Online retail is a method that has enabled the consumers to hunt, select, and buy the services, products, and data distantly over the Internet. The key factor fueling the expansion of the global online retail market is the rising use of smartphones and the ease of buying luxury and daily essentials products without the need of going to the store. In addition, the lower cost in comparison to physical stores, accessibility of a range of choices, and technology-supported online trials of accessory & apparel are factors projected to drive market growth during the coming period. Moreover, the internet has transformed the retail business by growing the reach of vendors from the local region to abroad, enabling them to boost their cross-broader success.
However, Covide-19 outbreak has influenced the e-commerce platforms as the demand for essential goods was at peak during the initial phases of the pandemic. But the escalating COVID-19 severity had obliged the governments globally to enforce total lockdown, this industry too witnessed some setback. However, the industry is projected to flourish with the rise in buying of toilet paper, hand sanitizer, bottled/packaged water, disinfectants, hand soap, and tissues. Also, the swift market growth can also be credited to the introduction of technology like Chatbot, Machine Learning (ML), and Artificial Intelligence (AI). ML and AI are aiding e-retailers to comprehend the buyer demand and thus, use these technologies for creating smart product recommendations and tailored guidelines.
The global online retail market is bifurcate based on distribution channel, product type, and region. By product type, the market is segregated into furniture, apparel, electronic items, fashion, and others. The market, by distribution channel, is classified into business to consumer, business to business, and consumer to consumer channel.
Regionally, the global online retail market is projected to be rapidly boosting in Asia Pacific region during the forecast period owing to the altering lifestyles and rising mobile internet usage. Further, North America is also anticipated to witness substantial CAGR rate during the forecast period owing to factors such as change in purchase patterns, growing customer awareness, and safe internet transactions.
The key players actively participating within the global online retail market include Amazon.com Inc; Alibaba Group Holding Ltd; Ebates Inc. dba Rakuten; Coupang Corp.; Inter IKEA Systems B.V.; eBay Inc.; The Kroger Co.; Otto (GmbH & Co KG); and Walmart Inc., among others. To cite, in March 2020, IKEA shook hands with Alibaba to open virtual store of IKEA on Tmall, the Alibaba e-commerce platform, which will assist in getting to consumers of China.
