In the U.S., e-commerce has grown significantly over the past several decades, with online sales estimated to comprise 20 to 30 percent of total retail sales.
Yet the “global e-commerce growth” story is still in the early innings around world. In many other regions, consumers are just beginning to use these technologies. For example, in 2019 Latin America saw e-commerce represent just 5 percent of total retail sales.
Domestically, companies like Amazon have invested billions in infrastructure to lower delivery times and improve the shopping experience. This past year alone, Amazon increased their square footage for logistics by 50 percent.
Zooming out, the global e-commerce growth story is developing even faster, as underlying technologies like internet and smartphones gain traction. Companies like Shop and Mercado Libre are moving quickly in Latin America, investing heavily in warehousing and logistics. Others like Wish have taken an asset-light approach, arranging partnerships with local merchants for fulfillment.
Going forward, it will be interesting to see the innovation that takes place to improve the customer experience, and which companies lead the race.
Twitter: @_SeanDavid
The author or his firm have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
