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The Investment Case For Online Retail

The Blue Water Team

This article by Amplify Funds examines the reason investors may want to consider adding online shopping investments to their portfolios.

The Case for U.S. Online Retail Investments

  • Online sales are growing.

Since 1999, online sales have grown a staggering 3,500 percent at a 19 percent annual growth rate. By 2023, online retail sales should grow by $3 trillion. 

  • Online buyers are growing. 

Online buyers should grow 25 percent by 2023. The current global pandemic is helping to drive the growth of online shopping: Online sales grew 9.7 percent in March 2020 compared to March 2019, even as brick-and-mortar retail sales fell. 

  • Online retail investments can provide portfolio diversification. 

These investments are available in a wide array of countries and from a wide array of business. As a result, investors can create valuable portfolio diversification by choosing the right online retail investments. 

The Case for International Online Retail Investments

  • Online retail is growing internationally.

Globally, online retail sales have experienced a 16 percent annual growth rate, resulting in $3.5 trillion in sales just last year. 

  • Online sales are primarily international. 

In 2019, almost three-quarters of online retail sales occurred outside the United States. 

  • The Internet is penetrating globally. 

By 2021, more than half of the world will have access to the Internet. 

In addition, Amplify anticipates the growth of sales across borders and seamless options for payment to continue to drive the growth of international online retail sales.  Check out our E-Commerce investing ideas.