Which Ecommerce is Booming?
If you’ve ever wondered which eCommerce is booming, look no further than the DIY and Global eCommerce segments. They represent a vast market, and each has a unique set of challenges and opportunities. Listed below are some of the key areas where this sector is booming:
Chinese e-commerce is set to grow to over 350 million shoppers by 2020. Sales are predicted to reach $840 billion by 2020, a 50% growth from 2013. Moreover, the National Bureau of Statistics says that online sales were more than half a trillion Australian dollars in 2014. These trends are largely driven by the increasing use of mobile phones for online shopping. From just 1.5 percent in 2011 to eight percent in 2013, mobile phone sales made up a quarter of all online sales in China.
DIY e-commerce is growing at an unprecedented rate. It has surpassed physical store sales six to one over the last year. Currently, 76% of homeowners carry out some sort of home improvement project at some point in their lives. Home Depot and Lowes have reported record numbers of downloads month over month, and an even higher rise Year over Year. With the rising popularity of DIY projects, the DIY e-commerce market is growing at a rapid rate.
The global e-commerce market has exploded in recent years. Adobe, the company that tracks digital economic activity, recently published its latest Digital Economy Index report. This report estimates that global e-commerce sales will reach $4.2 trillion this year. In the U.S., e-commerce spending is already up 37% from last year, and the number is expected to increase by over three times as much by 2020.
Asia Pacific e-commerce
Despite the slow growth rate of the Asia Pacific region, the region has plenty of opportunities to grow its e-commerce market. Red tape and lack of familiarity with neighboring markets are among the biggest barriers to e-commerce in the region. But once these obstacles are overcome, significant growth opportunities can be reaped by sellers. Last year, the pandemic prompted a major shift from face-to-face contact to online and phone interactions. The rise of internet usage across Asia, including e-commerce, was boosted by a spike in data flow between the region and the world.
Increasing acceptance of technology
Consumers’ intentions to conduct transactions online are affected by a variety of factors, including perceived risk and ease of use. These factors are the focus of the Technology Acceptance Model (TAM). In this paper, we apply this TAM to the online purchasing decision-making process. We find that trust and perceived risk are two of the most important factors in consumer decisions. Furthermore, the TAM helps distinguish between different types of results.
The COVID-19 pandemic accelerated e-commerce growth as more consumers turned to online stores to buy everyday goods and services. The ailment affected people’s ability to spend time in public places, and a drop in consumer discretionary spending meant that consumers were less likely to purchase goods and services from offline stores. Despite this, e-commerce continued to grow and many brands pivoted their business models to cater to this new reality.