The global B2C E-Commerce market size is expected to reach a valuation of USD 8,016 billion by 2030 growing at a CAGR of 8.05% during the forecast period (2022–2030).
B2C (business-to-consumer) e-commerce, sometimes known as retail e-commerce, is a sales paradigm in which online businesses sell directly to consumers. For example, Amazon is a B2C e-commerce platform that sells products directly to consumers.
E-commerce sales take place nearly exclusively over the internet, except for shipping and delivery operations, giving sellers and buyers the convenience and freedom to conduct business anytime and from any location. B2C e-commerce has become one of the fastest-growing sectors in globalization due to the greater convenience of buying and selling online than conventional sales. There are five types of B2C e-commerce: direct sellers, online intermediaries, advertisement-based, community-based, and fee-based.
The market is anticipated to grow due to rising disposable income levels, rising internet and smartphone usage, and increasing online shoppers. Customers increasingly prefer e-commerce platforms due to the options online sellers of goods and services provided, including a wide range of products, discounted prices, convenient payment methods, same-day delivery, and simple return policies.
The introduction of social media as a marketing tool offers multiple advantages to B2C e-commerce, driving the growth of the global market. Social media marketing is a form of digital marketing strategy that uses the popularity of social media networks to accomplish marketing and branding goals. Due to its extensive use and flexibility, social media is one of the most successful free marketing methods available today.
Social media allows businesses to become active market participants. The profile, updates, and connections with people create an approachable persona the audience can become acquainted with, connect and trust. Social media is a top avenue for attracting traffic to a business website. Visitors can be converted into consumers, owing to links in profiles, blog post links in posts, and adverts. Businesses may attract leads and revenues directly on these platforms by leveraging Instagram/Facebook stores, direct messages, call-to-action buttons on profiles, and online appointment features.
Because of the visual aspect of social media platforms, businesses may establish a visual identity and increase brand awareness. These platforms allow for networking, receiving comments, holding discussions, and interacting directly with others via direct and indirect connections with the audience.
For example, Facebook is the world's most popular social media platform and one of the most popular local business directories. People of all ages use it to connect with friends and families, join forums, locate and visit local businesses, and track brands. Strengthen relationships with existing clients, notify hours changes, events, and achievements, host discussions and live broadcasts, and promote to baby boomers using Facebook's social media marketing tool.
Thus, the emergence of social media like Facebook, Instagram, and YouTube, among others, and using them as a marketing tool to grow the business is likely to drive the market growth over the forecast period.
Smartphones have altered how people shop online. Google recently assessed 1,000 Americans aged 18 to 64 to explore how they use their smartphones to explore and shop online. Smartphones have become popular shopping tools, according to the research. Smartphones are increasingly widely used to both research and purchase goods and services. According to the report, 77% of consumers use their smartphones for research and 46% for purchasing.
Smartphone users can look for products and services anywhere and anytime with this degree of connectivity and flexibility. 55% of smartphone users search at home, 35% search on the go, 31% search when shopping, 28% search at work, 21% multitask while dining out, 15% search in coffee shops, and 7% search while taking public transportation.
Smartphone purchases are not a one-time or unintentional occurrence. People who shop on their smartphones do it frequently. According to the poll, 60% of consumers make at least one monthly transaction on their cellphones. Thus, increasing smartphone e-commerce will likely drive the global B2C e-commerce market growth during the forecast period.
The rural areas of developing and underdeveloped nations have a very high illiteracy rate. The general public needs to know how to use smartphones and the internet. In addition, the vast majority of people reside in rural areas. This is a significant restraint that could prevent market expansion.
Electronic commerce is all about distributing, buying, selling, marketing, and servicing items and services via electronic communication networks such as the internet, extranets, mobile phones, databases, and other computer systems. Because Internet security is an essential aspect of e-commerce, customers who purchase online need to know that their transactions are safe and their financial information is kept secure.
B2C e-commerce incorporates four key elements that can be hacked. The internet user, the user's computer, the network connection between the buyer and the merchant's Website host, and the merchant's server are all examples. Security threats are actual security assaults that can compromise the availability, integrity, and confidentiality of a B2C e-commerce system.
Thus, privacy and security concerns involved in B2C e-commerce are likely to impede the market growth over the forecast period.
The e-commerce industry is undergoing significant technological change. As consumers' lifestyles change and become more adapted to online purchasing, it is becoming increasingly important for industry participants to use technology to create services that please customers. The Internet of Things (IoT) is the newest technology. IoT-enabled gadgets communicate over the internet, allowing retailers and e-commerce enterprises to run more efficiently.
This clever technology has drastically revolutionized the way consumers buy online with the introduction of IoT devices such as smart mirrors that allow customers to virtually try on garments and Amazon dash buttons that assist users in restocking their favorite products. The rising adoption of IoT in the B2C e-commerce trade provides multiple advantages over the conventional model. Internet of Things (IoT) assists businesses in managing distribution networks, inventory, warehouse, and consumer experience at ease.
