B2C E-commerce Market Size, Share & Trends Analysis Report By Type, By Application, By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa), And Segment Forecasts, 2023 - 2030

B2C E-commerce Market Size & Trends

The global B2C e-commerce market size was valued at USD 4.34 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 6.8% from 2023 to 2030. The growth can be attributed to rising disposable income, global per capita income, and expanding internet penetration. The increasing technological adoption, accompanied by the easy availability of smartphones, has enabled the e-commerce sector to be more reachable and efficient. The increasing use of social networks further drives the demand for online purchasing of various products and services. The market is expected to witness high growth over the forecast period, mainly due to growing digital dependency and the convenience of shopping on online platforms. It has evolved amid a busy lifestyle and an overabundance of options available to shop from the comfort of home. 

Convenience is the major factor driving the growth of the overall online shopping industry. Customers can find their interested products by visiting the website and gaining additional insights on various products. The market is witnessing a paradigm shift toward m-commerce from e-commerce, as customers increasingly use smartphones to purchase goods and services online. The lack of an organized offline retail sector is also driving growth on a global scale.

The industry is relatively stable, and the competitive rivalry intensifies due to mergers and acquisitions. Key players in the market for B2C e-commerce include Amazon.com, Inc.; ALIBABA GROUP HOLDING LIMITED; JD.com, Inc.; Flipkart.com; and PayPal Holdings, Inc. The companies continue to show tremendous growth and attract big investors with the global giants, thereby leveling up the competition. Besides, the companies distinguish themselves by providing niche product offerings and innovative services.

During the COVID-19 pandemic, B2C e-commerce platforms experienced a steep demand for essential goods such as groceries, personal care products, and bathroom essentials. However, in the initial phase of Q1 & Q2 of 2020, the rising severity of COVID-19 across the globe forced governments across various countries to complete lockdowns, disrupting supply chains and negatively impacting e-commerce sales. Moreover, U.S. and China-leading contributors to e-commerce growth have been hit hardest by the COVID-19 pandemic.

Type Insights

The B2C retailer's segment accounted for the largest revenue share of 99.4% in 2022 and is expected to continue its dominance over the forecast period. An increase in mobile transactions and Internet banking is expected to drive retailers' segments over the forecast period. Furthermore, developing countries' urbanization and smart city development have contributed to the Westernized lifestyle, changing the shopping pattern from traditional to online. The growth is attributed to the growth of the ease of doing business due to globalization, potent logistics infrastructure, and high demand across borders.

The classifieds segment accounted for a significant revenue share in 2022 and is expected to expand at the highest CAGR of 8.7% over the forecast period. The growth is attributed to increased mobile classifieds advertising, the low cost of online advertising, and the decrease in the print advertising market. The segment includes multiple classified services for real estate, recruitment, automotive, and matrimony in one place as per users' requirements.

Application Insights

The clothing and footwear segment accounted for the largest revenue share of 26.1% in 2022 and is expected to continue its dominance over the forecast period. The growth is attributed to the massive expansion of the online apparel marketplace, through which retailers and manufacturers market their goods. Shopping through fashion websites is beneficial, including multiple payments and goods options, home delivery, and easy return. The simplified and user-friendly website interface allows easier navigation of various product categories with the help of the search system, thereby increasing the indulgence of the consumer. Apparel websites aided in reducing rush at stores, increasing the reach of retailers and allowing "shop from anywhere" to consumers with hectic work schedules. Additionally, the virtual changing rooms, door-step delivery, and return have further eradicated transportation or traveling trouble while websites remain active 24/7 for shopping.

Moreover, the consumer electronics segment is anticipated to grow considerably over the forecast period. The growth is attributed to increasing internet usage and consumers' interest in new electronic products and trends. Increasing usage of artificial intelligence (AI) and in-app augmented reality provides customers with the real-time shopping experience of consumer electronics, contributing significantly to the decision-making process. Similarly, factors such as social media advertising, same-day delivery, and custom packaging are attracting a greater number of customers.

Regional Insights

Asia Pacific accounted for the largest revenue share of 38.3% in 2022 and is expected to retain dominance over the forecast period. The region accounts for nearly two-thirds of the global population, and the economic development with China and India remains a key regional growth driver. The growth is attributed to the increasing internet connectivity in second-tier cities and rural areas. The untapped market in this region is a popular destination for international brands and web shoppers worldwide.

