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As eCommerce booms, Amazon sales go higher
eCommerce spending grew +14% Y/Y in 2Q 2011 according to Scot Wingo, CEO of ChannelAdvisor (CA), which manages eCommerce for over 3,000 retailers including Dell (s DELL) and Nike.(s nke) Amazon (s AMZN) Same Store Sales of +52% Y/Y in July continues to far outpace the industry.
Growth is driven by a +26% Y/Y increase in buyer frequency and +56% Y/Y increase in unit sales due in-part to Prime and 3rd Party item sales. According to Forrester, eCommerce will be a $1T market by ‘14; the US will grow at ~11% CAGR, EU at 19%, and ROW at 29%. [UBS Research Note]
As I said earlier, we are spending more money on Amazon and are doing it more often.
Ironically, this week WMT announced a decline in same store sales. This supports my notion that AMZN will be the next retail giant. More $ per user – that’s WMT grew during their boom years.