Ecommerce is many things: cross-border commerce, borderless business, and international online retail. But more important than what it is, is what it isn’t.
Ecommerce is not a luxury. It’s not one strategy among many. Becoming an online business is a necessity. Recent studies show that around 2.71 billion consumers will shop online in 2024.
Unfortunately, it’s also fraught with questions: Where to invest? What countries present the best product-market fit? How do you attract non-local buyers? Which is most important: translation, currencies, payment options, or something else entirely?
This guide will give you an inside look at global ecommerce, with tips on how you can expand into the market.
Table of contents
What is global ecommerce?
First things first: global ecommerce is the selling of products or services across geopolitical borders from a company’s country of origin, normally defined as its founding or incorporating location. Products or services are sold into non-native markets via online sales and marketing.
The advantages of international ecommerce are:
- Easier expansion into foreign markets
- Easier-to-find product-market fit
- Shorter B2B sales cycles
- Quicker building of international presence
- Lower barriers to entry
Worldwide, it is anticipated that B2B ecommerce will reach $36 trillion by 2026. And B2C ecommerce will reach $5.5 trillion by 2027.
How big is the ecommerce market?
The global ecommerce market is expected to total $4.2 trillion in 2024. That figure is estimated to grow over the next few years, showing that borderless ecommerce is becoming a profitable option for online retailers. By 2027, 23% of total retail sales will happen online.
Casey Armstrong, CMO at ecommerce fulfillment brand ShipBob, adds, “While a lot of focus in ecommerce centers around the United States and Canada, there is a lot to learn from other large international players who are seeing an even more accelerated ecommerce growth rate.
“Merchants can shift where they sell based on this data and the demand for ecommerce from these countries. At ShipBob, it’s why we have opened fulfillment centers in Canada and the UK and are about to open another in Australia.”
Top global ecommerce statistics
If you’re running an online store, staying updated on the ecommerce industry is important for maximizing revenue. Below are the top statistics from around the world, so you can be more prepared for the year ahead.
1. China accounts for more than 33% of global online retail sales
China continues to lead in worldwide ecommerce sales, according to Global Data, accounting for more than 33% of all retail sales worldwide, and an expected $2.2 trillion in online sales in 2023. As of Q3 2023, China’s retail industry also saw a 6.8% increase.
Ecommerce platforms like Alibaba, JD.com, and Pinduoduo, among others, have transformed the retail industry in China, making it easier for consumers to purchase a wide array of goods online.
2. The UK generated almost $200 billion in ecommerce sales in 2023
After China and the US, the third-largest ecommerce market is the United Kingdom, which generated over $195 billion in 2023. The UK is followed by Japan ($193 billion) and South Korea ($147 billion). As a result, companies, both domestic and international, can look at this as an opportunity to expand their online presence in the UK.
3. LATAM continues to adopt ecommerce in coming years
Latin America (including Peru, Brazil, Argentina, Chile, Colombia, and Mexico) will see a 22% growth between 2023 and 2026—accumulating over $700 billion in total combined ecommerce sales. There's a growing middle class and increasing disposable income in LATAM. Ecommerce is one of many goods and services that are benefiting from this socioeconomic shift.
4. The Philippines’ ecommerce market is the fasting growing in the world
The Philippines' ecommerce market is the fastest-growing in the world, with a 24.1% growth in sales in 2023. The Philippines is on track to become an upper-middle-class country by 2025, with more disposable incomes and consumer spending.
PH has a relatively young population that's more tech-savvy and open to adopting new technologies. This makes ecommerce in the country a ripe market. The Philippine government has initiatives to boost the digital economy, including improving internet infrastructure and adopting policies that encourage digital payments, ecommerce operations, and growth.
5. Almost half of US shoppers plan to spend more online in 2024
Roughly 42% of American respondents in a survey stated they planned to spend more online over the next year, Retail Dive reports on a recent survey.
A major driver for making online purchases is convenience, while the biggest drawback, not being able to try products, is becoming less and less of a concern. According to survey results, 29% of respondents rated low prices as the top feature of online shopping, followed by shipping times and costs (21%), selection (21%), and user-friendliness (19%).
