E-commerce is now a permanent fixture on the retail landscape. Market research firm Research and Markets estimates this industry will reach $71 trillion in annual sales by 2028, taking its compound annual growth rate (CAGR) to 27% during that time. Although numerous companies across the retail landscape will benefit from this impressive growth, Amazon (NASDAQ: AMZN), MercadoLibre (NASDAQ: MELI), and Shopify (NYSE: SHOP) are particularly well-positioned to enrich investors.
Your profit margins are usually vulnerable to rivals both large and small, who are eager to win market share or take advantage of any misstep you might make. Microsoft recently announced that it is raising its dividend by 10% for the second straight year. While its yield remains small compared to other members of the Dow Jones Industrial Average, these double-digit hikes illustrate how Microsoft stands out by having unusually strong finances.
It's hard to find a more noticeable shift among consumers in the past couple of decades than the growth of online shopping. The rise of the internet, coupled with the popularity of the smartphone and proliferation of digital payments, has resulted in a completely new industry that has registered rapid gains. Let's take a closer look at this secular trend.