Online Retail Market Synopsis

Online Retail Market Size Was Valued at USD  6.75 Trillion in 2023, and is Projected to Reach USD  12.74 Trillion by 2032, Growing at a CAGR of 7.32% From 2024-2032.

Online retailing, commonly known as e-commerce, is the buying and selling of goods or services over the internet. This encompasses a variety of websites through which consumers can view offerings, submit orders, and, when available, execute an online transaction, effectively enabling them to shop from anywhere in the world as long as they are able to access the internet.

• The online retail market has shown stupendous growth in the recent past due to factors such as technology upgradation, shift in consumer trends, increase use of internet and smart phones. These traditional markets have gained automation with the help of e-commerce and customers are able to order for products through phones and computers from the comfort of their homes. Currently, the global value of B2C e-retail sales value stands at more than $5 trillion in 2023, and such values continue increasing in later years. As the versatility of product categories such as electronics, fashion, groceries, and home appliances have become popularized online, this links on to the next point. This has been due to the fact that large players like Amazon, Alibaba and eBay have increase the trend while there has been emergence of many small niche online retailers due to the competition that has boosted the growth of the business.
• Hence, there is change of taste among consumers due to the facilitation arising from the online shopping feature. This shift has been boosted more by the effect of COVID 19 that compelled most physical stores to close down and other measures that have been put in place to minimise the spread of the virus, Thus the consumer has no option other than to order online. Retailers have followed this up by making a concerted effort to create and satisfy its sound digital markets, focus in achieving a better user experience, and leverage new trend technologies including; artificial intelligence and machine learning for personal shopping experience. The innovation that has come out of this include; virtual try-on, augmented reality try-on, and chatbots that assist in decision making upon purchase of the product. However, it is integration of social media and e-shopping known as social-shopping, which gives steam to this statement as it allows browsing and shopping with little difference. With the rise of online retail, sustainability has become a significant factor with most retail stores proving environmentally sensitive, and come up with principles of sustainable retail business and supply chain to satisfy the clientele’s increased demand for environmentallyconscious retailers.
• I would also like to describe here the contribution of the logistics and supply chain management for the proper online retailing. There are some services, which have divulged to be time sensitive services and among them is the sameday and next day delivery services which have been considered to enable them to meet the customer needs. Supply chain management is applying innovative technologies and setting intelligent infrastructures to optimize the fulfillment operations and minimize delivery lead times. This has also assisted in enabling the area relating to customer maintenance especially through order subscriptions and any other loyalty programs that has been encouraged because of the call to make frequent online purchases. The online retail market is experience increased competition and as a result more changes are expected to be seen happening in the market such as omnichannel retailing. This approach enables retailers to have a connected approach to consumers with a view of enabling customers to interact with the brand via any channel that they prefer.
• In any case, it would be possible to state that the tendency of the portion of the global market of online retailing as a percentage of total retail sales is to seek further growth in the future due to the increasing technological impact, changing consumer behavior and rising competition. From the e-commerce perspective, significant changes are expected and taking place to redefine the existing retail business logic and strategies, while those companies that remain committed to innovation, customer-centricity, and sustainability will be environmental gainers. Convenience, personalization, and logistics will be the keys for the future of online shopping as this sector is becoming more and more interesting with the fast growth.

Online Retail Market Trend Analysis

Growth of Subscription Services

• The general subscriptions services market has however been static while the online retail sector has grown highly given convenience in shopping coupled by the many subscriptions available in the market. Since consumers are looking for tailored solutions to their needs, subscription services offer custom designed products at their door steps, thus increasing customer delight. This model is now rife in the services like the food delivery Services, fashion, beauty products, movies, and so on. Lately, the annual growth rate of the global subscription e-commerce market has been estimated to be 68% with the market size touching nearly 478 billion US $ by the end of 2025, for the subscription economy is prospecting across the e-commerce retail market.
• Besides, the uneven growth of technology has lead to enhancing of the subscription services through interior use of analytical data base in the enhancement of the stock control and customers’ satisfaction. Business ventures are now using customer data mining to provide recommendations which not only enhances the mean customer longevity but also the lifetime return on every subscriber. Another factor that has made subscription services better over the years is the digital payment because clients are able to buy products and services easier. Based on the great success of retailers employing this model, it is expected that the online subscription market will keep on expanding, disrupting the retail industry and setting benchmarks for customer relations.

