What are the Top eCommerce Markets to Target?
After starting an eCommerce business, for high revenues, we should consider top eCommerce markets to target.
With eCommerce on the rise, it is high time to go global. But, in 2024, what are the top eCommerce markets to target? With our list of ten hot markets right now, we’ve got you covered.
Important Points For top eCommerce markets to target
- From July to September 2020, online purchases in the United States totaled $199.44 billion.
- China is the world’s largest and most crucial eCommerce market, with $672 billion in annual online sales.
- Germany is a top eCommerce market with numerous low-cost shipping options into which you can expand your business this year.
Do you recall the first DM you received from a potential customer inquiring about shipping to Germany? Or how about South Korea? Or even Brazil.
If you were shocked that you had fans and potential customers in these locations, you could look more at the opportunities for reaching new markets in 2024.
The Coronavirus pervasive made 2020 a challenging year for people worldwide. However, it has accelerated the adoption of eCommerce, resulting in a new industry boom.
Why Is 2024 the Best Year to Expand Globally?
If you’ve been thinking about expanding your eCommerce business internationally, there’s never been a better time than now – 2024 is the Year! And with good reason:
Rise of eCommerce
eCommerce is experiencing an incredible rise. Part of this is due to the covid-19 situation, which has forced people to figure out and shift their purchasing habits to online shopping.
Technology is also nearing completion. As per Insider Intelligence, mCommerce or mobile shopping will reach $284 billion in 2020, accounting for 45 percent of the total US eCommerce market (talk about eCommerce sales growth).
It is only expected to increase as smartphone penetration grows by the day. Hardly anyone will need to rush to a Cyber Cafe or use a laptop or desktop computer to complete a transaction. They can use their mobile devices to do it on the go!
Simplified Cross-Border Shipping
Shipping times and costs have significantly decreased. As a result, delivery times will be critical for eCommerce retailers selling internationally.
Working with a reputable eCommerce and logistics company will allow you to rest assured that your orders will continue to flow from your store to your customers overseas without interruption.
Why Do E-commerce Businesses Fail?
E-commerce, the buying and selling of goods and services online, has opened up vast opportunities for entrepreneurs.
However, not all e-commerce ventures succeed. Despite its immense potential, the world of e-commerce is not without its challenges, and many businesses in this domain face failure.
Understanding the reasons behind e-commerce business failures is essential for aspiring entrepreneurs and business owners alike.
Ten eCommerce Markets Where Merchants Can Sell in 2024
Usually, you’ll want to be familiar with the top eCommerce markets so you can expand globally as a merchant. Do not worry.
We’ll provide you with an eCommerce ranking breakdown so you can decide just where to sell.
China
With $672 billion in annual online sales, China is the world’s largest eCommerce market.
Throughout the last decade, China’s retail sales have expanded rapidly and maintained an above-average year-over-year growth rate of 27.3 percent globally.
It explains why the country’s eCommerce ranking is so high. However, China’s eCommerce market is undoubtedly massive.
Moreover, In 2019 China’s total eCommerce sales growth surpassed that of Europe, and the United States combined, with the country accounting for more than 20% of global online retail sales.
While China has strict import restrictions, the country still has the world’s largest digital buyer population.
C is one of the top eCommerce markets to target because of the country’s significantly large eCommerce market size.
United States
After being surpassed by China’s eCommerce market size, the United States is now the world’s second-largest eCommerce market.
Statista says online retail sales in the United States reached $343.15 billion in 2019 and are expected to reach $476.5 billion by 2024 — talk about eCommerce sales growth!
Books, music, video, computer & consumer electronics, toys & hobbies, office equipment & supplies, apparel & accessories, furniture & home furnishings, and health & beauty products are among the best-selling items.
The import tax threshold is also quite generous at $800, making it less likely that consumers will have to pay additional tax or duty for overseas shipments.
China may have surpassed the United States in terms of eCommerce market size, but it is still growing.
United Kingdom
The United Kingdom is ranked third among the top eCommerce markets in the world. Its annual online sales are $99 billion, accounting for 14.5 percent of global eCommerce retail sales.
Amazon U.K. is the leading eCommerce retailer in the United Kingdom., Play.com and Argos. Fashion, travel, household items, and sporting goods are popular products in the United Kingdom.
With the VAT effects of Brexit, there will be some new problems for merchants looking to enter the UK market, so proper planning is advised.
Japan
When we talk about top eCommerce markets to target, it is one of the world’s largest and fastest-growing eCommerce markets. Initially dominated by B2B transactions, Japan’s B2C market has more than doubled in the last decade. The C2C market is also expanding significantly.
