Retail industry has entered into an inflection point of growth with the introduction of online channel. Online retailing refers to buying and selling of various products & services through the internet. These products and services can include consumer electronics, apparel, footwear, accessories, software, music, books, stationary, food & grocery, home furnishing products, among others. Retailers usually operate through their own websites or through other e-commerce portals.
Online retail market is not experiencing same level of growth globally, countries like China and U.S. control more than half of the market share of online retail globally. By online retail sale, China dominates the market followed by the U.S. and the U.K.
Digital transformation through the introduction of mobile devices & applications, social media and Internet of Things (IoT), has forced retailers to discover novel ways to reach out to the customers. Online retailers are introducing various payment options like cash on delivery (COD), online payments, e-wallets and payments via cards in order to acquire and retain customers.
Some of the factors like rising broadband availability, growing internet penetration, introduction of new marketing channels, emergence of customer friendly payment and home delivery methods, and increasing penetration of smartphones are driving the online retail market. However, inefficient logistics, lack of internet infrastructure and stringent government regulations across various countries are posing challenges to the market growth.
With increasing smartphone and tablet penetration it is expected that mobile commerce that involves buying and selling products & services through mobile-enabled devices is set to grow exponentially. Purchases through mobile phones are expected to come majorly from rural areas as mobile using population is picking up in rural areas.
In addition to pure online channel, retailers are also opting omnichannel model wherein both online and physical stores are used to acquire customers. Omnichannel is a customer centric model which create better shopping experience and also helps in generating additional revenue through creation of upselling opportunities.
ASDReport.com provides a good collection of reports on online retailing market. The reports cover various products and sub-segments related to online retailing like, IT in retail, online grocery shopping, among others.