Omnichannel drives e-commerce sales to new levels
Global e-commerce sales are expected to rise from USD 4.5 trillion to USD 7.5 trillion by 2026, as revealed by the market research company Juniper Research. The analysts identify the growing omnichannel trend and the high demand in China as the driving forces behind this development.
China’s economy is showing the first signs of weakness again at the beginning of 2022. However, it is still regarded as the engine of the global economy and lives not only from exports, but also from domestic online trade. According to Juniper Research, the communist Middle Kingdom will account for over 37 percent of global e-commerce sales in 2026. The market research institute expects global e-commerce transactions to increase by 55 percent from 4.9 to 7.5 trillion dollars by 2026, not least thanks to strong growth in omnichannel sales.
Platform operators around the world should take a cue from China’s key success factors. The focus should also be more on digital wallet payments, open banking and cryptocurrencies, and they should look for specialized partners accordingly.
Juniper Research further predicts that physical goods will account for around 82 percent of global e-commerce payment transactions in 2026. To take advantage of the growth momentum in the ongoing corona crisis, the market research and consulting firm advises payment providers to include BNPL (“buy now-pay later”) in their portfolios.
Global subscription market also has strong gains
About a week earlier, Juniper Research predicted that the volume of the global subscription economy market will grow from $224 billion to $275 billion in 2022. The top 3 revenue generators include:
- Physical goods
- Digital Video
- Digital Music
The latter two are mainly due to the strong growth in streaming services. Physical goods are expected to account for around 45 percent of global subscription revenues in 2022. Digital services including music and video streaming, audio plays (spoken word) and video games will account for 39 percent.
Juniper Research also believes that multiple payment methods are the key to success in the subscription sector. Payment providers should select payment methods on a country-specific basis and focus on the most popular alternative methods in order to minimize friction and possible customer churn.
Source cover image: pixabay / mohamed_hassan