Ecommerce & Marketplaces Newsletter – March 8, 2024

In this week’s edition, we highlight several pieces on the growth of eCommerce, digital wallets, emerging markets, along with many other stories like the explosion of TikTok Shop. Over the last few years, eCommerce has become an indispensable part of global retail. In 2023, U.S. eCommerce represented 22.0% of total retail sales, according to Digital Commerce 360 analysis of U.S. Department of Commerce dataA lot of invaluable information can be found in these articles/blogs from ECT News Network, Statista, Digital Commerce 360, Zachs, Yahoo Finance, commercetools, Raconteur and TikTok.

Mobile Payment Industry Innovations Driving Online, In-Store Sales

Digital wallets are fast becoming consumers’ preferred way to pay, both in and out of the store. According to industry reports, almost two-thirds of U.S. smartphone users will use a mobile wallet app to transact monthly in 2024, up from half in 2021. The future of mobile payments also intersects with the rapid growth of blockchain technology and cryptocurrencies. Integrating these technologies into mobile payment systems can revolutionize cross-border transactions, reduce transaction fees, and increase transparency. Retailers must prepare for a significant period of change over the next 24 months, as there will be a shift in both business and consumer preferences towards mobile ID verification, according to Andrey Stanovnov, co-founder and CTO at IDScan. “The future of retail is mobile. From mobile checkout to virtual fitting rooms powered by AI and augmented reality, retailers are discovering new ways to blend physical and digital experiences and meet customers’ evolving demands,” noted Lawrence Snapp, CEO of AI-powered app developer Bryj.

E-commerce Worldwide – Statistics & Facts Monthly retail sales from the US Commerce Department

Over the last few years, e-commerce has become an indispensable part of global retail. Like many other industries, buying and selling goods has undergone a substantial transformation following the advent of the internet, and thanks to the ongoing digitalization of modern life, consumers all over the world now profit from the perks of online transactions. As global internet access and adoption rapidly increase, with over five billion internet users worldwide, the number of people making purchases online is ever-increasing. In 2024, retail e-commerce sales are estimated to exceed 6.3 trillion U.S. dollars worldwide, and this figure is expected to reach new heights in the coming years. In the Business-to-Consumer (B2C) sphere, fashion and consumer electronics are among the top e-commerce verticals to date and contribute to the largest share of online retail sales.

US eCommerce Sales Penetration Hits New High in 2023

In 2023, U.S. ecommerce represented 22.0% of total retail sales, according to Digital Commerce 360 analysis of U.S. Department of Commerce data. This marked the largest U.S. ecommerce sales penetration to date, according to Digital Commerce 360 analysis of U.S. Department of Commerce data. The department’s ecommerce data goes back to the year 2000. U.S. ecommerce has grown at least 0.2 percentage points year over year since 2000, according to a Digital Commerce 360 analysis. The slowest growths were from 2007 to 2008 (5.1% penetration to 5.3%) and 2021 to 2022 (21.0% penetration to 21.2%).

Estee Lauder’s (EL) Online & Emerging Market Sales Aid Growth

The Estee Lauder Companies Inc. (EL Quick QuoteEL – Free Report) is benefiting from a strong presence in emerging markets, where demand appears to be growing. The beauty company has a strong online business, which is proving to be a major growth driver. The company continues to operate in a challenging macroeconomic environment. Yet, management is on track to operationalize the Profit Recovery Plan. The Estee Lauder Companies continues to operate in a challenging macroeconomic environment and geopolitical tensions across certain parts of the world.

Aptoide Launches Campaign for a Truly Open Digital Market with New DMA Website

Aptoide, the pioneer in global alternative Android app distribution, has launched a new campaign website, leveling the game, including an Open Letter from the Aptoide founders, to demand full compliance from gatekeepers with the EU’s Digital Markets Act (DMA) and to urge regulators to take further action against anti-competitive practices by digital gatekeepers. Since 2011, Aptoide has been a vocal advocate for fair competition in the mobile app market, consistently challenging the market dominance of tech giants like Google. Aptoide believes that real competition can only emerge if the EU takes decisive action to enforce open market principles, leading to a digital marketplace that values fairness and innovation.

Rethinking integration models in composable commerce

In the ever-evolving landscape of eCommerce, businesses are constantly seeking more efficient ways to integrate their various systems and applications. This integration is crucial for seamless operations, from managing inventory and orders to delivering personalized customer experiences. Common integration models contain the use of a “hub-and-spoke” system where all the validation, transformation, routing and other business rules come into play.

Several clicks behind: B2B ecommerce plays catch-up

According to survey data published by Wunderman Thompson in its B2B Future Shopper Report 2023, 46% of global B2B buyers find purchasing products online frustrating, while 45% consider it to be a more complex process than buying offline. Moreover, 51% of respondents believe that B2B vendors don’t understand which parts of the digital purchasing experience typically cause the most friction. B2B vendors have much to learn from etailers when it comes to providing a user-friendly online shopping experience. What barriers are holding them back – and how surmountable are they?

TikTok Native Brands

One product has sold 1.2 million units on TikTok. More than any other since TikTok Shop launched in the US in September. GuruNanda Cocomint Pulling Oil is selling more than 100,000 units a week on TikTok Shop and has totaled 1.2 million sales on the app. TikTok users didn’t seek out GuruNanda, at least not before it got popular. They bought it because of the videos mentioning the product intermixed in their regular TikTok feeds. TikTok is content-first, while Amazon, Walmart, and other internet retailers are search-first.

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