With advantages of a greater market reach and an ease of exploration of different goods, e-commerce has become the boon to a lot of businesses. Companies like Amazon are encouraging the use of online shopping portals and are collaborating with local sellers to provide a greater variety of merchandise. Globally in 2020, the retail e-commerce sales amounted to a monumental 4.28 trillion USD according to Global retail e-commerce sales 2014 – 2024. These sales are projected to reach further to about 5.4 trillion USD in 2022. This is a significant growth considering that the retail e-commerce sales totalled around 1.34trillion USD in 2014, worldwide and have seen a steady growth since then.
Mr. Aryan Singh, CTO, TensaX Innovation Lab, remarks that the global e-commerce growth also highlights the benefits for companies getting involved with online retail. With the enhancement in Information Technology (IT) solutions, a greater number of businesses are now reaching a more widespread market. Furthermore, IT and Artificial Intelligence (AI) solutions are becoming essential tools in increasing business opportunities. These solutions include targeted marketing strategies, website development, and improved customer service with AI based chatbots.
Looking at the Middle East and North Africa (MENA) region, a fast growth in e-commerce profit is visible. E-commerce retail in the Gulf states leaped to over 20 billion USD in 2020 from 5 billion USD in 2015. For the entire MENA region, this growth has seen an increase from 22.20 billion USD in 2015 to approximately 55.40 billion USD in 2020. E-commerce retail penetration is expected to continue to grow in this region, as well as globally.
The pandemic has contributed significantly in boosting the e-commerce across the world. With in-store restrictions and, in some cases, restrictions on stepping out of the residence, online shopping came to the rescue. The global jump in retail e-commerce was from 3.35 trillion USD in 2019 to 4.28 trillion USD till December 2020. Members of the MENA region including UAE, Kuwait, Saudi Arabia, Egypt, Morocco and Oman contributed to 19.80% growth in retail E-commerce sales. However, 80% of the e-commerce market of the region is comprised of UAE, Saudi Arabia and Egypt. Even post pandemic, the growth of ecommerce is expected to be steady due to several contributing factors, which include the continuing concerns for health and safety, ease of comfort and affordability, along with quality assurance. In the region alone, e-commerce sales, are expected to reach 48.6 billion USD by 2022, which is a significant increase.
So what do these statistics mean for businesses? Right now is a pivotal time for businesses to climb into e-commerce if they have not already done so. This involves the enhancement of the online presence of a business, starting from attractive and interactive web development and ending with appropriate warehousing and supply-chain management solutions to ensure the deliveries of goods.
A good front end interaction through a well-developed website may be key to attracting clients. At TensaX, our team of trained and creative developers work to provide creative solutions that are customized for the needs of a business. Engage with our team to find out more on how you can get started on creative website designs.
