Ecommerce has experienced tremendous growth over the past decade, fundamentally transforming the retail landscape. Ecommerce sales are projected to surpass the $6 trillion mark in 2024 and the worldwide ecommerce share will be 12.4%. According to eMarketer's forecast 2024 report, over 20.1% of retail purchases are expected to take place online in 2024, up from an estimated 18.8% in 2023. This forecast highlights the rapid evolution of the retail industry, as more and more people embrace the convenience and accessibility of online shopping.
While certain segments like consumer electronics and apparel still make up a significant portion of ecommerce, even historically brick-and-mortar categories like groceries, home improvement, and health/personal care are seeing more digital adoption. At the same time, older generations are getting increasingly comfortable with buying online in addition to their younger, digital-native counterparts.
The COVID-19 pandemic was an accelerant to ecommerce growth, rapidly changing consumer behaviors and forcing retailers to focus on developing robust omnichannel capabilities. But the seeds were planted even before 2020 - improvements in fulfillment/delivery, security, website/app UX, and smartphone penetration have been gradually reducing friction in online shopping over the past decade.
For retailers, capturing this growing online opportunity remains imperative for staying competitive and driving growth. Pure play ecommerce retailers will continue taking share in most categories, forcing traditional brick-and-mortar players to enhance their digital presence. Successful merchants, both digital-native and omnichannel, will provide consumers seamless, personalized experiences across touchpoints while leveraging data/analytics to optimize decision making.
At the same time, it is important to recognize that physical stores still have a role to play in the retail ecosystem. Many consumers still value the ability to see and touch products in person before making a purchase, and some products simply lend themselves better to in-store shopping. As such, successful retailers will likely adopt an omnichannel approach, integrating their online and offline channels to provide customers with a seamless and personalized shopping experience across all touchpoints.
