E-Commerce sales surging, say analysts

According to IHS Global Insight, the first half of the year marked another record breaking performance for e-commerce retail sales.

“On a seasonally adjusted basis, the second quarter’s gain pushed sales to their highest level and claimed more share of total retail sales. Currently, e-commerce retail sales account for 5.1 percent of all retail sales,” said Chris Christopher, Jr. Senior Principal Economist, IHS Global Insight

The performance of cyber sales in the second quarter is stellar compared to the poor showing of the brick-and-mortar stores. In fact, many chain stores are looking towards cyber space to gain market share and supplement weak in-store sales. The rise of online retail sales is placing tremendous demand for residential parcel delivery services from companies such as UPS and FedEx.

“A recent game-changer has been the rising use of smart phones and tablets to browse and shop - All in the comfort of your own hands,” said Christopher.

IHS Global Insight projects e-commerce retail sales to increase about 17 percent during 2012 to reach somewhere in the $230 billion range, for another record breaking year.