E Commerce is now an essential part of our daily lives. It is redefining commercial activities worldwide. eCommerce has evolved dramatically over the years. As we go along, we'll learn about the evolution of eCommerce and the adoption of an eCommerce business in this day and age.
To begin, eCommerce stands for Electronic Commerce. It refers to the purchase and sale of goods and services via the internet. People can buy and sell almost anything using the internet, including books, electronics, clothing, software, and furniture. E-commerce allows people to buy and sell whatever they want, whenever they want. In an evolutionary sense, the majority of brick-and-mortar stores( Which means having a physical presence) are converting to eCommerce stores. As a result, establishing an online presence and moving core business operations online are required.
The COVID-19 global e-commerce surge began as a result of necessity. As stores closed and people stayed at home to avoid the virus, online shopping became a viable option. Indeed, global e-commerce increased from 15% to 21% of total retail sales in 2019. It now accounts for approximately 22% of total sales. However, as consumers resumed in-store shopping, investors began to wonder: Was the Covid-bump a one-time event, or could e-commerce growth continue? Many factors, such as logistics, mobile device ownership, and marketplace expansion, are driving growth. For investors, this means that the e-commerce boom will most likely continue, providing opportunities for gains across multiple businesses, regions, and verticals—at a time when recent stock valuations may not reflect that growth.
The rise of digital commerce has resulted in a permanent shift in how people shop. Indeed, Morgan Stanley's industry model, along with other data, suggests that e-commerce will continue to grow, even in countries where online shopping is already prevalent. Online sales currently make up 37% of all retail activity in South Korea, thanks to a robust payments and shipping infrastructure. But there is still room for growth. Food delivery and same-day choices might propel e-commerce in South Korea to a 45% growth rate over the next five years. Likewise, as brick-and-mortar retailers shut and customers choose convenience, e-commerce in the United States might increase from 23% of sales now to 31% of sales by 2026.
Behind the scenes, developments in everything from supply chain and fulfillment capabilities to digital payments enhance the customer experience, further influencing alterations in consumer behavior. Increased connectivity and internet usage are other important factors, especially in emerging nations where people are generally younger and spend more time online than in developed areas.
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