Retailers are recognizing the huge opportunity of going global with their business. In fact, global ecommerce sales are expected to reach $1.4 trillion by 2016, an increase of 14% since 2012, according to a report from Deloitte Digital.
According to Deloitte, emerging markets are expected to see faster growth in ecommerce than the U.S., leading to an overall lower share figure domestically. The U.S. share of global ecommerce sales is expected to decrease from 30% in 2011 to 24% in 2016.
Here are four key trends driving global ecommerce, based on the report:
The shift from bricks-and-mortar to online: Improvements from payment processors have helped normalize various types of cross-border payment and regulatory issues. Online payments other than debit or credit cards are expected to represent 30% of purchase volume by the end of 2014. Globally, retailers are also seeing an increased use of mobile devices for online purchases. This demonstrates an increasingly positive perception of reputation and trust for international brands, creating a willingness to purchase via mobile.
Rise in demand for global products from emerging markets: Brazil is leading the global ecommerce trend – 81% of its consumers are willing to order from international websites, followed by Indonesia at 77%, Thailand at 74%, China at 69% and Spain at 66%. In China, consumers look to established international brands, including many U.S. retailers, for quality, secure online transactions and an enhanced online experience.
Increase in global shipping: International shipping is seeing its growth driven primarily through flexible shipping options and fulfillment services that provide retailers low-cost/low-risk options for gaining exposure in new areas. With the ability to outsource fulfillment, retailers can reach customers beyond their domestic market without having to invest in building a global infrastructure.
A surge in mobile purchases: Again, Brazil is leading the charge as the highest ranking country in retail sales influenced by mobile devices, which drive 40% of its ecommerce site traffic. Other markets show a growing mobility trend, especially China, where 75% of its residents own smartphones and 46% make purchases on them. India was just behind it, with 72% of residents owning a smartphone and 40% of them using them for purchases.