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The growth of online shopping and the change from conventional retail

Photo by Nataliya Vaitkevich for pexels.com

In recent years, e-commerce has grown at an exponential rate, upending the retail industry and posing a threat to conventional brick and mortar retailers. This change has become increasingly visible with the help of data that illustrates how customer behavior is changing and how the retail sector is changing.

Retail has been significantly impacted by the growth of e-commerce. With e-commerce sales expanding at a far quicker rate than in-store sales, internet retailers are posing a serious threat to traditional brick and mortar retailers. In 2020, online sales increased by 44% while in-store sales fell by 14%, per a report published by Digital Commerce 360.

Photo by Mikhail Nilov for pexels.com

Global e-commerce sales were estimated by Statista to be $4.28 trillion in 2020 and were expected to grow to $5.4 trillion by 2022. This explosive increase showed how consumer tastes are evolving in favor of online purchasing due to convenience, accessibility, and a wide range of options.

Convenience is one of the main factors contributing to e-commerce’s rise. With their desktops or mobile devices, customers may now shop whenever and from anywhere. Due to this, there has been a change in consumer behavior, with an increase in the number of individuals choosing to purchase online over going to physical stores.

Online shopping’s ability to be accessed around-the-clock to accommodate customers with varying schedules is one of its main benefits. E-commerce also gives retailers the ability to reach a worldwide customer base without being limited by geographical restrictions. According to Statista, retail e-commerce sales reached $3.53 trillion globally in 2019. The largest e-commerce market, Asia-Pacific, accounted for 55.8% of these sales.

E-commerce sites provide customers with customized purchasing experiences by making use of machine learning algorithms and data analytics. 91% of consumers are more likely to purchase from brands that offer recommendations and offers that are relevant to their needs, according to Accenture. The emphasis on customisation has contributed to the success of online retailers such as Amazon, who employ sophisticated algorithms to customize product recommendations according to browsing and purchase history of their customers.

As more people purchase online, traditional stores are struggling with a decline in foot traffic and revenues. E-commerce sales in the US increased from 11% in 2019 to 14.3% of all retail sales in 2020, according to the US Census Bureau. This increase can be linked to the Covid 19 era that left many people indoors for many months, this pattern emphasizes how e-commerce is becoming more and more dominant and how traditional retail locations are facing difficulties.

Also, as e-commerce has grown, customer expectations have altered. Whether they purchase online, in-person, or through a mobile app, customers increasingly need a flawless experience across all platforms. In order to maintain competitiveness, retailers need to offer an an experience across channels that fulfills these demands.

Regardless of the channel a client chooses to shop through, retailers are required to offer them a uniform shopping experience. Consumers ought to have the option to return anything they’ve ordered online to a physical store or buy something online and pick it up in-person. Maintaining client happiness and loyalty requires this smooth integration across several media.

Here are the top 10 E-Commerce companies in the world with the highest market value:

  1. Amazon Market Value: $867.58 billion
  2. Walmart Market Value: $387.72 billion
  3. The Home Depot Market Value: $324.85 billion
  4. Alibaba Market Value: $226.76 billion
  5. Reliance Industries Market Value: $206.31 billion
  6. Prosus Market Value: $206.01 billion
  7. Costco Wholesale Corporation Market Value: $205.34 billion
  8. Meituan Dianping Market Value: $145.31 billion
  9. Pinduoduo Market Value: $106.25 billion
  10. JD.com Market Value: $88.36 billion

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