E-com to be 19% of 2022 global retail sales, reach 25% by 2027: GroupM

Source:China Sport ShowRelease time:01-Oct-2022Clicks:

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E-commerce will make up 19 per cent of global retail sales this year, growing to 25 per cent by 2027, New York-based media investment company GroupM estimates. Twenty of the top e-commerce companies accounted for 67 per cent of global e-commerce sales last year. Global retail media is likely to reach $101 billion in 2022—15 per cent higher than a year ago—and will hit $160 billion in annual revenue in five years.

Over the next one to three years, retail media will likely see greater competition, more frequent decoupling of data from inventory and greater participation by non-endemic brands, the company said.

The company’s model estimates global e-commerce sales of $5.4 trillion this year. China and the United States alone will make up 52 per cent of that figure, and nearly 61 per cent of the total, $3.3 trillion, can be attributed to just seven markets: the United States, China, Japan, Germany, the United Kingdom, Canada and Australia.

By 2027, the company estimates e-commerce sales will reach $9.1 trillion. This figure includes sales of autos and auto parts, as well as gasoline, but excludes food services or catering sales to produce like-for-like comparisons across all tracked markets.

E-commerce is predicted to represent 19 per cent of global retail sales in 2022, up from 18 per cent in 2021 and 2020.

Unsurprisingly, Chinese retailers make up three of the top five retailers by global e-commerce gross merchandise value (GMV) with Amazon and eBay rounding out the other two spots (though Shopify would replace eBay at the fifth rank if included).

Alibaba is the undisputed leader and counts more than double the e-commerce GMV of the number two, Amazon, GroupM added.

Sales from third-party sellers have rapidly grown as a percentage of Amazon’s GMV, and GroupM’s estimates put that ratio at 65 per cent in 2021.