Global B2C E-commerce Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

B2C E-commerce Market Insights

• In 2024, it is estimated that there will be more than 187 million active mobile shoppers in the United States, equating to roughly 66% of the nation's population. 
• Around 65% of mobile users indicated that they have made purchases influenced by recommendations from Instagram influencers, underscoring the impact of social media marketing on B2C e-commerce market revenue. 
• As per industry reports, approximately 2.71 billion individuals are engaged in online shopping, equating to about 33% of the global population. 
• E-commerce is projected to represent 20.1% of total retail sales worldwide in 2024, with an increase to 22.6% anticipated by 2027.

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B2C E-commerce Market Analysis

Business to Consumer (B2C) is an online platform that connects business owners with end-users to provide services and products. There are no intermediaries in the B2C structure, thus there is more competition and higher client demands in B2C e-commerce. The operation of this business model is direct: an e-commerce website provides a platform for users to shop in the same way they do in stores, but via an online catalogue, selection of things for purchase, and virtual checkout. There are numerous advantages to B2C e-commerce, including the not mandatory physical presence, excellent customer service, business growth, niche marketing, lower costs, and the elimination of third-party clients.

The growth of the B2C e-commerce market is being driven by urbanisation, a wide range of products, and the ease of direct interactions between buyers and sellers online. E-commerce sales are projected to reach USD 5.14 trillion in 2024, marking a 10.4% increase compared to the previous year. This upward trend is supported by rising disposable incomes, improved internet access, and the widespread use of smartphones. As per industry reports of 2024, global internet penetration is expected to reach 65%, making online shopping available to billions, especially in emerging markets. In India, the rapid increase in internet users, predicted to exceed 900 million by 2025, has accelerated e-commerce growth, with platforms like Flipkart and Amazon taking advantage of this expanding digital consumer base.

Mobile commerce (m-commerce) has also experienced notable growth, with 15% of U.S. consumers now exclusively using digital wallets, moving away from traditional payment methods. Worldwide, digital payment volumes have surged by 42% over the past year, contributing to favourable B2C e-commerce market dynamics and trends as well. Emerging markets are particularly vibrant, with the Philippines leading with a year-over-year e-commerce growth rate of 24.1%, while Southeast Asia's online shopping rates are expected to increase by an average of 18% annually. Moreover, in 2023, China generated over USD 3 trillion in e-commerce sales, followed by United States with e-commerce revenues surpassing USD 1.1 trillion.

B2C E-commerce Market Trends

The Emergence of Mobile Commerce (m-commerce)

The expansion of mobile commerce is reshaping B2C e-commerce as the global adoption of smartphones continues to rise. By 2024, it is projected that there will be over 6.8 billion smartphone users worldwide, with regions such as Southeast Asia reporting that 72% of users primarily access the internet via mobile devices. Mobile shopping applications, including SHEIN and Temu, are leveraging this trend by providing seamless, mobile-optimised shopping experiences. Consequently, mobile devices are expected to account for nearly 60% of e-commerce transactions in regions like North America. Additionally, mobile payment solutions such as Apple Pay and Google Pay are further enhancing this trend in the B2C e-commerce market by facilitating quick and secure transactions.

Focus on Improving Customer Experience by Using AI

Key e-commerce platforms are using AI technology for delivering customised recommendations, predictive search capabilities, and chatbot-driven customer support. For instance, Amazon employs AI to create personalised product suggestions, which has significantly boosted repeat purchase rates. This approach not only improves customer satisfaction by simplifying the process of discovering relevant products but also assists brands in optimising their inventory through B2C e-commerce demand forecast. In 2024, nearly 80% of online retailers are expected to use AI for improving customer retention.

Introduction of Buy Now, Pay Later Systems

The "Buy Now, Pay Later" (BNPL) phenomenon is significantly reshaping the B2C e-commerce landscape by enabling consumers to make immediate purchases while deferring payments, typically through interest-free installments. This payment method is particularly favoured by younger demographics. In the United States, approximately 60% of consumers have used BNPL services, with prominent providers such as Afterpay, Klarna, and Affirm at the forefront. As per B2C e-commerce market overview, Klarna experienced a remarkable 71% surge in user growth in 2023. Major retailers, including Amazon and Walmart, have also formed partnerships with BNPL providers, such as Simple, LazyPay, Slice, and Axio to broaden their service offerings. As the demand for convenient payment solutions rises, BNPL is anticipated to further foster customer loyalty.

