E-Commerce Grew 14% Last Year

“According to the market researcher’s estimates, online consumer spending with U.S. merchants grew 14% in 2021, reaching $871 billion,” a Nutritional Outlook report notes.

While shoppers were returning to brick and mortar establishments, this still didn’t stop consumers from relying on the internet for the distribution of goods and services. E-commerce sales were still on a growth spurt alongside a return to brick and mortar stores.

“Ecommerce sales continued to grow even as shoppers returned to brick-and-mortar outlets last year,” the article says further. “In fact, Digital Commerce 360 reports that ecommerce and offline spending in the U.S. grew at roughly the same rate last year.”

While e-commerce sales didn’t match 2020 when the pandemic was in its early stages, it’s still a remarkable feat that 2021 posted positive growth. 2020 saw a considerable spike in e-commerce sales of 32% amid social distancing measures.

With e-commerce still at the forefront of delivering goods and services to consumers, one ETF worth considering for long-term growth prospects is the Global X Funds – Global X E-commerce ETF (EBIZ). While e-commerce has been around for a number of years, companies are always looking for innovative ways to expedite their business operations using online technology.

As such, EBIZ seeks to invest in companies positioned to benefit from the increased adoption of e-commerce as a distribution model, including companies whose principal business is in operating e-commerce platforms, providing e-commerce software and services, and/or selling goods and services online. Holdings include familiar names in the online retail space, such as Amazon and eBay.

EBIZ offers investors:

• High growth potential: Despite years of strong growth, e-commerce still represented less than one-fifth of global retail sales in 2020, highlighting substantial room for further adoption.
• Global tailwinds: E-commerce is a global theme, poised to benefit as expanding broadband and mobile internet penetration coincide with a rising middle class in developing markets.
• New consumer preferences: The pandemic forced many businesses to offer goods and services online for the first time, which has shifted consumer expectations and expanded the scope of e-commerce to larger segments like groceries and autos.

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