Global E-Commerce Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Global E-Commerce Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The E-commerce market is expected to grow at a CAGR of 15.2% during the forecast period, 2022-2027. The global smartphone user population is increasing as the internet's penetration increases. Digital content, financial services, travel and leisure, and e-tailing, to name a few, are among the e-commerce possibilities available to the internet-connected client base, which is growing in popularity as internet usage rises. As a result, customers' technical knowledge is projected to impact market growth positively.

· Due to the lower cost of communication and infrastructure, established businesses and giant corporations are gravitating toward online business. E-commerce allows the organization to reach out to clients more efficiently, resulting in essential exposure to the firm. Online marketing tools such as Google advertisements and Facebook ads also drive e-commerce.

· Small and medium-sized businesses are expanding significantly, especially in India, China, South Africa, and Russia. Initiatives like Make in India and Start-up India have increased the number of start-ups that use the internet marketplace to conduct business, boosting the market growth. The absence of deployment of technical infrastructure in rural parts of nations such as India, China, and Brazil is predicted to stifle market expansion.

· As retail outlets close, customers' preference for internet shopping is increasing due to the ongoing COVID-19 outbreak. The outbreak has significantly impacted critical economies like United States, China, India, and Italy. As a result, Europe and North America are expected to impact the market significantly.

· The growth of the e-commerce sector is expected to be supported by rising internet penetration and smartphone use. Consumer tastes change towards online buying as the internet and cellphones become more widely used. According to We Are Social's particular study on Digital 2020, released in January 2020, the overall number of internet users worldwide in 2020 climbed to 4.54 billion, up 298 million or 7% from January 2019.

· Because of the growing use of smartphones and tablets worldwide, online retail continues to grow. People can shop on their phones thanks to technological advancements such as branded shopping apps, 5G wifi, and social shopping.

· On several e-commerce platforms, brands are counting on virtual shopping and experimenting with augmented and virtual reality retail. Consumers have no limits in the metaverse, a 3D virtual reality. People from all across the world can engage with products in a metaverse, irrespective of their location.

· In the e-commerce market, increasing government and company initiatives to boost e-commerce sales is a prominent trend. The Union Ministry of India announced the government's intention to develop Bharat Craft, an e-commerce web in India modeled after Alibaba, a Chinese e-commerce platform. This app is designed to give a platform for MSMEs to market and sell their products, boosting the country's economic growth.

· At the national level, government bodies improve their policies and plan to ensure long-term viability and consumer protection. High environmental and social standards will improve the countries' environmental and social norms, which will affect the viability of the e-commerce business in these countries. Adopting harsh sanctions, for example, will make it harder for companies to enter the e-commerce industry. Still, adopting lenient sanctions will make it easier for businesses to do so.

In the e-commerce business, many local and worldwide firms have expanded, resulting in fierce competition. Some of the key players are Amazon.com Inc., Alibaba Group Holding Limited, Walmart Inc., Costco Wholesale Corporation, and Shopify Inc. Product launches, high expenses on R&D, acquisitions and partnerships, etc. are the growth strategies adopted by such companies to sustain the intense competition.

· September 2021 - Amazon announced to expand its successful cooperation with Tegut to include a new delivery area and is now offering Prime members in the Kassel area the opportunity to order groceries and everyday items online from a local Tegut branch. The approximately 10,000 available products from the Tegut range include fresh, chilled, and frozen goods, organic products, regional and sustainable food and beverages, drugstore items, and pet food.

· December 2021 - Walmart in Mexico inaugurated a new Distribution Center (Cedis) located in Baja, California, investments 986 million pesos. Further, new Cedis would be able to process the entry and exit of nearly 5 million boxes per month to supply Bodega Aurrera (24), Mi Bodega Aurrera (10), and Walmart Supercenter stores. (15), and thus meet omnichannel purchase orders in the states of Baja California and Sonora.

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