Exclusive extracts from this 113-page-long report:
- What is the business?
E-commerce companies provide digital platforms and related services that enable buyers and sellers to connect for online transactions. Leading e-retailers mainly operate online marketplaces, payment methods and fulfilment services, but often also provide online advertising and other web services. […]
- What are the main markets?
In 2014, China surpassed the US as the largest e-commerce market by value, while the UK has maintained the third rank ahead of Japan. However, Asian e-retail markets – China in particular – will grow the fastest during the next decade, driven by large populations, rising income levels, growing Internet penetration, and a slower expansion of physical retail networks. E-retailing is also growing strongly in Latin America and the Middle-East, despite a lower number of online shoppers and lower per capita digital spending. [...]
- Who are the key players?
US e-retailers dominate the global market, whereas most non-US players still operate on a more regional level. Amazon remains the world's largest online retailer by revenues, but is dwarfed by Alibaba Group in terms of gross merchandise volume, a key industry metric. Despite Amazon's dominance, e-commerce groups from major online retailing markets – in particular China – have been rapidly growing their international market share. [...]
- How intense is competition?
Competition in the online retail market is fierce, nurtured by weak entry barriers and a great variety of contenders and substitutes. Product selection, prices, convenience, and customer experience are the main aspects of competition. E-retailers are also stepping up the race for leadership in strategic market segments such as payment methods, mobile retailing, and shipping services. To fend off competition and raise switching costs, e-retailers have been focusing on building extensive e-commerce ecosystems. [...]