Integration of Augmented Reality (AR)

• Augmented Reality (AR) has recently started being incorporated into the existing online retail market and it is rapidly changing the way consumers shop. Customers are engaged with the idea of seeing how the product appears in their house through the help of the augmented reality technology, so the return rate is minimized. For instance, furniture sellers have embraced AR recently, where consumers use their mobile phones or other devices to visualize how a particular type of furniture looks like in their homes; this experience makes customer’s decisions more satisfying since they do have a way of getting to know the kind of relation they could have with their furniture purchases emotionally. This kind of experience is getting somewhat rather important because the interest to convenience and personal approach to selling is growing among the consumers.
• Besides, the AR online retail market is optimistic, due to the enhancing technology in the mobility and the increasing expectations from the public in more imaginative and realistic experience. AR application is appreciated by different kinds of retailers in search of fresh approaches to develop unique advertising and marketing strategies and to avoid being similar to other retailers targeting tech-savvy consumers. It also clear that the adoption of AR capabilities within SM also enhances brand recognition and customer participation because such experiences can be shared on the platforms. As the technology advances for widespread use, then the main aspects of the future of e-commerce can be seen in augmented reality leading to more sales and customer loyalty.

Online Retail Market Segment Analysis:

• Online Retail Market Segmented based on Product , and Portal.

By   Product , Groceries, Apparels & Accessories segment is expected to dominate the market during the forecast period

• The online retail mark has expanded tremendously through the determination of various categories that appeal to the dynamic consumer demand. Of these, groceries have become a leading segment, even more so after the pandemic that boosted demand for online grocery shopping. Thus it appeals to consumers who wish to be delivered at their home and would like to do price comparison to improve efficiency in their shopping. Clothing and accessories are also a large category, driven by improved methods in virtual fittings and individualized buying experience that online stores provide. Such progresses assist to minimize return rates hence increasing the convenience of buying apparel online.
• On the consumer products, the personal & Beauty care likewise have changed as the consumer looks for convenience and other possibility the online shopping portals. It greatly benefits from the growth of Social Media Marketing, especially by controlling the buying decisions via beauty influencers and advertisements. Clothing, especially footwear was considerably confined to physical store experiences but are now embracing augmented reality technologies in which customer can preview the products physically. These categories include home and electronics also which are also increasing, hence, bolstering the favourable environment for online retailing. In general, opportunities associated with diversification of products and the implementation of technologies have been the main boosters for the online retail market.

By Portal  , D2C Brands/Own Website segment held the largest share in 2023

• While the online retail market continues to grow, it can now be characterized as rather fragmented with substantial differences between third-party marketplaces, D2C brands and other targets. Currently, there are third-party marketplaces that include Amazon and eBay, since they have large inventory varieties and consumer recognition. These platforms do help the sellers to get access to the large number of potential buyers while at the same time excluding all the overhead costs that are associated with the creation and maintaining of the company’s website. But they also charge premium and implement policies that may impact on the overall profitability of the products. D2C brands do not rely on third parties and hence directly engage with consumers through their websites which provide detailed and better control of brand identity. This shift increases their share of the value of the customer history, but it also needs a lot of investment into marketing initiatives and delivery of the products to the customer.
• Also, new online retail portals and social commerce platforms and applications are emerging are changing the over all market sequences and breaking the monopoly of leading players. Different sources of social media such as Instagram and Tik Tok have influenced the way of finding products, especially when the brands can create more attractive content. These platforms were developed because when youth are going shopping with friends or: ‘hanging out’, then are very aware of the image. Since the online retail is the growing phenomenon, the business models need to modify depending on the best use of the key portals that provide the required support for the competitive environment. The channels must be appropriately covered and the company must exhibit a possibility to develop the most efficient brand image while at the same time maintaining customer loyalty, which are the issues that have to be observed in this vast market.

