- The Global E-Commerce Market is Expected to Reach Over USD $16.2B by 2027, illustrating a CAGR of roughly 23%.
- The United Kingdom has the fourth largest market for E-Commerce in the entire world, with total ecommerce sales exceeding $ USD 690B
- By 2040, the eCommerce market is predicted to encapsulate roughly 85% of total purchases.
- U.S. Non-store retail sales expanded 39.1% in the 1st quarter of 2021.
Global e-commerce has continued to grow significantly this year. Most countries' consumers have inadvertently elected purchasing products online as their most preferable and favourite method of purchase.
Increasing cross-border e-commerce trends have proved to be a potentially innovative way for e-retailers and international business owners alike to target a wider market- expanding the potential pool of customers that they can sell to and likely increase their total sales revenue.
Of course, such a transnational model imposes a variety of other commercial considerations; consumers in different countries generally tend to develop ranging consumption habits and preferences- particularly in relation to the e-commerce market and their online shopping model.
Let's take a look at the current top e-commerce trends that entrepreneurs around the world should choose to incorporate into their business models.
The Global E-Commerce Market
Global e-commerce can involve an alleged 'borderless' business model, a global consumer base, and cross border transactions.
Most fundamentally, it is the selling and purchasing of products in a transnational setting- meaning one where geographical and political borders do not act as barriers.
Digital marketing, AI Business Technology tools, and Website builders have all been used as essential tools for young and experienced business persons alike looking to enter the constantly growing e-commerce market and reap the likely benefits that will follow. ''With more than 60% of the world's population now having regular access to the internet, global business owners are in a position that allows them to: utilize efficacious AI Business Tools and Website Building Software, and expand their accessibility so as to target consumers anywhere, anytime''- Nagabhushanam "Bobby" Peddi, Founder and current CEO of The Really Useful Information Company (TRUiC).
Without a doubt, there are ample benefits of engaging with the UK and Global e-commerce market at the moment- many stemming from industry trends that have followed.
Such advantages include the ability to: a) quickly and easily infiltrate foreign and international markets, b) easily find a product/market fit, c) undertake fewer barriers to entry in markets, and d) utilize smaller B2B sales cycles.
The irrevocable growth- and consequent global changes, of the e-commerce market have indubitably led to business and political leaders disarranged- with a global commercial platform that would never be considered possible a couple years ago.
The old fairy tale of a holistic 'borderless' commercial world has- quite quickly, become a gleaming reality, positioning the UK as the most competitive e-commerce market within Europe, and the fourth most competitive in the entire world.
Current & Future Market Trends: The COVID-19 Affect
Industry analysts have repeatedly pointed out that the COVID-19 pandemic has immutably altered the way in which consumers interact with the world, facilitating increased demand for online shopping and propelling e-commerce as an extremely optimistic sector.
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The post-pandemic global economy has significantly favoured the online retail sector- which currently is one of the fastest growing divisions within retail.
In fact, even though the pandemic has inadvertently significantly accelerated this trend, the expansion of the online retail sector was present way before COVID-19 was ever among us, encapsulating over 13% of the total U.S. retail sales the year before.
The COVID-19 pandemic additionally facilitated the proliferation of a globally-accessible online market, leading to a plethora of new: categories, delivery methods, and purchasing habits. Such trends are likely here to stay, with restrained demand and ample fiscal stimuli to proper economic growth.
This has brought forth a couple of disadvantages in other sectors, with business owners increasingly segueing away from the traditional 'in-person' store retail sector and deferring to online shopping.
UBS, for example, reported that over 75,000 U.S. stores and a quarter of U.S. malls are expected to shut down within the next 5 fiscal years. Paper Source, Solstice, Christopher & Banks, and L'Occitane have all declared bankruptcy in 2021.
Of course, the aforementioned expansion of e-commerce is happening on a global level- not just within the U.S. China, Japan and the U.K are the three largest e-commerce markets in terms of sales (excluding the U.S.)- albeit at the rather hefty opportunity cost of the traditional retail sector.
As a final note, field-strategists have additionally shed light on the fact that the increased accessibility of the internet has further urged consumers to pivot towards online shopping.