Although 2020 witnessed the closure of several business and industries, the e-commerce industry is here to stay.
The E-commerce industry had quite an impact on the shopping experience of individuals, as the global pandemic forced closure of retail stores worldwide, compelling consumers to shift their shopping preferences online. However, regions across the globe have responded differently to this change thus showcasing contrasting results in ecommerce spending.
A report by Statista.com stated that in 2020 alone, retail e-commerce sales globally were expected to hit $3.9 trillion; Asia Pacific expected to be making $2.45 trillion in online sales. North America was projected to be second in line, likely to generate online retail sales of $749 billion.
Mauro Romano, CEO and Co-Founder of ArabClicks, said, “The global pandemic probably worked in favour of online businesses. With several consumers not willing to compromise on their shopping preferences, this came across as an opportunity for businesses to upscale their ventures and revamp their products and services to closely match the needs of their consumers. We are presently seeing so many businesses thriving online and I believe this trend is here to stay.”
In a report highlighting leading e-commerce retailers during the year, Statista.com listed WooCommerce as the leading e-commerce platform accumulating market shares of 28.24 percent. This was followed by Squarespace online stores with shares of 17.69 percent and Shopify making shares worth10.98 percent.
These online businesses have a strategic way of carrying out their activities that helps them conduct their business effectively and efficiently. These platforms make use of the ‘E-commerce software,’ that helps manage online activities including handling inventory, changing the visibility of products, calculating taxes and complying to various orders of customers. In 2018 alone this software application market encompassed a value around $5.1 billion and is expected to reach approximately $6.3 billion by 2023. With e-commerce industries doing exceptionally well e-commerce sales worldwide are expected to climb to a whopping $6.5 trillion by 2023.
Overtime, it has been observed that consumers find it increasingly convenient to make their online purchases using their mobile phones, with approximately 64 percent of the traffic coming through these devices. South Korea and China having experienced the highest online penetration with approximately 83 per cent of shoppers making purchases online. Some of the leading e-commerce industries today happen to be Chines companies such as Taobao.com, Tmall and JD.com. American e-retailer giant Amazon has also attracted customers due to its diverse offerings.
The digital revolution leading all nations has had its impact on the e-commerce industry as well. With consumer behaviours rapidly changing, this platform can change to accommodate the needs of the consumers, thus continuing to be the preferred mode of making purchases.