With growth rates constantly outperforming those of traditional retail, the fast increasing e-commerce business is a key factor in the global economy. As more people transfer their purchases online, the business is anticipated to develop even faster in the coming years. The introduction of smartphone technology, which has made internet shopping more comfortable for users, has contributed to this increase. E-commerce platform innovation and development will continue to fuel growth in this industry.
This is not surprising, therefore, that online marketplaces like Amazon, eBay, Flipkart, Walmart, and Alibaba have attained incredible size and are continuing to develop at an even faster rate.
Asia leads in the e-commerce sales rankings with 1.7 trillion US dollars, followed by the Americas region with 984.39 billion US dollars. Africa as a whole on the other hand, ranks last with 32.49 billion US dollars, a disparity of 1.7 trillion US dollars from Asia.
Explosive Global E-commerce Growth
The fast-growing e-commerce sector will continue to expand even more in the coming years as firms attempt to reap the numerous benefits it offers. Lower prices and speedier turnarounds are among the advantages, making it a popular alternative for small and medium-sized organizations. E-commerce businesses are extremely scalable, allowing them to expand fast in response to increased demand. This makes them ideal for companies who need to develop rapidly but don’t want to commit a large sum of money up front. Also, e-commerce systems are frequently easier and less expensive to manage than traditional shops.
According to a SkyQuest survey, huge corporations profit the most from the e-commerce sector since they can swiftly test new goods and markets without putting large expenditures at risk. Online shopping platforms can assist small businesses since they can start selling things right away without having to invest in any equipment or inventory.
Dominance of Social E commerce
With the rise of social commerce, understanding customer behavior is getting increasingly difficult. Businesses are now attempting to persuade customers by taking advantage of the social support provided by online social networks. Most importantly, social links in such online social networks promote trust as the most compelling advantage while decreasing perceived risk, which has historically been one of the key issues with electronic commerce. The purpose of this research is to better understand the influence of social commerce on consumer behavior, particularly the phases of consumer decision-making. As a result, this study was done as a quantitative study with a cross-sectional survey that gathered legitimate responses from Facebook users. To examine data and test hypotheses, structural equation modeling (SEM) was employed. The research showed that social commerce had a considerable favorable influence on all phases of customer decision-making, including need recognition, information search, alternative evaluation, purchase choice, and post-purchase decision. As a result, it highlights the significance of implementing an adequate social commerce strategy for commercial enterprises.
The Impact of COVID-19
The COVID-19 worldwide e-commerce speed started as a result of need. As stores closed and many stayed at home to prevent the illness, online shopping became a viable option. Indeed, worldwide e-commerce increased from 15% to 21% of total retail sales in 2019. It currently accounts for around 22% of total sales.
The Future
According to SkyQuest, the e-commerce market would develop at a CAGR of more than 26.55% by 2028, reaching a market worth of $58.74 trillion. Unsurprisingly, the number of internet shoppers is quickly increasing. There will be 2.14 billion online shoppers in 2021, up from 1.32 billion in 2014 and 1.52 billion in 2016 – a 28% rise in only five years! This expansion will be continued as more people use the internet to make purchases. Surprisingly, although accounting for a sizable portion of total retail expenditure (27% in 2021), e-commerce is not expanding as swiftly as traditional retail sales (32%).
This variation is possibly due to the fact that a lot of individuals still prefer traditional shops, but it is also likely due to different consumer motivations: while people shopping for clothes and household items are frequently looking for deals, those purchasing for goods such as electronics or books prefer to shop online first because they can compare prices more easily and get shipping faster than in a physical store. Furthermore, the e-commerce industry has begun to engage in artificial intelligence (AI) technology in order to tailor its content offerings and promote comparable things based on a customer’s previous purchasing history. Brands that effectively apply AI strategies find greater engagement rates on their social media platforms, which helps them acquire new consumers and retain current ones.