Several factors determine how much e-commerce will grow. These include retail category and price point. Generally, e-commerce growth is higher in soft goods such as apparel and electronics than in other types. Conversely, e-commerce growth is slower in health and beauty and off-price retailers. Nevertheless, new technologies and innovations could make buying products online more convenient and affordable across all categories.
Amazon will continue to dominate the e-commerce market.
As the e-commerce industry continues to proliferate, Amazon continues to increase its revenue and gross merchandise volume. Analysts expect the company to reach $33.7 billion in gross merchandise volume by 2023, up from $12.1 billion in 2017. In the B2B eCommerce market alone, Amazon is expected to capture 10 percent of the market by 2021. But there is one major hurdle that Amazon must overcome to maintain its dominant position.
Despite Amazon’s challenges in recent years, the company has managed to maintain its dominance. Its share of online retail sales grew from 23.1% in 2014 to 35.7% in 2017. This is a significant growth rate, as Amazon’s market share is expected to reach 50% by 2023.
The company strives to cut the time it takes for goods to reach the doorsteps. To do this, Amazon is expanding its fleet of Boeing 767 jets, which will total 85 by the end of 2022. In addition, Amazon has added drone delivery services and Amazon Delivery Service Partners to streamline its delivery processes further.
Amazon has always been known for aggressively doing things that are not conventional, and this is no different now. For example, it has teamed up with movie star Farrah Abraham to produce an Amazon Original movie for its Prime members. Although the film won’t be a big hit, the deal shows that Amazon is making headway in the entertainment industry.
While Amazon continues to expand its retail business and dominate the e-commerce market, there are some concerns. For example, counterfeiters constitute a significant problem in the e-commerce market. For that reason, Amazon is taking measures to combat counterfeiters. It also provides a brand registry service to ensure that product listings are authentic. In addition, the company has premium business tools to help businesses manage counterfeit.
The eCommerce market is increasing in Western Europe. In Western Europe, eCommerce sales are growing the fastest, with the United Kingdom leading the way with nearly $93 billion. By 2023, sales in Western Europe are expected to grow by 31.5%, according to the most recent tracked data. However, eCommerce growth rates are lowest in the Middle East and Africa, where internet penetration is low. In 2023, the US and Asia-Pacific region will be the two largest markets for e-commerce sales.
Mobile commerce has become a powerful way to connect with customers. It is fast, convenient, and secure. It is a growing trend among consumers who want to buy products from the comfort of their own homes. For companies looking to capitalize on this trend, developing apps, creating mobile-friendly websites, and supporting mobile payment methods such as secure mobile wallets and in-app advertising is vital. In addition, intelligent voice shopping will be a growing trend shortly. Major online retailers have already started offering voice shopping to their customers. With over 30 percent of internet users using voice assistants for shopping and searching, this technology will become more popular.
By 2023, mobile commerce will account for about 24% of global eCommerce sales. It will be a growing part of the overall eCommerce market and affect every industry worldwide. By the end of this year, eCommerce will be a trillion-dollar industry, according to a recent report from Adobe.
The growth of mobile commerce can be attributed to the popularity of mobile internet access. Almost half of the smartphone users use their phones to access the internet. As a result, consumers are willing to swap their desktops for small gadgets. As a result, brands have responded by launching mobile shopping applications that offer easy browsing and a hassle-free checkout process. Similarly, banks are introducing banking apps to meet mobile users’ demands.
Using m-commerce technology will increase the customer experience and boost customer loyalty. Mobile apps are constantly visible on consumers’ mobile screens, and push notifications, and loyalty rewards can encourage them to return to a site or brand. Additionally, digital wallets are becoming a vital part of commerce. Using mobile wallets, consumers can make purchases without using their credit cards.
The advancement of AI is also a significant trend that will influence eCommerce. AI is expected to impact customer service, fraud prevention, and personalization significantly. It will also give businesses the ability to forecast demand better and improve customer experience. Chatbots and personalized recommendations will also improve customer service.
In a tough economy, retailers are striving to reduce costs. One way to achieve this is by utilizing flexible fulfillment services. These solutions can help companies cut costs and improve customer satisfaction. This trend is predicted to continue into 2023. E-commerce businesses should develop and implement scalable and robust cloud services to take advantage of this trend.
The eCommerce market has become highly competitive, with online marketplaces gaining popularity. One of the most notable examples is Amazon, which has achieved mass adoption and recorded sales by adopting a unique growth strategy. By offering customers a wide range of products, Amazon has scaled rapidly and efficiently. In 2017, Amazon had third-party sellers account for 56% of paid units. As a result, retailers must be ready to implement new ideas and strengthen existing relationships with suppliers.
The need for third-party fulfillment solutions will grow as more consumers switch to online shopping. Brilliant Insights states that global online spending will reach $3.5 trillion by 2020 and exceed $4.2 trillion by 2023. By that time, eCommerce sales will increase by fifteen percent annually, further increasing the need for third-party warehouses. These companies are well-positioned to take advantage of this trend and create a more flexible fulfillment model.
With online shopping, shipping and delivery have become a significant battleground between traditional retail and eCommerce firms. The market leaders invest in placing distribution centers near sources of demand and employ their last-mile fleets, enabling them to make delivery promises that traditional retailers can’t match. According to a study by Kearney, consumer expectations are rising for speedy delivery. With this in mind, retail groups will increasingly use their stores as distribution centers.
With the rise of subscription commerce, fulfillment will become much more convenient for consumers, eliminating the need for manual ordering and delivery. Additionally, customers can now choose where they pick up their purchases. Another new trend that is expected to grow is buy-online-pickup-in-store (BOPIS). This unique delivery option allows customers to buy online and pick them up at a local physical store. In 2023, BOPIS will be a $703 billion market.
The growing awareness of consumers’ environmental impact drives more businesses to adopt green practices. Consumers also want to buy from companies with high values and purpose. 65% of buyers want to support purpose-driven brands and businesses. Ecommerce brands must take steps to help this growing trend.
Social media has become a significant hub for connecting and socializing, and it’s also an excellent platform for brands to reach their target audience. On some social networks, eCommerce sellers can even sell directly to consumers through social media posts, videos, influencers, and paid advertisements. Sustainability also influences customer choices, and adopting environmentally sound practices can give eCommerce sellers a competitive edge.
Retailers are making a concerted effort to go green and become more sustainable. Some have taken the necessary steps to become LEED-certified stores, while others have taken other measures to improve the flow of materials throughout their supply chain and society. For example, Starbucks has committed to building 10,000 “Greener Stores” globally by 2025.
Despite the shaky economy, the eCommerce market is expected to reach USD 9.09 trillion by 2023, with a compounded annual growth rate of 14.7% from 2020 to 2027. The growth of eCommerce is attributed to the growing number of internet users and the increasing penetration of smartphones worldwide. Moreover, the increased use of smartphones has increased technological awareness and the development of connectivity.