After years of impressive growth, global inflationary trends and increasing retail market patronage have impacted the revenue of the eCommerce industry, dropping $250 billion in the Year 2022, the first in the market’s history.
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The initial forecast from the Statista Digital Market Outlook projected $380bn more revenue in 2022 than a year ago. However, as of July, the global eCommerce revenue projection slipped from $4.22trn to $3.74trn.
The latest Statista forecast shows that the global eCommerce industry is ending a year with a double than expected $250bn revenue drop, most of which comes from the Chinese market.
Although China generated nearly one-third of total eCommerce revenue in 2022, the world`s largest eCommerce market is ending a year with a massive $212bn revenue drop. Other leading eCommerce markets, Japan, the United Kingdom, and Germany, also saw their revenues plunge.
The situation is the same in Nigeria where Statista has projected e-commerce revenue of $6.62 billion in 2022 but later projected a 13 per cent drop.
The e-commerce industry experienced impressive growth with global revenues spiking 70 per cent In just four years, jumping to over $3.84trn in 2021, according to Statista Digital Market Outlook. However, that changed in 2022, as the entire market faced global challenges.
Supply chain issues, inflation, rising digital advertising costs, and changed consumer behavior have all had their share in the first-ever eCommerce revenue drop.
On the other hand, the United States is the only one among the top five markets whose eCommerce revenue increased this year. According to Statista, the US eCommerce industry generated nearly $905bn in revenue this year, 5 per cent more than in 2021.
Although there is a headwind at the moment, Statista expects revenue growth to get back on track eventually. In 2023, the entire market is expected to generate $4.48trn in revenue and then hit a $5trn benchmark in 2024.
One of the significant drivers for recovery will be the swelling eCommerce user base. Last year, the global eCommerce market had a massive 50.4% per cent penetration rate, with nearly 3.8 billion people who shopped online. Statistics show online shoppers are expected to grow by 315 million YoY to 4.1 billion in 2022. Also, the market`s penetration rate is set to reach 54.1 per cent this year. Statista expects more than 4.8 billion people to shop online by 2025.
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