Renewed Credit Card Use to Cause Boom for E-commerce

Published

March 2, 2011

Credit.com is the only company of its kind to be founded and run by leading credit experts including journalists, authors and consumer advocates. We're committed to helping consumers understand and master the confusing world of credit and improve their financial standing by recommending products and actions that are in their best interest.

Currently, e-commerce is worth about $176.2 billion, up about 12.6 percent from the end of 2009. But that number is expected to balloon in the coming years as consumers use their credit cards more often again, according to a report from Media Life Magazine, which cited information from Forrester Research. By the end of 2015, the e-commerce industry will likely be worth about $278.9 billion as the financial worries of today should be long forgotten.

[Resource: Tips for Paying Off Credit Card Debt]

By that time, online sales are predicted to account for about 11 percent of all sales made in the U.S., up from the 8 percent observed at the end of 2010, the report said. This will likely not be because the concept of making purchases online continues to become more conventional by the American public, as acceptance is already nearly universal. Instead, it will grow because of increased mobile accessibility. In addition, social purchasing sites such as Groupon are expected to become far more popular and continue to drive sales in a new way.

[Resource: Credit Cards with Good Intentions]

Many consumers may have already readopted their old spending habits recently, as the latest data showed that credit card debt rose for the first time in nearly two years, during December’s holiday shopping season.