We’ve listed the top 10 countries with the biggest or fastest-growing e-commerce markets
Most people nowadays prefer a lazy approach to shopping. Instead of going out, they buy online. Why would you waste your time on reaching the local store or standing in line when there are thousands of digital shops right in your pocket? More and more people all over the world have stopped considering e-commerce as risky due to the popular online marketplaces with strong customer protection services and safe mobile payment gateways.
Top 10 e-commerce markets
According to the 2019 Global E-Commerce Market Rating by Eshopworld, the top 10 meccas for online shoppers are:
According to Statista, in 2018, online sales of physical goods brought sellers 504.6 billion USD. The numbers are projected to rise steadily and surpass 735 billion USD in 2023.
Americans are very active online shoppers who feel comfortable buying this way. Around 79% of the population, or 258.5 million people, have made a purchase in the past year. Most of those transactions happen on marketplaces. Therefore, the US market is abundant in e-commerce platforms.
Amazon is America’s biggest internet retailer. In the U.S. alone, Amazon made $258.22 billion in retail sales in 2018. This is almost half of all online retail spending in the country, and 5% of total national retail sales. Not to mention that Amazon has marketplaces in 14 other countries of the world.
China’s online retail B2C e-commerce market reached 1,526.76 billion yuan (US$226.38bn) in Q4 2018, showing an increase of 28.4% compared to the same period of the previous year. There are currently 649.57 million regular e-commerce users in China, who spend $899.06 USD online annually.
An indisputable leadership in online sales belongs to the world-famous Alibaba group. This business giant offers a number of popular e-commerce platforms for each customer to choose from. The most successful in 2018 was TMall. It took a major market share of 61.5% of all online retail sales. Alibaba’s main competitor, JD, ranked second place with a share of 24.2%. The profits and GMV (gross merchandise volume) of both e-commerce giants rose by more than one-fifth compared to 2017.
All this unprecedented growth is possible thanks to eager Chinese shoppers who spend about 80% of all their money online. Rising shopper confidence, trustworthy m-payment solutions, and the growing integration between online and offline retail hubs stimulate vigorous e-trade.
UK shoppers spend a huge amount online annually – nearly $1650 USD per shopper, with overall market revenue of $86.45 billion. Their e-commerce experiences are shaped by shrewd pickiness and a desire for bargains. Comparing deals online is much easier than browsing around bricks-and-mortar stores. Moreover, most British online buyers prefer to extend their shopping boundaries abroad. Back in 2016, 77% of them made purchases from across EU borders and the number is growing each year.
Shopify is by far the most popular (based on search volume) e-commerce platform in the UK. This is partly due to the fact that it is among the easiest for sellers to set-up and customize. It also has quite a low monthly payment plan. Total revenue of the company in the 4Q 2018 was $343.9 million, a 54% increase from the comparable period in 2017. GMV for the fourth quarter was $14.0 billion, an increase of $4.9 billion, or 54% over the 4Q of 2017.
“We made history in 2018: no other SaaS company has crossed the $1 billion-dollar revenue mark at a faster growth rate than Shopify has,” said Tobi Lütke, Shopify’s CEO.
Having earned $104.04 billion USD revenue in the past year, and boasting an excellent logistics infrastructure (5th globally), the Japanese eCommerce market represents a great opportunity for foreign retail businesses due to internet penetration estimated at 93.3% of the population. More than 74% of internet users in this country were shopping online in 2017. The forecasts predict that by 2021, 88.92 million e-commerce users in Japan will spend an average of 1,257.37 USD online.
One of the top digital shopping platforms here is Rakuten. The Tokyo-based tech and retail company reported net income of 1.1 trillion Japanese yen (approximately 1.12 billion euros) for fiscal 2018, an increase of 28.4% compared to the previous year, while their revenues jumped up 16.6%. On the national market, however, the giant is losing revenues to its main competitor Amazon. Its Japanese subsidiary was more successful last year.
