According to a report from eMarketer, e-commerce sales in the U.S. are expected to hit $709.78 billion in 2020 with growth of 18%, which is up from the prior projection of 13%.
With regard to worldwide growth, a report by Statista shows that the e-commerce space is expected to cross revenues of $2.3 trillion in 2020. The report suggests that revenues will witness a compound annual growth rate of 8.1% between 2020 and 2024 to reach $3.1 trillion by 2024.
The pandemic has certainly brought new customers to the already growing industry. Due to closures and shelter in place orders, new e-commerce customers made their first purchases over the past few months, experiencing the ease of online shopping and ultrafast delivery services. The new customer base continues to expand, even amid reopenings. Customers continue to return to their favorite online retailers and seem to be hesitant to shop at brick and mortar stores.
E-commerce is a competitive space. Only the strong survive. One company is getting attention based on their strong business model, innovation and ability to build a vast and loyal customer base.
Last week Canaccord Genuity initiated coverage of the personal shopping service Stitch Fix with a buy rating and a $30 price target based on the company’s growth outlook.
SFIX recently added a new direct-buy feature that uses algorithms to help present customers with additional choices. The added flexibility of this new innovation is just one step the company has taken to ensure a satisfying shopping experience, keeping customers returning again and again.
Although the company reported weaker than expected earnings, the report highlighted positive growth. Stitch Fix grew active clients to 3.4 million, an increase of 9%, and grew net revenue per active client by 6%, making this their eighth consecutive quarter of growth.
