“The Sky is Falling” on eCommerce Spending | Marketing Pilgrim

Published February 8, 2007 Uncategorized

Jordan McCollum with some good commentary on eMarketer’s “Is E-Commerce About to Plateau?” article. Looks like diminishing returns has arrived in ecommerce growth rates. Jordan points out that the rate and the real growth will diverge as the market mass expands:

The problem with exponential or even linear growth is that as you get bigger and bigger, it becomes more and more difficult to sustain the same rate of growth—but not necessarily the same amount of growth. For example, if there are 100 retailers online in 2005, 50 new retailers in 2006 is 50% growth. Add 50 more retailers in 2007, and suddenly the growth rate “plummets” to 33.3%.

3 Responses to ““The Sky is Falling” on eCommerce Spending | Marketing Pilgrim”

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1 Jordan McCollum February 8, 2007 at 5:09 am

Hi Eben,

Thanks for the pingback and the link. However, while it is Andy’s blog, I did write this entry.

Thanks,
Jordan McCollum
2 ebenthurston February 8, 2007 at 2:45 pm

Jordan my apologies! I’ll correct it right now. Thanks for the heads up. I’m still new to blogging.