Online Retail Market Regional Insights:

Asia Pacific is Expected to Dominate the Market Over the Forecast period

• The Online Retail Market in the Asia Pacific region will grow tremendously in the near future due to the following reasons. Increased access to the internet connection as well as improved urbanization some of the activities that have enabled consumers to shift and make use of e-commerce to achieve higher levels of purchasing. The region also emerging middle income earners group who are likely to purchase goods and services online including electronics and fashion. Besides the technological capabilities like the mobility aspect and enhancement of payments and delivery services such as the point of sale, is also enhancing the general buying experience hence enhancing the probability of consumers buying products from the internet.
• Also, the Asia Pacific online retail sector has the domestic and international players who provide the competition. Large organizations are deploying technology to enhance the customer relationship in aspects that include shopping preferences and choice adverts. Such innovations like, Augment reality for try-on and data analytics to manage inventories are now on the trends. Therefore, it is possible to assume that the region will remain the dominant factor in the further years as it is capable of meeting the customers’ needs and innovative. This growth trajectory puts Asia Pacific as the focal hub of e-commerce activity, which will receive even more investment and innovation.

Active Key Players in the Online Retail Market

• Albertsons Companies, Inc. (USA)
• Alibaba Group Holding Ltd (China)
• Amazon.com, Inc. (USA)
• Walmart Inc. (USA)
• Rakuten Rewards (Japan)
• eBay Inc. (USA)
• Inter IKEA Systems B.V. (Netherlands)
• Otto Group (Germany)
• Taobao (China)
• The Kroger Co. (USA)
• Others Key Player

Key Industry Developments in the Online Retail Market

• July 2023 (Acqusition): eBay completed its acquisition of Certilogo, an AI-driven digital ID and authentication provider for apparel and fashion goods. This strategic move enables eBay to offer brands secure, flexible, and interoperable product solutions, safeguarding against counterfeits and facilitating recommerce through counterfeit-proof digital product passports.

Chapter 1: Introduction
 1.1 Scope and Coverage

Chapter 2:Executive Summary

Chapter 3: Market Landscape
 3.1 Market Dynamics
  3.1.1 Drivers
  3.1.2 Restraints
  3.1.3 Opportunities
  3.1.4 Challenges
 3.2 Market Trend Analysis
 3.3 PESTLE Analysis
 3.4 Porter's Five Forces Analysis
 3.5 Industry Value Chain Analysis
 3.6 Ecosystem
 3.7 Regulatory Landscape
 3.8 Price Trend Analysis
 3.9 Patent Analysis
 3.10 Technology Evolution
 3.11 Investment Pockets
 3.12 Import-Export Analysis

Chapter 4: Online Retail Market by Product
 4.1 Online Retail Market Snapshot and Growth Engine
 4.2 Online Retail Market Overview
 4.3 Groceries
  4.3.1 Introduction and Market Overview
  4.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.3.3 Key Market Trends, Growth Factors and Opportunities
  4.3.4 Groceries: Geographic Segmentation Analysis
 4.4 Apparels & Accessories
  4.4.1 Introduction and Market Overview
  4.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.4.3 Key Market Trends, Growth Factors and Opportunities
  4.4.4 Apparels & Accessories: Geographic Segmentation Analysis
 4.5 Personal & Beauty Care
  4.5.1 Introduction and Market Overview
  4.5.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.5.3 Key Market Trends, Growth Factors and Opportunities
  4.5.4 Personal & Beauty Care: Geographic Segmentation Analysis
 4.6 Footwear
  4.6.1 Introduction and Market Overview
  4.6.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.6.3 Key Market Trends, Growth Factors and Opportunities
  4.6.4 Footwear: Geographic Segmentation Analysis
 4.7 Others
  4.7.1 Introduction and Market Overview
  4.7.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.7.3 Key Market Trends, Growth Factors and Opportunities
  4.7.4 Others: Geographic Segmentation Analysis

