Recession good for e-Commerce?

A recent report by the IMRG & British Population Survey has indicated that ‘the popularity of online shopping is continuing to grow rapidly’, with UK shoppers opting to find the cheapest deals possible online instead of shopping around on high streets. The major findings of their report shows that over half of British Adults have shopped online in the first third of 2010, online grocery shopping is growing 50% faster than other e-commerce and there is still ‘significant further growth potential for online shopping.’

It could be argued that positive results for the e-commerce sector so far this year is down to the effects of the credit crunch, which has forced the UK public to be more careful with their money and hunt for bargains online as opposed to spending on higher prices on the high street. Technological advancements will certainly have played their part too, such as the increased access to the internet via mobile devices like phones, laptops and tablets coupled with users having a greater level of confidence in online transaction and trusting that their card/bank details won’t be intercepted.

Mike Hare, Research Director of the BPS agrees, stating that “recent technology developments, particularly in the area of ‘roaming’ access via both laptops and hand held devices are clearly playing a part in the availability and convenience on Online Shopping services.” The mention of the word ‘availability’  is perhaps the most pertinent, because e-shoppers were previously limited to a desktop PC to make their online purchases. But with more wireless connections available both at home and in public areas, people can now carry out transactions from their laptops in the lecture theatre, or their mobiles on a bus, even on their iPad whilst on a train.

It is interesting to note the potential for growth in the e-commerce industry, as it has only been reported to have reached two thirds of the access market, whilst there is still much room for ‘further steady long term growth’ in Internet Access. The next step after ensuring that access has been fully saturated, would be to get those with access to purchase everything they need online. From that conclusion therefore, expect growth to continue even past the period of recession and then further onwards until all of the UK public has access to the internet and ultimately makes ALL their purchases online. How long that would take is anybody’s guess, but that is certainly the way the trend is headed at this point in time.

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