SlideShare a Scribd company logo
1 of 11
Download to read offline
The Democratization of Commerce 
© 2014 Bigcommerce Pty. Ltd. 
September 2014
News Summary 
• 20-year anniversary of the first-ever online transaction 
• It took 18 years (1994-2012) for ecommerce sales to hit $1T 
worldwide — and only took two years to get to $1.5T (2014) 
• Bigcommerce predicts B2C ecommerce sales will hit $2T 
worldwide in 2015 
• Bigcommerce predicts U.S. SMB ecommerce revenues will 
exceed $100B in 2015 — more than Amazon and eBay 
worldwide revenues combined 
• Ecommerce market is ripe for disruption 
• The democratization of commerce is now: SMBs are winning 
business from the giants in their industries 
© 2014 Bigcommerce Pty. Ltd.
© 2014 Bigcommerce Pty. Ltd. 
1994 
FIRST DOCUMENTED ONLINE SALE - STING’S 
"TEN SUMMONER'S TALES" CD 
AMAZON FOUNDED 1995 
1998 ANNUAL ONLINE RETAIL SALES HIT $8 BILLION 
ANNUAL ONLINE RETAIL SALES SKYROCKET 100% TO $16 BILLION 1999 
2000 AVERAGE COST TO BUILD FULL-SCALE ONLINE STORE = $100,000 
2002 
NUMBER OF WEB USERS WHO HAVE 
BOUGHT ONLINE CROSSES 50% MARK 
2004 CREDIT CARD COMPANIES CREATE PCI DATA SECURITY STANDARDS 
ECOMMERCE SPENDING ECLIPSES $100 BILLION FOR THE FIRST TIME 2006 
2007 66% OF ONLINE AMERICANS CLAIM TO HAVE MADE A PURCHASE ONLINE 
2008 
NUMBER OF SMARTPHONE USERS NEARS 25 MILLION AND 3G WIRELESS 
BROADBAND SUBSCRIBERS SURPASSES 70 MILLION; BOTH TECHNOLOGIES 
DRAMATICALLY IMPROVE MOBILE WEB BROWSING 
2012 
2009 
ECOMMERCE SALES TOP $1 TRILLION FOR 
THE FIRST TIME IN HISTORY 
BIGCOMMERCE LAUNCHED; COST TO BUILD FULL-SCALE 
ONLINE STORE = $25/MONTH 
2014 ECOMMERCE SALES PREDICTED TO TOP $1.5 TRILLION 
20 Years of Ecommerce
SMBs Own 21.5% of U.S. Retail Commerce 
ENTERPRISE 
$15M+ 
MEDIUM 
$5M-$15M 
SMALL 
$1M-$5M 
© 2014 Bigcommerce Pty. Ltd. 
SMB (<$15M) 
# OF MERCHANTS BY SEGMENT ADJACENT MARKET SALES ($) 
22k 
35K 
158K 
SOHO 
<$1M 422K 
TOTAL SMB 614K $961B 
SOURCES: U.S. Census, 2013 National Small Business Association, Sagence, Inc. analysis. 
$3.5T 
$351B 
$430B 
$179B
Ecommerce Is Fastest Growing Segment Within Retail 
© 2014 Bigcommerce Pty. Ltd. 
$20.7 B 
$877.7 B 
CAGR: 
13.5% 
CAGR: 2.5% $1.1 T 
$71.2 B 
Q1 ‘05 Q1 ‘14 
Retail Ecommerce Sales Total Retail Ecommerce Sales 
Looking at ecommerce growth from 2005-2009, we see 13.5% CAGR -- 5X faster than retail overall. 
Now, at the 20 year anniversary of ecommerce, with trends in online shopping, mobile payments and growth in SaaS 
platform adoption, we’re predicting a growth rate of 25-30% for 2015. 
Source: Census.gov, USA.gov, SBA.gov, emarketer.com, International Finance Corporation (World Bank), 
National Small Business Technology Survey 2013, Bigcommerce Internal Data
Bigcommerce 2015 Predictions 
Worldwide B2C Ecommerce Market will hit $2T 
• eMarketer data shows worldwide ecommerce sales will 
hit $1.5T this year 
• We partnered with outside research firm Sagence; our 
data shows ecommerce growing at 30% per year 