Chapter 5: Online Retail Market by Portal
 5.1 Online Retail Market Snapshot and Growth Engine
 5.2 Online Retail Market Overview
 5.3 Third-Party Marketplaces & D2C Brands/Own Website
  5.3.1 Introduction and Market Overview
  5.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.3.3 Key Market Trends, Growth Factors and Opportunities
  5.3.4 Third-Party Marketplaces & D2C Brands/Own Website: Geographic Segmentation Analysis
 5.4 Others
  5.4.1 Introduction and Market Overview
  5.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.4.3 Key Market Trends, Growth Factors and Opportunities
  5.4.4 Others: Geographic Segmentation Analysis

Chapter 6: Company Profiles and Competitive Analysis
 6.1 Competitive Landscape
  6.1.1 Competitive Benchmarking
  6.1.2 Online Retail Market Share by Manufacturer (2023)
  6.1.3 Industry BCG Matrix
  6.1.4 Heat Map Analysis
  6.1.5 Mergers and Acquisitions
  
 6.2 ALBERTSONS COMPANIES INC (USA)
  6.2.1 Company Overview
  6.2.2 Key Executives
  6.2.3 Company Snapshot
  6.2.4 Role of the Company in the Market
  6.2.5 Sustainability and Social Responsibility
  6.2.6 Operating Business Segments
  6.2.7 Product Portfolio
  6.2.8 Business Performance
  6.2.9 Key Strategic Moves and Recent Developments
  6.2.10 SWOT Analysis
 6.3 ALIBABA GROUP HOLDING LTD (CHINA)
 6.4 AMAZON COM INC (USA)
 6.5 WALMART INC (USA)
 6.6 RAKUTEN REWARDS (JAPAN)
 6.7 EBAY INC (USA)
 6.8 INTER IKEA SYSTEMS B V (NETHERLANDS)
 6.9 OTTO GROUP (GERMANY)
 6.10 TAOBAO (CHINA)
 6.11 THE KROGER CO (USA)
 6.12 OTHER ACTIVE KEY PLAYERS

