The eCommerce industry has grown significantly and is transforming how we shop and conduct business. With technological advancements and changing consumer behavior, the global eCommerce market has become a juggernaut, with a projected value of $4.9 trillion in 2021. Want to know more about the eCommerce market size and future growth, read this blog to find everything.
This booming industry has revolutionized the retail landscape, enabling businesses of all sizes to reach a global audience and offer a seamless online shopping experience.
From Amazon to Etsy, the eCommerce giants have set a high bar with their innovative platforms and efficient logistics. This has fueled the rise of countless niche online stores, catering to unique consumer demands and driving further market growth.
Moreover, the COVID-19 pandemic has accelerated the shift to eCommerce, as consumers worldwide have turned to online shopping to avoid physical stores and minimize contact.
The increase in demand for online services has forced businesses to quickly adapt and innovate to keep up with the fast pace of change. With this momentum, the eCommerce market is set to continue its upward trajectory, presenting a world of opportunities for businesses and entrepreneurs alike.
Thus, expanding into the global eCommerce market is no longer a luxury or one of many strategies available to businesses. It has become an absolute necessity. However, it has its challenges.
Businesses often grapple with questions such as
- Where to invest,
- Which countries offer the best product-market fit,
- How to attract foreign buyers,
- What aspects are most crucial- translations, payment options, currencies, or something else?
Our comprehensive guide aims to provide insights into the global eCommerce market size and growth and offer tips on how businesses can successfully expand their operations. So, let’s delve deeper into the era of global eCommerce market size and discover how to tap into its vast potential.
Why is the eCommerce Market Size Booming Rapidly?
The upward trend of eCommerce can be attributed to the enhanced user experience of online shopping. With the pandemic forcing consumers to embrace digital platforms, the evolution of shopping has been propelled forward.
Almost everything is now accessible digitally, leading to a surge in retail eCommerce sales worldwide, which surpassed USD 4.2 Trillion in 2020, with an impressive 25.7% increase.
Source: eMarketer
Unlike other industries that faltered during the COVID-19 pandemic, the eCommerce sector has flourished, and the forecast predicts continued growth. As a result, the total percentage change in retail eCommerce sales globally from 2019 to 2025 is projected to increase significantly.
This growth is reflected in the estimated retail eCommerce sales, which are expected to reach billions of USD in the same period.
Besides the convenience of wider choices and accessibility, eCommerce provides a more personalized shopping experience. Technological advancements have allowed businesses to use data to gain insights into their customers’ preferences and offer tailored recommendations, enhancing the user experience and driving sales.
eCommerce Market Size Presently
eCommerce is one of the world’s most dynamic and rapidly expanding industries. With the growing usage of digital technology and the changing lifestyles of consumers, online shopping has become the go-to method for purchasing products and services.
- In 2020, global retail eCommerce sales reached a staggering USD 4.2 trillion, an increase of 25.7% from the previous year.
- The COVID-19 pandemic played a significant role in this surge, with consumers forced to shift to online shopping due to lockdowns and restrictions.
- The pandemic accelerated the natural evolution of shopping as consumers became more comfortable with the convenience and efficiency of eCommerce.
- The eCommerce market size has shown remarkable resilience during the pandemic, with many brick-and-mortar stores closing down while eCommerce businesses thrived.
- It is predicted that the worldwide eCommerce industry will grow in the coming years, and it is projected to reach a value of USD 6.4 trillion by 2024. This means an annual increase of 11.1% from 2020 to 2024.
Well, certain factors are adding fuel to this immense growth, including,
Increasing Usage of Smartphones
The eCommerce market size is growing due to the rise in mobile devices and internet usage. With affordable smartphones and data plans, consumers can easily access the internet and make online purchases.
Rise of Social Media
The rise of social media platforms has also significantly impacted eCommerce, with many businesses using these platforms to reach and engage with their target audience.
Modern Technologies
Another factor driving the growth of eCommerce is the increasing adoption of technologies such as AI, ML, and Data Science.
