Tuesday, December 11th, 2018
In current retail industry e-commerce is occupying a huge share of the market. In cases, it is observed that more percentage of customers are becoming user friendly with ecommerce shopping rather than retail stores. The number of ecommerce customers are increasing day by day worldwide. There are 2 different way of ecommerce business- B2B (Business to Business, where a seller website is selling to another seller, usually in bulk) and B2C (Business to Customer, where the seller website sells to individual customers like counter selling). In both the sectors, eCommerce selling is considerably increasing. This trend, off course, varies upon demography but has a steady growth rate globally. Interesting fact is that the increment trend is not always depended on highly economically developed countries or high lifestyle index countries always. It is occupying market in developing or lower index countries as well.
Market occupancy per year (data taken from 2014)
Looking into the growth of the market we can say that it is expanding in a vast way in both developed and developing countries. In developed countries the United States, UK, China, South Korea and more goes under the top most E-commerce established area. Apart from this e-commerce is expanding in developing countries like India, Indonesia and many more and able to be a part of top list. It is very much surprising that India and US are occupying the same rank however they have a lot of difference in economic growth, GDP, consumer index, life-style index etc. Worldwide E-commerce sales increased to 2.3 trillion USD in 2017 and it is expected e-retail earning will grow almost 4.88 trillion USD in 2021. US and the Asia-Pacific region had growth by 15% and 30% in 2017. They are clearly becoming the leader in global e-commerce development. In the Asia Pacific region blowing up the recent digital development, from this ratio it is no surprise that the fastest growing online retail markets are Indonesia and India, followed by Mexico and China. The other countries are growing as well as we can see the percentage in the chart-
In this era online shopping has become most popular online activities in all over the world which was reaching 2.3 trillion U.S. dollars in 2017. E-commerce business gets success depending on the the base of the area and atmosphere. Developed but small sized like South Korea gets growth because of many reasons. Due to area parameter they developed their country and make the e-commerce part of their life with daily needs shopping online. Country like The United States or United Kingdom successfully established their online marketing industry. It seems that they are the part of the maximum number of customers who buy pin to diamond everything from online. In other hand developing countries like India, expanding its business eventually in many categories. However it seems that Indian people still likes to buy few things from the shops than online, like, jewellery etc. E-retail sales accounted for 10.2% of all retail sales in overall the world (2017). This figure is expected to reach 17.5% in 2021.
Almost all countries from all over the world with a standard purchase or consumer index is experiencing significant growth in eCommerce sales over the last year. Here are the top 10 countries who have the largest eCommerce market share in the world:
From present share graph and growth rate graph we can come to a conclusion that there is no fixed reason or fixed strategy why the trend is growing in different countries of different socio-economic characters. In addition, one thing is clear that in developed countries people are purchasing almost everything online, even daily needs and fast moving consumer goods (FMCG), however, in developing countries most of the sales are depended on fashion products, export quality products or the products which are not easily available at doorstep or nearby local market. In developing or underdeveloped countries most of the people are still going to market for purchasing daily needed utility products rather than ordering from online stores.
After researching the market value of e-commerce websites we can surely say that this individual business is going to take a vast place in business world. Yet we can always say that revolution is always important and as of now we are upgrading everything time to time. eCommerce websites are now helping most of the people who are enough busy to go to market for shopping. It has been helpful for those people who are unable to go to market as well due to lack of time for their busy schedule or congested traffic or who want to get the branded products without reaching the showroom far off. With everything, this trend has consumed more market share in the retail business industry. Well, maybe it has began with the way of online shopping. However, we all know, whatever upgradation is waiting for us, it will be for the good.
Bonne journée (Have a nice day)!!
Shawn is a BTech and had been working in Ecommerce Management for last 5 years. Comprising his experience, he has been working in CyberToss Pvt. Ltd. for last 2 years leading the ECommerce support team for USA and Canada. Shawn, being an expert and good writer, always writes blogs on ECommerce and related issues.