Online retail refers to the online selling of products with the help of the internet and electronic media devices. Online retailing allows people to sell their merchandise anywhere in the world without any additional expenditure. It means that retailers can globalize their services at no big charges. Online retailing includes business to consumer (B2C) and business to business (B2B) sales of services and products.
One of the major factors driving the growth of the global online retail market is the increasing adoption of smartphones along with the high penetration rate of high-speed networks all across the world. Moreover, online retailers are making continuous efforts to make the purchasing process easy for customers and provide a comfortable shopping experience to users. However, the availability of a wide number of options at affordable prices as compared to outlets and physical stores is also attracting customers towards online shopping. Also, the discounts and gift cards offered by retailers to boost their sales also encourage people to opt online shopping. The integration of several advanced technologies with online retailing software like offering AI-enabled services that facilitate the online trials of apparel and accessories to make shopping more convenient for the people will further promulgate the growth of the market in the forthcoming years.
The global online retail market can be segmented into products and regions.
By product, the market can be segmented into electronic goods, furniture & household decor, personal & beauty care, footwear, accessories & apparel, groceries, and others. The accessories & apparel segment accounts for the largest share in the global online retail market due to its growing demand owing to the availability of the latest and designer fashion clothes at factory prices. However, the grocery segment is expected to witness a significant growth rate in forthcoming years due to the outbreak of coronavirus pandemic all across the globe.
Asia Pacific accounts for the largest share in the global online retail market due to the significant growth in online shopping owing to the outbreak of Covid-19 in the region. Moreover, the hectic working schedule of the people along with work-oriented culture led to the scarcity of personal time, which in turn induces people to shop their essentials online. These factors are likely to accentuate the growth of the regional market during the forecast period.
Some of the significant players in the global online retail market are Apple Inc., Macy’s Inc., Gome Retail Holdings Ltd., Vipshop Holdings, Dell Technologies Inc., Walmart Inc., uning.Com Co. Ltd., Suning.Com Co. Ltd., Alibaba Group Holding Ltd., JD.com Inc., and Amazon.com Inc. To cite, Alibaba partnered with IKEA in March 2020 to launch Tmall, IKEA’s virtual store on Alibaba. It will help to reach the customers in China on a large scale.