The pandemic has changed how we consume, and in turn, it’s altered our spending habits. This is why there was a significant increase in the share of ecommerce in total retail during 2019-2020. Studies also found that new ways and habits developed during the pandemic, such as online shopping, food delivery platforms, remote work, and others are expected to continue.
While these numbers and trends seem to paint a bright future for ecommerce, among millions of ecommerce websites globally
At the same time, while many ecommerce platforms currently support domestic consumption or help numerous Greater China businesses implement cross-border ecommerce, this often means intense price wars and difficulty in establishing deeper relationships with customers for many operators.
Therefore, we have compiled some ecommerce trends and resources from different countries to support our clients in implementing ecommerce strategies, thus supporting sustainable and healthy growth.
Electronic Commerce, commonly referred to as ecommerce, refers to all business activities carried out via the internet. These activities include product selection, transactions, logistics to deliver goods to consumers, and after-sales service.
Compared to traditional retail, which requires substantial initial investment and maintenance costs, the initial investment for ecommerce is relatively less and more affordable for small and medium-sized businesses.
We can further categorize ecommerce into two types of targets and two operating models, which are the primary methods many businesses use to evaluate the market.
This type of ecommerce is what most consumers use daily. Examples of self-operated B2C include PX Mart PXGo, Nike online store, Uniqlo online store, and more.
For small businesses with less resources, the initial investment for self-operated ecommerce is usually higher, and they face technical challenges in many areas, such as IT infrastructure, payment systems, and traffic generation.
As a result, many businesses prefer semi-self-operated solutions, where third-party operators handle IT, payments, and even logistics, while the business retains full flexibility in other aspects.
Non-self-operated ecommerce belongs to third-party platform ecommerce, with Amazon, momo, Shopee, Taobao, etc., being the most common ecommerce platforms. In recent years, third-party platforms have added other types of players, such as delivery service providers like Uber, Food Panda, which are increasingly becoming mediums for businesses through online consumption.
Moreover, the rise of social commerce, initiated by Chinese social media in recent years, has started to bloom everywhere. Many platforms such as Facebook, Instagram, and even YouTube have launched social commerce features, enabling businesses to interact with customers in completely new ways.
For self-operated businesses, the B2B ecommerce model was mainly based on re-purchase transactions. However, when the pandemic limited this type of procurement method in early 2020, many companies were forced to look for new buyers or even place orders online.
This trend has led to rapid growth in B2B ecommerce. In a survey by McKinsey, it was found that 32% of businesses stated that ecommerce is the most effective sales method, surpassing physical contact at 23%.
However, B2B ecommerce is still immature in the self-operated aspect. Whether in terms of product and service listing completeness, design, or overall process, there is a huge gap compared to B2C.
Thus, for businesses that do not have ample resources to invest in establishing a complete ecommerce system and funding its operation, many semi-self-operated solutions are a viable option.
In B2B ecommerce platforms, they can typically be further classified into cross-border trade platforms like Alibaba, Taiwan Trade, and industry-specific platforms that support various needs within the same industry.
We track the development of e-commerce in various countries, including the extent of online penetration, platform development, and local retail trends.
Our CR Team focuses on every changes relevant to the customers across the world.