US SMB Ecommerce to exceed $100B 
• 2013 US SMB ecommerce market was $76.76B 
• SMB ecommerce is a significant growth segment 
• In 2015, we predict SMB ecommerce will exceed - for the 
first time - Amazon + eBay WW revenues combined 
© 2014 Bigcommerce Pty. Ltd.
Ecommerce Ripe for SMB Disruption; 
Many Enterprise Retailers Are Using Legacy Platforms 
ENTERPRISE RETAILERS ENTERPRISE RETAILERS 
• 43% of enterprise retailers are 
still web-only 
• 58% of those retailers still use 
in-house commerce systems 
SOURCE: 2013 Internet Retailer Top 500, 2014 Internet Retailer Second 500 
© 2014 Bigcommerce Pty. Ltd. 
• Of those web-only enterprise retailers with in-house commerce 
systems, more than half launched before 2000
There’s an App for That; 
SaaS Platform Ecosystem Enables SMB Disruption 
2013 CLOUD USAGE AMONG SMBS COMMERCE ECOSYSTEM 
APP STORE 53% 
SOURCE: Internet Retailer Top 500, Internet Retailer Second 500 
© 2014 Bigcommerce Pty. Ltd. 
DEMAND GENERATION 
• Best-in-breed has replaced expensive 
proprietary functionality 
• It’s difficult for legacy platforms to deliver same 
level of services as fast or as efficiently as this 
ecosystem 
105% 
ANNUAL 
GROWTH RATE 
BETWEEN 2010 AND 2013 
WEB STORES 
SHIPPING 
ACCOUNTING 
PAYMENTS SITE MANAGEMENT 
MARKETPLACES 
ERP 
SOCIAL 
POS 
API 
oAUTH 
$2M 
INTEGRATION 
FUND 
DEV PORTAL 
DESIGN 
PARTNERS
SMBs Can Launch Fully Functional Bigcommerce Store 
in Less than 30 Minutes 
What used to take developers weeks-months, now takes 30 minutes. 
Smart SaaS technology: 
• Helps automate processes that used to be complicated: credit 
cards, payment wallets, shipping, taxes 
• Enables a rich consumer experience: product listings, promotions, 
personalization can all be created out of the box 
© 2014 Bigcommerce Pty. Ltd.
Conclusion 
• 20 years after the first digital transaction, ecommerce is 
now a rapidly-growing, worldwide network of merchants 
on par with the world’s largest economies. This will only 
accelerate in the years ahead. 
• There is a fundamental shift underway towards best-of-breed 
platforms, enabling SMB businesses to effectively 
compete with large, enterprise merchants, many of 
which still rely on legacy technology platforms. 
• The barriers to entry are gone: online stores can be 
created in under 30 minutes, and monthly fees start at 
less than the cost of a daily cup of coffee. 
© 2014 Bigcommerce Pty. Ltd.
Report Sponsors 
About Bigcommerce 
Bigcommerce is a global ecommerce provider helping entrepreneurs and 
growing businesses sell more online. Founded in 2009, Bigcommerce 
supports more than 55,000 stores around the world from its offices in Sydney, 
Austin and San Francisco. For more information, visit Bigcommerce.com. 
About Sagence, Inc. 
Sagence is a specialized firm designed to help organizations drive their 
businesses with information and insight through better data and analytics 
practices. For more information, visit sagenceconsulting.com. 
© 2014 Bigcommerce Pty. Ltd.

