Online shopping has now become the norm. The online shopping landscape has however undergone tremendous changes, most of them for the better. With major technological advancements, the global online shopping rate has also seen a huge rise. More and more countries are turning towards digitalization, paving a way for an improved e-commerce landscape in the coming years.
Such massive technological improvements bring with it a necessity for upcoming and already established retailers to adapt and improve their reach globally, according to the continually changing e-commerce landscape. Understanding the global shopping landscape is not a complicated thing. This article decodes this concept, helping you understand the concept of online retailer landscape, better.
A Breakdown of the Global Online Shopping Scenario:
As a retailer, it is very essential to have good knowledge about the global online shopping landscape. Understanding this in a country-wise breakdown, helps you to better understand how to increase the penetration and expand services.
In terms of shopper spending:
The USA continues to hold the largest global consumer base in terms of online shopping. The global e-commerce market ranking, 2019, shows that people in the US are the biggest spenders when it comes to online shopping. They are closely followed by Norway and the UK, in terms of revenue per shopper.
Such a leading e-commerce landscape, although good for the global retailers, does not offer much more area for expansion or improvement. There is bound to come a point where the e-commerce platform will get saturated, attaining a stage where there is nothing more that can be offered to the consumers.
In terms of online market size:
According to the global e-commerce market ranking, 2019, China holds the first position in the ranking of global e-commerce markets by their total revenue. The US follows close behind, given that the majority of the US population depends on online shopping.
In terms of the number of online shoppers:
Again, the top spot is occupied by China, with India coming in a close second. Now, in countries like India, Southeast Asia and Latin America, where analysis has shown that the e-commerce penetration rates are at only 2% to 6%, there are tremendous areas for expansion and growth of the online retailer landscape.
In terms of cross border shopping:
Once again, China, USA and India take the top three positions, implicating that there is enormous opportunity for global retail to grow in these countries. Targeting these countries will favour the growth of e-commerce and bring about drastic improvements in the online shopping landscape.
Factors to be considered while decoding the global online shopping landscape:-
The Harvard Business Review reports that psychological pricing varies from country to country and that it plays a major role in improving the e-commerce landscape. Consumers from America and Australia are inclined to buy products that have a price tag ending in a nine ($19.99), whereas those from Asia, Brazil and Argentina prefer it a rounded pricing ($25.00).
Global shipping and customs logistics:
With the changing e-commerce landscape, more people are open to shopping across borders. Some factors that seem to influence shoppers to order products from overseas are, pricing, product quality, customer reviews, customer service, shipping time and costs. Global retailers need to take these into consideration while trying to increase their reach in the global e-commerce platform.
Peak season shopping demands:
Most of the festive seasons see a sharp rise in sales. Meeting the increased demands of the consumers during such peak seasons is crucial. Similarly, post-transaction logistics, such as packaging, dispatch and shipping, tracking details of the product and on-time delivery are also of utmost importance during such times of heavy sales.
One of the most important factors that the global customer base seeks is data security. Since consumers enter sensitive information for online payment and also enter personal details for shipment of the product, they will need a guarantee that their data is safe.
The final and a very crucial factor that influences the global retail market is the customer support. Consumers expect an impeccable customer care line to aid them with their queries and complaints. The use of Artificial Intelligence in providing a 24-hour customer chat helpline has revolutionized the e-commerce platform.
To conclude, e-commerce has undergone dramatic transformations over the years and it stands to go through further incredible improvements, given the current trends of online shopping in UAE and other countries. With many new global retailers taking to the global e-commerce platform and with the continually changing e-commerce landscape, it is of utter importance to understand the online shopping landscape on a global aspect.
Hope this article served to simplify the concept of global e-commerce and its evolving platform and also shed some light on the current global online shopping scenario and the different factors that influence it.