The global ecommerce market is on a trajectory of rapid expansion, set to reach $11 trillion in 2028, driven by technological advancements, seamless delivery services, and rising internet penetration. With China and the US dominating the landscape, companies must continuously innovate to meet evolving consumer expectations, embrace ESG compliance, and leverage data-driven strategies to maintain competitiveness in an increasingly dynamic sector, says GlobalData, a leading data and analytics company.
GlobalData’s latest Strategic Intelligence report, “Ecommerce,” reveals that the global value of transactions for the ecommerce market is set to grow at a compound annual growth rate (CAGR) of 11.1% between 2023 and 2028, driven by improved technology and delivery services and wider internet adoption.
Aisha U-K Umaru, Strategic Intelligence Analyst at GlobalData, comments: “The global ecommerce industry is dominated by China and the US, with market shares in 2023 of 33% and 30%, respectively."
"These countries are home to some of the world’s biggest tech companies, including Alibaba and Amazon, which benefit from the huge troves of data generated by user activity on their platforms.”
Subscription-based services are a growing ecommerce segment. Beauty brands like Estrid and Harry’s started with subscription services and have enjoyed great success. Both are now available in physical stores, further boosting sales. Harry’s filed for an IPO in March 2024 after reaching nearly $1 billion in revenue. However, some subscription services have struggled after a rapid rise. Once valued at almost $2 billion, meal-kit subscription service Blue Apron was bought for about $100 million by food delivery company Wonder in 2023.
Umaru continues: “Consumers are also concerned with the social and governance factors of ESG. As a result, it remains high on the agenda for ecommerce companies, both to comply with relevant regulations and to meet consumer demands. ESG regulations such as the EU taxonomy for sustainable activities are also a method of clamping down on greenwashing, the practice of inflating a company’s ESG performance for marketing purposes.”
Other terms such as carbon neutral, green, and environmentally friendly are being regulated, and ecommerce companies must ensure they comply with relevant guidelines to mitigate the risk of litigation.
Umaru concludes: “Initiatives like the Fifteen Percent Pledge, which urges US retailers to allocate at least 15% of their shelf space to Black-owned businesses, highlight the increasing emphasis on social equity within the ecommerce sector."
"Additionally, issues such as supply chain transparency and diversity remain critical, as brands strive to align with the evolving ESG priorities of Gen Z and Millennial consumers.”