Thus, the rising adoption of IoT in the B2C e-commerce trade will likely provide lucrative growth opportunities for the market players to expand their businesses during the forecast period.
The global B2C E-Commerce market share has been classified based on type, application, and region.
The B2C e-commerce market has been segmented into B2C retailers and classifieds based on type. The B2C retailers' type segment is expected to dominate the global market, and it is projected to reach USD 7,971 billion by 2030, registering a CAGR of 8% during the forecast period. Over the forecast years, a surge in internet banking and mobile transactions is anticipated to propel the segment.
Secondly, smart city developments and urbanization have led to a westernized lifestyle in emerging economies, transforming purchasing patterns from conventional to online. The increase is ascribed to globalization's ease of doing business, efficient logistics network, and significant demand beyond countries.
The segment for classifieds contributed 0.56% of total revenue in 2020 and is anticipated to grow at the highest CAGR of ~11.7% during the forecast period. The market for print advertising is shrinking, there is an increase in mobile classified advertising, and online advertising is inexpensive. According to user needs, the segment offers numerous classified services for real estate, employment, automobiles, and matrimony in one location.
The B2C e-commerce market has been segmented into automotive, beauty & personal care, books & stationery, consumer electronics, clothing & footwear, home décor & electronics, sports & leisure, travel & tourism, media & entertainment, information technology, and others based on application. The clothing & footwear application segment is expected to dominate the global market, and it is projected to reach USD 2,607 billion by 2030, registering a CAGR of 11% during the forecast period.
This is due to the rapid growth of the online fashion sector, which allows merchants and manufacturers to sell their products. Multiple payments and merchandise options, home delivery, and quick returns are all advantages of shopping on fashion websites. With the help of the search system, the user-friendly and straightforward web page interface allows for easy exploration of multiple product types, enhancing the consumer's delight.
Apparel websites eliminated store lines, expanded retailers' reach, and allowed consumers with busy schedules to "shop from anywhere." Likewise, virtual dressing rooms, gate delivery, and returns have eliminated the need for transportation or travel, while websites are available for shopping 24 hours a day, seven days a week.
Over the forecast period, the consumer electronics sector is expected to grow significantly. The growth is attributed to rising internet usage and consumers' interest in emerging electronics trends and products. Customers are getting a real-time shopping experience for consumer electronics thanks to the growing use of artificial intelligence (AI) and in-app augmented reality, which significantly impacts decision-making. Similarly, more customers are drawn in by social media advertising, same-day delivery, and custom packaging.
During the COVID-19 pandemic, B2C e-commerce platforms saw a surge in demand for necessities, including personal care products, bathroom needs, and groceries. However, in the early stages of the 1st quarter and 2nd quarter of 2020, the increasing prevalence of COVID-19 all across the globe led governments in many nations to go into complete lockdown, interrupting supply chains and negatively affecting e-commerce revenues. Secondly, the COVID-19 outbreak had affected the United States and China the hardest, which are key contributors to e-commerce growth.
Services e-commerce corporations, like those engaged in ride-hailing and tourism, saw their GMV (Gross Merchandise Volume) fall, putting them behind their competitors in the ratings of top business-to-consumer e-commerce corporates. For example, Expedia dropped from 5th to 11th place in 2020, while Booking Holdings dropped from 6th to 12th, and Airbnb dropped from 11th to 13th. Despite the drop in services corporations' GMV, the top 13 companies' total GMV increased by 20.50% in 2020, outpacing the 17.90% growth seen in 2019.
The post-pandemic phase will be significant for the global B2C e-commerce market. An outbreak appears to have set in or expedited changes that are likely to last. Individuals exposed to the comfort of online purchasing are unlikely to continue their old habits. Yet, e-commerce development is slow as more physical stores reopen and consumers return to the shopping streets. Overall, the recovery of the global market of B2C e-commerce will be quick compared to other sectors.
The global B2C e-commerce market share has been segregated into North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa.
With a market value of USD 3,596 billion by 2030, registering a CAGR of 10%, Asia-Pacific is expected to be the largest B2C e-commerce market. The region is home to about two-thirds of the world's population, and economic development—particularly in China and India—remains a crucial regional driving factor. Rising internet connection in second-tier cities and remote locations is credited with the development. This region's undeveloped market is a prominent location for global businesses and online buyers worldwide.
North America is expected to be the second-largest B2C e-commerce market with a market value of USD 2,289 billion by 2030, registering a CAGR of 7%. North America features one of the world’s high frequencies of internet adoption. Buyers are picky about the quality of products, content, and pricing, encouraging them to accept international products and brands.
Latin America and the Middle East and Africa markets are expected to rise substantially during the forecast period. The Middle East has a vibrant population of young people and one of the highest living standards in the world. Moreover, the region's quickly developing retail e-commerce business is driven by rising internet usage.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|