LAMEA B2C E-Commerce Market

Market Overview

The purchasing and selling of goods and services over the Internet or through online services is referred to as E-commerce (electronic commerce). Mobile commerce, electronic funds transfers, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data gathering systems are all examples of e-commerce technology. Almost all e-commerce sales are conducted through the internet, with the exception of shipment and delivery, enabling merchants and buyers the freedom to conduct business at any time and from any location. Because shopping and selling online is more convenient than traditional sales, B2C e-commerce has become one of the fastest-growing industries in globalisation. Direct sellers, online intermediaries, advertisement-based, community-based, and fee-based e-commerce are the five forms of B2C e-commerce.

During the projection period (2022–2030), the LAMEA B2C E-Commerce market is estimated to reach a valuation of USD 183.4 million, increasing at a CAGR of 3.60%. Also, during the projection period (2022–2030), the Middle East and African B2C E-Commerce market is estimated to reach a valuation of USD 56.80 million, increasing at a CAGR of 3.20%. Although B2C E-Commerce in Latin America started slowly compared to Europe or North America, the region has gone a long way since then, with B2C E-Commerce penetration rates exceeding 50% in certain countries. The Middle East's B2C, E-commerce business is expanding. Consumers and businesses are migrating to digital platforms, owing in part to pandemic lockdowns, resulting in an increase in e-commerce sales.

Market Dynamics

Key Market Drivers

• Convenience in E-Commerce Shopping: Convenience influences consumer decisions, which is driving B2C e-commerce growth. Convenience is at the heart of e-commerce, and it's one of the key reasons for the rise in popularity of online shopping in recent years. Shopping online allows you to buy things whenever and wherever it is convenient for you, pay using your preferred method, and have your item delivered whenever and wherever it is convenient for you. It's no surprise that convenience is influencing people's shopping behaviours and impressions of various shopping options. Because of the easy and convenient payment methods, 24/7 customer care, door step home delivery to virtually every location, and convenient refund and replacement policies of e-commerce platforms, the demand for b2c E-commerce in LAMEA region channels has skyrocketed.
• A wide range of products and services are available: Customers can choose from a wide choice of items and services from any vendor anywhere on the planet through electronic commerce over the internet. Due to space limits, a vendor can only stock a certain amount of goods in a physical store. A virtual store enables a business to stock a huge number of products without incurring inventory expenditures. As a result, a company gives clients a lot of options when it comes to choosing a product, which is propelling the B2C E Commerce industry forward in LAMEA.

Key Market Restraints

• Concerns about privacy and security: Internet security is a vital component of e-commerce, and customers who purchase online need to know that their transactions are safe and that their financial information is kept private. In B2C e-commerce, there are four key aspects that can be utilised. An internet user, their computer, the buyer's network connection to the merchant's Website host, and the merchant's server are all examples. Security threats are actual security attacks that can jeopardise the availability, integrity, and confidentiality of a B2C e-commerce system. As a result, concerns regarding privacy and security in B2C e-commerce are expected to stymie market growth in LAMEA during the forecast period.

Key Market Opportunities

• Artificial Intelligence and Virtual Technology: It's not only about transferring inventory via the internet. By its very nature, e-commerce is a constantly changing beast, and those who want to stay ahead of the game must have their finger on the pulse. Surprisingly, the majority of customers abandon their shopping carts without purchasing anything. This means that retailers must do a lot more to persuade customers to stick to their guns and buy things online. Virtual reality is a relatively new technology that may be of use. It has the potential to alter the world of B2C E Commerce, and more than a third of customers believe that more should be invested in these technologies to ensure that they play a larger role in their shopping experience, making this a lucrative opportunity for major businesses in LAMEA.

Regional Analysis

The LAMEA B2C E-Commerce Market is expected to reach a valuation of USD 183.4 million between 2022 and 2030, growing at a CAGR of 3.60%. Moreover, the Middle East and African B2C E-Commerce market is expected to reach USD 56.80 million during the forecast period (2022–2030), growing at a CAGR of 3.20%. Despite the fact that B2C E-Commerce in Latin America began slowly compared to Europe or North America, the region has come a long way since then, with B2C E-Commerce penetration rates in several countries topping 50%. The B2C E-commerce market in the Middle East is growing. Because to pandemic lockdowns, consumers and businesses are flocking to digital channels, leading in a rise in e-commerce revenues.

Brazil, Mexico, and Argentina are the region's three largest economies, and in 2022, these three economies are expected to see significant changes in their B2C E-Commerce sales growth rates. MercadoLibre, an Argentine-based online marketplace, dominates the Latin American B2C E-Commerce sector by being the top seller in various countries, including Argentina, Mexico, and Chile. MercadoLibre has such a large presence in Argentina that it is expected to account for more than two-thirds of the E-Commerce market by 2021. Furthermore, MercadoLibre continues to receive a large number of visitors to its websites, maintaining its position as one of Latin America's largest online retailers.

In a pre-COVID-19 analysis, the value of the Middle East's B2C E-Commerce business was expected to increase by more than 20% year on year in 2020 from 2019. However, sales volume increased even faster after the start of COVID-19, and it is expected to nearly double from 2020 to 2025. Only two nations in the region, the United Arab Emirates and Saudi Arabia, owned a significant chunk of the market in 2020, accounting for more than 70% of the total. "Electronics, appliances & media," "fashion & beauty," "toys, hobby & DIY," and "digital services" were the most popular categories among Middle Eastern shoppers (food delivery, events, fitness & services). Furthermore, internet access in the area has increased dramatically in recent years, with penetration in Qatar, Bahrain, and the United Arab Emirates topping 90%. Even conventional brick-and-mortar stores are focusing on providing an additional B2C E Commerce platform to their clients in order to boost their revenue. Carrefour and Lulu Group, two of the Middle East's major retailers, have both opened online shopping portals in the UAE.

Segmental Analysis

LAMEA B2C E-Commerce market share has been broken down into three categories: type, application, and geography.

The B2C e-commerce market is separated into two types: B2C retailers and classifieds. With an anticipated value of USD 7,971 billion by 2030, representing an annual growth rate of 8%, the B2C merchants type sector is likely to dominate the region's industry. In the coming years, the segment is predicted to grow because to a growth in internet banking and mobile transactions.

Second, smart city developments and urbanisation in emerging countries have resulted in a westernised lifestyle, resulting in a transition from traditional to online buying patterns. The increase is attributed to globalization's ease of doing business, excellent logistics network, and increasing demand beyond countries.

Depending on the application, the B2C e-commerce market includes automotive, beauty & personal care, books & stationery, consumer electronics, apparel & footwear, home décor & electronics, sports & leisure, travel & tourism, media & entertainment, information technology, and others. With an anticipated value of USD 2,607 billion by 2030, the apparel and footwear application category are expected to lead the LAMEA market, with an 11% CAGR over the forecast period.

This is due to the growing online fashion sector, which allows merchants and producers to sell their products. Fashion websites provide a wide range of payment and goods options, as well as home delivery and quick returns. With the help of the search system, the user-friendly and simple web page interface allows for quick exploration of a variety of product types, increasing customer satisfaction.

Apparel websites reduced retail lines, expanded firms' reach, and enabled busy consumers to "buy from anywhere." For example, virtual dressing rooms, gate delivery, and returns have reduced the need for transportation or travel, and shopping websites are accessible 24 hours a day, seven days a week.

Recent Developments

• In 2021- Adidas AG has opted to sell its faltering Reebok company to Authentic Brands Group Inc. for around USD 2.50 billion, adding yet another well-known brand to the buyer's growing inventory of trademarks.