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What is the size of local commerce in the US in terms of sales and/or transaction volumes? How is local commerce projected to grow over the next 5-10 years?
Hello, thank you for your question about local commerce sales size in the US. The short version is that local commerce in the U.S. market size is about $2.14 trillion, with a $713.33 billion market size for product based local commerce, and $1.47 trillion dollars market size for service based local commerce. Below you will see a deep dive of my research.
LOCAL VS E-COMMERCE
Local commerce is commonly being mistaken for e-commerce. The main difference between the two is the proximity of buyer and seller. Local commerce involves the merchandise exchange in person, where the buyer and seller are in one place together. On the other hand, e-commerce is where the buyers and sellers do not have to be in the same place at the same time to make a transaction. E-commerce takes up about 5% of retail in the U.S., while the other 95% is local.
From an analysis done in 2013, it is estimated that local commerce will be larger than e-commerce from 2017-2022.
RETAIL AND SERVICE LOCAL COMMERCE MARKET SIZE
Product based retail market size:
The U.S. local commerce apparel market size is at approximately $146.53 billion with an expected growth rate of 2%. Apartments hold about $109.21 billion in the market with an estimated growth rate of 4.30%. Local commerce book sales are at about $7.56 billion, with a decrease in growth rate of -1%. Cars and automobiles hold about $62.40 billion, with a decrease in growth rate of -2.50%. The music industry is at approximate $1.35 billion with a growth rate of 2%. Groceries in the U.S. has the highest market size with $367.20 billion, and a growth rate of 1%.
The total U.S. local commerce market size for product based retailers is estimated to be $713.33 billion dollars.
Service based business market size:
The U.S. legal industry market size is at about $183.00 billion. Hotels industry market size is at approximately $158.34 billion dollars. Spas have about $14.79 billion and gyms/fitness centers have a market size of about $27.90 billion. The plumber industry market size is approximately $91.35 billion dollars. Hospitals market size in the U.S. is about $187.61 billion dollars, and dentistry is approximately $112.23 billion. Restaurants and food service industries hold about $695.13 billion dollars in the U.S. local commerce market size.
The total U.S. local commerce market size for service based business is about $1.47 trillion dollars.
CALCULATIONS
The estimated calculation of the U.S. current market size for local commerce including service based retailers is $2.14 trillion. $713.33 billion is the estimated market size for product based local commerce in the U.S.
CONCLUSION
To wrap it up, the local commerce market size is larger than the e-commerce market size. Service based businesses are larger than product based businesses in market size.
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