E-commerce is booming like never before. This is partly due to the COVID-19 pandemic that has forced people to change their purchasing behavior to online shopping. Many of these consumers will not be going back to their old shopping habits, so it’s time to seriously think about going global. But, exactly where should you be expanding to? This post discusses the top ten e-commerce markets to target in 2021.
China is now the biggest e-commerce market the world has ever seen. Here are some astounding stats:
- In 2019, the country’s total e-commerce sales growth overtook the combined total of the US and Europe.
- There are an estimated 710 million internet users, and the number is growing.
- The e-commerce market in China is forecast to reach over US$ 3 trillion in 2024.
Entering the Chinese market is now easier than ever before. The country is booming and is home to a wealthy class of consumers keen to get their hands on Western consumer goods.
2. United States
China has overtaken the US which now ranks second in the global e-commerce market stakes.
- US online retail sales are projected to hit US$ 563.4 billion by 2025.
The US is a mature marketplace where growth may slow in the years ahead. However, America still leads the Western world in e-commerce sales. The country’s market size, advanced technologies, purchasing power, and absolute love for online shopping make it an e-commerce hotspot for growth-minded online sellers.
3. United Kingdom
The UK e-commerce market is positioned at number three.
- E-commerce sales in the UK are forecast to reach more than US$ 119 billion in 2025.
Despite its small size, the UK is the most advanced e-commerce market in Europe. Revenues have grown by double digits in the last five years as this country of online shoppers has embraced the convenience provided by mobile access. Companies entering the e-commerce UK market can expect to experience continued growth.
Japan is one of the largest and fastest-growing e-commerce markets. While B2B transactions initially dominated, the B2C market has doubled over the last decade.
- The country’s cross-border e-commerce market is forecast to reach US$ 3.40 billion by 2025
The country is attractive for online sellers because of its developed economy, mainly urban population, and almost nationwide internet access. Easy product delivery is provided by a robust and service-oriented business philosophy and advanced infrastructure.
Germany is a major e-commerce market and became the top country in the EU after Brexit.
- The country’s annual BtoC online sales are estimated at almost $85 billion.
There are over 82 million high-income residents of Germany. Rather than being located in just a few cities, Germany’s industries are spread throughout the country. This means that you’ll find a strong industrial presence in several regions with high-performing sectors and eager e-consumers.
When localizing for Germany, keep in mind that, especially for durable goods, German citizens prioritize quality, trust, and comfort with the seller over price.
French e-commerce comes in at sixth in the world.
- E-commerce revenue in France is expected to grow to over US$ 72 billion in 2025.
The French e-commerce market is characterized by a large and diverse consumer base, high level of internet penetration, growing mobile services, reliable payment methods, and an efficient delivery structure. This market is a mature one but still offers opportunities for online brands.
7. South Korea
South Korea is among the largest e-commerce markets in the world. In 2019, South Korea became one of the first countries to launch commercial 5G network services nationwide.
- E-commerce revenue is expected to reach US$ 99.2 billion by 2025.
South Korea is one of the most well-connected online markets globally, with a penetration of more than 84% and also one with the highest percentage of smartphone usage. It is one of the world’s most technologically advanced economies, providing its population with the means to easily engage in online shopping.
For any e-commerce operation, getting the customer’s order into their hands quickly and at a reasonable cost is a big part of the equation. In Canada, the country’s size and large areas that are sparsely populated can exacerbate the difficulty. The oft-mentioned barrier of high shipping costs is a challenge, but only in rural areas, as over 80% of Canadians live in relatively densely populated areas.
Russian ranks ninth in the list of the top e-commerce markets.
- Revenue is expected to reach US$ 31.8 billion by 2025.
Although Russian e-commerce is not comparable in size to that of China or the US, it is the largest online market in Europe and is growing much faster than traditional retail.
Brazil is the top e-commerce market in Latin America, accounting for one-third of the region’s total market.
- E-commerce revenue is forecast to hit US$ 31.5 by 2025.
In 2020, the country’s online shopping revenue more than doubled compared with the two prior years. Most of this growth was attributable to sales through mobile devices.
Tips for Entering E-commerce Markets
Now that you have a list of the largest and fastest-growing e-commerce markets in the world, here are some important tips that will help make your entry into one or more of them smoother.
- Partner with reliable shippers: Shipping is the lifeblood of global e-commerce. Consumers expect their goods to arrive in a timely way and at affordable shipping rates.
- Establish a network of fulfillment centers: Working with wholesalers and suppliers in your targeted countries can significantly reduce shipping time and delivery costs.
- Customs: To avoid delays or your goods being held at customs, make sure you fill out your customs forms correctly without any errors.
- Prohibited or restricted goods: Become familiar with what you can or can’t ship to your chosen countries.
- Addresses: Make sure that your buyer’s address is correct before shipping. Failed delivery attempts will cost you time and money.
- Insurance: Cross-border shipping comes with risks. Make sure you are covered for possible losses with a good insurance policy.
E-Commerce Markets: The Takeaway
Thanks to the Coronavirus pandemic, 2020 was a challenging year across the globe. However, the pandemic accelerated the adoption of e-commerce everywhere, creating a new industry boom.
- E-commerce sales growth worldwide is projected to grow to US$ 6.54 trillion by 2022. Can you afford to miss out on your share of this revenue?
How Localize Can Help You Go Global
In order to be successful in any e-commerce market you need the services of a top-quality translation and localization service like Localize. So choose your targeted countries and give us a call.