E-Commerce Market

Market Overview:

The global e-commerce market size reached US$ 16.6 Trillion in 2022. Looking forward, IMARC Group expects the market to reach US$ 70.9 Trillion by 2028, exhibiting a growth rate (CAGR) of 27.43% during 2023-2028. The growing availability of diverse range of products, rising online shopping activities, and increasing availability of various mobile applications for purchasing products represent some of the key factors driving the market.

Rising Availability of Advanced Targeting Options Augmenting Market Growth

The increasing employment of various advanced targeting options to connect with potential customers is propelling the growth of the e-commerce market. Digital media collects a wide variety of user information, which e-commerce vendors ultimately utilize to reach out to their targeted customers. Apart from this, digital media advertising of e-commerce sites enable customer targeting based on interest, behavior, and connection across demographic and geographic barriers. These advanced targeting options increase the relevance of advertisements and present a higher level of personalization, which is propelling the growth of the market. Furthermore, the increasing adoption of interest-based targeting, which helps reach the audience by their self-reported activities, interests, skills, and most viewed pages, is bolstering the growth of the e-commerce market.

Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. The structure of the e-commerce market is fragmented with a large number of global and regional vendors operating independently. Apart from this, the volume of new entrants in the market is moderate due to the presence of high competition among key players, the hassle of logistics and supply chain management, the requirement of large investments in technology, human resource, and marketing, and difficulty in gaining the trust of customers. Moreover, the product differentiation rate is low and present in the form of incentives, such as cancellation and return policies and discount coupons.

What is E-Commerce?

Electronic commerce (e-commerce) refers to buying and selling a wide variety of consumer products, such as electronic appliances, apparel, footwear, bags, home décor items, jewelry, hardware items, cosmetics, skin and hair care products, medical items, and cleaning products, through online platforms. It is primarily classified based on numerous business models, which include business-to-business (B2B), business-to-consumer (B2C), consumer-to-business (C2B), and consumer-to-consumer (C2C). It deals with marketplace services and customer support, along with various other activities, such as online auctions, payment gateways, online ticketing, and internet banking. E-commerce enables individuals to shop for a wide array of products from anywhere at any time without physically visiting any store or market. It also provides numerous benefits to sellers, such as global reach, minimal transaction costs, higher margins of profits, and direct communication between the parties involved in the delivery of goods and services. Furthermore, as it enables buyers to enjoy various lucrative offers and discounts while shopping, the demand for e-commerce is increasing around the world.

COVID-19 Impact:

The outbreak of coronavirus has propelled the growth of the e-commerce market worldwide as physical shops were closing down because of the imposed restrictions and curfews. The governing agencies of various countries declared lockdowns to maintain social distancing and prevent the spread of the virus, which led numerous shops to discontinue their operations in their physical shops and shift to online platforms for connecting with their targeted customers. However, the pandemic has affected various merchants in terms of their stock availability, as individuals started stockpiling various essential products instead of casual shopping. Overall, the e-commerce market seemed to be in a good place during the pandemic, as customers who were unable to travel long distances preferred their required items to be home delivered by e-commerce brands. There was also an increase in online shopping for various personal care and hygiene products during the pandemic, especially by senior citizens who were extremely vulnerable to the virus. Additionally, distribution companies experienced an overwhelming demand for last-mile and contactless package delivery, which has augmented them to build up new capacity. Furthermore, new crowd peer-to-peer platforms are rising, which is strengthening the growth of e-commerce distribution channels.

E-Commerce Market Trends:

At present, the increasing popularity of e-commerce businesses due to rising online shopping activities of individuals around the world represents one of the primary factors influencing the market positively. Besides this, the wide availability of a diverse range of products on e-commerce platforms to look and shop is propelling the growth of the market. In addition, the growing expenditure on improving website features and making it user-friendly by various large-scale businesses is offering a favorable market outlook. Apart from this, the increasing focus of e-commerce brands to launch mobile applications instead of sticking to websites is contributing to the growth of the market. Additionally, the rising collaborations between banking and non-banking players to make payments cheaper, faster, and more secure for online shoppers are supporting the growth of the market.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global e-commerce market report, along with forecasts at the global, regional and country level from 2023-2028. Our report has categorized the market based on type and transaction.

Type Insights:

• Home Appliances
• Apparel, Footwear and Accessories
• Books
• Cosmetics
• Groceries
• Others
   

The report has provided a detailed breakup and analysis of the e-commerce market based on the type. This includes home appliances, apparel, footwear, and accessories, books, cosmetics, groceries, and others. According to the report, home appliances represented the largest segment due to the wide availability of wide variety of consumer electronics over e-commerce platforms. Apart from this, the rising number of profitable discounts offered by e-commerce brands is propelling the growth of the respective segment.

Transaction Insights:

• Business-to-Consumer
• Business-to-Business
• Consumer-to-Consumer
• Others
   

A detailed breakup and analysis of the e-commerce market based on the transaction has also been provided in the report. This includes business-to-consumer, business-to-business, consumer-to-consumer, and others. According to the report, business-to-business accounted for the largest market share as it offers new opportunities for buying and selling products. In addition, it assists in reducing the operational as well as inventory costs, which is supporting the growth of the market.

Regional Insights:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (the United Kingdom, Germany, France, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others) was the largest market for e-commerce. Some of the factors driving the Asia Pacific e-commerce market included the growing presence of various global vendors with extensive variety of products, immense adoption of high-speed internet along with the availability of 5G network, and the increasing online shopping activities of individuals.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global e-commerce market. Some of the companies covered in the report include:

• Alibaba Group Holding Limited
• Amazon.com Inc.
• Apple Inc.
• B2W Companhia Digital (Lojas Americanas S/A)
• Ebay Inc.
• Groupon Inc.
• Rakuten
• Walmart Inc.
• Zalando SE
   

Please note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the e-commerce market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global e-commerce market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the e-commerce industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.