6. As of January 2024, the average conversion rate across ecommerce sites was 1.88%, a 0.14% increase from the previous year.
IRP Commerce suggests a positive trend in conversion efficiency globally. While .14% might seem like a small number, it indicates improvements in various factors that influence consumer purchasing decisions, such as website design, user experience, product offerings, pricing, and marketing strategies.
7. The global B2C ecommerce is expected to reach $9 trillion by 2032.
The global B2C ecommerce market reached $4.8 trillion in 2023 and is expected to grow to $9 trillion by 2032—a growth rate of 7% between 2024 and 2027. The continued growth of ecommerce will give brands more opportunities to expand internationally. With tools like Shopify Markets, you can easily handle localization, regulatory requirements, and international payment methods in one place.
Global ecommerce trends to watch
1. Global inflation pressures
Inflation's ripple effects continue to be felt across the ecommerce landscape in 2024, influencing not only the cost of goods but also consumer spending and business operations. As raw material and transportation costs rise, ecommerce businesses, particularly those dependent on imports, face the challenge of increased product prices.
This can lead to more price-sensitive consumers, potentially reducing demand and impacting sales and profits.
For example, Retail Economics and Metapack found that 57% of consumers are worried about inflation, which is the biggest concern for consumers in 2023. Also, 72% of shoppers plan to change their buying behavior as a result, with even the most affluent 61% planning to switch up their habits.
Retailers are feeling the burn, with 79% of American retailers feeling the effects of inflation in the last six months. To counter the problem, 72% of retailers plan to raise their prices within the next six months.
Some ecommerce businesses are turning to omnichannel marketing strategies. By engaging customers across multiple touchpoints, businesses can offer a seamless shopping experience, potentially offsetting the dampening effects of inflation on consumer spending.
To stay afloat, ecommerce owners must remain proactive, vigilant, and adaptable, constantly seeking solutions to mitigate inflation's impact on their operations and maintain competitiveness in the market.
2. More consumers will shop on their smartphones
Consumers love convenience—it’s why they shop online using their mobile phones. But this isn’t a fad. The rise of mobile commerce (m-commerce) is significant, with some forecasting it to reach $558 billion in 2024, accounting for 7.6% of total retail sales.
In 2023, nearly 80% of global consumers used their smartphone to access a retailer’s website while shopping in-store. Another 74% used a retailer’s app while shopping, according to Insider Intelligence.
M-commerce, or mobile commerce, involves shopping online through mobile devices like smartphones or tablets. Mobile ecommerce will continue to break out over the next few years. Technological advances like branded mobile apps, 5G wireless, and social shopping make it easier for people to shop on their phones.
Online retail continues to expand due to the increasing use of smartphones and tablets globally. The global mobile commerce market was worth $2.2 trillion in 2023, making up 60% of all ecommerce sales. Global social commerce sales are set to reach $1.2 trillion by 2025. And leading this front are Millennials and Gen Z online shoppers.
Gen Z is highly engaged in social media shopping and spending, with 68% searching for products on social media and 22% completing a purchase. Following close behind are Millennials, with 42% browsing social media for products and 21% completing a purchase.
Expect more branded shopping apps, SMS and Facebook Messenger marketing campaigns, and integrations for mobile-enabled add-ons to boost in-store engagement to influence purchases.
3. A new mix of marketing channels
In recent years, there have been exciting advancements in several areas of advertising—including access to new marketing channels. Social commerce has been on the radar for the past five years, with the release of Facebook and Instagram shopping features, and more recently, TikTok shopping.
However, as an extension of social commerce, live shopping has started to become more popular as the strategy has soared in China. The live commerce market in China was $562 billion in 2023 and is expected to increase to $843 billion in 2025. It made up 19.2% of the retail ecommerce sales in 2023.
In the US, live streaming was expected to reach $31 billion in 2023, almost triple the size in 2021. Another new marketing channel coming on the horizon is connected TV (CTV) advertising—which refers to ads you’ll find on platforms like Hulu, Roku, and YouTube.
