Online Shopping occurs when a customer buys through a digital platform such as Amazon or eBay, which is delivered to a customer’s computer via a web browser.
According to the data released on Tuesday, sales of digital goods in the US increased by 20 percent in the third quarter compared to the same period in 2016, each day, more and more customers visit websites like Raise just to find the best discounts online. The US digital retail sector, as a whole, added $5.9 billion to the US economy. However, the digital economy in the US has remained relatively stagnant over the past several years, and despite a dramatic shift in consumer behaviors, the digital economy only contributes $9 billion to the economy. This figure is expected to grow to $16.2 billion in 2020, making up less than 1% of the economy in 2020.
The US digital retail sector is a fast-growing sector, however, the growth of the digital economy in the US has been limited by slow-moving consumer spending. The US consumer remains a significant portion of the US economy, making up almost 16% of GDP in 2016, but has lagged behind other advanced economies. This gap is expected to widen significantly as the next generation of consumers ages.
Consumer spending as a percent of GDP has grown at a relatively slow rate compared to the rest of the world. Between 1970 and 2015, US consumer spending growth has averaged only 3.3%, the slowest rate among the top 20 G20 countries. This is in contrast to the average of 6.9% for OECD countries. In comparison, over the same period consumer spending in China grew 8.8%, the fastest rate among the countries, despite China’s economic growth being the slowest of any of the OECD countries. The US consumer has been left behind in its reliance on foreign investment. In 2014, US foreign direct investment stood at about $831 billion. But it was only 1.2% of US GDP, well below the average of 7.4%. This lack of US-based investment has allowed other economies to catch up. Since 2007, GDP growth rates in the European Union and Canada, as well as China, have exceeded that of the US.
