A list of top 10 countries to expand in order to grow your eCommerce business.
Ecommerce is growing at an exponential rate and has already become a global phenomenon. The industry is now boasting new trends in innovation and how people find, purchase, and pay for products online. Below we count down the top ten countries to expand if you want to grow your eCommerce sales.
China overtook the United States as the largest eCommerce market globally, recording annual sales of up to $672 billion. The leading companies revolutionizing e-commerce in the country are subsidiaries of the internet conglomerate Alibaba group.
These subsidiaries account for over 15.5% of China’s eCommerce revenue. The annual growth of the country’s eCommerce landscape stands at 35%, making it one of the fastest-growing markets globally.
2. United States
The United States led the global eCommerce market for more than a decade before being overthrown by China. Today, the country’s eCommerce records approximately $340 billion in annual sales, representing a global market share of 7.5%. Statistica projects the US space will hit $476.5 billion by the year 2025. The leading eCommerce companies in the country are Amazon and eBay. Top-rated niches include books, video, music, toys & hobby, DIY accessories, office equipment and supplies, home furnishings, cosmetic products, consumer electronics, apparel, and accessories. Almost any e-commerce niche works in the United States. They also charge a tax threshold of $800 for imports, making it unlikely for consumers to ship products from overseas.
3. United Kingdom
The United Kingdom’s total annual sales are $99 billion. This represents a 14.5% market share on global eCommerce. Most of the shopping takes place on Amazon.co.uk, Play.com, and Argos.com. Entrepreneurs looking for a potential market gap can expand their businesses and service UK’s untapped consumers. The most popular product niches include travel, fashion, sporting, and household items. Changes in Value Added Tax (VAT) resulting from post-Brexit might bring challenges to new merchants doing businesses, hence the need for proper planning.
Japan boasts one of the fastest-growing eCommerce markets in the world. It is said that Japanese consumers love shopping online, with the country boasting the world’s largest automobile eCommerce site, SBTJapan. So far, the country records sales of up to $79 billion, representing a market size of 5.4% globally. The leading eCommerce website in the country is Rakuten, a long time industry-player that has acquired a lot of eCommerce stores from around the world. Figures from JP Morgan suggest Japan’s B2C e-commerce market size has a valuation of $100 billion and projects the growth to hit $143 billion by the year 2025, at an annual growth rate of 6.2%.
Germany ranks at number 5 among the leading eCommerce markets globally and number 2 in Europe. The country records total annual sales of more than $73 billion, representing an estimated 8.4% of the world’s total e-commerce valuation. According to Statista, the annual growth of Germany’s market stands at 5.4%, which will result in revenue projections of $94.988 billion and $117.019 billion by the end of 2021 and 2025, respectively. The most popular niches include fashion, consumer electronics, and media. Popular payment methods are invoicing, bank drafts, credit cards, and PayPal. Leading internet stores in the country include Otto, eBay, and a regional website for Amazon.
Online commerce in Indonesia is already big and growing at a faster rate, with over 30 million Indonesians exchanging transactions through the internet. The market has created over $8 billion in revenue, and the 5-year projections are a whopping $40 billion. Zalora is the leading eCommerce brand in the country, commanding estimated monthly traffic of 3.75 million. The brand, however, specialized in fashion alone. Other eCommerce sites in the country include Bhineka.com and Sociolla.
7. South Korea
South Korea leads the eCommerce market at number 7 and number 3 in Asia. Online consumerism in South Korea can be attributed to the country’s fastest wireless network speeds globally. The leading internet marketplaces are Gmarket and Coupang. Both eCommerce giants have led the country into grabbing a market share worth 9.8% of the global eCommerce market share and worth $37 billion in annual sales. The industry is growing at an annual rate of 5.02% and is expected to hit $99.2 billion by 2025. Fashion is the most popular online shopping niche and will be valued at $23.5 billion by the end of 2021. The next popular niche is Toys, Hobby, and DIY.
India’s fast-paced e-commerce industry grew by 36% within the last quarter of 2020. The country commands a large internet user base of over 697 million, representing over 40% of India’s population. Estimates project that the industry will hit $200 billion in revenue by the year 2026. According to the Ibef Report, eCommerce growth in India has been driven by the increasing penetration of smartphones and high internet usage. Leading eCommerce brands in the country are Flipkart, Amazon’s regional brand in India, Amazon.in, and Snapdeal.
Russia is the ninth leading eCommerce market, with its revenue expected to reach $25.994 billion by the end of 2021. The market size will grow for the next few years at an annual rate of 5.2%, which will have it touch $31.809 billion by 2025. Russia’s most popular product niches are electronics and media, which are expected to hit $7.334 billion in sales this year. Russia’s average consumer will spend at least $393.46 on online shopping.
Singapore is an island in Southeast Asia, commanding a 5.9 million population. The e-commerce consumer market is worth $4.9 billion, and according to Osome, it will grow at an 8.35% compound annual growth rate throughout 2021. On average, a shopper will spend at least $1,456 annually on eCommerce shopping. The expected revenue projection by the end of 2021 is $2,793 million. The leading eCommerce segment is the electronics and media category, with an estimated market volume of $668 million.