Predictions

by Mike Masnick




In Case You Didn't Know: Internet Sales Can't Grow At Ridiculous Rates Forever

from the seriously? dept

The NY Times wants to make a big deal out of the fact that e-commerce growth rates may be slowing, but that hardly seems like much of a story. Note that they're not saying internet growth is disappearing -- just that the rate of growth is slowing. That's to be expected of any market once it goes mainstream, because you simply cannot maintain the same growth rate on such a large base. You hit diminishing returns. Of course, that's a concept that's been around for ages, so it hardly seems newsworthy to suggest that growth rates may be starting to slow -- even as tremendous growth remains. But, these days, it's fun for the press to poke at the internet. However, if the best they can do is to say that growth rates are hitting their expected diminishing returns, it hardly seems like a real problem. Of course, that didn't stop the headline writer from suggesting this was a sign that people were tiring of buying on the internet -- even if the data doesn't support that conclusion at all.

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  1. identicon
    Rational Beaver, 18 Jun 2007 @ 11:04am

    The only semi-legit reason that this could be called news is that folks like eMarketer are constantly trumpeting the latest online retail growth numbers and making retarded trend graphs that always assume that the current growth rates will last forever (or at least through 2010).

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