Global E-Com market

The global e-commerce market is expected to hit $8.5 trillion by 2026 with a compound annual growth rate (CAGR) of 9.1% from 2023. This trend presents attractive opportunities for cross-border e-commerce. Therefore, the report suggests that businesses should develop cross-border e-commerce capabilities to benefit from the high-growth markets.

The cross-border e-commerce credited to the explosive growth in global e-commerce in the first two years of the pandemic and has slightly slowed in 2022, with a 10% YoY growth in global e-commerce transaction value from 2021-2022.

However, a report predicts a 9% CAGR from 2022-2026, projecting that global e-commerce transaction value will rise from approximately $6 trillion in 2022 to over $8.5 trillion in 2026.

The largest e-commerce market in the world is China, followed by the United States and the United Kingdom. However, e-commerce is growing rapidly in other regions as well, such as India, Southeast Asia, and Latin America.

The growth of e-commerce is having a major impact on the retail industry. Many traditional brick-and-mortar retailers are struggling to compete with online retailers. However, some traditional retailers are adapting by developing their own e-commerce platforms and omnichannel strategies.

The growth of e-commerce is also creating new opportunities for businesses. For example, there is a growing demand for e-commerce fulfillment services, logistics services, and payment processing services.

The Governments initiatives like Common Services Centers under the Ministry of Electronics & IT (MeitY) said it has invested in the Open Network for Digital Commerce (ONDC) to promote e-commerce and logistics in rural areas. “It is for the first time that CSC has invested in an initiative like this. ONDC will democratise digital commerce by moving to an open network.

However, some challenges still need to be addressed to sustain this growth. For example, the report indicates that the lack of digital infrastructure and financial inclusion in some emerging markets can hinder e-commerce growth. Additionally, regulatory challenges and cross-border trade barriers can create obstacles for businesses looking to expand globally.

Overall, the FIS Global Payments Report 2023 indicates that global e-commerce is poised for significant growth over the next few years, presenting business opportunities and challenges. Companies that can successfully navigate the challenges and leverage the opportunities presented by e-commerce will likely benefit from this growth trend.