Ease of doing business for MSMEs: The pandemic had a significant impact on e-commerce as people began to rely more on online shopping and consequently, the pandemic solidified the shift in consumer behaviour towards digital payments, which has continued to drive e-commerce growth.
Ease of doing business for MSMEs: The global e-commerce market is expected to grow at a compound annual growth rate of 9 per cent during the 2022-26 period with transactions value rising from approximately $6 trillion in 2022 to over $8.5 trillion in 2026, said a Global Payments Report 2023 by fintech company FIS.
“The explosive growth in global e-commerce in the first two years of the pandemic has slightly slowed in 2022, with a 10 per cent YoY growth in global e-commerce transaction value from 2021-2022…Despite reduced growth rates compared to the initial pandemic period, the forecast for global e-commerce remains bullish,” the report said covering 40 markets worldwide.
During 2021-22, all regions except Europe saw double-digit growth with the highest growth of 21 per cent in the Middle East and Africa. Of the 40 markets, 37 saw double-digit YoY growth from 2021 to 2022. Markets in Latin America, the Middle East, Africa, and Southeast Asia, except for Thailand, which grew at 9 per cent, continue to be high-growth markets. The report predicts a mid-teens CAGR in these regions through 2026.
The pandemic had a significant impact on e-commerce as people began to rely more on online shopping and consequently, the pandemic solidified the shift in consumer behaviour towards digital payments, which has continued to drive e-commerce growth.
“Global e-commerce is projected to grow in all regions, with a robust double-digit growth forecast in emerging markets. This trend presents attractive opportunities for cross-border e-commerce. Therefore, the report suggests that businesses should develop cross-border e-commerce capabilities to benefit from the high-growth markets.”
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However, some challenges still need to be addressed to sustain this growth. For example, the report indicated that the lack of digital infrastructure and financial inclusion in some emerging markets can hinder e-commerce growth. Additionally, regulatory challenges and cross-border trade barriers can create obstacles for businesses looking to expand globally.
https://www.financialexpress.com/industry/sme/msme-eodb-global-e-commerce-market-may-hit-8-5-trillion-by-2026-report/3157158/
