UNITED STATES | It’s a good time to be Amazon.com or EBay, but it can be lonely at the top. This year, shares of Amazon and EBay, two of the largest e-commerce companies in the U.S., have increased 35 percent and 59 percent, respectively. Relative newcomers, in the U.S. and elsewhere, are having a tough time elbowing in and turning a profit.
My colleagues Ari Levy and Danielle Kucera wrote that the U.S. e-commerce industry is the most frothy it’s been since 2000 — shortly before the dot-com bubble burst, taking Pets.com and Webvan with it. While online sales are expected to surge 45 percent to $327 billion in the U.S. in 2016, according to Forrester Research, buzzy Web-retail startups in the world’s biggest e-commerce market are having trouble justifying the high valuations that seemed to make sense a year ago.
Globally, online sales last year were estimated to be 690 billion euros ($884 billion), according to the Interactive Media in Retail Group, a U.K. online-retail trade organization. Growth in the largest markets will be at least 10 percent, the group reported. Taiwan’s economic officials estimated growth of 17 percent this year. And China, where e-commerce leaders such as Taobao.com are emerging, is growing at more than 130 percent, according to the U.K. trade group.
Read the full article at Bloomberg.com