Ecommerce has never had it so good
While the controversial words of the former Prime Minister Harold Macmillan that people “have never had it so good” might have sparked debate in the 50s, the same statement is undeniable within ecommerce. It has never been better to be a buyer or seller than now.
Bolstered by lockdowns, ecommerce markets have seen phenomenal growth in the past couple of years, and this trend seems set to continue.
Let’s take a look at some of the numbers.
The UK’s e-commerce market is stronger than ever
Within the past two years, the global ecommerce market has seen significant success and record-breaking profits. Accelerated by successive lockdowns, the growth of the ecommerce industry has been unpredcented. In 2019, just 19.5% of all retail sales where completed online, compared to a staggering 35.2% just two years later in 2021. This has further been accelerated by the continued blurring of the boundaries between ecommerce and day-to-day digital life. Users are now presented with endless avenues, and businesses endless sales channels.
But, will it last?
With such an upward tick in momentum, it would be fair to question if it will continue. Experts have been hard at work crunching numbers and the opinion is that the reassuringly optimistic growth curve is set to continue. With a projected annual growth rate of 12.98% between 2021 and 2025, growth is predicted to stay strong, reaching US$285.60bn by 2025. This will be fuelled by, amongst other things, a more active consumer market, as user penetration climbs to 84% by 2025 with a revenue per user of US$3.58k.
Business is booming in Europe as well
The success of the e-commerce market in the previous few years has not been unique to the UK, the EU has also experienced crazy growth rates. With over 440 million consumers, the EU is responsible for 16% of global imports & exports. The EU is a prime location for international sellers looking to expand their business due to the low tariffs on international imports (70% entering at zero or reduced rates).
EU e-commerce growth continues
Can the same be expected from the EU e-commerce market as with the UK?
It’s a resounding yes. Total ecommerce revenue from the EU is predicted reach US$828 million in 2022, growing by an annual rate of 13.83%. Consumers are set to reach 500 million by 2025, with a penetration rate of 60%.
It’s a buyer’s AND a seller’s market
As the ecommerce market continues to grow, new opportunities are plentiful – for both buyers and sellers. Buyers have access to global goods, enormous varieties and low prices. Sellers can sell directly to consumers all over with ease. E-commerce has never had it so good.