More Related Content

More from BigCommerce

Selling success with Twitter: The Foundation
Selling success with Twitter: The FoundationSelling success with Twitter: The Foundation
Selling success with Twitter: The Foundation
BigCommerce
 

More from BigCommerce (7)

Building Ecommerce Storefronts on the JAMstack
Building Ecommerce Storefronts on the JAMstackBuilding Ecommerce Storefronts on the JAMstack
Building Ecommerce Storefronts on the JAMstack
 
Ecommerce Replatforming Basic Use Case
Ecommerce Replatforming Basic Use CaseEcommerce Replatforming Basic Use Case
Ecommerce Replatforming Basic Use Case
 
Managing Returns and Keeping Customers
Managing Returns and Keeping CustomersManaging Returns and Keeping Customers
Managing Returns and Keeping Customers
 
Attract & Convert: Positioning Your Startup for Success by Bigcommerce
Attract & Convert: Positioning Your Startup for Success by BigcommerceAttract & Convert: Positioning Your Startup for Success by Bigcommerce
Attract & Convert: Positioning Your Startup for Success by Bigcommerce
 
Selling success with Twitter: The Foundation
Selling success with Twitter: The FoundationSelling success with Twitter: The Foundation
Selling success with Twitter: The Foundation
 
Cashing in on mobile commerce
Cashing in on mobile commerceCashing in on mobile commerce
Cashing in on mobile commerce
 
Turn Visitors into Buyers
Turn Visitors into BuyersTurn Visitors into Buyers
Turn Visitors into Buyers
 

Recently uploaded

DSP Gold ETF Fund of Fund PPT - April'2024
DSP Gold ETF Fund of Fund PPT - April'2024DSP Gold ETF Fund of Fund PPT - April'2024
DSP Gold ETF Fund of Fund PPT - April'2024
DSP Mutual Fund
 
一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书
一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书
一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书
atedyxc
 
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
atedyxc
 
一比一原版(SFU毕业证书)西蒙菲莎大学毕业证成绩单学位证书
一比一原版(SFU毕业证书)西蒙菲莎大学毕业证成绩单学位证书一比一原版(SFU毕业证书)西蒙菲莎大学毕业证成绩单学位证书
一比一原版(SFU毕业证书)西蒙菲莎大学毕业证成绩单学位证书
atedyxc
 
Bahawalpur Culture.pptx pptx pptx pttx pttx
Bahawalpur Culture.pptx pptx pptx pttx pttxBahawalpur Culture.pptx pptx pptx pttx pttx
Bahawalpur Culture.pptx pptx pptx pttx pttx
AbdulNasirNichari
 
Prezentacja Q1 2024 EN strona www relacji
Prezentacja Q1 2024  EN strona www relacjiPrezentacja Q1 2024  EN strona www relacji
Prezentacja Q1 2024 EN strona www relacji
klaudiafilka
 
State Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjjState Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjj
joshuaclack73
 
一比一原版(UIUC毕业证书)UIUC毕业证香槟分校毕业证成绩单学位证书
一比一原版(UIUC毕业证书)UIUC毕业证香槟分校毕业证成绩单学位证书一比一原版(UIUC毕业证书)UIUC毕业证香槟分校毕业证成绩单学位证书
一比一原版(UIUC毕业证书)UIUC毕业证香槟分校毕业证成绩单学位证书
atedyxc
 
Zepto Case study(On Track to Profitability).pptx
Zepto Case study(On Track to Profitability).pptxZepto Case study(On Track to Profitability).pptx
Zepto Case study(On Track to Profitability).pptx
aryan963438
 
一比一原版(UBC毕业证书)不列颠哥伦比亚大学毕业证成绩单学位证书
一比一原版(UBC毕业证书)不列颠哥伦比亚大学毕业证成绩单学位证书一比一原版(UBC毕业证书)不列颠哥伦比亚大学毕业证成绩单学位证书
一比一原版(UBC毕业证书)不列颠哥伦比亚大学毕业证成绩单学位证书
atedyxc
 

Recently uploaded (20)

