GLOBAL ECOMMERCE MARKET RANKING 2019

Issue Date: November 2018

GLOBAL ECOMMERCE MARKET RANKING 2019

Sell Global. Feel Local

W W W.ESHOP GROWMYBR A ND@

GLOBAL ECOMMERCE MARKET RANKING 2019

For any brand looking at the cross-border growth opportunity, there is one crucial question: which countries are likely to offer the easiest path to success? This is often not an easy question to answer as there are multiple influencing factors, such as shopper demand, ease of doing business, and number of cross-border shoppers.

We have compiled the latest industry data to create a global eCommerce market ranking that compares markets across a number of key, weighted criteria. Some of the results will come as no surprise ? it's hard

to de-emphasise the sheer scale of the markets in the USA and China. However, there are other important criteria that allow markets such as Korea, India and Mexico to perform well in the ranking.

In this whitepaper, we take a look at factors such as logistics and average shopper spending, and cover which markets to watch, the state of cross-border shopping, and emerging markets with potential for growth.

Let's get started!

GLOBAL ECOMMERCE MARKET RANKING 2019 - 2

TOP 30 MARKETS

Our top 30 ranking was scored and weighted along the following key metrics:

? Logistics ranking ? Average revenue per shopper ? Total market revenue ? Percentage of population shopping online

? Number of online shoppers ? Percentage of cross-border shoppers ? Number of cross-border shoppers ? CAGR 2018-2022

United

1

11

Sweden

21

Saudi Arabia

States

2

China

12

Austria

22

Denmark

United

3

13

Australia

23

Turkey

Kingdom

Nether-

4

Japan

14

lands

24

Poland

5

Germany

15

India

25

Ireland

6

France

16

Russia

26

Belgium

7

Canada

17

Norway

27

Singapore

8

Italy

18

Mexico

28

Finland

Switzer-

9

Spain

19

land

29

Hong Kong

10

Korea

20

Indonesia

30

Portugal

In the next section, we will take a closer look into the top 5 markets in the ranking. GLOBAL ECOMMERCE MARKET RANKING 2019 - 3

SPOTLIGHT ON: USA

The United States is the number one eCommerce market in the world for 2018. This is largely due to the ease of doing business in America ? there is great logistics infrastructure and high demand for crossborder retailers with eCommerce market revenue totalling $504.58 billion USD this year alone.

A key metric that has placed the US at the top of our ranking this year is the number of cross-border online shoppers. The US has the second highest number of cross-border online shoppers in the world ? 82.72 million ? although as a percentage of total online shoppers, it places significantly lower.

The US is a formidable online force ? it was the birthplace of the online marketplace and largely, Americans are very trusting online shoppers who have a high level of comfort shopping online ? around 79% of the population, or 258.5 million people, has made a purchase in the past year. This level of comfort is also evident in both the amount of money spent on average per shopper ($1951 USD annually) and the size of the overall US eCommerce market.

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GLOBAL ECOMMERCE MARKET RANKING 2019 - 4

SPOTLIGHT ON: CHINA

China is second in our ranking, which should come as no surprise to brands who are looking to expand cross-border. This booming eCommerce market is home to some of the savviest shoppers in the world, many of whom are cash-rich millennials that covet luxury high-end goods from foreign brands.

China scored highly across a number of key metrics in our ranking, largely in part thanks to a huge population and a keen desire to shop online and across borders. China consistently scored number one in three key metrics: largest market by revenue ($636.09 billion in 2018), highest number of online shoppers (1 billion), and the highest number of crossborder online shoppers (149.42 million).

As the largest eCommerce market in the world, China is a popular choice for foreign brands, however it should be noted that the ease of doing business in the region can be regarded as somewhat complicated. Brands need to assess the demand for their products in China, and be prepared to apply local marketing strategies, especially via social media platforms such as WeChat and Weibo.

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GLOBAL ECOMMERCE MARKET RANKING 2019 - 5

SPOTLIGHT ON: UK

In third place is the UK, another very lucrative eCommerce market for international brands. The market is driven largely by millennials who love fast fashion and want to find the best price possible. Despite a desire for bargains, UK shoppers spend a huge amount online annually ? nearly $1650 USD per shopper, with an overall market revenue of $86.45 billion. Not only that, but the UK has the thirdhighest number of online shoppers in the world by percentage ? almost 80% of the population.

UK online shoppers have high expectations for foreign brands and want fast shipping and a flexible free returns policy. They also love to shop on mobile, therefore brands considering expanding into the UK need to provide a localized, dynamic website that offers a seamless shopping experience. These shoppers are fickle and will shop elsewhere if their expectations are not met.

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GLOBAL ECOMMERCE MARKET RANKING 2019 - 6

SPOTLIGHT ON: JAPAN

Fourth in this year's ranking is Japan, one of the biggest eCommerce markets in Asia. With $104.04 billion USD revenue in the past year, and excellent logistics infrastructure (5th globally), the Japanese eCommerce market represents a great opportunity for foreign brands. Japan's 89.9 million online shoppers love foreign brands that they can trust to provide an excellent product. Unlike their counterparts in the UK and the US, Japanese shoppers are willing to pay high prices for quality products, and their love of high-end brands has led to the emergence of a mass-luxury market.

Foreign brands that want to expand into Japan would be wise to enlist the help of a cross-border eCommerce expert to help deal with the nuances of the market, as Japanese shoppers are significantly different to shoppers in Europe and the US ? they're older, like to stay at home, and have a high average order spend.

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GLOBAL ECOMMERCE MARKET RANKING 2019 - 7

SPOTLIGHT ON: GERMANY

Germany, the biggest online shopping market in mainland Europe, has placed fifth on our eCommerce market ranking. As one of the most mature eCommerce markets in the world, Germany is home to 63.9 million online shoppers who were among some of the first to embrace eCommerce. Additionally, Germany was ranked number 1 for logistics globally, making it the perfect market for brands to consider in their cross-border strategy.

The reasons Germany ranks so highly for logistics are numerous: it is a trans-European hub that shares a border with nine neighbouring countries, it is considered the gateway to Europe thanks to its attractive location, and it has some of the most advanced transportation infrastructure in the world. This makes cross-border delivery significantly easier for international brands as there are much lower barriers to entry.

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