B2C E-Commerce Market Size, Share, Trends & Analysis 2020-2027
The global b2c E-commerce market size was estimated at USD 3.32 trillion in 2019 and it is projected to grow to at a cagr of 7.26% over the forecast period. The growing penetration of smartphones and internet connectivity in the developing countries is anticipated to boost the market growth between 2020 to 2027. The world has witnessed a sudden rise in sales of smartphones in the last 5 years due to technological advancements and lowering product prices of Smartphones. Smartphone has become a necessity to complete day to day tasks.
Considering this high potential opportunity in b2c E-commerce, many smartphone-based E-Commerce platforms have emerged recently. It has become easier for individuals to develop E-Commerce platforms for selling their physical as well as digital goods using CMS services such as WordPress, Joomla, Wix, Shopify, etc. The online Marketplace has no entry barrier, therefore anyone can enter the E-Commerce ecosystem and start their business. E-commerce opened many new opportunities for Retailers, wholesalers, stockists, and resellers. Companies are focusing on adopting technologies such as Artificial Intelligence (AI), augmented reality & chatbots for improving the buyer’s shopping experience. The United States is the largest market for e-commerce globally.
B2C e-commerce focuses on selling products such as clothing, footwear, cosmetics, medicines & supplements, electronics, automotive parts & accessories, hardware & software, among others. Companies such as Amazon, Alibaba Corporate into the aggregator business model by providing their E-Commerce platform for listing & marketing products, accepting payments, providing customer support, and relationship management.
Growing usage of the mobile application for shopping goods is transforming the traditional b2c E-Commerce industry into and M-Commerce (Mobile Commerce) industry. Most of the b2c e-commerce platform is focusing on developing mobile-friendly applications and websites for improving User experience. The E-commerce industry is also benefiting from the unorganized retail sector by creating a systematic ecosystem and developing a global marketplace. The online commerce industry is highly competitive in nature and It requires good online marketing and branding skills for growing the business. Many new companies are Targeting niche business segments in order to enter and grow, and sustain in The E-Commerce world.
The COVID-19 pandemic severely affected The b2c E-Commerce industry, while the sales of prominent categories such as clothing electronics were decreased substantially, the demand for essential Goods including grocery, sanitation, medicines, and bathroom essentials saw a sudden rise in demand. All the major country governments implemented strict lockdown for several months, that resulted in severe losses for all b2c E-Commerce companies. Even after releasing the lockdown, The supply chain was hampered for months due to the unavailability of labor, transportation challenges, and decrease in sales.
Digital marketing techniques such as social media marketing, influencer marketing, affiliate marketing & huge product discount compared to traditional brick & mortar stores is expected to boost the market demand exponentially over the next decade. The growing number of Millennials has a significant impact on the B2C e-commerce industry growth, and most of the market players are targeting them in order to gain greater market share.
The improvement in network coverage due to 4G connectivity has enabled faster internet connectivity in most of the major countries worldwide. The mobile e-commerce applications are slowly capturing the market in almost every product segment. The clothing, electronics & cosmetics are major industries adopting e-commerce platforms. Ecommerce offers ease of shopping, secure payment, easy return of products thus are becoming a popular choice for shopping day by day. Most of the major commerce companies such as Ikea, Walmart have moved to the online platform recently, many others are expected to follow sooner or later. No doubt the e-commerce is the future of commerce.
The Global b2c E-commerce market has been segmented based on the type into the b2c retailer and classified. The retailer segment accounted for the largest market share of greater than 99% in 2019, as this segment directly accounts for the revenue generated from The b2c E-Commerce platforms. Moreover increasing penetration of mobile banking and mobile payment applications is further supporting the market growth. Companies are focusing on using advanced technologies such as artificial intelligence, Augmented reality for targeting customers, and improving their shopping experience. Moreover, retailers are also utilizing digital sales funnels using landing page optimization, SEO, and Email marketing for growing their sales. B2c E-Commerce offers certain advantages over the traditional retail business such as ease of doing business, easy transactions, and international reach.
The classified segment comprises of advertising and promotion on E-Commerce portals, most of such sites offer free classified posting and generate revenue through advertisement. However, this revenue is very low compared to the retailer’s revenue, the segment is expected to grow at the fastest growth rate over the forecast period. The real estate sector is the largest advertising sector on such classified sites, followed by the automotive & electronics sectors.
Based on application type the Global b2c E-Commerce industry has been segmented into Automotive & Transportation, Beauty & Personal Care, Books & Stationery, Consumer Electronics, Clothing & Footwear, Home Décor, Industrial & Science, Sports & Leisure, and Travel & Tourism. The consumer electronics segment accounted for the largest market share in 2019, increasing sales of smartphones, television products are boosting the market growth for the segment.
The clothing and footwear segment is the second-largest market, usage of advanced technologies such as augmented reality is growing the market growth for this particular segment. The clothing e-commerce platforms offer features such as easy return, online try-on using AR, and doorstep delivery.
Based on the region, the market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The APAC B2C E-commerce market is dominating the industry with greater than 40% market share in 2019. Growing sales of consumer electronics and clothing in China & India is expected to boost regional market growth. Growing internet penetration & smartphone usage is anticipated to act as key market growth drivers.
The Middle East & Africa region is expected to grow at the fastest CAGR between 2020 to 2027. Increasing foreign direct investments in the retail sector and the development of commercial infrastructure is expected to boost market growth further. In North America, the U.S. e-commerce industry is growing steadily, factors such as brand value, product quality, and user experience play a crucial role in the U.S. e-commerce industry.
The global B2C e-commerce industry is highly competitive, with new players frequently entering the market due to the low entry barriers. However, companies need to focus on digital marketing, product promotion & customer acquisition in order to grow their business. The big market players are concentrating on geographical expansion, mergers & acquisition, supply chain enhancement, website/application improvement in order to improve their market share. Government policies are highly supportive of the e-commerce ecosystem, governments are providing financial as well as regulatory support to boost industry growth.
The following are the key companies operating in the B2C E-commerce market:
B2C E-commerce Type Insights (Revenue in USD Billion, 2017-2030)
B2C E-commerce Application Insights (Revenue in USD Billion, 2017-2030)
B2C E-commerce Regional Insights (Revenue in USD Billion, 2017-2030)
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