The value of e-commerce has increased tremendously this year!
With the lockdowns that started in March this year, more and more businesses are re-thinking their business strategies because consumers have changed their way of purchasing products from going to physical stores to e-commerce or online shopping. But how much has it grown,
and what is the value of the industry this year?
To better explain this, let us start with the data from 2019. The total E-commerce worldwide sales last year was approximately 3.535 trillion U.S dollars. It was projected to reach roughly 4.206 trillion U.S. dollars in 2020.
So, what happened?
Harley Finkelstein, COO of Shopify said, “The projection of E-commerce in 2030 is pulled in 2020”. Shopify is one of the e-commerce companies that is gaining a huge profit this year. The said Canadian- based E-commerce platform had jumped its revenue up to 73% in just four weeks after the Australian Government announced the lockdown in mid-March. This claim was backed up by Amazon. As one of the worldwide top E-commerce companies, Amazon’s global sales are expected to reach $416.48 billion this year. Due to the fear of the spread of coronavirus, consumers have been heavily dependent on E-commerce rather than
visiting brick-and-mortar stores. As a result of Covid-19, there has been an increase of 24.3 % YOY sales growth in the first quarter of 2020 in comparison to 9.5% during the first quarter of 2019. (source: Business Insider)
Additional data released by eMarketer also reveals that a total of 3.914 trillion USD in Ecommerce sales were generated worldwide as of May 2020. This was dominated by the Asia-Pacific region and North America. This was followed by Eastern Europe and is forecasted to increase at roughly 8,1% percent for the calendar year.
Other Key Points that you need to know.
- In June 2020, worldwide retail e-commerce recorded 22 billion monthly visits.
- More than 65% of E-commerce traffic comes from mobile devices.
- Almost 50% of global consumers were using online payments more than before the pandemic, and this trend is forecasted to continue even post-coronavirus.
Ecommerce as part of the “New Normal”
Some countries are expecting another lockdown as coronavirus enters a second wave. For public safety reasons, more families are inclined to continue online shopping until potential vaccines are available. This spending behavior of families creates the new normal of purchasing goods which means the dependency on online shopping is here to stay. The $4.927 trillion amount forecasted for 2021 would likely be surpassed given the huge increase in total sales in 2020 alone.
Thinking of starting an E-commerce business?
With the right product and the right strategy, it is easy to start an e-commerce business and build your brand. Need help in setting up, reach out to our team.