According to JP Morgan, the Japanese B2C eCommerce market is worth more than $100 billion. eCommerce sales are expected to grow at a 6.2 percent annual rate, reaching $112.465 billion in 2021 and $143. 297 billion by 2025.
Perhaps Japan’s eCommerce ranking will also change, but only time will tell.
Germany
Germany is the best eCommerce market with numerous low-cost shipping options into which you can expand your business this year.
It is Europe’s second-largest eCommerce market and the world’s fifth. Its yearly online sales are estimated to be $73 billion, accounting for approximately 8.4 percent of total eCommerce retail sales worldwide.
Due to the size of its eCommerce market, Germany is undoubtedly a top eCommerce market.
As per Statista, annual eCommerce sales growth in Germany will be 5.4 percent, resulting in $94.998 billion in revenue in 2021 and $117.019 billion by 2025.
Electronics and media, as well as fashion, are popular product categories. Payment methods such as credit cards, invoicing, and online payment methods like PayPal are preferred.
France
The French e-commerce market is ranked sixth globally, with local brands like Cdiscount and Odigeo leading the way in the eCommerce retail space. Amazon is a significant player in the French eCommerce market as well.
Statista predicts that eCommerce revenue in France has reached $58.922 billion in 2021, with a 5.2 percent annual growth rate to reach $72.275 billion by 2025.
The best-selling categories in the French eCommerce market are fashion, health and beauty, and cultural products.
South Korea
When we talk about top eCommerce markets to target, it is one of the world’s largest eCommerce markets and is known for having the fastest wireless internet speeds.
According to Statista, eCommerce revenue has reached $80.88 billion in 2021 and grow at a 5.02 percent annual rate to $99.2 billion by 2025.
Fashion forms the largest market segment, projected to have a market volume of $23.549 billion in 2021. Toys and hobby/DIY categories also remain popular.
Canada
Canada ranks eighth on the list despite having one of the largest eCommerce markets.
According to Statista, revenue in the Canadian eCommerce market has reached $32.442 in 2021 and grow at a rate of 5.6 percent to reach a projected market volume of $40.352 by 2025.
With a projected market volume of 9.044 billion in 2021, electronic and media dominate the Canadian eCommerce market. Canadians are also known for being the most diverse cross-border eCommerce buyers.
Russia
Russia is coming on ninth on the list of the top eCommerce markets to watch this year.
According to Statista, revenue in the Russian eCommerce market has reached $25.994 billion by 2021 and grow at a $5.2 percent annual rate to $31.809 billion by 2025. As a leading eCommerce market, Russia is undoubtedly experiencing increased eCommerce sales.
Electronics and media are among the most popular product categories. With a projected market volume of $7.334 billion in 2021, the average online user will spend $393.46.
Brazil
When we talk about top eCommerce markets to target, Brazil is Latin America’s largest eCommerce market, accounting for one-third of the region’s eCommerce market.
Statista predicts that eCommerce revenue has reached $23.846 in 2021 and grow at a 7.2 percent annual rate to $31.491 by 2025.
The average web shopper in Brazil will spend $207.84.
With a projected market volume of $6.344 billion in 2021, media and electronics are the most popular products in Brazil.
6 Cross-Border Shipping Tips
Now that you know some of the world’s largest and fastest-growing eCommerce markets into which you can expand, we’ll give you six essential tips to help you make the transition easier.
Collaboration with reputable couriers is essential: Shipping is the lifeblood of global eCommerce.
Buyers expect their purchases to arrive on time and at a reasonable shipping cost. You must work with dependable and well-connected couriers who can assist you in accomplishing this goal.
Working with suppliers and wholesalers in different countries can help significantly reduce the shipping time and cost of delivering orders to customers.
Customs
You must clear customs with a detailed description of your imports and exports.
To avoid delays or to have your goods held at customs, ensure that your customs forms are correctly filled out and free of errors.
Prohibited/restricted items
Examine the countries where you want to expand your business and learn what you can and cannot ship there. It will assist you in avoiding problems with authorities in those countries.
Make sure that the buyer’s address is correct. It is a massive waste of time and money to ship a product overseas only to have it returned due to an incorrect address.
Insurance
Because of the long transit time, cross-border shipping is dangerous.
Apart from ensuring that your items are adequately packaged. It will be best if you also covered any potential losses with the appropriate insurance policy to avoid devastating losses.
Identify the Target Market Niche
To identify the target market, you have to keep in mind that your market audience is a group of people who share similar demographics, interests, values, and beliefs.
