What is e-commerce? That wonderful invention that allows us to buy things via the internet. In today's world it is hard to imagine relying on traditional stores and not having the option to go online and use an e-commerce website to get products home delivered. 80% of the world's internet users have done just that at least once and more than half have done it twice. Why? Because it saves time from trawling down isles in a real store, it's easy to compare prices and find the best deals, and the choices are literally endless. E-commerce also allows producers, retailers and other organizations to reduce overheads. It's just more efficient overall.
The fascinating history of how e-commerce became the norm is explored in a new infographic by eReviews, and the raw data speaks for itself. In December 1995 (around the time that both Amazon shopping and eBay bidding began), online shopping was worth just $131 million. Paypal wasn't even around until 1998 and credit card transactions weren't secured by PCI until 2004. Jump to 2015 and eCommerce was worth $1.55 trillion and the general public have no qualms about sharing their credit card details or using Paypal to make payments.
Yet despite being born in the US, China is now the world's largest eCommerce economy thanks to their rapidly growing online population, but also the pioneering growth of Jack Ma's Alibaba empire which has roughly 300 million customers a year. The US follows with sales of $341,729 billion in 2015, a rapid growth of 14.6% from the previous year. $107.01 billion of that comes from Amazon.com alone. Not bad for the online bookstore launched in 1995, that didn't reach a full year's profit until 2004. Considering the most purchased item online is books, we guess it makes sense.
Britain is also a favourite in internet retail, with 50% of online shoppers seeking high quality British fashion and luxury goods. This drives over £52 billion in sales and with the rise of mobile shopping, there's no sign of it slowing down. Almost half of Paypal transactions in the UK are driven by mobile devices.
The infographic also sheds light on what exactly entices online shoppers beyond the convenience factor, and what they're actually buying. 8 out of 10 of those surveyed said they would buy online if free shipping is available for example. If books are the most purchased item, Dan Brown's The Da Vinci Code is the most bought book in history.
But what is e-commerce going to look like in the future? Growth, growth and more growth! As more of the world becomes connected, it makes sense that online sales will increase. In the US alone this is expected to be $548 billion by 2019. It's the Asia-Pacific region however that is poised to dominate. India's retail market is expected to reach $850 billion by 2020!
For more facts about the global e-commerce market, how it got here and what the future holds, be sure to check out the full infographic.