Industry News

October 2024

Deloitte and FICCI's report forecasted that India's fast-moving consumer goods (FMCG) sector is set to reach INR 7 trillion by 2025, while e-commerce is anticipated to expand to INR 25 trillion within the same period. The report highlighted that digital transformation has the potential to increase retail sales by 30%. Furthermore, consumer expenditure on online shopping is projected to grow by 10-15% annually, driving B2C e-commerce market growth.

October 2024

Amazon reinforced its collaboration with India Post by signing a Memorandum of Understanding (MoU) aimed at improving delivery capabilities across the nation. This partnership will allow Amazon to serve customers in 19,300 pin codes and enhance sales during the festive season.

Opportunities in B2C E-commerce Market

Cross-border e-commerce offers vast potential, as global demand for foreign products is growing. In China, platforms like JD.com and Tmall facilitate access to foreign products, satisfying local consumers' demand for exclusive items. By mid-2023, these platforms collectively captured over 50% of B2C e-commerce market share in China, with a significant portion dedicated to cross-border sales. Additionally, Mercado Libre is heavily investing in international logistics. In early 2024, it announced a USD 4.6 billion investment in Brazil and USD 2.5 billion in Mexico to enhance cross-border trade and expedite delivery times. Similarly, JD.com has expanded its global shopping channels, partnering with major brands from the U.S., Japan, and Australia to increase its international offerings.

B2C E-commerce Market Restraints

Businesses such as eBay and ASOS frequently depend on various third-party logistics providers for their cross-border shipping needs. This reliance can result in unpredictable delivery timelines as eBay estimates that international shipments may take between 7 to 30 days, with costs varying by as much as 50% due to regional import duties and fluctuations in currency exchange rates. ASOS, which serves over 200 countries, indicates that international orders are delayed 20% more often than domestic ones, primarily due to customs inspections and the necessity to adhere to diverse import regulations. Moreover, the intricate shipping fees associated with international markets can elevate overall expenses by an average of 25%. Security remains another significant issue as global e-commerce fraud reached USD 48 billion in 2023, and North America accounted for over 42% of these losses.

B2C E-commerce Market Dynamics

The growing popularity of social media is significantly driving B2C e-commerce demand across various product categories. By 2024, approximately 90% of consumers are expected to interact with brands on social media platforms like Instagram and TikTok to make their purchasing decisions. In addition, around 75% of users report that they have made purchases after seeing product advertisements on social media. Furthermore, the convenience of B2C e-commerce services is contributing to their adoption across industries. As per industry reports, roughly 60% of online shoppers cite 24/7 availability and easy return policies as primary reasons for choosing e-commerce. This has resulted in increased B2C e-commerce market value. Multiple payment options further supports the ongoing expansion of B2C e-commerce worldwide. In 2023, over 80% of consumers reported that digital wallets, buy-now-pay-later services, and credit cards played a crucial role in their online shopping choices. Platforms like Amazon and Alibaba offer extensive payment choices, including Apple Pay, Google Pay, and regional options like MercadoPago in Latin America.

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B2C E-commerce Industry Segmentation

“B2C E-commerce Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• B2C Retailers
• Classifieds

Market Breakup by Application

• Automotive
• Beauty and Personal Care
• Books & Stationery
• Consumer Electronics
• Clothing & Footwear
• Home Décor & Electronics
• Sports & Leisure
• Travel & Tourism
• Media & Entertainment
• Information Technology (Software)
• Others 

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

B2C E-commerce Market Share

By Type Insights

The B2C retailers segment is the leading force in the market due to the presence of major platforms such as Amazon, Alibaba, and JD.com. In the Asia-Pacific region, over 60% of consumers use smartphones for their shopping needs, further contributing to segment’s growth. Retailers in this region prioritise swift delivery, effective payment methods, and tailoured user experiences, all supported by advancements in data analytics and the growth of mobile transactions. As per B2C e-commerce industry analysis, the segment is set to expand further as global companies are making substantial investments in regional logistics infrastructure to accommodate the rising demand for online shopping.