Nevertheless, Rakuten aims to continue multiplying the number of active users on its platforms. The Rakuten Pay application is supposed to play a big role in the company’s future projects. The group also announced a partnership with Chinese e-commerce company JD.com, which will involve the use of both aerial and terrestrial drones in Rakuten’s automated warehouses – the latest step in Rakuten’s drone program, which began in 2016 and was finally tested last year.
Germany ranks №1 for logistics globally. It is a trans-European hub that borders with nine neighboring countries and has an advanced transportation infrastructure. This greatly facilitates cross-border delivery essential for e-commerce. It is also a prosperous country with 63.9 million online shoppers who brought the vigorous national e-market 53.3 billion euros in 2018. The number is expected to reach 57.8 billion euros in 2019 although the general market growth rate is slowing down.
OTTO is the second biggest online retail destination in Germany after Amazon. 90% of its goods are sold online and it also has a marketplace where third-party sellers are welcome.
The company has 9 million active customers and reaches 45% of all German households. For marketplace sellers, OTTO represents the biggest e-commerce opportunity in Germany.
In total, €92.6 billion were spent here on the Internet last year. The overall increase in the e-commerce sector constituted 13.4%. The average amount of transactions in 2018 has decreased to €60, but it is compensated by the increase in buying frequency. The number of transactions rose to more than 1.5 billion orders which is +20.7% compared to 2017.
Cdiscount accounted for one-third of the total French e-commerce market, second only to the French division of U.S. e-commerce giant Amazon. This French marketplace unites about 8.6 million active customers and has 19 million unique visitors per month. It sells products across 40 different categories with over €1 billion in annual sales.
As of 2018, e-commerce retail trade sales in Canada amounted to almost 1.6 billion Canadian dollars, and revenue generated within the retail e-commerce market is expected to surpass 55 billion Canadian dollars by 2023, up from 40 billion in 2018. Last year, 46% of internet users stated that they purchased a product or service online on a weekly or monthly basis.
There continues to be a strong focus on multi-channel shopping experiences. Canadians are sophisticated online customers who are accustomed to the high standards set by Amazon and others online. There is a limited number of online Canadian retailers being able to effectively compete with foreign brands. The major e-platforms popular in Canada originate from the USA (Amazon, eBay, Walmart, BestBuy).
There are currently 19.09 million e-commerce users in Italy, and an additional 1.99 million users are expected to be shopping online by 2022. Four years from now, they will presumably spend an average of 1,008.30 USD online. The turnover from e-commerce in Italy was estimated at $32.4 billion USD in 2018, totaling a 15% growth since 2017.
In terms of B2C retailing platforms, large international players have a strong influence on the Italian market. Other popular eCommerce websites in Italy include Subito.it, Aliexpress.com, Zalando.it, Autoscout24.it, Groupon.it, Yoox, and Pixmania. Furthermore, Banzai Srl, Italy’s leading e-commerce operator controls ePrice.it and Saldiprivati.it.
According to Statista, revenue in the eCommerce market amounts to US$19,679m in 2019. It is expected to show an annual growth rate of 11.1%, resulting in a market volume of US$29,981m by 2023. User penetration is 81.8% in 2019 and is expected to hit 90.3% by 2023. The average revenue per user currently amounts to US$518. The retail market’s largest segment is fashion. Most online purchases are happening in the €100 – € 499 price range.
AliExpress & Wallapop are the most popular retail apps across mobile devices.
The total value of online shopping in Korea reached a record high in November 2018. Total online transactions hit 10.62 trillion won ($9.5 billion), up 22.1% from a year earlier. This is no wonder considering that Korea is one of the most “wired” nations where 99.2% of households have internet access via PC, mobile, or another device.
Multi-brand online retailers such as Amazon.com and eBay are the most frequently used foreign online shopping sites visited by Koreans. Other popular alternatives are Gmarket, Coupang, and WeMakePrice. One of the biggest trends in online retailing is multi-channel. internet portal sites, social network services, TV home shopping, etc. which now all have online shopping functions and the popularity of one-stop shopping experiences keeps growing.