Answer to Question 1
A
Answer to Question 2
The online retail sector is one of the smallest segments of the total retail market but is growing faster than its offline counterparts. During the recession of 2008-2009, online retail revenues were basically flat but they since have resumed their upward trajectory. More people than ever are shopping online and millions more look for information about purchases they make at offline stores. Offline retailers who have the brand-name recognition, supportive infrastructure, and financial resources have entered the online marketplace successfully and continue to integrate their online operations with their physical store operations in order to provide an integrated shopping customer experience, and leverage the value of their physical stores. The most significant changes in retail e-commerce in 2016 were the continuing growth in social e-commerce, the growing ability of firms to market local services and products through the use of location-based marketing, and, not least, the rapidly growing mobile platform composed of smartphones and tablet computers. Social network sites like Facebook, Twitter, Pinterest, Instagram, Snapchat and others have developed into major marketing and advertising platforms. After trials, Facebook, Pinterest, and Instagram have all introduced their own versions of buy buttons that allow consumers to more easily purchase goods on a much wider scale. In addition, location-based mobile marketing and advertising solutions such as Groupon, have enabled local merchants to inexpensively enter local mobile marketing. Social and local e-commerce are enabled by the tremendous growth in mobile Internet devices, both smartphones and tablet computers. In 2016, U.S. retail mobile e-commerce was expected to generate over 115 billion overall. In 2016, over 75 of online purchasers were expected to make a purchase using a mobile device, and it is estimated that this percentage will grow to over 85 by 2020.
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