The eCommerce industry is worth an estimated $55.6 trillion, with Asia-Pacific eCommerce sales forecast to exceed those of the rest of the world by 2027. Several trends are contributing to this growth, such as the rise of mobile e-commerce and the personalization of the consumer experience.
Asia-Pacific e-commerce sales are projected to be greater than the rest of the world.
Increasing middle-class populations in Asia and the Pacific are driving eCommerce growth in the region. By 2030, 3.5 billion people in APAC will be in the middle class, up from 1.5 billion in 2010. India, Indonesia, and China are projected to experience the most significant growth in the middle-class population. This rise of the middle class will boost economic growth as millions of people in the region rise out of poverty.
Asia-Pacific countries are increasingly turning to e-commerce sites for everyday retail needs. The region’s population is increasingly tech-savvy, and many households buy online for the first time. For example, 32% of Indonesians have never made an e-commerce purchase.
According to NielsenWire, the market for e-commerce services in Asia is set to surpass two trillion dollars by 2025. The region already accounts for 60% of world online retail sales. The e-commerce market in Asia is projected to double to $2 trillion by 2025, with a third coming from the region’s mobile phone population.
In the meantime, China will continue to be the leading region for eCommerce spending. It is estimated that China will account for nearly half of global retail e-commerce sales by 2020. China’s market share is projected to surpass the rest of the world in the next decade, and the total market is projected to increase by more than three-fold by 2025.
The global eCommerce market is expected to reach US$ 55.6 Trillion by 2027
The global eCommerce market was worth US$ 13 Trillion in 2017 and is expected to reach US$ 55.6 Trilliard by 2027. This growth will occur at a CAGR of 27.4% between 2022 and 2027. According to the World Bank, Kenya’s e-commerce market was worth $1.7 billion in 2014. World Bank Financial Inclusion Data shows that 72.9 percent of Kenyans use mobile money to make purchases and 26.1 percent purchase products and services online.
Ecommerce is a growing industry, gaining momentum from several factors. It provides organizations with a global reach, minimal transaction costs, and high-profit margins. It also enables fast delivery and direct communication between buyers and sellers. Furthermore, it provides the ability to collect consumer data.
While India is expected to lead the growth of the global eCommerce market in the next decade, other countries are also experiencing solid gains. The number of mobile users in India is increasing dramatically, and eCommerce revenues in South America are rising by 76 percent.
COVID-19, a disease that has impacted many economies, has also been a catalyst for the growth of eCommerce. The condition has forced many people to shift from brick-and-mortar stores to online retailers. This has led to massive purchases of sporting goods and hardware.
The growth of the global eCommerce market will be driven by increasing internet penetration, smart device usage, and omnichannel eCommerce. Consumers are increasingly shifting to online platforms for convenience, ease of use, and low prices. Increasing smartphone penetration and availability of broadband services are also driving the growth of the online retail market.
Integrated software solutions
Ecommerce software is an integral part of the online shopping process, as it allows customers to find what they are looking for quickly and easily. It also makes the website management process easy and secure, and most integrated software solutions include a service-level agreement that guarantees 100% uptime. A typical eCommerce software user’s experience begins when they visit the website and sees the products for sale. The customer then adds items to their shopping cart or creates an account to keep track of their purchases. Once the customer is ready to check out, the software enters a secure mode, ensuring the customer’s information is secure.
Businesses that utilize eCommerce software can optimize day-to-day processes through automation and ensure accurate data and inventory. This way, they can react faster to changing market conditions and stay ahead of the competition. Moreover, eCommerce software integration helps businesses avoid data duplication and focus on providing the best shopping experience for their customers.
Fully integrated eCommerce platforms include pre-built integrations with other applications, eliminating the need for third-party connectors. These platforms can communicate with other applications through an API, an intermediate service that defines a common language for the different applications. They also provide robust reporting tools.
Ecommerce software can also be used to manage customer support. It can be incorporated with an ERP system for retail and can automate various business processes, such as order management and inventory visibility across multiple channels. It also offers a CRM platform that allows businesses to keep track of customer relationships across various channels.
Mobile e-commerce is a personalization of consumer experience.
As the path to purchase becomes increasingly complex, consumers are demanding a more personalized experience from retailers. Mobile commerce allows retailers to create an immersive experience that caters to each customer. The mobile experience will enable consumers to complete small purchases in the comfort of their homes and make larger purchases while in the store.
The mobile shopping experience involves consideration elements, such as product descriptions, FAQs, customer reviews, and other content. These elements provide contextual information and elevate brands and products. The importance of content is not to be understated – it is integral to the success of mobile e-commerce. As such, more digital-smart eCommerce brands are choosing API-first content solutions. These platforms allow eCommerce retailers to increase the speed of their sites and offer developers an easy way to create custom content.
A recent study by Oxera explored the benefits and harms of vertical restraints in the eCommerce sector. The authors analyzed the impact of steep conditions on eCommerce firms, market players, and consumers. The study also examined how the proliferation of eCommerce has affected the competitive landscape.
The European Commission is currently investigating vertical restraints in the eCommerce sector. The commission investigates several companies, including Amazon, Sky UK, and six major Hollywood film studios. In addition to these inquiries, national competition authorities have investigated vertical restraints in several markets. For example, the UK Competition and Markets Authority and the German Bundeskartellamt have studied the online hotel booking market.
The reasons for vertical restraints differ but are usually based on the contracting parties’ desire to maximize profits. Some companies take active steps to ensure retailers price products at or close to RRP. Other reasons include maintaining the quality of service, preventing price erosion, and protecting the brand image.
Some vertical restraints can be deemed beneficial for consumers, while others may harm competition. Some e-commerce companies seek to aggregate the offerings of upstream firms and limit their competitors’ distribution. Such practices can restrict competition and jeopardize free riding.
The antitrust authorities have watched the eCommerce industry’s supply chain practices for several years. The antitrust authorities are particularly interested in vertical restraints, which inhibit competition but may result in measurable consumer benefits. Nevertheless, several factors should be considered when assessing whether steep conditions threaten competition in the eCommerce sector.
The traditional model of economics involves vertical restraints. The question is whether these restraints can be carried over to the digital world. This paper will examine some economic analyses and regulatory pronouncements to answer this question.