What’s the first thing that pops into your mind when you contemplate ecommerce? Is it borderless business? Maybe international online retail with names like eBay, AliExpress and Zalando! Perhaps, international payment gateways! You know the PayPal, Adyen, and more. As you can see peeps, electronic commerce is many things. Ever wondered what ecommerce isn’t? That’s an interesting and intriguing question. A real head-scratcher if you ask me.
One thing is for sure, though- online commerce is not a luxury anymore. It’s also not one strategy among many. Nowadays, becoming an online business with a vibrant presence is a necessity. No longer a choice!
Unfortunately, digital commerce is also fraught with many questions. Need some examples? Sure! Where to invest your hard-earned dollars? What countries or regions present the most suitable product-market fit? Perhaps, more importantly, how do you attract and engage non-local buyers? You may also wonder which is most important. Is it currencies, translation, payment options, or maybe something else entirely?
As a savvy entrepreneur or future business mogul, you should be looking for novel ways to increase your sales revenue and rake in more dollars. I mean, who doesn’t want to take their business enterprise to new heights? If you would like to expand your presence and reach new customers, online commerce should definitely be on your radar. Why is that so, you may think? It is a no-brainer- by pairing a robust and vibrant web presence with the best electronic commerce platforms, you’ll be able to broaden your offerings. The result? You can increase your reach, engage new consumers, and even remain open 24/7.
The world is becoming increasingly borderless with digital nomads and global supply chains. So, it’s high time to grow your operations and expand your startup or small business with the sheer power of global e-commerce. And to help you out in your business endeavors, this article will discuss and explore key electronic commerce trends and stats. We’ve the scoop on the mind-blowing stats and latest developments that’ll keep your small business or company lightyears ahead in the online commerce universe.
What is Global e-commerce?
In plain-speak, global e-commerce or digital commerce entails using electronic commerce platforms to purchase and sell products or services online. These services and goods include:
- Physical goods – Electronics, home goods, clothing, food, and beverages are all popular items sold through international e-commerce.
- Digital goods – Software, e-Books, music, and movies.
- Services: Travel, financial services, and education are also increasingly being sold via global e-commerce.
Suppose you are an SME selling locally. With digital commerce, you can easily and quickly tap into online retail, taking your products or services overseas. You can sell in non-native markets via online sales, advertising, and marketing. Whew, that’s impressive!
So, what are the benefits of international ecommerce? I mean, why should you try it?
- Easier and quicker expansion into foreign markets
- Shorter and more efficient B2B sales cycles
- Quickly build an international presence
- Fewer barriers to entry
Here’s an example of how online commerce can work wonders for your business. Assume you have a small coffee shop in Australia. You could use global e-commerce to sell your coffee beans to customers in the US and Europe.
Increasing Popularity of Electronic Commerce
No doubt, the internet and global connectivity revolutionized the way we shop. Plus, COVID-19 kicked e-commerce into overdrive. For instance, before the pandemic, online grocery delivery was a niche service. But the coronavirus pandemic has made it a mainstream option. So, many consumers now use online grocery delivery to avoid a trip to the grocery store. Are you one of them? Probably! Think of it as the digital highway got an express lane during the pandemic. Lockdowns pushed everyone to click and shop from the safety and convenience of their screens. Talk about convenience and flexibility!
As a result, online platforms like Etsy are now a common place for the masses to turn to do their shopping. People used to watch TV and listen to the radio for entertainment in the past. Now, most folks watch TV shows and movies online. You are probably one of them. They also listen to music on streaming services like Spotify.
The more humans use tech in their daily lives, the more they want to use it to shop too. People like to keep their lives digital. And guess what? Online commerce makes that possible. For instance, if you’re used to streaming movies online, you’re probably also used to ordering food delivery online. I mean it is ubiquitous now! Similarly, if you manage your finances online, you will probably prefer shopping for clothes or bags online. It creates a ripple effect. But folks, there is another reason for the widespread growth of online retail. What is it? The convenience and ease of payment methods! Think Braintree, Sage Pay, Payoneer, and the like!
Popular payment gateway integrations offer multiple payment options. They also facilitate global e-commerce with nifty features like currency conversion or fraud protection. Some examples of popular payment gateway integrations that provide multiple payment options and facilitate global e-commerce are:
- Stripe
- Braintree
- PayPal
- Worldpay
- Adyen
Global E-commerce Stats – The Numbers will Wow You!