The growth of CTV advertising spend in the US is projected to increase from $25 billion in 2023 to nearly $41 billion by 2027, while linear TV ad spend is expected to decline from $61 billion to $56 billion in the same period. This shift indicates a changing preference among advertisers towards CTV due to its effectiveness and the ability to reach targeted audiences more efficiently.
This is not surprising when you have streaming services achieving a record-breaking milestone, securing 38.7% of the total TV usage share, while linear TV’s share of total TV viewing dipped below 50% for the first time.
A sweets/confectionary company in the Consumer Packaged Goods (CPG) category credited CTV ads with an overall sales lift of 15.4%. The campaign used two targeting strategies: a broad approach to maximize reach and a more focused strategy targeting VIZIO cord-cutting viewers for incremental growth.
The campaign successfully penetrated new buyer segments and demonstrated the potential for competitive prospecting and reaching consumers new to the brand and category. This case study underscores CTV's ability to drive top-of-funnel awareness and bottom-of-funnel sales lift.
4. A slowly stabilizing supply chain
The global supply chain has faced a relentless series of disruptions. Recent years have seen a cascade of disruptive events—geopolitical conflicts like the Russia-Ukraine war, attacks in the Red Sea, and the ongoing repercussions of the pandemic.
For instance, the Russia-Ukraine conflict had a profound impact on the flow of critical commodities, leading to shortages and inflationary pressures. The war disrupted the supply of agricultural products, fertilizers, and energy resources. It also led to increased freight charges, container shortages, and lowered warehousing space availability.
Then there's the Red Sea, a vital trade corridor plagued by missile strikes. These strikes have caused major shipping companies to reroute or pause operations, resulting in extended voyage times and heightened transportation costs, further straining global supply chains.
In response to ongoing supply chain challenges, companies are adjusting their strategies to enhance resilience. Nearly 8 out of 10 companies (79%) are broadening their supplier base, while 71% are pursuing regionalization and localization to mitigate risks from geopolitical tensions and transportation disruptions.
Another 83% of organizations are investing in friend-shoring—building supply networks with countries that are political and economic allies. This shift is part of a broader move towards diversification and innovation in supply chain management, with a notable increase in investments aimed at improving disruption detection and fostering innovative processes.
The Biden-Harris Administration has also strengthened supply chain resilience by partnering with allies to diversify sources and investments in domestic capacity. The White House is also collaborating with the National Oceanic and Atmospheric Administration and monitoring developments like El Niño for potential impacts on global supply chains.
5. Growing sales in China and APAC
The ecommerce landscape in China and the Asia-Pacific (APAC) region has continued to evolve with significant growth in 2023 and projections for 2024. Despite a tepid start in the first half of 2023, China's retail sector is rebounding, with retail sales growth showing signs of life as the year progresses.
The ecommerce market in China is expected to maintain its global lead with a forecast of $2.2 trillion in sales for 2023, driven by the ongoing shift from offline to online shopping. In Southeast Asia, while the growth rate of retail ecommerce sales has decelerated from 21.6% in 2022 to 13.5% in 2023, countries like the Philippines and Malaysia continue to lead in growth within the region.
The ecommerce market in Southeast Asia is projected to grow by 9.72% from 2024 to 2028, reaching a market volume of $145.50 billion by 2028. Then, the region's digital economy is set to hit $218 billion in 2023, with sectors like ecommerce, online travel, and digital financial services driving growth.
India's ecommerce market is also experiencing robust growth, with projections indicating that the market size will reach $111 billion by 2024 and continue to expand to US$200 billion by 2026. The country's online retail market was valued at INR 4,822.80 billion in fiscal year (FY) 2023 and is anticipated to reach INR 15,159.11 billion by FY 2028.
To adapt to these changes, companies in the APAC region are diversifying their supplier base, with 79% of companies broadening their networks. Additionally, 71% are investing in regionalization and localization, and 83% are actively investing in friend-shoring with political and economic allies to reduce risk exposure.
6. Crypto payment adoption is on the rise
Crypto payments are steadily gaining traction as an emerging option for online transactions. By 2030, the global crypto payments industry is forecasted to reach a value of $5.5 billion, indicating its vast growth potential.
