Global E-Commerce Industry Market To Generate A Revenue Of USD 56 Trillion By 2028

01-Sep-2022 | Zion Market Research

The global e-commerce industry market size was worth around USD 13.1 trillion in 2021 and is predicted to grow to around USD 56 trillion by 2028 with a compound annual growth rate (CAGR) of roughly 27.42% between 2022 and 2028.

E-commerce or electronic commerce is the process of buying or selling goods which also involves the transfer of funds and data through the internet. The transactions may occur either from one to businesses or between businesses and customers. The E-commerce market has witnessed staggering growth mainly in the last two decades with the help of industry giants like Amazon and eBay. In 2011, e-commerce sales were up to 5% of the total retail sales while by the end of 2020, the market share went up to 16% of the total sales in retail.

The internet forms the backbone of the e-commerce industry through which a customer can go online, browse through the products, place an order, and transfer funds, and the seller is then obliged to complete the process by delivering the product or services ordered. In more technical aspects, when a user places the orders, the customer’s browser communicates with the server hosting the e-commerce platform. All the data related to the order will be relayed to the central computer which is also called the order manager. From here, the information is passed on to the system that manages the inventory, along with a merchant system that is responsible for payment information and a bank computer.

This data circle goes back to the order manager. The entire process makes sure that the funds as well as the store inventory are sufficiently equipped to complete the transaction. Some of the benefits offered by the e-commerce industry involve 24*7 availability of products, unlike physical stores with restricted operations hours, the speed of access is high which is directly dependent on the users’ internet bandwidth. However, there are certain disadvantages as well which include a lack of personalized shopping experience, and a longer wait time between ordering the product and receiving it.

Covid-19 helped the global market cap gain more momentum. Apart from the initial phase of complete lockdown and stringent transportation restrictions, the global market witnessed staggering growth in the latter half of 2020. This is driven by the absence of products in offline stores coupled with hesitancy amongst the general population toward visiting physical stores owing to precautionary measures like maintaining self-distancing, and protocols by stores to allow shoppers who were completely vaccinated. These factors led to a general shift of preference toward online shopping

Global E-Commerce Industry Market

The global e-commerce industry market is projected to grow owing to the higher consumer database of e-commerce sites. With growing technology, as of 2022, almost all online websites cater to the needs and demands of customers even in remote locations. This is possible owing to the emergency of many delivery partners who are benefiting from the number of consumers shopping from e-commerce sites. Some of the companies have their business segment catering to the delivery of the products. With the emergence of e-commerce, many domestic players now have access to a selling platform.

Small-scale business owners may not be financially capable of opening physical stores or running their websites, which is when e-commerce platforms act as a boon to such producers of service providers. The global market may also be propelled by the number of offers that online sites run making the online shopping process more lucrative for end consumers. Typically e-commerce websites have more products as well as better seasonal offers than brick-and-mortar stores resulting in higher consumer traffic.

The concerns related to seller authenticity may restrict the global market growth whereas technical upgradation by service providers is expected to enhance growth opportunities. The cyber-security threats may challenge global market growth

The global e-commerce industry market is segmented based on the mode of payment products, business model, site-type, and region.

Based on the mode of payment, the global market is divided into digital cards, cash, net banking, and others. The global market generates the highest revenue from the digital cards segment. As per CCBill.com, more than 82% of the American population prefers to use digital cards like credit & debit cards to make online purchases.

Based on products, the global market is divided into electronic, fashion, healthcare, household, food & beverages, clothing, and others. The global market was dominated by fashion products in 2021. Inditex, a global fast-fashion brand, made over USD 8.25 billion in online sales. A growing number of brands now preferring to sell more items online either via their website or by collaborating with other e-commerce giants is expected to aid segmental growth.

Based on the business model, the global market segments are vertical and horizontal. Vertical e-commerce sites are platforms that specialize in product categories and sell only one type, for instance, HealthKart, India’s number one online supplement seller. Amazon.com is the world’s most famous form of horizontal e-commerce dealing with a wide range of products on its site. As of 2022, the market value of Amazon is USD 1357.65 trillion.

Based on site-type, the global market is segmented into domestic and international. Generally, consumers prefer to buy from domestic sites, however, given the restricted number of available options, many people also prefer to shop from international websites, however, the final cost of the products increases when bought from international sellers owing to the addition of custom duties. For example, for gifts that are between £135 and £630, a customs duty of 2.5% is levied on them.

The global e-commerce industry market is expected to witness surging growth in Asia-Pacific mainly because of the booming e-commerce sector in India, China, Japan, South Korea, and others. By 2026, the Indian e-commerce market may generate a market value of USD 200 billion as per the Indian Brand Equity Foundation. This is mainly due to the extensive support of the government in making India's e-commerce sector one of the largest in the world. For instance, 100% foreign direct investment is allowed in business-to-business e-commerce.

The recent increase in digital literacy is expected to become a major contributing factor toward regional growth. Many brands in the Asia-Pacific regions are now collaborating with intercountry e-commerce companies to expand their product portfolio and they are mainly targeting to reach customers via online modes instead of opening physical stores owing to the cost-effectiveness of the method. Growth in North America is anticipated to be aided by the advanced economy and the presence of market giants in the US. Higher online shopping trends in the region may contribute to North America growing at a high CAGR.

The global e-commerce industry market is dominated by players like Amazon.com Inc., B2W Companhia Digital (Lojas Americanas S/A), Apple Inc., Groupon Inc., Walmart Inc., Rakuten, Zalando SE, Alibaba Group Holding Limited, and Ebay Inc., etc.

Recent Developments:

  • In May 2020, Shippit, Australia-based e-commerce, and logistics company managed to raise USD 22 million in funds in the Series B equity funding conducted by Tiger Global. With the raised funds, the company plans to expand in the Southeast Asia Market and increase its employee database with an addition of more than 100 employees.
  • In May 2022, eBay and Oneof, a platform for the non-fungible token (NFT) across sports, music, and lifestyle industries, entered a collaboration. With this move, eBay has launched a series of distinctive NFTs and aims to provide an enhanced user experience of buying and selling high-value items with complete confidentiality.

Browse the full Global E-Commerce Industry Market By Products (Electronic, Fashion, Healthcare, Household, Food & Beverages, and Others), By Mode of Payment (Digital Cards, Cash, Net Banking, and Others), By Site-Type (Domestic, and International), By Business Model (Vertical, and Horizontal), and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022 – 2028. Report at https://www.zionmarketresearch.com/report/e-commerce-industry-market

The global e-commerce industry market is segmented as follows:

By Products

  • Electronic
  • Fashion
  • Healthcare
  • Household
  • Food & Beverages
  • Others

By Mode of Payment

  • Digital Cards
  • Cash
  • Net Banking
  • Others

By Site-Type

  • Domestic
  • International

By Business Model

  • Vertical
  • Horizontal

By Region

  • North America
    • The U.S.
    • Canada
  • Europe
    • France
    • The UK
    • Spain
    • Germany
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

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