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E-Commerce Revolution — The Happening

October 3, 2015

The fast development of telecommunications technology in the past few decades is changing many aspects of our lives – how we search for information, how we travel and not at least how we buy products or services. Although classic shop-based retail is still preferred, e-commerce or electronic commerce, namely the buying and selling of products and services exclusively through electronic channels, is gaining ground.

The most well-known form of e-commerce or electronic commerce is online shopping, also known as business to consumer e-commerce (B2C), where private customers can order various products which they then receive by courier or postal mail. Another category of e-commerce focuses on transactions between companies, such as manufacturers and a wholesalers or wholesalers and retailers and is called business to business e-commerce (B2B). The third category of e-commerce involves transactions from consumer to consumer (C2C), as in the example of eBay or other similar websites.

Around 45% of the world population has an internet connection today . In 1995, it was less than 1%.. The number of internet users has increased tenfold from 1999 to 2015. The first billion was reached in 2005. The second billion in 2010. The third billion in 2014. Today it is 3.2 billion .

Asia accounts for 48.4% of the total internet users in the world followed by Europe. China, the country with most users (642 million in 2014), represents nearly 22% of total, and has more  users than the next three countries combined (United States, India, and Japan). Among the top 20 countries, India is the one with the lowest penetration: 19% and the highest yearly growth rate. At the opposite end of the range, United States, Germany, France, U.K., and Canada have the highest penetration: over 80% of population in these countries  has an internet connection.

With an expected 33 percent of the global market in 2015 and over 37 percent in 2018, the Asia Pacific region is becoming the leader of the e-commerce industry. In fact, China, due to its unprecedented economic boom, is not only driving the region’s leadership, but is also set to outdo the United States as the single country with the largest e-commerce market in the world. China On Path to World Domination in E-commerce.emerging markets in Asia-Pacific have fueled China’s business-to-consumer e-commerce markets. In 2014, Chinese consumers are to spend more on online purchases than in the U.S. market. China is dominating worldwide e-commerce sales growth by a remarkable 63.8%. India comes in second with a distant 31.5%. The statistic shows the transaction size of China’s online shopping market from 2007 to 2013 with projections through 2018, based on annual sales. In 2013, online commerce transactions in China reached approximately 1.84 trillion yuan(289 billion dollars).

Taobao, a consumer-to-consumer platform, the Chinese search-engine Baidu and the ‘Amazon of China’, Dang Dang count among the world’s largest internet companies and have created an online infrastructure that can no longer be defined as that of a developing country.

Another emerging Asian market in terms of e-commerce is India. Recent statistics show that retail e-commerce sales in  India have grown tremendously, from 2.3 billion U.S. dollars in 2012 to an estimated 17.5 billion U.S. dollars, representing an almost eight-fold growth. As of 2015, the retail e-commerce sales as a percent of total retail sales in India are set to account for 0.9 percent of all retail sales in India, but this figure is also expected to grow in

the near future, reaching 1.4 percent in 2018. The most successful e-retailer in India is, a fashion and lifestyle company specialized in apparel, footwear, fashion accessories, beauty products, home accessories and other fashion and lifestyle products. With 26.26 million unique visitors in October 2014 alone, manages to surpass Amazon, the world’s most successful e-retailer. Some of the most popular product categories among online shoppers in the region include airline tickets and reservations, baby supplies, cosmetics, clothing, accessories and shoes, as well as computer hardware and software. According to recent data, the number  of digital buyers in India alone is expected to reach 41 million by 2016, representing some 27 percent of the total number of internet users in the country. Furthermore, a growing number of people in the Asia Pacific area are increasingly using their mobile devices for online shopping. In India, some 9 percent of the country’s population had made a purchase via mobile phone within the past month, as of the fourth quarter of 2014.

Statistics and facts about online shopping behavior

Online shopping is a thriving market and the numbers can prove it: retail e-commerce sales worldwide amounted to 1.08 trillion U.S. dollars in 2013, 1.5 trillion U.S dollars in 2015 and projections  show growth of up to 2.48 trillion U.S. dollars by 2018. In the first quarter of 2015, mobile e-commerce spending reached 10 billion U.S. dollars in the United States  alone. According to a 2015 study regarding mobile shopping penetration worldwide, 46 percent of internet users in the Asia Pacific region and 20 percent of those in North America had purchased products via a mobile device, whether smartphone or tablet computer. Furthermore, when asked whether mobile phones will become the main tool  for purchasing goods in the future, some 9 percent of respondents in an extended global survey strongly agreed. According to a new report by digital advertising company Criteo, 30% of e-commerce transactions worldwide are now happening on mobile devices. 10% of E-Commerce dollars Are Spent via Mobile Device. In 2018, U.S. mobile retail revenues are expected to amount to 130.12 billion U.S. dollars, up from 56.67 billion U.S. dollars in 2014.