Trillions on the Horizon
Business owners, brace yourself for the big bucks! The international e-commerce market is set to hit a jaw-dropping $6.3 trillion in 2023 [Sources: eMarketer and Business Insider]. Wrap your head around that number! That’s not a typo – trillion with a ‘T.’ The middle class in emerging markets is expanding rapidly. What is the impact? This is creating a new group of consumers with disposable income who are interested in shopping online.
Next, novel e-commerce technologies, like artificial intelligence, are improving the shopping experience. The world is shopping online like never before, and the numbers reflect that.
Mobile Mania
Phones out, thumbs ready! In 2023, a whopping 60% of all e-commerce sales will happen on mobile devices [Source: Retail Dive]. Not too shabby, right? Consumers are also increasingly using social media platforms like Insta to discover and purchase products. It’s not merely a trend; more like a mobile shopping revolution. Your customers are scrolling and clicking away on those tiny screens – make sure they find your goodies and services!
E-commerce Sales are Expected to Soar
Did you know that 20.8% of retail purchases are expected to occur in 2023 [Source: Forbes]? So, it’s not surprising that e-commerce sales will increase too. I mean, that’s intuitive and logical! With more and more folks shopping online, your business or startup can sell more, earning more as a result. Looking to boost your revenue by a substantial percentage? Maybe you would like to transform your business from a startup to a colossal organization. In both cases, electronic commerce can help.
Snap, Shop, Share
Social commerce is undoubtedly on the rise. Plus, 20% of consumers are expected to hit that ‘buy’ button via social media in 2023 [Source: Shopify and Statista]. That’s nothing short of impressive! For example, Instagram and TikTok allow businesses and startups to create shoppable posts and videos. TikTok has become a popular platform for social electronic commerce. Need an example? You got it!
The beauty brand Huda Beauty boasts more than 50 million followers on TikTok [Source: Forbes]. From Insta-inspiration to TikTok hauls, the modern shopping journey is getting more social. Are you in the game?
eBay, Walmart, and AliExpress – The e-commerce Superheroes
There are numerous e-commerce websites and platforms. But eBay, Walmart, and AliExpress come on top in the popularity department. As of December 2022, Walmart.com took the crown with about 854.9 million monthly visits [Source: Forbes]. Kudos to Walmart for being the internet’s go-to shopping hub!
Coming in the second place was eBay.com, generating a whopping 669.5 million visits [Source: Statista]. Finally, AliExpress.com received the 3rd place with nearly 651.9 million visits. This is not surprising, though—these online giants offer everything from A to Z, literally! Also, some other commonly visited online commerce websites include Samsung.com, Etsy.com, PlayStation.com and BestBuy.com.
AR/VR Takeoff Big-Time
Are you ready for a virtual shopping spree? Around 10% of consumers are predicted to use AR/VR to shop online in 2023 [Source: Gartner]. Why this increase, you may wonder? More people are now using various AR/VR devices. This makes it simple to shop online using AR/VR technologies.
For instance, Sephora offers an AR application that allows consumers to try on makeup virtually. Similarly, IKEA offers an AR app that allows consumers to visualize its furniture in their own homes. It’s like bringing the mall to your living room. Your products should also be AR/VR-ready.
Chinese Dominance
Again, not a huge surprise! China is leading in global ecommerce sales as per the International Trade Association. It accounts for more than 50 percent of all retail sales worldwide [Source: International Trade Association].
How is the UK Faring
After the US and China, the third-largest online commerce market is the UK, taking up almost 4.8% of the total retail ecommerce sales share. Also, the United Kingdom is forecast to achieve more than $143.8 billion in online commerce sales in 2023 [Source: Statista].
Subscription Nation
Subscription services like Netflix, Blue Apron and Spotify, are the cool kids at the e-commerce party. By 2023, 15% of consumers are expected to be part of the subscription club [Source: McKinsey & Company]. Here is an example. Dollar Shave Club is a rad subscription service that delivers razors and many other grooming products to customers on a regular basis. Are you offering subscription options? You have to if you would like to succeed in the future.
The Mighty 91% Conquering E-Commerce with Smartphone
Whoa, 91% of folks unleashing their shopping spree powers with smartphones [Source: Statista]! That’s like a huge army of mobile-savvy shoppers conquering the online marketplace. People are using these devices for everything from staying connected with family and friends to checking the news, weather, and shopping online. Note to self: Make your website mobile-friendly or risk losing the attention of the thumb-scrolling generation! You don’t have the latter option.