Chapter 7: Global Online Retail Market By Region
 7.1 Overview
 7.2. North America Online Retail Market
  7.2.1 Key Market Trends, Growth Factors and Opportunities
  7.2.2 Top Key Companies
  7.2.3 Historic and Forecasted Market Size by Segments
  7.2.4 Historic and Forecasted Market Size By Product
  7.2.4.1 Groceries
  7.2.4.2 Apparels & Accessories
  7.2.4.3 Personal & Beauty Care
  7.2.4.4 Footwear
  7.2.4.5 Others
  7.2.5 Historic and Forecasted Market Size By Portal
  7.2.5.1 Third-Party Marketplaces & D2C Brands/Own Website
  7.2.5.2 Others
  7.2.6 Historic and Forecast Market Size by Country
  7.2.6.1 US
  7.2.6.2 Canada
  7.2.6.3 Mexico
 7.3. Eastern Europe Online Retail Market
  7.3.1 Key Market Trends, Growth Factors and Opportunities
  7.3.2 Top Key Companies
  7.3.3 Historic and Forecasted Market Size by Segments
  7.3.4 Historic and Forecasted Market Size By Product
  7.3.4.1 Groceries
  7.3.4.2 Apparels & Accessories
  7.3.4.3 Personal & Beauty Care
  7.3.4.4 Footwear
  7.3.4.5 Others
  7.3.5 Historic and Forecasted Market Size By Portal
  7.3.5.1 Third-Party Marketplaces & D2C Brands/Own Website
  7.3.5.2 Others
  7.3.6 Historic and Forecast Market Size by Country
  7.3.6.1 Bulgaria
  7.3.6.2 The Czech Republic
  7.3.6.3 Hungary
  7.3.6.4 Poland
  7.3.6.5 Romania
  7.3.6.6 Rest of Eastern Europe
 7.4. Western Europe Online Retail Market
  7.4.1 Key Market Trends, Growth Factors and Opportunities
  7.4.2 Top Key Companies
  7.4.3 Historic and Forecasted Market Size by Segments
  7.4.4 Historic and Forecasted Market Size By Product
  7.4.4.1 Groceries
  7.4.4.2 Apparels & Accessories
  7.4.4.3 Personal & Beauty Care
  7.4.4.4 Footwear
  7.4.4.5 Others
  7.4.5 Historic and Forecasted Market Size By Portal
  7.4.5.1 Third-Party Marketplaces & D2C Brands/Own Website
  7.4.5.2 Others
  7.4.6 Historic and Forecast Market Size by Country
  7.4.6.1 Germany
  7.4.6.2 UK
  7.4.6.3 France
  7.4.6.4 Netherlands
  7.4.6.5 Italy
  7.4.6.6 Russia
  7.4.6.7 Spain
  7.4.6.8 Rest of Western Europe
 7.5. Asia Pacific Online Retail Market
  7.5.1 Key Market Trends, Growth Factors and Opportunities
  7.5.2 Top Key Companies
  7.5.3 Historic and Forecasted Market Size by Segments
  7.5.4 Historic and Forecasted Market Size By Product
  7.5.4.1 Groceries
  7.5.4.2 Apparels & Accessories
  7.5.4.3 Personal & Beauty Care
  7.5.4.4 Footwear
  7.5.4.5 Others
  7.5.5 Historic and Forecasted Market Size By Portal
  7.5.5.1 Third-Party Marketplaces & D2C Brands/Own Website
  7.5.5.2 Others
  7.5.6 Historic and Forecast Market Size by Country
  7.5.6.1 China
  7.5.6.2 India
  7.5.6.3 Japan
  7.5.6.4 South Korea
  7.5.6.5 Malaysia
  7.5.6.6 Thailand
  7.5.6.7 Vietnam
  7.5.6.8 The Philippines
  7.5.6.9 Australia
  7.5.6.10 New Zealand
  7.5.6.11 Rest of APAC
 7.6. Middle East & Africa Online Retail Market
  7.6.1 Key Market Trends, Growth Factors and Opportunities
  7.6.2 Top Key Companies
  7.6.3 Historic and Forecasted Market Size by Segments
  7.6.4 Historic and Forecasted Market Size By Product
  7.6.4.1 Groceries
  7.6.4.2 Apparels & Accessories
  7.6.4.3 Personal & Beauty Care
  7.6.4.4 Footwear
  7.6.4.5 Others
  7.6.5 Historic and Forecasted Market Size By Portal
  7.6.5.1 Third-Party Marketplaces & D2C Brands/Own Website
  7.6.5.2 Others
  7.6.6 Historic and Forecast Market Size by Country
  7.6.6.1 Turkey
  7.6.6.2 Bahrain
  7.6.6.3 Kuwait
  7.6.6.4 Saudi Arabia
  7.6.6.5 Qatar
  7.6.6.6 UAE
  7.6.6.7 Israel
  7.6.6.8 South Africa
 7.7. South America Online Retail Market
  7.7.1 Key Market Trends, Growth Factors and Opportunities
  7.7.2 Top Key Companies
  7.7.3 Historic and Forecasted Market Size by Segments
  7.7.4 Historic and Forecasted Market Size By Product
  7.7.4.1 Groceries
  7.7.4.2 Apparels & Accessories
  7.7.4.3 Personal & Beauty Care
  7.7.4.4 Footwear
  7.7.4.5 Others
  7.7.5 Historic and Forecasted Market Size By Portal
  7.7.5.1 Third-Party Marketplaces & D2C Brands/Own Website
  7.7.5.2 Others
  7.7.6 Historic and Forecast Market Size by Country
  7.7.6.1 Brazil
  7.7.6.2 Argentina
  7.7.6.3 Rest of SA

Chapter 8 Analyst Viewpoint and Conclusion
8.1 Recommendations and Concluding Analysis
8.2 Potential Market Strategies

Chapter 9 Research Methodology
9.1 Research Process
9.2 Primary Research
9.3 Secondary Research