The value of the global e-commerce market is expected to reach $6.3 trillion in 2024, according to Forbes magazine, and it is expected to reach $8 trillion by 2027, driven by the increasing number of e-commerce users and their reliance on digital platforms for shopping.
The number of online shoppers will reach 2.71 billion people globally by 2024. This means that 33% of the world’s population shops online, and this represents an increase of 2.7% over the previous year.
The number of online shoppers is expected to rise to 2.77 billion by 2025, reflecting the boom in e-commerce due to the increasing spread of the Internet in the world and the convenience of shopping through the digital space, according to the Sellers Commerce platform.
China leads the online shopping trend with 915.1 million online shoppers, while the United States has 270.11 million online buyers in 2024.
More than 26 million online stores
As of 2024, there are 26.6 million e-commerce sites worldwide, which represents a 3.83% increase from the previous year. This means that the daily average of starting new stores was 2,685 e-commerce sites between 2023 and 2024.
It is expected that 20.1% of retail purchases will be made online in 2024. This percentage is also expected to rise to 22.6% by 2027.
Growth factors of the global e-commerce market
- The rise of mobile devices and apps has expanded the scope of e-commerce, enabling customers to shop on the go.
- Emerging technologies such as artificial intelligence, virtual reality, and augmented reality are transforming how products are viewed and experienced online.
- The global e-commerce market is driven by the increasing integration of advanced technologies such as artificial intelligence, virtual reality, and augmented reality, and the increasing inclination of consumers towards online shopping.
- The increase in the volume of private investments and government initiatives, all of which are factors that enhance the growth of the market, according to the “Persidance Research” platform.
What about the Arabs?
The e-commerce market in the Arab region is witnessing a transformative boom, reshaping the region’s business landscape and consumer behaviors, driven by the widespread use of advanced technologies and favorable government initiatives to enhance digital economies.
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This dynamic sector involves the buying and selling of various products and services online, catalyzing a major transformation in how businesses operate and how consumers access goods.
The market includes a wide range of activities, including online retail stores, digital marketplaces, business-to-consumer transactions, as well as business-to-business transactions, according to the IMARC Group.
Consumers in the region now enjoy the convenience of browsing, purchasing and transacting from the comfort of their homes, thanks to the widespread use of smartphones and computers. The region’s young, technology-savvy population, coupled with high disposable incomes, especially in the Arab Gulf countries, represent a broad consumer base to increase the volume of e-commerce in the region.
It is expected that revenues from the region’s e-commerce market will reach $95.09 billion in 2024, and rise to $162.7 billion by 2029 with a compound annual growth rate of 11.34% during the same period. It is also expected that the number of users in the e-commerce market will reach 161.4 million users by 2029, according to the “Statista” platform.
Five of the most prominent online stores
Below is a list of five of the most prominent online stores operating in the Arab world, according to what was mentioned by a number of platforms such as “Tig Magazine,” “Medium,” “Istazada” and others.
- Amazon (formerly Souq.com)
Company acquired Amazon Global launch on Souq.com in 2017, which was previously the largest e-commerce site in the Arab world. The giant American technology company spent $580 million to bring Souq.com under its banner and has renamed the platform from “Souq.com” to (Amazon.ae), according to what CNBC reported.
This step not only expanded Amazon’s reach, but also upgraded the shopping experience for millions of people in the Arab region through the wide range of products it offers.
The website offers everything from the latest tech and electronic gadgets to fashion finds, home supplies, beauty items and much more. The platform is known for its easy-to-use experience, reliable delivery, customer service and credibility.
Noon is one of the most prominent e-commerce sites and platforms in the region, and has grown rapidly since its inception in 2016. The platform is a busy shopping mall for electronics, fashion, household goods and even groceries.
In August 2022, the company expanded its scope in the field of fashion by acquiring Namshi, a company specialized in this field, for an amount of $335.2 million, which strengthened its position as a comprehensive shopping destination in the region, according to what Reuters reported.
It is an online retail service owned by the Chinese company Alibaba, and it offers a wide range of products from household items to electronics, clothing, and many other goods and products.
The company was founded in 2009, and is widely popular in the Arab region to the point where it has overtaken the original Alibaba website.
Jumia Egypt, part of a leading pan-African e-commerce company, was launched in 2012. It is a crowded digital marketplace that brings together a diverse group of sellers and products, ranging from electronics to household appliances, and everything in between.
As a technology company, Jumia has built a complex network of logistics and payment services, simplifying the online shopping process for millions of people in the region. While its roots extend to Nigeria, Jumia’s branches extend across the African continent, with Egypt being one of its largest markets on the African continent.
Headquartered in Dubai, Namshi is one of the largest retailers of children’s, women’s, men’s and fashion clothing in the Middle East. The company includes more than 550 different brands of shoes, clothing and fashion, allowing many international brands to reach the Middle East market.
Noon acquired Namshi in 2022, but it still operates as a distinctive brand in the field of e-commerce. This acquisition allowed Namshi to leverage Noon’s comprehensive regional infrastructure, enhancing its scale and operational capabilities.
