In short, here are the figures tracking the annual progression of online spending since 2005. Each figure is tracked and linked to its source. Scroll down for a year by year breakdown of spending amounts.
At the end of the year it’s always fulfilling to reflect on what has passed. In the last 5 years there is one force which has so intrinsically changed all of our collective lives that as a civilization, we will never be the same. That force is of course, the internet.
Because the internet has changed everything from how we get news to how we connect with friends, it’s possible to look at the growth of social media, and the exponential growth of websites in existence, because it’s The Holiday season and the economy has been such a prevalent part of conversations everywhere, as we begin the second decade of the 21st century let us reflect on the growth of online spending over the last 5 years.
2005
In 2005, online spending hit a new high, reaching 82.3 Billion (excluding travel). This was a 24% increase over 2004. Making up 24% of that amount was holiday spending which was 19.6 billion.
2006
In 2006 non-travel online sales broke the $100 billion mark, settling at $102.1 billion dollars which was a full 24% increase over 2005. Holiday spending increased by 24% from 2005 and accounted for $24.6 billion of the year’s overall total.
2007
In 2007, online retail sales once again hit a new high, reaching $122 billion dollars. This amount represented a 20% increase over 2007, with just over $29 billion of those sales happening during the holiday shopping season.
2008
2008, was a record year for online retail spending. That’s right, 2008 holds the record for the smallest increase in spending over the previous year since 2001. Online sales topped out at just over $131 billion, a mere 6% increase over 2007. Holiday spending remained on par with the previous season, at approximately $29 billion.
2009
As we bring this decade to a close, early forecasts predict that online spending will reach $156 billion dollars in 2009. If this number proves on target, it will mean an 11% increase in online sales from 2008. Early estimates have online holiday sales at just shy of $20 billion as of December, 11th.
What this says about the future:
- Online spending has continued to increase every year, so there is a good chance that trend will continue.
- Holiday spending will most likely continue to make up a significant potion of annual online sales.
- E commerce will probably continue to grow and thrive in spite of the world’s economic struggle.
- It is more vital now than ever to create and market an online presence in order to remain competitive for the next 5 years and beyond.
If the last 5 years are any indication, online shopping is not a temporary fad, but in fact the business of the future. Though the rapid growth of e-commerce may have slowed in the last few years; that may simply be attributed to the world’s diminishing economy, combined with some level of market saturation.
As a new decade dawns, it finds a civilization in transition. Today, we struggle to find balance in a world of ever shifting political and financial power. We are a society of increased connectivity, where information spreads with a deafening speed and social media forces us into a new reality of fellowship and voyeurism. This, is a world where the lines between the “real-world” and “cyber-world” will only continue to blur, and those who do not rise up to claim their place in it will only be left behind.
