With over 20% of the world now making the majority of their purchases online, there is no wonder why more businesses are turning to e-commerce as a major part of their operations.
Business owners worldwide are beginning to understand the value of incorporating e-commerce as a part of their operations strategy. Business owners benefit from e-commerce operations and increase revenue by reducing the costs of maintaining brick and mortar based stores, employees, and inventory to name a few.
Major online retailers have been dominating the headlines as they continue to revamp and implement various strategies to improve their businesses.
In the e-commerce industry already, or are you a beginner and not sure which markets to invest your time in? Here is a categorical breakdown of emerging e-commerce markets around the globe!
Top Competitors We Know
Global e-commerce retailers are also getting their fair share of the e-commerce pie.
China’s number one retailer, Alibaba, also happens to be the largest online e-commerce retailer in the world. This rapidly growing e-commerce market is currently reporting an exponential growth rate at a whopping 27% per year. Alongside China are some large competitors, including:
United States - Market Value: $547.690 million
United Kingdom - Market Value: $91.750million
Japan - Market Value: $86.125 million
*Market values are based on estimated annual e-commerce revenues represented in US Dollars. (USD)
These markers prove over and over to be successful and ever-growing. Odds are, you are already, or are thinking, of investing your time and goods into these markets. But where can you put your products to give you that competitive edge?
Up and Coming Markets
The following markets which include globally distributed nations, regions, and countries are leading the pack when it comes to e-commerce market share.
All of the major players listed here are currently experiencing exponential growth in the areas of market penetration, annual revenue, and mobile e-commerce.
Let’s take a look at each of these emerging global markets in detail.
The Indian e-commerce market has achieved a steady annual growth rate of 23% and has also reported the largest jump in internet users among all global e-commerce markets. India is expected to experience a steady growth rate and experts report that this region is expected to grow its market share by more than 10% within the next few years.
India’s e-commerce data (2019)
India e-commerce Market Value: $32.348 million (USD)
Anticipated Annual Growth Rate: 17.8% through 2023
E-Commerce Advantage: Internet User Growth
The Indonesian e-commerce market is rapidly gaining on its global competitors in the area of mobile e-commerce. Indonesia reports a staggering 70% of mobile users that are now completing the majority of their purchases online.
This region is expected to experience a steady annual growth rate of 10.3% until 2023. With the major advantage that Indonesia has by its heavy use of mobile e-commerce, competitors will do well to take notes from this innovative adversary.
Indonesia’s e-commerce data (2019)
Market Value: $11.13 million (USD)
Anticipated Annual Growth Rate: 10.3% through 2023
E-Commerce Advantage: Mobile E-Commerce
3. The Netherlands
The Netherlands e-commerce market is also growing rapidly and furiously. The Netherlands boasts a monumental e-commerce market penetration of 90%.
This high-level of market penetration is a huge indicator that Netherlands consumers are fully on board with online shopping for their goods and services and are looking for more of the same in the future.
The Netherlands is another key player to watch (and take notes from) when it comes to the topic of emerging e-commerce markets around the globe.
Netherlands’ e-commerce data (2019)
Market Value: $16.780 million (USD)
Anticipated Annual Growth Rate: 7.2%% through 2023
E-Commerce Advantage: Market Penetration
This country has a massive amount of consumers online with an estimated 82% internet penetration. Three out of every five users in the region are reported to be online shoppers. With the latest advancements in e-commerce and internet technology, Singapore is poised to be a major contender in the e-commerce world within the next few years.
Singapore’s e-commerce data (2019)
Market Value: $4.89 million (USD)
Anticipated Annual Growth Rate: 14.7%%
E-commerce Advantage: Market Penetration
Brazil is estimated to be the 8th wealthiest country in the world and boasts a record number of online shoppers with a population of over 200 million. Not only does Brazil have an exceptionally large population it has been reported that one out of every two users is now shopping online in Brazil. According to research, Brazil is projected to have an online market penetration of 94 million users. Brazil is a country that is definitely poised for (and can afford) rapid e-commerce expansion.
Brazil’s e-commerce data (2019)
Market Value: $15.955 million (USD)
Anticipated Annual Growth Rate: 7.2%% through 2023
E-commerce Advantage: Wealth, Population
Basically, today’s online shopper is now capable of logging in online and purchasing virtual every good, product, service, or meal that anyone can think of. The convenience factor of e-commerce is a major selling point for online consumers.
Shopping online saves customers time and money that would normally be spent traveling to their desired retailer, selecting their desired products and then transporting them to their desired location.
Savvy online retailers are now also providing value-added services for online shoppers including the best benefit of all which is no more long drives to reach your favorite stores or stores that only operate within a specific region.
Online shoppers now have instant access to purchase the everyday goods and services that they love from their favorite retailers (from the comfort of home.)
Growth Factors Influencing Global E-Commerce Markets
The Internet - The internet is providing e-commerce retailers with unprecedented access to customers. Not only are e-commerce brands able to reach a vastly larger customer base than ever before on their websites, but brands are also now able to communicate with their customers 24 hours a day in real time via the following channels.
1. Social Media
2. Chat Applications
5. Live Video
6. Mobile E-Commerce
7. Social Marketing
Marketing - E-Commerce retailers are becoming savvy marketers and using digital marketing tools to reach customers where they are. Wherever that happens to be. E-commerce retailers are able to take advantage of the unlimited reach that digital marketing provides and respond to direct customer inquiries and product feedback almost instantaneously.
Wealth - As individual wealth increases in all of these emerging markets so does the amount of consumer spending. Consumers who have been able to accumulate more wealth via the internet are not afraid to reward themselves with virtual online shopping sprees.
Customers are no longer limited by the boundary of distance and don’t mind paying the associated costs with ordering imported goods from any or all of the above retailers listed above.
Are also having a major effect on the rate of growth of these emerging markets. The majority of major players and influencers in the e-commerce industry have upped the ante by providing consumers with almost instantaneous delivery.
US retailers like Amazon are in heavy competition to deliver more products to their e-commerce even faster. Both of these mega online US retailers now have options for customers to order expensive or heavy items like furniture and receive them within 1 day or even the same day in certain areas with zero charges for delivery.
E-Commerce retailer reach is growing ever longer and stronger by the day. Retailers are now able to connect with and engage with a myriad of qualified customers who are ready to buy regardless of price or location.
The common trend among all major e-commerce retailers regardless of their region is selling more products and delivering even them faster, with the least amount of inconvenience to online shoppers.
This high-producing strategy is working as the logistics and convenience of online shopping coupled with lightning fast (and sometimes even free) delivery make it even more of a pleasure for customers to skip going to the store and instead happily logon to spend billions of their dollars online.