Recession Pose Threat for Ecommerce Bellwethers


dip Recession Pose Threat for Ecommerce BellwethersIf the current economic uncertainty turns out to be a recession, then the revenues of ecommerce giants like Amazon and EBay will take a beating. However, things won’t be as bad as the 2008 recession.

In that recession, ecommerce sales plummeted for the first time but compared to store sales, the rate was slower and recovered faster. Experts are expecting similar action in the second recession also, since it would help customers to get better values online.

There has been a softening of sales in the last couple of months; however the figures of September sales are important to understand holiday sales.

A sales slowdown could even expand profit margins for e-commerce companies, as the companies might slow their capacity expansions.

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