The Goods, the Apps, the Hugely Ignored Service Sector

According to the latest U.S. e-commerce data release on February 17, 4Q e-commerce continues to grow its market share of total retail sales on a year-over-year basis as predicted. The S-Network Global E-Commerce Index (ECOMX) was up 12.9% YTD on a total return basis compared to the S&P 500 Index (SPX) which was up only 6.5% (as of February 17, 2023). While we often discuss U.S. e-commerce data in relation to e-commerce indexes and ETFs, it is important to recognize that this figure only accounts for a specific portion of e-commerce sales. From the U.S. Census Bureau data’s perspective, e-commerce sales typically refer to the sale of goods. When this figure is compared to total retail sales, that also refers to total retail sales from “companies…that sell merchandise and related services to final consumers” which excludes restaurants and also many service-related sectors.