The world of online shopping has evolved dramatically over the past few years. According to reports, the global eCommerce market will touch the 5.7 trillion dollar market by the end of 2022. And for 2023, experts anticipated a 22% increase in digital sales.
This incredible surge in the global eCommerce market is due to double-digit industry growth in different continents.
The consumer demand for online shopping is accelerating in different nations all across the globe. They no longer have to visit the store or wait long to get the goods. Instead, they’ll use their smartphones to find the product and deliver it with just a few clicks.
It provides investors with numerous opportunities to become a part of the industry. From searching to shipping, investors can facilitate the growth of this multi-sector industry and yield high returns.
However, before availing of investment benefits from the eCommerce industry, conducting thorough research is vital. This article will discuss the performance and scope of the online shopping industry on different continents. So, let’s begin!
Europe
Online shopping has become prominent among European customers, with the e-commerce user penetration rate nearing 60% in the most developed e-commerce regions.
It should be no surprise that by 2025, the European e-commerce business might generate more than 1.8 trillion US dollars. These numbers are a lot, given that there are 50 nations in Europe. Nevertheless, Italy stands out among the other nations on this continent.
It is due to the government’s initiatives to encourage foreign citizens to invest in Italy. Simply put, you can avail of Italian residency using an investment program. There are numerous government-approved projects, including eCommerce, that you can invest in and help full EU rights. These professionals can assist you with the Italian Investor Visa and further explain its benefits. Nevertheless, it drives people from different countries to build and grow the Italian eCommerce sector.
Additionally, better broadband connectivity and internet access infrastructure are fueling the sector. Improvements in payment transparency, the legal validity of digital signatures, and mobile and smartphone diffusion hastened its growth.
South & North America
South & North America is among the fastest-growing eCommerce regions in the world. The deployment of advanced technologies such as secure payment gateways, store pickup options, and AI-driven pricing tools further promotes this sector.
According to reports, Latin America’s eCommerce sales for 2022 are approximately 198 billion dollars. And this will increase to 382 billion by 2025. It is because currently, there are nearly 300 million eShoppers among 15+ regions across the continent.
However, the competition level is also rising due to this incredible growth. That’s why it is becoming critical for businesses to tap the audience using SEO and digital marketing.
It is also noteworthy that despite this dramatic increase in revenue, overall penetration is still low. Brazil, for instance, only increased penetration from 7.5% to 12.5%, indicating that a sizable untapped market still exists.
This e-commerce market will continue to grow if we offer faster delivery times and better supply chain management, which could lead to higher revenues. Infrastructure development may also have a snowball effect that benefits every aspect of the industry.
So it would be best to consider these circumstances before finalizing your decision.
Asia
The Asian continent is also speeding up in the race for the prospering online shopping sector. According to a 2020 report, the number of eCommerce users in southeast Asia was 222 million. With an estimated growth of 85%, this number will increase to 411 million by 2025.
The credit for this growth goes to the advancing and secure digital payment sector. The use of digital wallets has observed the most significant jump of the year. Experts project 162% growth from 154 million users in 2020 to 404 million users in 2025. The mobile banking sector is also flourishing, with an estimated 345 million users by 2025.
These alternative payment methods encourage users to shop online, promoting eCommerce.
Nevertheless, improvements in payment methods and seamless transactions are not the only driving force behind this sector’s success.
The impact of the COVID-19 pandemic, together with the new technology, goods, and government efforts, has attempted to increase consumers’ access to the digital economy.
Shutdowns, quarantines, and other mitigation measures convinced customers that online purchasing was not a luxury but a necessity. As a result, consumers developed and reinforced digital shopping habits that persisted even after the pandemic restrictions were removed.
Africa
Africa is the second largest continent by population, with 17.4% of the world’s population. This continent has the youngest population, which relies on digital means for every need. It has played its part in boosting the eCommerce market size. However, improved internet penetration significantly contributes to the industry’s growth.
An array of digital payment options are becoming more common in African nations along with the online retail landscape for mobile e-commerce.
Moreover, the amount of investment capital entering the African digital market has increased significantly, reaching $5 billion in 2021, and is concentrated in industries like fintech and eCommerce.
With the development of economic infrastructure, banks, roads, and technology, the number of eCommerce users will increase to half a billion by 2025.
However, this continent still has a long way to go due to significant challenges.
Collectively, the consumer banking habits of African countries still lag behind those of the rest of the world, with nearly half of the adult population preferring to pay in cash. 10% of people use debit cards, compared to 2% on average across the continent. Because of this, investors and firms looking to market to eCommerce customers in the African markets face a constant issue with online payments.
Another significant challenge is the need for global marketplaces, as consumers prefer regionally focused local marketplaces and retailers across the entire African eCommerce landscape.
Australia
With a revenue of $32.3 billion in 2021, Australia is ranked as the eleventh-largest market for eCommerce. This contributed 15% to the global eCommerce market growth.
It is predicted to reach $27.8 billion in 2022 and expand at roughly 16% yearly.
However, it is noteworthy that domestic purchases make up 89% of all online sales in Australia. Social media significantly boost B2C transactions, with over 13 million active Facebook members in Australia.
40% of online payments are made with credit or debit cards, and over a quarter (26.4%) of all online shopping transactions in Australia are made using a mobile device, a rise of 28.8% year over year.
The market for “buy now, pay later,” which represents 6.7 percent of all online transactions, is the one that is expanding the fastest and encouraging eShoppers.
Australians have embraced eCommerce’s advantages for quick and convenient transactions. With the appropriate choice of goods and services, business owners have countless opportunities to convert prospects into customers, such as sending out digital business proposals.
To Sum It All Up
Considering the comfort, convenience, and affordability the eCommerce sector provides its customers worldwide, its growth is evident.
However, to turn this growth into your return, you must carefully select the continent or country.
So, keep in mind the information given in this post and become a part of industry success.
