According to research firm IDC, the online marketplace is set to become the largest ever market by the end of the year.
The online market, which has grown to $6.6 billion in revenues in 2018, is expected to continue to grow over the coming years as consumers opt for more secure digital services.
“The future of the internet is not clear, and consumers are paying for that uncertainty,” IDC Research Analyst Jeremy Karp told The Next Wires.
“While we have seen a gradual shift towards cloud computing and other digital services, the internet has been slow to catch up.”
For example, according to IDC’s latest forecast, cloud computing will be the most dominant computing platform by 2019.
The firm also projects that Internet of Things (IoT) devices will be in the top five largest online retail markets by 2020.
The global internet has become so big and so interconnected that we have built the world’s largest network of sensors and machines, and this is where the next wave of innovation will take place,” Karp said.”
It will be interesting to see how the Internet of Everything (I2O) becomes the dominant technology for connected devices.
“As part of its research, IDC looked at the top 50 most valuable online retail services.
Among the top 10 services, only one – Google’s own Shopping – was listed in the US.
However, the company was able to identify which markets have the most lucrative opportunities for internet businesses.”
Our research shows that the internet market is likely to grow to become one of the biggest retail markets in the world in 2020,” Karmpso said.
The growth of the online market has seen the number of retail services in the industry grow from less than 2 percent in 2016 to more than 30 percent today.
While there is a growing market for online services, Karp stressed that the industry has a long way to go before it is able to compete with traditional retail stores.”
Online shopping is a very large opportunity, but the retail space will need to evolve to be more attractive to people and more relevant to their needs,” Kaspary said.
In fact, online shopping could be the next step in the evolution of traditional retailing as people are now looking for a more seamless experience when they shop online, Kaspari said.
Meanwhile, there are already several examples of online retailers making money online, such as the popular online marketplace Ebay, which is now profitable.
While traditional retail shops face challenges such as low returns, online stores also have more direct connections to customers.”
They are able to sell items and services directly to their customers without needing to take out a cash transaction or have their customers come in and collect their items,” Krapari said of online services.
For more information, read the IDC report here