After the COVID-19 outbreak, people’s purchasing habits shifted. Retail sales have slowed as consumers spend more time inside, but eCommerce-enabled businesses have benefited.
As a result of most nations’ lockdowns, eCommerce has become one of the fastest-growing sectors in Asia-Pacific (APAC). With a large expansion in 2021, more is expected in the years ahead. From 2020 to 2025, this region’s eCommerce is predicted to expand by 8.2%, compared to 5.1 percent in the USA and 5.2 percent in Europe.
Let’s find out how the APAC stands at the centre of it all.
How big is the global e-commerce market?
The global eCommerce sector is valued at $4.89 trillion this year. This figure is anticipated to grow in the next few years, demonstrating that online retailers are choosing borderless eCommerce.
Online transactions accounted for just 13.6 percent of revenues two years ago and are predicted to rise to 19.5 percent in 2021, representing a 45.8% growth in eCommerce market share in only two years.
By 2024, growth is predicted to reach 21.8 percent, a rise of 8.2 percentage points in only five years.
Rising sales of online goods and services globally
Global retail sales continue to climb, gaining market share in the process. Online retail sales will reach $6.39 trillion, according to eMarketer, with eCommerce accounting for 21.8 percent of overall retail sales.
Despite the fact that retail had a difficult year in 2020, eMarketer’s national markets showed double-digit online growth. Despite a 3.4 percent dip in worldwide retail sales, Latin America showed remarkable growth (36.7 percent). In 2020, Argentina’s eCommerce industry increased by 79 percent, while Singapore’s grew by 71.1 percent.
APAC and China
With about $2.992 trillion in digital sales in 2021, Asia-Pacific remains the biggest market for retail eCommerce. This year, digital retail sales are expected to be about five times higher than in North America and more than three times higher than in Western Europe.
China maintains its dominance as the world’s largest eCommerce market. This year, it is expected to account for 52.1 percent of all retail eCommerce sales globally, exceeding the United States’ 19.0 percent.
Currently, India stands to be the fastest expanding market in 2021. Indian merchants are launching or expanding their online presence. India’s digital sales are predicted to grow 27.0% this year.
Indonesian eCommerce is also growing. Every year, 73 million Indonesians spend $20.3 billion online. Simultaneously, 50% of the population is under 30, and they spend a lot of time on their phones, thus eCommerce growth is substantial.
To sum up:
- APAC leads the world in cashless payments. The APAC digital payments market is growing 30% yearly. Over half of the 11% rise in global payments revenues comes from this region.
- APAC’s short-form video content is booming. Over the pandemic, APAC became a mobile-first consumption economy.
- Many individuals in APAC turned to eCommerce sites for the first time. During the lockdown, only 32% of Indonesians said they never shopped online.
- Asia-Pacific has the world’s biggest mobile marketplaces, thanks to rapid smartphone usage. According to Statista, the region’s mobile internet penetration was 42% in 2020 and is expected to reach 52% in 2025.