China is by far the biggest e-commerce market in the world
Global e-commerce sales are likely to grow further this year, according to eMarketer estimates. The research house predicts that global retail e-commerce sales will reach $3.563 trillion this year, with the top five markets being China, the United States, the United Kingdom, Japan, and South Korea. These markets are expected to account for a staggering 82% of global e-commerce sales this year.
eMarketer expects that the already massive Chinese e-commerce market will grow 30% annually this year to nearly $2 trillion. Meanwhile, the second-biggest e-commerce market, the United States, could see 15% growth over 2018 to $600.63 billion. These amounts are likely reflective of gross merchandise value.
WAKE UP WITH BAGELS & STOX, OUR NEW EMAIL THAT ENTERTAINS AND INFORMS YOU BEFORE THE DAY STARTS. SIGN UP HERE!
Amazon’s core business may be slowing, but some of its smaller businesses are not
Amazon (AMZN), which is by far the e-commerce leader in the United States, could also see reasonable growth—although that growth seems to be slowing.
e-Commerce growth in Japan is likely to be the slowest of the lot due to Rakuten’s (RKUNY) sluggish growth in its core business.
According to eMarketer, these markets have seen tremendous growth, as companies such as Amazon, Rakuten, and Alibaba have respective e-commerce businesses that are “heavily entrenched” in their digital payment systems.
While Amazon’s core business, especially in the United States, is slowing, its overall growth is being boosted by its fast-growing businesses, its cloud infrastructure rental business, Amazon Web Services, and—to an extent—its digital ad business.