Electronic retailing, commonly known as e-tailing, is one of the most significant subsets of the global e-Commerce industry. The global e-tailing market accounts for a significant revenue share of the global e-commerce market, owing to its dominance in online business and trade operations. The increasing proliferation of mobile phones, smartphones and broadband internet, 3G network expansion and comparatively lower prices are the elemental trends sustaining the growth of the global e-tailing market. Mobile payment transactions, internet banking, and feasible transaction options such as “cash on delivery” and “easy returns policy” are some of the additional features that are appealing to consumers, resulting into the growth of the global e-tailing market.
Since the early 2000s, several leading IT- and retail-companies have been carrying out business acquisitions and developing new e-tailing ventures to reap benefits by actively participating in the growth global e-tailing market. Starting with PayPal’ acquisition by eBay, the e-tailing market has witnessed numerous mergers and acquisitions. Amazon.com selling about 500 Mn SKUs in the US and Groupon turning down Google’s offer to start its IPO is indicative of the business activity in the global e-tailing market.
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Key Drivers & Restraints Impacting the Global E-tailing Market
The fundamental factors driving the demand for e-tailing trade and business transactions include independent access to online trade portals, open platforms for seller or buyers, and ever-inflating costs of products available in brick-and-mortar retail shops. Favourable government regulations, rise in regional GDPs, and per capita expenditure are some other factors supplementing the growth of the global market for e-tailing transactions.
Key restraints hampering the growth of global e-tailing market include lack of immediate product possession, traditional consumer preferences buying directly from retail outfits and lack of internet usage. Security concerns and growing consumer scepticism towards product quality have been longstanding challenges in the global e-tailing market, and key players have been working on addressing these issues. E-tailing companies and manufacturers are also addressing other resolvable challenges such as delay in product deliveries due to inefficient collaboration with local warehousing, packaging, and transportation mechanism.
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North America Remains Key to Growth of the Global E-tailing Market
Based on the major geographical regions, the global e-tailing market can be segmented into North America, Latin America, Western Europe, Asia-Pacific, Japan, Eastern Europe and the Middle East & Africa. North America is the largest contributor to this market followed by Europe and Asia-Pacific. In APAC, China and India remain key markets, owing to the presence of a strong middle class.
E-tailing Market: Competitive Landscape
Alibaba Group, valued at US$ 25 Bn, is currently the largest global IPO in the world. In 2011, eBay acquired GSI Commerce, an online shopping sites developer, for US$ 2.4 Bn. The top key players in global e-tailing market include Amazon.com, Inc., ASOS.com, Futurebazaar.com, eBay Inc., Walmart.com, Alibaba.com, Bourbon & Boots, Inc. andDafiti.com.
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