These technologies enable businesses to personalize the shopping experience for their customers, making it more engaging and relevant. They are also helping businesses to optimize their operations and supply chain, reducing costs and improving efficiency.
The eCommerce market is wider than just a few countries or regions and is a global phenomenon, with businesses operating in almost every corner of the world.
The Asia-Pacific region is currently the largest eCommerce market, accounting for 42.5% of global eCommerce sales. America and Europe are also significant markets, accounting for 26.9% and 22.7% of global sales, respectively.
The eCommerce industry is currently one of the world’s most rapidly expanding and dynamic markets. This trend is envisioned to continue due to the increasing use of smartphones and the internet, the adoption of emerging technologies, and the globalization of eCommerce.
As businesses continue to execute and adapt to the changing needs of consumers, the eCommerce market will surely see continued growth in the coming years.
What is the Future Growth of the eCommerce Market Size?
Source: Common Thread Collective
The eCommerce market is booming and shows no signs of slowing down.
With the increasing digitalization of the world, millions of consumers worldwide have adopted online shopping as the norm, but what does the future hold for eCommerce?
One thing is certain: the eCommerce market will continue to grow remarkably. Experts predict that the global eCommerce market size will reach a staggering $6.4 trillion by 2024.
The rise of mobile commerce will drive this growth, the increasing use of social media for shopping and the growing popularity of virtual and augmented reality technologies.
Mobile Commerce is a Tailwind
The rise of mobile commerce, or m-commerce, is a major trend that is driving the growth of the eCommerce market size. As smartphones and tablets become more powerful, consumers increasingly turn to their mobile devices to shop online.
In fact, mobile commerce is expected to account for more than half of all eCommerce sales by 2021. Therefore, retailers who optimize their online stores for mobile devices will be best positioned to exploit this trend.
Adoption of Social Media Continues
Another trend shaping eCommerce’s future is the increasing use of social media for shopping. With platforms like Facebook, Instagram, and Pinterest offering in-app shopping features, consumers can now browse and purchase products without leaving their social media feeds.
Younger consumers are inclined towards discovering new products through social media rather than traditional advertising channels, making this trend increasingly popular among them.
AR and VR To Watch
Virtual and augmented reality technologies are also poised to transform the eCommerce industry. These technologies allow consumers to visualize products more immersively, which can lead to higher engagement and sales.
For example, a customer might use virtual reality to try on a pair of shoes before purchasing. However, as these technologies become more widely available and affordable, eCommerce retailers’ incorporation into their online stores will gain a competitive edge.
Younger Generation’s Obsession
The surge in internet usage and connectivity has become a vital factor, especially in developing countries, where the younger population spends more time online compared to developed markets.
For example, in countries like Colombia and Brazil, consumers spend an average of five hours or more online daily, which presents a tremendous chance for retailers to tap into a new customer base.
So, What Does the Future Hold?
But the future of eCommerce isn’t just about technology. It’s also about the changing expectations of consumers. Today’s shoppers demand convenience, speed, and personalized experiences.
To succeed in the eCommerce market of tomorrow, retailers must meet these expectations and provide exceptional customer service at every step of the buying process.
No doubt, the future of the eCommerce market is bright, and retailers who adapt to the changing landscape will be best positioned to succeed. From mobile commerce to social media shopping to virtual and augmented reality, retailers have countless opportunities to connect with consumers and drive sales.
By staying on top of the latest trends and technologies, eCommerce retailers can thrive in a rapidly changing digital world.
Get Ready Because the World is Going Digital!
The renowned military treatise, The Art of War, contains a quote that has continued to hold relevance in modern-day business: “Know the enemy and know yourself; in a hundred battles, you will never be in peril.”
This two-millennium-old wisdom still holds true in the fiercely competitive world of eCommerce. With a clear understanding of your strengths and weaknesses and those of your rivals, you can avoid being defeated in the eCommerce battleground.
By comprehending the current trends and anticipating their trajectory, you can equip yourself and your enterprise for forthcoming triumphs in the realm of eCommerce. Knowing the eCommerce market size and future growth opportunities can even help you plan strategy that helps you be a winner in today’s competitive market.