A comprehensive study by flyers-on-line.com has analysed the eCommerce markets across the globe. China emerges as the lead market, with a value of $779.858 billion in 2022. The market is predominantly driven by the electronics sector.
This is projected to more than double, rising to approximately $1.73 trillion by 2027. Meanwhile, Europe and the US are also pivotal players in this rapidly expanding field. In 2023, Europe is expected to generate revenues of $730.3 billion, while the US is projected to contribute $917.6 billion.
The report notes that the global eCommerce landscape is poised for significant growth. According to its projections, global eCommerce revenue is expected to grow by 64.69% from 2023 to 2027, reaching an astonishing $6.34 trillion.
The study analysed multiple sectors, including fashion, electronics, and, surprisingly, food. Each sector was evaluated based on global revenues in USD, with particular attention given to high-performing sub-sectors like consumer electronics.
Additionally, the study looks into the dynamics and strategies of major eCommerce contributors. For instance, Amazon has a Global Gross Merchandise Value (GMV) of $692.8 billion, primarily focusing on Electronics and media.
Flyers-on-line.com applied a combined top-down and bottom-up methodology to assess global eCommerce markets, assigning individual scores based on specific criteria. These scores were aggregated and weighted to compute each market’s final score.
Data for this comprehensive study was collected from industry annual reports. This included Premium Statista Global Consumer Survey, Flyers-on-line.com proprietary surveys and behavioural metrics from platforms like Google Trends and Alibaba Trends, etc.
Key Findings
- Fashion topped global revenues at $989.3 billion, followed closely by electronics at $914.1 billion
- In 2022, 45% of online shoppers in the US conducted research before purchase
- Largest fashion eCommerce category has a revenue projection of US$808.5 billion by 2027
- Furniture eCommerce to reach US$379.5 billion in revenue by 2027
- The Toys, Hobby & DIY segment shows 15.1% annual average growth rates
- The Food Segment & Beverage segment shows a 25.8% and 21% annual average growth rate respectively
The Global eCommerce Revenue is Expected to Grow 64.69% by 2027
The eCommerce sector is projected to reach US$6,348.8 billion by 2027, primarily by growth in fashion, electronics, and furniture segments. These core areas are expected to generate revenues of US$1,495.6 billion, US$1,447.7 billion, and US$1,134.1 billion, respectively, by 2027. This is alongside promising gains in smaller segments like Toys, Hobby & DIY, and Media.
China and the US to grow exponentially than Europe
- China: With growth of over 17%, China’s eCommerce revenue is set to rise from US$779 billion to an astonishing US$1,728 billion.
- USA: Not to be outdone, the US is tracking a commendable growth of 11.5%, pushing its revenue from US$1,010.999 billion upwards.
- Europe: Although trailing behind, Europe is also showing promise with a 10% growth rate, taking its revenue from US$730 billion to US$1,068 billion.
- Per-head consumption expenditure: The US averages ten times more than China!
In 2023, global per capita consumer spending averaged $14,236, with Europe exceeding this at $21,499. The UK and Germany led in Europe, while China reported a more modest $5,360 per capita spend.
Average revenue per user is higher in the US than in Europe or China
By 2027, the US is expected to see a slight decline in average revenue per user in electronics and household appliances. Meanwhile, Europe and China show varying but generally stable or growing trends in these sectors. The data underscores differences in consumer purchasing power and preferences across these regions.
Online Shoppers do pre-purchase research
In both the US and China, consumers heavily research before major purchases. 45% of them trust online reviews and prefer unified online marketplaces. Differences emerge in shipping preferences and mobile shopping habits. Chinese consumers show a stronger inclination for express shipping and mobile transactions. Both nations also share a nostalgic yearning for traditional shopping experiences.
Enterprise Times: What this means for business.
The key headline from the report is China’s expected 17% growth in eCommerce. This is more than just impressive numbers and is a demonstration of agility in a rapidly digitising world. The unexpected reign of fashion over electronics hints at evolving post-pandemic priorities. But it’s the rise in sectors like ‘Toys, Hobby & DIY’ that is intriguing.
While Europe needs to race harder in this digital marathon, the US and China exemplify how consumers are combining digital savvy with old-world shopping nostalgia. Some analysts foresee a future with a surge in hybrid retail models, blending the digital and the traditional. The eCommerce landscape isn’t just changing; it’s morphing in unexpected ways.
An area that the report did not address was the issue of cross-border shopping. Consumers are increasingly determined to find goods and services anywhere in the globe.
The UK is the third most shopped market for international online purchases. It sits behind only the US and China and is the most popular online shopping destination with a variety of key audiences.
Customers are increasingly demanding quality digital-first experiences that deliver superior customer experience. Brands must appeal to digital customers who want engaging and efficient experiences to deliver to their consumers. They need to effectively understand what customers feel about their brands and what they want to buy. Perhaps flyers-on-line.com can address these issues in future research.
