E-commerce is on the rise globally, offering businesses an invaluable way to expand their customer base and boost profits.
In the past, e-commerce was only accessible to large corporations; now it’s accessible to small and medium-sized enterprises as well. This has created a win-win scenario for both parties involved.
Global E-commerce Market
Over the last two years, the global e-commerce market has experienced steady growth due to rising demand from emerging markets, increased participation by small businesses worldwide, and an expansion in e-commerce innovation.
The global e-commerce market is being fuelled by technological innovations such as virtual showrooms that provide detailed product info to consumers. These tools enable people to create virtual spaces and order goods without ever leaving their home.
Establishing trust and increasing brand visibility are important for increasing customers and boosting sales.
Furthermore, e-commerce provides organizations with a wider reach and efficient communication with their clients. These advantages have spurred established businesses as well as multinational corporations to move towards online operations.
The global e-commerce industry will experience steady growth due to increasing demand from emerging economies, increased global participation by small businesses, and ongoing innovation within this space. Nonetheless, challenges such as regulatory issues will continue to shape the direction of this market.
E-commerce is on the rise across Asia Pacific. According to the World Economic Forum, this region will account for two thirds of all online retail sales by 2020 and is projected to expand at a faster pace than global average growth rates.
Factors such as the rising number of smartphones, higher internet penetration rates, and rising disposable income are driving e-commerce growth in the region.
Although some e-commerce markets, such as China, are relatively new to the industry, others have already shown their worth. Examples include Malaysia, Indonesia and India.
As the region’s e-commerce landscape continues to develop, brands must consider its implications. To effectively reach these customers, companies must understand market trends, consumer behavior and cultural distinctions.
In addition to traditional e-commerce channels, newer formats such as livestreaming and on-demand local services are becoming increasingly popular. For instance, Chinese agribusinesses are using Taobao Live to sell their products on the platform.
The North America e-commerce market has experienced impressive growth over the years. This can be attributed to several factors, such as increasing internet usage and an increasing preference for online payment methods.
The e-commerce sector is a major driving force in the region’s economy, offering numerous advantages over traditional shopping methods and allowing businesses to deliver goods more quickly and efficiently.
Additionally, the industry is going through major technological transitions as consumers’ lifestyles shift and become more accustomed to online shopping. Companies are investing in technology to make their e-commerce platforms more customer-friendly.
North America’s e-commerce industry is expected to expand at a steady rate during the forecast period. This region boasts quality infrastructure that allows e-commerce businesses to reach out to an expansive base of consumers across urban and rural areas alike.
European e-commerce markets have seen a meteoric rise, driven by globalization and the increasing popularity of online shopping.
The European e-commerce market is projected to experience a compound annual growth rate (CAGR) of 6.95% from 2020-2030, due to increasing adoption among consumers in Europe as well as the expansion of mobile e-commerce platforms.
Despite the growth of e-commerce, small and medium sized enterprises (SMEs) are still finding it challenging to adopt digital tools. According to Direct Link’s study, SMEs in the Netherlands, Germany and the UK still have a relatively low percentage of sales generated through e-commerce sales.
Northern Europe, such as Denmark, Estonia, Finland, Iceland, Latvia and Lithuania has seen an exponential growth of e-commerce. Companies are taking various steps to enhance their digital presence. For instance, some are transitioning their logistics services towards carbon neutrality or using electric delivery vehicles; additionally they collaborate with app-based services for fast delivery.