The rise in the popularity of ecommerce businesses has been nothing short of astounding. In 2012, ecommerce sales amounted to around $231 billion and by 2020 it is predicted that this number will have risen to more than $1 trillion. This article takes a closer look at the growth of ecommerce and how it’s likely to change over time – for better or for worse.
What is ecommerce?
Ecommerce is the buying and selling of goods or services over the internet. It covers a wide range of businesses, from online retailers to businesses that sell their products and services online.
The ecommerce industry has seen significant growth in recent years. In 2017, global ecommerce sales reached $2.3 trillion, and it is projected to reach $4.5 trillion by 2021. This growth is being driven by a number of factors, including the increasing popularity of online shopping, the proliferation of mobile devices, and the rise of social media.
There are a number of different types of ecommerce businesses, including:
• Online retailers: These businesses sell products or services online through their own websites or through third-party platforms such as Amazon or eBay.
• Business-to-business (B2B): These businesses sell products or services to other businesses over the internet.
• Business-to-consumer (B2C): These businesses sell products or services directly to consumers over the internet.
• Social commerce: This type of ecommerce takes place on social media platforms such as Facebook, Twitter, or Instagram. Businesses use these platforms to connect with potential customers and promote their products or services.
How has ecommerce grown in recent years?
In recent years, ecommerce has grown rapidly. In 2017, global ecommerce sales reached $2.3 trillion, an increase of 24% from the previous year. This growth is expected to continue, with ecommerce sales reaching $4.5 trillion by 2021.
There are several factors driving this growth. Firstly, the number of people with access to the internet is increasing. According to the UN, there are now over 3 billion internet users, an increase of 7% from 2016. This means that more people than ever before have the potential to buy online.
Secondly, the number of people buying online is increasing. In 2017, 1.66 billion people made an online purchase, up from 1.32 billion in 2014. This growth is being driven by a number of factors including the increasing popularity of mobile devices and the rise of social media commerce.
Thirdly, average order values are increasing as shoppers become more confident buying online and are willing to spend more money per transaction. In 2017, the average order value for global ecommerce was $128, up from $107 in 2014.
Fourthly, the range of products available online is expanding as businesses move beyond selling physical goods to include digital products and services such as travel bookings and streaming subscriptions. This diversity is making it easier for shoppers to find what they want online and driving further growth in the ecommerce market.
Finally, delivery times are improving as logistics companies invest in new technologies such
What are the predictions for 2020 and beyond?
There are many predictions for 2020 and beyond when it comes to ecommerce growth. Some believe that there will be a continued rise in popularity of online shopping, as more and more consumers become comfortable with making purchases through the internet. This could lead to even more businesses investing in ecommerce platforms and capabilities, in order to better meet customer demands. Additionally, mobile commerce is expected to grow significantly in the next few years, as shoppers continue to turn to their smartphones and tablets for convenient online shopping experiences. This could present new challenges and opportunities for businesses, as they strive to provide optimized mobile shopping experiences for their customers. Ultimately, the future of ecommerce is difficult to predict, but it seems likely that we will see continued growth and evolution in the way that people shop online in the years to come.
What should you know about marketing, technology and security as an ecommerce entrepreneur?
As an ecommerce entrepreneur, it’s important to stay up-to-date on the latest marketing, technology and security trends. This way, you can ensure that your online store is always ahead of the curve and able to compete with other businesses in your industry.
Here are a few things to keep in mind when it comes to marketing, technology and security for your ecommerce business:
- Marketing Trends
Keep an eye on the latest marketing trends so that you can adapt your strategies accordingly. Some of the most popular marketing channels for ecommerce businesses include social media, email marketing, search engine optimization (SEO) and content marketing.
- Technology Trends
The world of technology is constantly evolving, so it’s important to stay on top of the latest trends. This way, you can make sure that your ecommerce store is using the best and most efficient technologies available. Some of the most popular tech trends for ecommerce businesses include artificial intelligence (AI), chatbots, voice search and Augmented Reality (AR).
- Security Trends
When it comes to security for your ecommerce business, there are always new threats emerging. It’s important to stay up-to-date on the latest security trends so that you can protect your business from these threats. Some of the most common security threats faced by ecommerce businesses include cyber attacks, data breaches and fraud.
Conclusion
The future of ecommerce is looking bright, with growth expected to continue at a rapid pace. This is good news for businesses of all sizes, as it provides opportunities for increased sales and expanded reach. For consumers, it means more choice and convenience when shopping online. With the right strategy in place, businesses can capitalise on this growth and position themselves for success in the coming years.