DSP Gold ETF Fund of Fund PPT - April'2024
DSP Gold ETF Fund of Fund PPT - April'2024DSP Gold ETF Fund of Fund PPT - April'2024
DSP Gold ETF Fund of Fund PPT - April'2024
 
Slideshare - ONS Economic Forum Slidepack - 13 May 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 13 May 2024.pptxSlideshare - ONS Economic Forum Slidepack - 13 May 2024.pptx
Slideshare - ONS Economic Forum Slidepack - 13 May 2024.pptx
 
一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书
一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书
一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书
 
project ratio analysis of bcom studies .
project ratio analysis of bcom studies .project ratio analysis of bcom studies .
project ratio analysis of bcom studies .
 
How can I withdraw my pi coins to real money in India.
How can I withdraw my pi coins to real money in India.How can I withdraw my pi coins to real money in India.
How can I withdraw my pi coins to real money in India.
 
Satoshi DEX Leverages Layer 2 To Transform DeFi Ecosystem.pdf
Satoshi DEX Leverages Layer 2 To Transform DeFi Ecosystem.pdfSatoshi DEX Leverages Layer 2 To Transform DeFi Ecosystem.pdf
Satoshi DEX Leverages Layer 2 To Transform DeFi Ecosystem.pdf
 
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
 
Maximize Your Business Potential with Falcon Invoice Discounting
Maximize Your Business Potential with Falcon Invoice DiscountingMaximize Your Business Potential with Falcon Invoice Discounting
Maximize Your Business Potential with Falcon Invoice Discounting
 
一比一原版(SFU毕业证书)西蒙菲莎大学毕业证成绩单学位证书
一比一原版(SFU毕业证书)西蒙菲莎大学毕业证成绩单学位证书一比一原版(SFU毕业证书)西蒙菲莎大学毕业证成绩单学位证书
一比一原版(SFU毕业证书)西蒙菲莎大学毕业证成绩单学位证书
 
What exchange can I sell my pi coins in 2024
What exchange can I sell my pi coins in 2024What exchange can I sell my pi coins in 2024
What exchange can I sell my pi coins in 2024
 
NO1 Best Black Magic Removal in Uk kala jadu Specialist kala jadu for Love Ba...
NO1 Best Black Magic Removal in Uk kala jadu Specialist kala jadu for Love Ba...NO1 Best Black Magic Removal in Uk kala jadu Specialist kala jadu for Love Ba...
NO1 Best Black Magic Removal in Uk kala jadu Specialist kala jadu for Love Ba...
 
Bahawalpur Culture.pptx pptx pptx pttx pttx
Bahawalpur Culture.pptx pptx pptx pttx pttxBahawalpur Culture.pptx pptx pptx pttx pttx
Bahawalpur Culture.pptx pptx pptx pttx pttx
 
Prezentacja Q1 2024 EN strona www relacji
Prezentacja Q1 2024  EN strona www relacjiPrezentacja Q1 2024  EN strona www relacji
Prezentacja Q1 2024 EN strona www relacji
 
State Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjjState Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjj
 
一比一原版(UIUC毕业证书)UIUC毕业证香槟分校毕业证成绩单学位证书
一比一原版(UIUC毕业证书)UIUC毕业证香槟分校毕业证成绩单学位证书一比一原版(UIUC毕业证书)UIUC毕业证香槟分校毕业证成绩单学位证书
一比一原版(UIUC毕业证书)UIUC毕业证香槟分校毕业证成绩单学位证书
 
Zepto Case study(On Track to Profitability).pptx
Zepto Case study(On Track to Profitability).pptxZepto Case study(On Track to Profitability).pptx
Zepto Case study(On Track to Profitability).pptx
 
一比一原版(UBC毕业证书)不列颠哥伦比亚大学毕业证成绩单学位证书
一比一原版(UBC毕业证书)不列颠哥伦比亚大学毕业证成绩单学位证书一比一原版(UBC毕业证书)不列颠哥伦比亚大学毕业证成绩单学位证书
一比一原版(UBC毕业证书)不列颠哥伦比亚大学毕业证成绩单学位证书
 
