Retail

Amazon Win As E-Commerce Sales Expected To Hit $70 Billion

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Amazon (NASDAQ: AMZN) wins, again. Research firm comScore expects digital commerce to rise 14% to $70 billion. While the growth rate for e-commerce has pulled back from the days when it was well into the double digits, it still trumps growth of brick and  mortar retailers

According to the research firm:

The official comScore 2015 holiday season forecast is that total online retail spending for the November–December period will reach $70.1 billion, representing a 14-percent gain versus year ago. Spending using desktop computers for that period is expected to reach $58.3 billion, up 9 percent year-over-year. Mobile commerce is predicted to account for $11.7 billion of retail spending, representing 17 percent of total digital commerce and growing at a rate of 47 percent vs. last season. In total, digital commerce is expected to account for about 15 percent of consumers’ discretionary spending.

Last year’s growth rate was 15%. However, many of the largest traditional retailer had revenue increases in the low single digits in 2014, if they had any growth at all.

Although Amazon’s current quarter does not entirely overlap the period forecast by comScore, its forward earnings guidance shows how large a portion of the e-commerce sector it has. The company expects that its revenue will rise between 14% to 25% which would yield revenue of between $33.5 billion and $36.8 billion.

The comScore data indicates that once Amazon revenue is backed out of holiday e-commerce sales forecasts, the sum available to retailers like Walmart (NYSE: WMT) and J.C. Penney (NYSE: JCP) is not enough to improve the prospects for these companies. Most of the nation’s largest retailers have modest e-commerce revenue which, in turn,  is a small fraction of Amazon’s

READ MORE: Retailers Hiring Most For The Holidays

somScore makes an additional observation in its analysis, but, ironically it is not one which will benefit Amazon. Low gas prices will make travelling to the mall less expensive–if anyone wants to go

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