Ecommerce Industry Landscape in 2024 and Beyond
July 16, 2024
Fueled by rapid improvements in fulfillment logistics and innovative technologies, ecommerce continues to grow as an alternative to brick-and-mortar retail, taking a larger share of the market – offering both a challenge and an exciting opportunity for ecommerce businesses looking to capture a growing audience.
Online sales globally are expected to grow by 9% in 2024, hitting $6.3 trillion by the end of the year. After the industry broke $5.2 trillion in 2021, it is expected to hit $8.1 trillion by 2026, seemingly normalizing the post-COVID surge in online shopping. By 2026, nearly a quarter of all retail purchases are expected to take place online. Ecommerce parcels will account for one-third of all parcels shipped by air by 2027, according to the International Air Transport Association.
Key to the rise in popularity is the rapid improvement in fulfillment – an area previously seen as the primary edge for shopping in-person. Spearheaded by ecommerce giant Amazon, which has developed an expansive network of logistical hubs around the world, more customers now expect 2-day, next-day, or same-day delivery.
According to surveys conducted by Amazon, 85% of ecommerce executives state that their customers have become far more demanding over the last five years in terms of delivery speed expectations, and 80% predict that this trend will continue over the next five years.
Other innovations, such as augmented reality, allow customers to visualize how a product will look while being worn or in their home before making a purchase – which reduces return rates. And because of breakthroughs in AI, brands can greet customers as they arrive on their digital doorsteps with sophisticated AI chatbots capable of answering complex queries – mimicking an in-store experience.
Today, approximately 44% of shoppers begin their shopping journey through an online search engine, and 34% of those shoppers make online purchases at least once a week. There are now more than 26.6 million ecommerce sites globally – but more than half of those sites are based in the US, which appears to be a global hotspot for online shopping.
Growing Opportunity for Ecommerce Businesses
While the exponential rise of ecommerce is certainly exciting for online business owners, it can also be daunting – especially when industry giants like Amazon and Walmart continue to set a high bar for delivery fulfillment and customer experience. Because Amazon alone accounts for nearly 38% of all ecommerce sales, standing out on this platform is essential for businesses looking to reach customers.
Partnering with managed ecommerce providers like ZQUARED can help brands maximize the vast opportunities available on ecommerce platforms, without the need to rework internal infrastructure to keep pace with heightened expectations for service and delivery.