The Surprising Case for Stronger E-commerce Growth | Morgan Stanley (2024)

FAQs

Why has ecommerce grown so rapidly? ›

Faster buying for customers.

For customers, ecommerce makes it possible to shop from anywhere, any time. That means buyers can get the products they want and need faster without being constrained by operating hours of a traditional brick-and-mortar store.

The most significant reasons for this trend are as the following: I. E-commerce is less dependent on the vendor-specific solutions. II. E-commerce is not depending on geographic reasons as it gives access to the world-wide stores.

Ecommerce growth is the process of increasing revenue, expanding your customer base, entering new markets, earning a bigger market share.

Worldwide Ecommerce Sales are projected to top $7 trillion in 2025, even as sales subsidize following a two-year boom.

24/7 Availability and Convenience

This means that customers can browse and purchase products at any time, enhancing convenience and eliminating the restrictions of time zones or physical store locations. Moreover, ecommerce eliminates the need for customers to travel to physical stores, saving them time and effort.

By the 2010s, eCommerce rapidly started to pick up speed. In 2010, for the first time in online shopping history, U.S. online sales during Cyber Monday surpassed $1 billion. Around the same time, the launch of new digital payment tools helped add fuel to the fire.

What are common E-commerce threats? Common E-commerce threats include malware and ransomware attacks, social engineering (phishing), cross-site scripting (XSS), brute force attacks, denial of service (DoS) and distributed denial of service (DDoS) attacks, malicious bots, SQL injection, and API attacks.

According to eMarketer, in 2021, e-commerce retail sales reached nearly $5 trillion worldwide—and are projected to reach nearly $7 trillion by 2024. The pandemic resulted in a huge jump in e-commerce transactions as more people were forced to make the switch to purchasing and selling goods and services online.

Why is eCommerce the future? ›

Ecommerce is rapidly becoming the future of retail due to its many benefits. Online sales offer convenience, allowing customers to shop anytime and from anywhere. This accessibility has led to increased sales and customer satisfaction.

Mobile e-commerce is the fastest growing type of B2C e-commerce although it represents only a small part of all e-commerce in 2011. An e-commerce presence requires firms to consider the four different types of presence, with specific platforms and activities associated with each.

Global e-commerce market turned into valued at $ 18.98 Trillion in 2022. Its market size is projected to reach $ 47.73 trillion by 2030 growing at a compound annual growth rate of 12.22% from 2022 to 2030. This is according to the latest report by Research and Markets.

Key stat: US retail ecommerce sales will reach $1.720 trillion by 2027, hitting a milestone of more than 20% of overall retail sales, according to our forecast.

Future e-commerce leaders will be those that make the most of new technology and smartly capture the evolving trends at the onset. Prioritizing business strategy, customer needs and current capability goes a long way when outpacing the competition.

Comparing and researching products and their prices are a lot easier with abundant online consumer reviews. Cheaper deals and better prices are also more available and accessible, since most online shopping is done without a middleman, directly from the manufacturer. The absence of sales tax is yet another plus.

Between 2019 and 2023, the number of e-commerce sites operating around the world increased from 9.2 million¹ to over 26.2 million. With useful features for payment processing, promotions and marketing, the best e-commerce platforms allow traditional brick-and-mortar businesses to establish themselves on a global scale.

The digital marketing industry is experiencing substantial growth due to several compelling factors. They capitalise on the efficiency of multiple marketing channels to reach a diverse consumer base. Businesses now recognise that digital strategies afford a higher ROI compared to traditional marketing techniques.