New Delhi, Sep 8 : In the first time worldwide survey, e-commerce revenues are expected to decrease this year because of supply chain issues and rising inflation and the industry is predicted to produce $3.74 trillion in sales this year, which is $95 billion lower than in 2021 the report revealed on Thursday.
According to data presented by AugustaFreePress.com, the expected e-commerce revenue drop comes as the market faces global challenges in 2022.
In the wake of the pandemic, a lot of customers have changed their shopping habits and switched to brand new brands in the search of the value of their brand, availability and convenience.
“Traditional technology for e-commerce has also reached its limits and many companies are finding their e-commerce software stacks aren’t flexible enough to meet customer demands.In addition to all of that the costs of digital advertising are increasing.
However concerns about supply chain management and inflation remain the main weaknesses,” the report mentioned.
Within just 4 years, revenues around the world increased by 70 percent and jumped to more than $3.84 trillion in 2021 in the “Statista Digital Market Outlook”.As the two biggest online sales streams, fashion and electronics sales accounted for nearly half of the total value.
Statistics indicate that from 2017 to 2021 the profits of the global fashion industry on the internet increased by 67 percent up to $890 billion.
Electronics sales, which is the largest single revenue stream soared by 46 percent to reach $920 billion in this time frame.
The most recent forecast of the Statista Digital Market Outlook reveals that global macroeconomic factors caused the first YoY revenue decline in the e-commerce sector.
“The previous forecast had predicted $481 billion in revenue in 2022 than it did a year ago.However as of July the report, the projected global eCommerce revenue dropped from $4.22 trillion to $3.74 trillion,” the report showed.
While there is a slight negative trend, Statista expects revenue growth to rebound in the near future.
One of the main drivers for recovery will be the expanding number of customers who shop online.
The last year the global market for e-commerce was booming with a 50.4 percent percentage of penetration, with nearly 3.8 billion customers who bought online.
Statistics show that online shoppers are predicted to increase by 315 million a year to 4.1 billion in 2022.In addition, the market’s penetration rate is expected to increase to 54.1 percent by the end of this year.
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