How to exchange my pi coins on HTX in 2024
How to exchange my pi coins on HTX in 2024How to exchange my pi coins on HTX in 2024
How to exchange my pi coins on HTX in 2024
 
L1 2024 Prequisite QM persion milad1371.pdf
L1 2024 Prequisite QM persion milad1371.pdfL1 2024 Prequisite QM persion milad1371.pdf
L1 2024 Prequisite QM persion milad1371.pdf
 
Bond Bazaar Powerpoint Presentation in Details
Bond Bazaar Powerpoint Presentation in DetailsBond Bazaar Powerpoint Presentation in Details
Bond Bazaar Powerpoint Presentation in Details
 

Democratization of Ecommerce Report

  • 1. The Democratization of Commerce © 2014 Bigcommerce Pty. Ltd. September 2014
  • 2. News Summary • 20-year anniversary of the first-ever online transaction • It took 18 years (1994-2012) for ecommerce sales to hit $1T worldwide — and only took two years to get to $1.5T (2014) • Bigcommerce predicts B2C ecommerce sales will hit $2T worldwide in 2015 • Bigcommerce predicts U.S. SMB ecommerce revenues will exceed $100B in 2015 — more than Amazon and eBay worldwide revenues combined • Ecommerce market is ripe for disruption • The democratization of commerce is now: SMBs are winning business from the giants in their industries © 2014 Bigcommerce Pty. Ltd.
  • 3. © 2014 Bigcommerce Pty. Ltd. 1994 FIRST DOCUMENTED ONLINE SALE - STING’S "TEN SUMMONER'S TALES" CD AMAZON FOUNDED 1995 1998 ANNUAL ONLINE RETAIL SALES HIT $8 BILLION ANNUAL ONLINE RETAIL SALES SKYROCKET 100% TO $16 BILLION 1999 2000 AVERAGE COST TO BUILD FULL-SCALE ONLINE STORE = $100,000 2002 NUMBER OF WEB USERS WHO HAVE BOUGHT ONLINE CROSSES 50% MARK 2004 CREDIT CARD COMPANIES CREATE PCI DATA SECURITY STANDARDS ECOMMERCE SPENDING ECLIPSES $100 BILLION FOR THE FIRST TIME 2006 2007 66% OF ONLINE AMERICANS CLAIM TO HAVE MADE A PURCHASE ONLINE 2008 NUMBER OF SMARTPHONE USERS NEARS 25 MILLION AND 3G WIRELESS BROADBAND SUBSCRIBERS SURPASSES 70 MILLION; BOTH TECHNOLOGIES DRAMATICALLY IMPROVE MOBILE WEB BROWSING 2012 2009 ECOMMERCE SALES TOP $1 TRILLION FOR THE FIRST TIME IN HISTORY BIGCOMMERCE LAUNCHED; COST TO BUILD FULL-SCALE ONLINE STORE = $25/MONTH 2014 ECOMMERCE SALES PREDICTED TO TOP $1.5 TRILLION 20 Years of Ecommerce
  • 4. SMBs Own 21.5% of U.S. Retail Commerce ENTERPRISE $15M+ MEDIUM $5M-$15M SMALL $1M-$5M © 2014 Bigcommerce Pty. Ltd. SMB (<$15M) # OF MERCHANTS BY SEGMENT ADJACENT MARKET SALES ($) 22k 35K 158K SOHO <$1M 422K TOTAL SMB 614K $961B SOURCES: U.S. Census, 2013 National Small Business Association, Sagence, Inc. analysis. $3.5T $351B $430B $179B
  • 5. Ecommerce Is Fastest Growing Segment Within Retail © 2014 Bigcommerce Pty. Ltd. $20.7 B $877.7 B CAGR: 13.5% CAGR: 2.5% $1.1 T $71.2 B Q1 ‘05 Q1 ‘14 Retail Ecommerce Sales Total Retail Ecommerce Sales Looking at ecommerce growth from 2005-2009, we see 13.5% CAGR -- 5X faster than retail overall. Now, at the 20 year anniversary of ecommerce, with trends in online shopping, mobile payments and growth in SaaS platform adoption, we’re predicting a growth rate of 25-30% for 2015. Source: Census.gov, USA.gov, SBA.gov, emarketer.com, International Finance Corporation (World Bank), National Small Business Technology Survey 2013, Bigcommerce Internal Data