In the US specifically, crypto payment adoption is exploding. The number of crypto payment users is expected to hit 5.5 million in 2023, representing a 350% increase in just three years.
Support from major players like PayPal and Stripe, which enable customers to pay with popular cryptocurrencies like Bitcoin, is driving this growth. The payments industry sees the writing on the wall, with 97% of providers agreeing that crypto-based payments will be key for faster domestic and global money transfers.
However, some barriers persist. Environmental concerns around energy-intensive protocols like Bitcoin, which 98% of industry experts acknowledged, continue to be an obstacle. Regulatory uncertainty continues to be an obstacle, with almost a third citing this as the sole hurdle to further crypto adoption. But recent government efforts offer hope.
While challenges remain, the projections make one thing very clear: crypto payments are here to stay and will undoubtedly keep disrupting how we pay online. The future is digital.
7. Retail goes phygital
Shopping IRL meets URL—that's phygital retail in a nutshell. It seamlessly blends our online and brick-and-mortar experiences, from clicking "Buy" on your phone and then picking up in-store to trying on virtual makeup while browsing at the mall.
Retailers can unify data across digital and physical channels to enable next-level phygital capabilities. Think in-store navigation apps, smart fitting rooms with virtual try-ons, and contactless payments. T
For customers, it means the best of both retail worlds—all the convenience and speed of ecommerce plus the joy of discovering products in immersive store environments. And with data connecting their journey across channels, the possibilities for personalization become “virtually” endless. Tailored promotions, recommendations, flexible fulfillment options—it's a new era of shopping built just for them.
For brands, it means better visibility into their products and customer experience. For example, Ralph Lauren is using it to combat counterfeiting. It integrated QR codes into its clothing tags so customers can scan them to verify product authenticity, receive care instructions, and access styling tips.
Younger generations are leading the phygital charge, but the appeal is already going mainstream. Because who doesn't love experiences blending digital discovery and tangible delights? For retailers ready to meet this demand, the future looks bright. It is also highly customizable thanks to the power of data. The future of retail is phygital.
Set up your international ecommerce strategy
Setting up an international, omnichannel ecommerce strategy can seem intimidating, but there are a few key areas that, if you address them as a priority, can help you succeed.
The areas for ecommerce businesses to focus on are:
Pricing
When it comes to pricing, two issues present themselves for international ecommerce retailers: currency conversion and how to handle promotions. Regarding the former, it’s worth researching how customers perceive pricing in the country you’re targeting. In the West, it’s common for prices to end in a 9, whereas in countries like China, it’s best to use a round number.
According to McKinsey & Company, businesses should use a wider range of factors to determine price sensitivity (especially in foreign markets) regarding promotions. In addition, effectively and profitably linking pricing and promotions together can increase revenue and profiles by three to five percentage points overall.
Payments
Thankfully—thinking about what payment methods are relatively simple for international ecommerce—you’ll need at least a debit/credit card processor and mobile wallet options, like Apple Pay and Google Pay, as well as a buy now, pay later (BNPL) option.
Some ecommerce platforms have their own payment setup. For example, with Shopify Payments, you can set up all major payment methods for your ecommerce store automatically.
Customer service
Customer service is important no matter where in the world you’re serving. In most countries, common types of communication for customer service include phone, email, and live chat.
Shipping and logistics
How your buyers will receive your products is a huge factor to consider, as it’ll likely be expensive. So to make shipping internationally successful, think about removing as much friction as possible. That includes researching price options with carriers, offering shipping speed estimates, researching relevant taxes, and simply preventing some products from being sold in certain countries.
Get a head start with Shopify Marketplace
Our data shows that 30% of your online store visitors are coming from international markets. In the past, converting these visitors was much more challenging than selling to domestic customers.
Thanks to Shopify Markets, you can now manage overseas sales by simplifying complex areas such as compliance, tariffs, shipping, and conversions. On average, merchants in North America use this feature to sell to 14 new markets.
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Global ecommerce FAQ
How big is the global ecommerce market?
How do I start a global ecommerce business?
- Determine your target international markets and how they will support business growth.
- Understand target market needs, such as preferred payment methods.
- Create a plan for market entry.