Meanwhile, although the classifieds segment holds a smaller market share, it is experiencing rapid growth as traditional print advertising continues to decline. Mobile-centric classifieds platforms such as OLX and Craigslist provide targeted and cost-effective solutions for various services, including real estate, automotive, and employment opportunities. North America and Asia-Pacific are pivotal markets for this segment.

By Application Insights

In the beauty and personal care industry, brands like Sephora and Estée Lauder are leveraging augmented reality (AR) technology for virtual try-ons, significantly enhancing online sales. By 2024, beauty companies are expected to broaden their collaborations with influencers and incorporate AI-driven personalised product suggestions. According to B2C e-commerce market analysis, Sephora’s AR capabilities for virtual makeup trials have notably increased engagement and sales, especially among younger demographics.

In the realm of books and stationery, Amazon and Book Depository lead the online book market by offering personalised recommendations alongside vast catalogs. The rising popularity of e-books has led to a surge in digital reading platforms, with Amazon’s Kindle Unlimited amassing millions of subscribers in 2023.

The electronics category remains robust for retailers like Best Buy and Newegg. Best Buy experienced a revenue increase in the consumer electronics sector in 2023 due to its comprehensive product specifications and the integration of AR/VR technologies for enhanced product visuals. Strategic partnerships with leading technology brands have further solidified its B2C e-commerce market share.

The clothing and footwear sector is experiencing advantages from augmented reality (AR) virtual try-ons and artificial intelligence (AI) recommendations. ASOS and SHEIN are at the forefront of online apparel sales, with ASOS reporting a 15% increase in active customers in early 2024, attributed to the implementation of virtual fitting rooms and effective return policies that significantly improve the customer experience.

In the realm of home décor, platforms such as Wayfair have successfully tapped into the rising demand for home products by remote workers. Also, the use of AR applications for virtual room planning has facilitated customers in visualising products within their own environments. Wayfair's revenue saw a growth of over 12% in 2023, fuelled by heightened expenditure on home improvements and furniture. Similarly, the sports and leisure segment in B2C e-commerce market is flourishing on platforms like Decathlon, which experienced notable revenue growth in 2023, driven by a surge in health consciousness.

In the media and entertainment domain, platforms like Amazon Prime, Hulu, Disney Hotstar, and Netflix have transformed how content is consumed. By 2023, Netflix's subscriber count exceeded 238 million because of strategic investments in exclusive content and localised programming. Online travel booking services, including Expedia, have refined their dynamic pricing strategies, and bundled offers to improve their popularity among travelers. In 2023, Expedia noted an 18% rise in online bookings, resulting in increased B2C e-commerce market revenue.

The automotive sector is also experiencing notable growth, with platforms such as eBay Motors and Amazon facilitating the online purchase of parts, accessories, and vehicles. In 2023, Amazon's automotive division reported a substantial rise in revenue, attributed to the increase in digital transactions, which were enhanced by improved search functionalities and user feedback. Collaborations with automobile manufacturers and parts suppliers have also enabled these platforms to provide a wide range of inventory and compatibility assessments.

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B2C E-commerce Market Regional Insights

North America B2C E-commerce Market Trends

North American region continues to be a major player in B2C e-commerce, supported by a robust digital infrastructure and a high rate of internet penetration. The U.S. and Canada lead with platforms like Amazon and eBay, where last-mile delivery options enhance customer engagement. Increasing adoption of mobile commerce, especially among younger consumers, is a significant trend, with more than 70% of U.S. shoppers using mobile devices for purchases. North American platforms are also investing in logistics to enable same-day or next-day delivery, which is highly valued by consumers.

Asia Pacific B2C E-commerce Market Drivers

With a substantial portion of the world’s population, Asia-Pacific is the largest e-commerce market globally. China and India are at the forefront due to high smartphone usage and digital payment adoption in these countries. Platforms like Alibaba and JD.com have capitalised on these trends by expanding beyond urban centers into rural areas. Government support for digitalisation, as seen in initiatives like India’s “Digital India” campaign, further drives e-commerce adoption. A growing middle class and the popularity of “mega sales” events, such as ‘Big Billion Days’ by Flipkart and China’s Singles’ Day, are additional factors propelling market expansion.

