will always be. And our higher education connections? By and large, college faculties continue to see themselves standing in front of a live audience\u2014forever. That is just not going to happen.<\/p>\n<\/p>\n<p>  <b>The Key Learning:<\/b> Any institution that wants to be around in a decade or two has to come to terms with the idea that their primary distribution channel will be online; delivered direct to the buyer. As traditional distribution models\u2014retailers, distributors, franchised dealers or professors in classrooms\u2014garner less and less of the total business, their average costs per \u201cbuyer\u201d will go up and up. In turn, this will accelerate their own inability to compete. The time to change gears may be now, before the \u201cvulturous circle\u201d takes over.<\/p>\n","article_body_code":"","news_image":{"ID":11984,"id":11984,"title":"Hero_How-High-is-up-100.jpg","filename":"Hero_How-High-is-up-100.jpg","filesize":49141,"url":"https:\/\/www.motionpoint.com\/wp-content\/uploads\/Hero_How-High-is-up-100.jpg","link":"https:\/\/www.motionpoint.com\/blog\/how-high-is-up-for-online-commerce\/hero_how-high-is-up-100\/","alt":"","author":"2","description":"    \t","caption":"","name":"hero_how-high-is-up-100","status":"inherit","uploaded_to":1198,"date":"2016-10-14 00:00:00","modified":"2016-10-14 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