Australia maintains a top 10 global ecommerce rating, but only just

The US has returned to the top of the AT Kearney Global eCommerce Index, displacing China, and Australia has managed to hold onto a spot in the leaderboard, despite dropping one place to tenth.

According to the researchers, “The Global Retail E-Commerce Index™ ranks the top 30 countries for their e-commerce potential, based on several variables that rate both a country’s current market and its potential for growth. “

Across the globe, retail ecommerce grew 20 per cent to $840 billion say the authors of the study;

The Asia Pacific e-commerce market continues to grow—soon it will be the world’s largest region in terms of online sales—but many Asia countries declined in this year’s Index. China the previous leader, has seen its e-commerce market continue to expand, but it declines one spot to due to slightly weaker e-commerce growth and questions about its longer-term macroeconomic conditions, particularly regarding infrastructure investment and consumer spending.

In Latin America, while Mexico jumps into the rankings at 17th place, Brazil and Argentina fall steeply in the Index, due to their slowing macroeconomics. Fundamental infrastructure challenges—logistics and transportation in Brazil, government regulations in Argentina—may hinder e-commerce growth in the future.

In Europe, the United Kingdom (3rd), Germany (5th), and France (6th) all move up one spot in the Index, while Belgium (a 15-spot rise to 9th place), Denmark (up 12 spots to 15th) and Spain (entering the rankings in 18th) have posted impressive progress.

According to Mike Moriarty, A.T. Kearney partner and co-author of the study , “The boom in ecommerce has brought challenges—both brick-and-mortar leaders and major pure-play online retailers are learning that the future of the industry is not merely online, but rather in creative omnichannel offerings that link online and physical shopping.”

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Among the key trends revealed by the report;

  • Internationalization. Large e-retailers are finding possibilities for growth in new markets—often without a physical footprint. Across the world shoppers are buying more products online—and in particular, on their mobile phones—so there is clearly an opportunity.
  • The rise (again) of e-commerce IPOs. Perhaps the best indicator of an industry’s rise is the attention paid to it by stock market investors. Some high-profile initial public offerings have captured big headlines, including the record-setting $25 billion IPO for Chinese giant Alibaba in September 2014.
  • The (continuously) connected consumer. A.T. Kearney’s 2014 Connected Consumer Study showed just how much consumers around the world are using the Internet, and offered many key insights for retailers.What connected consumers buy online says a lot about consumer confidence, the adoption of e-commerce, and country-by-country evolution. Overall, electronics, fashion, services, books, and tickets are the top categories for e-commerce; groceries and household items are the least commonly purchased.
  • The need for omnichannel. The buzz for e-commerce is justified, yet physical retail is by no means dead. Physical stores remain the preferred shopping channel and where the most significant value continues to be created, as customers are able to touch and feel products, be immersed in brand experiences, and engage with sales associates.

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