  • 6. Bigcommerce 2015 Predictions Worldwide B2C Ecommerce Market will hit $2T • eMarketer data shows worldwide ecommerce sales will hit $1.5T this year • We partnered with outside research firm Sagence; our data shows ecommerce growing at 30% per year US SMB Ecommerce to exceed $100B • 2013 US SMB ecommerce market was $76.76B • SMB ecommerce is a significant growth segment • In 2015, we predict SMB ecommerce will exceed - for the first time - Amazon + eBay WW revenues combined © 2014 Bigcommerce Pty. Ltd.
  • 7. Ecommerce Ripe for SMB Disruption; Many Enterprise Retailers Are Using Legacy Platforms ENTERPRISE RETAILERS ENTERPRISE RETAILERS • 43% of enterprise retailers are still web-only • 58% of those retailers still use in-house commerce systems SOURCE: 2013 Internet Retailer Top 500, 2014 Internet Retailer Second 500 © 2014 Bigcommerce Pty. Ltd. • Of those web-only enterprise retailers with in-house commerce systems, more than half launched before 2000
  • 8. There’s an App for That; SaaS Platform Ecosystem Enables SMB Disruption 2013 CLOUD USAGE AMONG SMBS COMMERCE ECOSYSTEM APP STORE 53% SOURCE: Internet Retailer Top 500, Internet Retailer Second 500 © 2014 Bigcommerce Pty. Ltd. DEMAND GENERATION • Best-in-breed has replaced expensive proprietary functionality • It’s difficult for legacy platforms to deliver same level of services as fast or as efficiently as this ecosystem 105% ANNUAL GROWTH RATE BETWEEN 2010 AND 2013 WEB STORES SHIPPING ACCOUNTING PAYMENTS SITE MANAGEMENT MARKETPLACES ERP SOCIAL POS API oAUTH $2M INTEGRATION FUND DEV PORTAL DESIGN PARTNERS
  • 9. SMBs Can Launch Fully Functional Bigcommerce Store in Less than 30 Minutes What used to take developers weeks-months, now takes 30 minutes. Smart SaaS technology: • Helps automate processes that used to be complicated: credit cards, payment wallets, shipping, taxes • Enables a rich consumer experience: product listings, promotions, personalization can all be created out of the box © 2014 Bigcommerce Pty. Ltd.
  • 10. Conclusion • 20 years after the first digital transaction, ecommerce is now a rapidly-growing, worldwide network of merchants on par with the world’s largest economies. This will only accelerate in the years ahead. • There is a fundamental shift underway towards best-of-breed platforms, enabling SMB businesses to effectively compete with large, enterprise merchants, many of which still rely on legacy technology platforms. • The barriers to entry are gone: online stores can be created in under 30 minutes, and monthly fees start at less than the cost of a daily cup of coffee. © 2014 Bigcommerce Pty. Ltd.
  • 11. Report Sponsors About Bigcommerce Bigcommerce is a global ecommerce provider helping entrepreneurs and growing businesses sell more online. Founded in 2009, Bigcommerce supports more than 55,000 stores around the world from its offices in Sydney, Austin and San Francisco. For more information, visit Bigcommerce.com. About Sagence, Inc. Sagence is a specialized firm designed to help organizations drive their businesses with information and insight through better data and analytics practices. For more information, visit sagenceconsulting.com. © 2014 Bigcommerce Pty. Ltd.