With such promising perspectives, retailers and industry experts around the globe are constantly trying to adapt to the changing behavior of buyers in order to stay competitive and relevant. Not only the products they offer become important, but also the design of their webpage, the way products are photographed and even the accompanying text, as well as ease and security of payment or delivery costs. Some companies are known as “pure-click” or “pure-play” if they that have launched a website  without previously having a physical outlet, such as online market leader Others are “bricks-and-clicks,” if they have added an online site to their bricks and  mortar business, like Walmart. And finally, “click-to-brick” are online retailers that later open physical locations in addition to their shopping websites, as is the case with many startups and small online brands which want to increase their visibility in the real world.

One of the phenomena that are changing the face of retail is the increased availability of multi-channel retailers, where customers have an array of possibilities to look up and then buy a certain product. Internet-savvy buyers are more and more determined to spend considerable time researching certain products on different websites and reading online reviews, as well as comparing prices through a website or application, in order to get the best deal possible. Many times they do their research online and end up buying offline, this phenomenon being called webrooming. The increasing availability of smartphones with access to the internet and barcode scanning software also allows customers to go to a store

first  and then research products they find there, in order to see if there are better price-offers elsewhere. If they end up buying online, whether because they found a better price or delivery  is more convenient, the phenomenon is called showrooming, a growing trend among buyers. Furthermore, buyers use their mobile devices for a variety of purposes associated with shopping, such as tracking a delivery, posting their own reviews of certain products, claiming online coupons offering discounts, or even contacting friends and family to ask for advice regarding a certain product. Potential buyers may also turn to their social media platforms for reviews, advice, recommendations. As a recent study shows, especially among the  young, social media feedback can be an important factor influencing purchasing decision.

How Much Online Shoppers Around the World Are Spending

But how much are people around the world actually spending online? According to Statista’s Digital Market Outlook, the United States is not only leading in terms of total e-commerce revenue, but also among the countries with the highest revenue per online shopper. On average, Americans are expected to spend $1,804 online this year, almost  double of what Japanese shoppers are spending online. United kingdom comes second with $1629 online followed by Sweden $1466 online. .China comes at no. 8 with $626 online.

According to the study, although the U.S. are still in the top spot as far as overall sales are concerned amounting to 359 billion US Dollars in 2014, Europe had business-to-consumer e-commerce generated revenues of roughly 325.4 billion U.S. dollars in 2013.  In 2013, online commerce transactions in China reached approximately 1.84 trillion yuan (289 billion US Dollar).

Market capitalization of the largest internet companies worldwide as of May 2015 (in billion U.S. dollars) This year, e-commerce company alibaba market value was 233 billion while  Amazon’s market value was 199 billion U.S. dollars . Search market leader Google had a market value of 373 billion U.S. dollars. followed by Alibaba 233 billion and facebook 227 billion US Dollars.As of August 2015, Google’s market capitelization was 432.15 billion U.S. dollars. Second-ranked social network Facebook had a market cap of 256.63 billion U.S. dollars.

Desktop Shoppers Outspend Mobile Buyers

As people have grown accustomed to completing tasks on mobile devices and smartphone screens have become large enough to allow comfortable browsing, more and more online shopping is done on the go. However, according to data published in Monetate’s E-Commerce Quarterly report, people still tend to fire up their laptops or desktop computers when shopping for big-ticket items.

According to Monetate’s findings, which are based on millions of online shopping sessions worldwide, the average amount spent by online shoppers is significantly higher on desktop devices than it is on smartphones and tablets .

The e-commerce is not a kind of new industry, but it is creating a new economic model. Most of people agree that the e-commerce indeed to be important and significant for economic society in the future, but actually that is a bit of clueless feeling at the beginning, this problem is exactly prove the e-commerce is a sort of incorporeal revolution. Generally speaking, as a type of business active procedure, the e-commerce is going to leading an unprecedented revolution in the world, the influence of this model far exceeded the commercial affair itself. Except the mentioned above, in the area of law, education, culture and also policy, the e-commerce will continue that rise in impact. The e-commerce is truly to take human beings into the information society

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