Europe B2C E-commerce Market Opportunities

Europe’s e-commerce sector growth can be attributed to strong cross-border activity, particularly in the UK, Germany, and France. The region’s consumers value convenience and secure digital payment options, contributing to high online spending, particularly in fashion and consumer electronics. Digital privacy regulations, like GDPR, have bolstered consumer trust, further encouraging online purchases from companies such as ASOS and Zalando.

Middle East and Africa B2C E-commerce Market Growth

Middle East & Africa region’s e-commerce market is expanding quickly, driven by a young, digitally savvy population and rising internet penetration. Countries like the UAE and Saudi Arabia show high online shopping rates for luxury goods and beauty products. Companies like Jumia are improving local logistics and payment systems, making e-commerce more accessible. Governmental support for digital growth, especially in the UAE’s Vision 2021 plan, is further encouraging online commerce, positioning the region as a fast-growing market for B2C e-commerce platforms.

Innovative Start-ups in B2C E-commerce Market

Start-ups are leveraging AI and machine learning for providing tailoured product recommendations, streamlining search, and optimising logistics. For instance, companies like Bolt and Klarna are addressing diverse payment options by providing buy-now-pay-later services that appeal to younger consumers. Others, such as Glossier, focus on social commerce by integrating seamlessly with social media platforms, enabling customers to shop directly from apps like Instagram. Additionally, start-ups are offering eco-friendly products and transparent supply chains to attract environmentally conscious consumers. Start-ups that have improved B2C e-commerce market development with customer-centric services and extensive market reach are:

Shopify was founded in 2006 and is based in Ottawa, Canada. It is a comprehensive e-commerce platform for businesses of all sizes, providing tools for online store setup, inventory management, payment processing, and shipping. It supports omnichannel retail, allowing sellers to integrate physical and online sales. Shopify powers over 4 million online stores globally. In 2023, it accounted for more than 10% of all U.S. e-commerce sales. Also, the platform generated over USD 4 billion in revenue in 2021.

Instacart was established in 2012 and is headquartered in California, United States. It is an online grocery delivery and pick-up service. Partnering with over 1,000 national, regional, and local retailers, it offers fast grocery delivery from major chains like Costco, Safeway, and Kroger. Instacart serves over 5,500 cities across North America, fulfilling millions of orders monthly. As per B2C e-commerce market statistics, it reached over 10 million active users and partnered with more than 750 retailers in 2023.

Competitive Landscape

Market players are focused on improving customer experiences and broadening their market presence. Companies, such as Amazon are using data analytics to improve product suggestions based on individual preferences. Additionally, the importance of mobile optimisation is evident in platforms like Blinkit, which offer smooth shopping experiences via mobile applications. Furthermore, the integration of social media for product discovery is gaining traction as brands are employing influencers to facilitate direct sales through platforms like Instagram.

Key Industry Players

Amazon.com Inc., established in 1994 and located in Washington, United States, operates across 22 countries with specialised online marketplaces in Canada, India, and numerous European nations. The company offers comprehensive range of commodities, supported by its extensive logistics infrastructure.

eBay Inc., founded in 1995 and headquartered in California, United States, functions in more than 30 countries. Renowned for its auction-based sales approach, eBay enables transactions between buyers and sellers worldwide, facilitating the purchase of both new and used items.

Flipkart Group, initiated in 2007 and based in Bangalore, India, primarily targets the Indian market but has extended its operations to over 10 countries through various partnerships. The platform provides a broad spectrum of products, ranging from electronics to fashion.

Myntra, also established in 2007 and located in Bangalore, India, specialises in fashion and lifestyle merchandise. While its primary operations are within India, the company is making progress towards international expansion by collaborating with numerous brands.

Other B2C e-commerce market players include Alibaba Group Holding Limited, among others.

Recent Developments

October 2024

By the end of 2024, the government of Kerala is set to introduce an e-commerce application that will enable users to order liquor without the option of home delivery. This initiative will simplify the purchasing process for over 2.5 million registered liquor consumers in the state.

September 2024

E-commerce companies in India are witnessing a notable increase in festive sales, especially from Tier-II and Tier-III cities. For example, Flipkart reported an impressive 33 crore user visits during its 2024 Big Billion Days event. Similarly, Meesho experienced a significant 100% rise in orders and drew 6.5 crore customers. In total, e-commerce sales are anticipated to hit USD 12 billion in 2024, reflecting a 23% growth from 2023.