E-commerce market to grow by $12.95t by 2027

It is driven by the increasing internet usage and widespread smartphone adoption.

The global e-commerce market is projected to grow by $12.95t between 2023 and 2027, with an annual growth rate of 27.15%, according to Technavio.

The growth is driven by increasing internet usage, widespread smartphone adoption, and advancements in technology.

More consumers are shopping online across sectors such as travel, finance, and retail, while large enterprises are using e-tailing to expand their customer base.

Digital marketing tools like Google and Facebook ads are essential for businesses to reach their audience. Reduced operational and inventory costs are reshaping e-commerce models, making them more efficient and scalable.

Technological advancements, including augmented reality, virtual reality, social shopping, and the rollout of 5G, are also enhancing the online shopping experience.

Major players like Alibaba, Bharat Craft, and MSMEs on the GeM platform are leveraging both marketplace and direct sales models to expand their reach.

The rising wealth of the middle class and the availability of improved digital payment systems are further boosting sales.

However, the e-commerce market faces regulatory challenges. Tax inconsistencies and varying legal requirements across countries create hurdles for global businesses. In some regions, governments favor local e-commerce ventures, often requiring international companies to establish local operations. Additionally, restrictions on sellable items add complexity to international trade.