The eCommerce industry has evolved exponentially over the last several years, and will continue to do so for the foreseeable future. With global sales reaching over $5 trillion, eCommerce sales make up almost 20% of all retail purchases. With 2023 on the horizon, let’s take a moment to recap industry trends and news from 2022.
Economic and Inflationary Pressures
2022 saw significant economic uncertainty as global inflation rose to 8.8%, a 4.1% increase from 2021. Almost every country across the world saw inflation rates rise, stirring concerns about recession on a global scale. The graph below shows the inflation rates by country for 2022 from the International Monetary Fund (IMF). Apart from China and Saudi Arabia, every country saw increases in inflation rates, with countries in South America and the Middle East seeing inflation rates ranging from 25% up to 210%. Despite the inflationary pressures experienced globally, the eCommerce industry still saw an overall growth of 9.7% in 2022.
eCommerce Growth by Region
eCommerce growth was expedited throughout 2020 in response to the COVID-19 pandemic; however, since then we have continued to see a rise in the popularity of eCommerce sites and consumer preference for online shopping over the traditional in-person experience.
Asia and North America have historically led the industry in terms of sales and innovation; however, in recent years there have been significant increases across Latin America, Eastern Europe, Oceania, and countries within The Association of Southeast Asian Nations (ASEAN), as seen in the graph below from Morgan Stanley. Over the next several years, it is expected that ASEAN countries will bring in almost as many sales as countries in Asia and North America.
Top 5 Countries for eCommerce Sales
According to Business.com, the top 5 countries in the world for eCommerce sales in 2022 were China, the United States, the United Kingdom, Japan, and South Korea. China continues to lead the rest of the world, responsible for 52% of the world’s eCommerce sales with $2.78 trillion in 2022. The United States follows with about 19% of total sales, followed by the United Kingdom at 4.8%, Japan at 3%, and South Korea at 2.5%. Moreover, trends from eMarketer suggest that these countries will remain in the top 5 for eCommerce sales through at least 2025.
Industry News Throughout 2022
- Market by Macy’s: Macy’s announced their new digital marketplace in late September. The marketplace features products across various categories, including apparel, beauty, home goods, and more.
- ‘Buy Now, Pay Later’ Trends: The opportunity to use ‘Buy Now, Pay Later’ payment flexibility provides more shoppers the opportunity to take advantage of online shopping and increases the ability for emerging markets to grow faster in the eCommerce world.
- Why Multi-Channel Retail is the Future of eCommerce: Adding new channels to your retail strategy can help increase your visibility and brand sales. Moving toward a multi-channel strategy provides your brand with the greatest opportunity to reach new potential customers.
- Social Commerce Impact on the Industry: With almost half of the world’s population using social media platforms, social commerce increases your brand visibility, and influencer marketing can help establish your brand as a trusted product among consumers.
- Rising Ad Costs Across Channels: This year also saw significant increases in ad costs across most platforms. As competition increases, so do the costs associated with increasing your visibility. Organic search can only do so much, and paid advertising is a vital part of a brand’s marketing strategy to ensure as many potential customers are reached as possible.
Looking Toward 2023 & More About aiCommerce
2022 was a year of growth and innovation in the eCommerce industry. Despite the uncertainty that comes with increases in inflation and the cost of goods, eCommerce continued to grow and thrive throughout the year. Entering 2023, the industry is expected to continue growing, forecasted to reach $6.51 trillion in global online retail sales.
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