North America and Europe are positioned to witness steady growth over the forecast period. North America has one of the world's highest internet penetration rates. U.S. consumers are specific about product quality, composition, and price, fueling their adoption of foreign brands and products. MEA and Latin America are expected to grow considerably during the forecast period. The Middle East has a dynamic young population with one of the highest global per capita incomes. In addition, expanding internet penetration is driving the region's rapidly evolving shopping e-commerce industry.

Key Companies & Market Share Insights

B2C e-commerce players are involved in strategies such as partnerships, business expansions, new product developments, and contracts to expand their market share. For instance, in June 2023, eBay and Techstars collaborated to introduce Techstars Future of E-commerce powered by eBay. This accelerator program aims to assist startups in developing groundbreaking technologies that will shape the future of e-commerce. The program is expected to span 13 weeks and has a hybrid format, enabling founders to participate in San Francisco and remotely at different stages throughout the program. This approach ensures that the program remains inclusive and accessible to startups and entrepreneurs from diverse backgrounds, regardless of their stage of development, circumstances, or geographical location.

Recent Developments

• In April 2023, PayPal and Phoenix Suns announced the extension of their partnership until the 2026 NBA season. As part of the extended agreement, PayPal will continue to serve as the Suns' jersey sponsor. Moreover, both organizations will strengthen their commitment to supporting small businesses in the Valley while enhancing the fan experience. It includes introducing innovative payment solutions at the arena and online platforms.

• In January 2023, Bold Commerce, an e-commerce technology company, partnered with PayPal to combine payments and commerce in the expanding e-commerce market. This collaboration allows retailers and brands to utilize Bold Commerce's headless checkout suite in conjunction with the PayPal Commerce Platform. By doing so, they can expand their sales channels beyond their conventional websites and accept various payment options, including Venmo, PayPal, Pay Later solutions, debit cards, and credit cards.

• In January 2023, to support aspiring e-commerce entrepreneurs in India, Amazon declared that new sellers registered on its platform between 15th January and 14th April 2023 would receive a 50% waiver on referral fees for 60 days. Referral fees refer to the fees sellers pay to Amazon for facilitating sales on their online marketplace. By offering this incentive, Amazon aimed to encourage new sellers to take advantage of the opportunities presented by e-commerce.

• In June 2022, eBay introduced eBay Live, an exclusive shopping platform that provides users with a unique experience of browsing and purchasing products in a dynamic and interactive environment. This innovative beta technology merges entertainment and instant buying opportunities on one of the world's largest online marketplaces.

• In August 2020, OLX, a platform for used automobiles in India, introduced a new franchise-driven retail offering for pre-owned cars, enabling dealers and consumers to buy and sell vehicles. Branded as 'OLX Autos,' this franchise model allows independent dealers to join OLX India's authorized dealer network, expanding on OLX's existing online classifieds marketplace. This new offering aims to foster trust between pre-owned car dealers and consumers by providing a reliable retail environment where they can connect.

• In July 2020, OLX and Encuentra24 announced a merger in Central America to enhance the online classifieds experience for their combined user base of over five million monthly users. This merger brings together the distinct strengths of Encuentra24 and OLX regarding product development and features, resulting in an improved offering across important categories such as real estate, automotive, and job listings.

B2C E-commerce Market Report Scope

Global B2C E-commerce Market Report Segmentation

This report forecasts global, regional, and country revenue growth and analyses the latest industry trends in each sub-segment from 2017 to 2030. For this study, Grand View Research has segmented the global B2C e-commerce market report based on type, application, and region:

• Type Outlook (Revenue, USD Million, 2017 - 2030)

  • B2C Retailers

  • Classifieds

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Automotive

  • Beauty & Personal Care

  • Books & Stationery

  • Consumer Electronics

  • Clothing & Footwear

  • Home Décor & Electronics

  • Sports & Leisure

  • Travel & Tourism

  • Media & Entertainment

  • Information Technology (Software)

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa

    • United Arab Emirates (UAE)

    • Saudi Arabia

    • South Africa