Our E-commerce platform is targeting entrepreneurs with the potential to grow. Especially those who are ready with at least 5 products and have already made some sales and have between one and ten employees. Normally, such entrepreneurs handle customer care and promotion themselves.
These descriptions fit entrepreneurs who are the best match for our platform. However, even medium-sized businesses can successfully deploy and use our platform to penetrate the global online market.
As the world economy continues to grow, so will the E-commerce industry. The last couple of years have already proven this. The E-commerce industry has grown year-on-year (YOY) 900 billion U.S. dollars to the current value of over 2.2 trillion U.S. dollars in terms of turnover. Over a five-year period, the YOY rate has seen a 20% increase.
This impressive growth in turnover is complemented by the equally impressive increase in the number of customers shopping on E-commerce stores. The number of E-commerce shoppers increases annually at a rate of about 16 percent. In 2017, over 1.5 billion people shopped online.
Introduction to E-commerce
In terms of country of origin, the majority of global online shoppers are in China, followed closely by the U.S.A and then the United Kingdom. Japan, France and Germany close out the top six nations with the most online shoppers, while countries such as South Korea, Canada, India and Russia also have significant numbers of online shoppers. Here at home, millions of Australians also shop online, and their number is also expected to increase.
Despite these impressive numbers, millions of small manufacturers/ producers still find it difficult to penetrate the lucrative global E-commerce market. This is where online market places come in. They offer multiple benefits to such manufacturers and producers who often don't have the resources and know how to build E-commerce stores for their products.
Potential E-commerce Market
As mentioned earlier, there are over 1.5 billion people shopping online as of 2017. This number is pretty impressive by any measure. The number of online shoppers is increasing at 20% annually, which means that the opportunities are set to increase even more.
Of the 1.5 billion online shoppers, about 70 percent of them buy items based on the pricing, while approximately 80% factor in the cost and speed of delivery before making their purchase. What’s more, about 70 percent will probably look for promotional offers before buying something online. Notably, the total market capitalization is approximately $648 billion.
These numbers paint a positive picture for the future of E-commerce. E-commerce’s share of global retail trade has also been increasing steadily over the last couple of years. By the year 2021, online shopping is expected to account for 15 percent of global retail trade. Although the percentage seems somewhat small, the total market volume is in hundreds of billions of dollars.