The booming e-commerce sector and its predicted growth by 2025

Is e-commerce dying?

The e-commerce sector is expected to account for at least a quarter of total global retail sales by 2025 and here are some reasons why you should get started.

Large companies are very slow to change, mainly due to internal bureaucracy. Small businesses don’t have this problem and can therefore change/adapt much faster. ”

— Brad Lyons, SavvySME’s Top Ecommerce Influencer

SYDNEY, NSW, AUSTRALIA, June 14, 2022 / — While the world has lived in a still traditional way for centuries, the e-commerce industry is now managing to break into the traditional sales channel. Accelerated by the pandemic, online shopping sites and apps such as Amazon and eBay in America, Taobao and Alibaba in China, and Shopee and Lazada in Southeast Asia have grown exponentially over the past two years. since the start of the COVID-19 pandemic.

In 2022, when almost all countries are becoming more stable and opening up, small business owners can’t help but think and ask on the SavvySME community platform: “Is e-commerce dead? Will it die soon?The question is about other big companies still not making money or barely breaking even, the world is opening up and going back to how it was before the pandemic.

SavvySME’s Top Ecommerce Influencer Brad Lyons says he’s not dying because anyone can set up a store on different platforms for free; the problem is that people try to sell cheap products of very poor quality and sell them with a big profit margin.

On the big companies that aren’t making money out of it yet, he added,

“Big companies are very slow to change, mainly because of internal bureaucracy. Small businesses don’t have this problem and can therefore change/adapt much faster. Big companies seek big profits with little effort. This means that small businesses willing to get work done can be successful. Big companies have the option to buy out smaller companies, it’s an easy way for them to grow with little effort.

According to Jef Lippiatt, SavvySME Top Influencer in Email Marketing said,

“E-commerce is certainly not dying. It is developing in particular in mobile purchases (from telephones or tablets). There’s been a bit of a resurgence of brick-and-mortar stores, but online shopping isn’t going anywhere. »

To see where e-commerce really stands, the researchers looked at what Statista and Euromonitor International – two of the largest consumer reporting databases in the world – have to say about it.

On the one hand, according to Megatrend: Quantifying Digital Living (Euromonitor International, November 2021), e-commerce sites are holding their own claiming that the e-commerce sector has the second highest CAGR over the period 2020-2025. He added that “e-commerce sales will account for 51% of absolute retail growth.” From the same study, the United States is said to be the biggest digital spender with over $600 per capita in 2020, followed by the United Kingdom, South Korea and Australia spending over 400 USD per capita, then from Sweden with more than 300 USD per capita.

It’s also worth noting that while India, Nigeria, Egypt, the Philippines, and Vietnam are some of the countries that are getting the most attention in terms of digital spending in small markets, they still lag far behind the most sophisticated and developed countries in the world.

On the other hand, not even half of the growth projected by Euromonitor International, Statista, in its E-commerce Worldwide: Statistics & Facts (February 2022) stated that the projected growth of retail versus e-commerce for 2020 -2025 is only 24.5%. Statista pointed out that mobile is driving e-commerce traffic and said, “One of the most visible trends in the world of e-commerce is the unprecedented use of mobile devices. In 2021, smartphones accounted for nearly 70% of all retail website visits globally, although desktop and tablet visits drove higher conversion rates in 2020.”

Statista also said COVID-19 greatly influenced this growth as millions of people stayed home from the start of 2020.

Since the world is opening up again, but has already experienced the convenience of shopping online, it is said that it could continue but at a relatively slower pace. Nonetheless, e-commerce is here to stay and is likely to give your business a great selling point.

Jerico Lugo
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