Green is the New Black
Sustainability is not just a cool phrase or buzzword; it’s a movement. In 2023, a whopping 25% of customers will choose brands committed to ethics and sustainability [Source: Deloitte]. Consumers are increasingly concerned about climate change, global warming, and the impact of their consumption on the environment. Take the example of Everlane. It is a clothing company that is well-known for its transparency as well as ethical manufacturing practices. Are you on the eco-friendly bandwagon?
Global E-commerce Extravaganza- What are 2023’s Hot Trends!
What are the top electronic commerce trends in 2023? Want to know what’s cookin’? Here’s the scoop.
Social Commerce Spectacle
Ever imagined you could shop straight from Instagram, TikTok, and Facebook? Social commerce is the cool kid on the e-commerce block, and is already having a major impact on the online commerce industry. Social commerce sales increased 34.4% in 2022 to a massive $ 53 billion because of nifty platforms like Facebook, Tiktok, Instagram, and Pinterest. Plus, in major markets like China, 84 percent of Chinese consumers shopped on various social media platforms in 2022.
Social media platforms like Facebook make it simple and convenient for consumers to discover new products and brands. That’s not all, though.
They allow consumers to interact with brands and even other consumers before making a purchase. That’s convenient! Imagine scrolling through your feed, spot something you love, and voila! It’s in your cart. Convenient much?
Personalization Wonderland
Did you ever feel like an online store just gets you? Why is that? It is the magic of personalization. For example, Amazon and eBay recommend products to customers based on their past purchases. They also consider other factors like browsing history, and ratings. Spotify is along the same lines and uses a recommendation algorithm to suggest music to each user.
Using data to tailor your shopping experience, it’s like having a personal shopper in the digital world. Recommendations, suggestions, and campaigns catered just for you. Can you ask for more? Talk about feeling special!
AR/VR Adventures
Step into the future confidently with Augmented Reality (AR) and Virtual Reality (VR). You can use these technological marvels to create immersive and engaging shopping experiences. Picture trying on that fancy dress virtually or placing furniture in your room before buying! While in their infancy, AR/VR can add a sprinkle of magic to the online shopping experience. A recent Google Consumer AR Survey showed that more than 65% of people are interested in leveraging AR for shopping assistance.
AR has been used in many areas. Some examples are cosmetics, fashion, style, and home decorations. It is done by using 3D models of the products. This allows users to get a better feel for the item without having to see it in person. It’s still early days, but the potential is jaw-dropping. No two ways about it!
Cross-Border Shopping Boom
Are you prepared for a global shopping spree? Cross-border e-commerce transactions will surge in 2023. Consumers are now exploring beyond borders. This is because of the increasing availability of affordable and dependable international shipping options. Another reason is the high popularity of online marketplaces like Alibaba. So, are you ready to cater to an international audience?
Subscription Sensation
Who doesn’t love a good surprise in the mail? Subscription services are typically used for products that consumers need or use on a regular basis, including groceries. Other examples are beauty products and pet supplies. These services are the cool cats of convenience. Regular deliveries of goodies you love, from food to makeup products. The hype is real, and it’s expected to skyrocket in 2023.
Fastest-Growing Markets
Who are the speed demons of e-commerce growth in 2023? India, Indonesia, and Vietnam! The race is on, and these countries are leading the pack. These nations are home to a growing middle class with increasing disposable incomes. Plus, there has been a rise in the internet penetration rate. Did you know that the Vietnamese e-commerce venture Tiki saw its revenue increase by 130% in 2022?
On the other hand, the Indonesian government has introduced the e-Commerce Roadmap. This outlines a number of initiatives to support the growth and expansion of the e-commerce sector. So, why not consider these hotspots for expansion and rake in top bucks?
Concluding Remarks – The Future of E-commerce Awaits!
So there you have it, techy entrepreneurs! The global e-commerce landscape is changing, filled with exciting trends and stats that can shape your business’s destiny. AR, VR, subscription services, omnichannel marketing, and social commerce are just a few examples. So, keep your eyes on these developments and embrace the numbers. Don’t just ride the digital wave when you can lead it!
Want to stand out in the next competitive decade of electronic commerce? You must continuously monitor industry trends, emerging technologies, and consumer behaviors. This will help you stay ahead of the competition. By tracking these trends and statistics, your businesses can make informed and prudent decisions. Get ready for a journey where every click could be a discovery, every sale a triumph, and every trend a chance to shine in the digital limelight. Happy selling!
