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Key takeaways from GLOBAL 2020 Ecommerce Report by RetailX

RetailX has prepared a report about this peculiar year. Definitely, it was a big year for eCommerce. In this report, you can find many useful analyses and numbers regarding the eCommerce market and its situation during the pandemic. 

Borders or no Borders?

In theory, the global reach of the Internet was meant to facilitate trade and make no borders. In fact, borders are very clearly visible, not only physical but also cultural. There is also a conflict between politics and technology. 

Technological empires like Google and Apple earn more and more, gaining more importance in the global arena. Thus, paying lower taxes, which does not please the players of the political world.

For this reason, the US and the EU are more and more rapidly catching up with the introduction of an antitrust policy for retailers. In an age where eCommerce popularity is growing due to a pandemic, these actions could become stronger.

The Chinese market is a completely different situation. The government is constantly supporting eCommerce development and is actively involved in these activities.

There has even been discussion of a kind of digital ecosystem created by Baidu, Alibaba, and Tencent, called BAT. They create a comprehensive offer for consumers, thanks to which Chinese clients do not need to look for products on foreign markets.

It is widely known that the US and China are in dispute with each other, being the world’s two largest trading players. The US and EU also have a somewhat tense relationship. Perhaps eCommerce is the solution that will heal these problems.

These retailers are much more mobile and flexible, being able to adapt to global customers and country requirements. So this is a good deal for smaller retailers who will not be the target of governments’ restrictions. The principle of think globally act locally has never been more relevant.

Eco-friendly eCommerce

We all know that the Earth is not at its best. The continuous development of civilization does not make it easier for the planet. We do not care about greenhouse gas emissions, ecosystems, and the food that we constantly waste. To survive, changes are necessary.

The pandemic has forced us to analyze our choices and how we treat the planet. Even the biggest players in commerce or industry took the fate of the planet into account. Current governments are trying to prevent widespread global warming but will see whether their actions will be effective.

Unfortunately, the will to act may not be enough. It takes real steps to save our planet. The beginning of the pandemic has shown how much depends on us. In the six weeks of the lockdown in China, emissions of this country decreased by a quarter.

The president even announced that China plans to become carbon-neutral by 2060. On the other hand, by switching the market to the United States, Amazon has committed to 0% net carbon dioxide emissions by 2040. These commitments incentivize other companies to switch to the green side.

Keeping Amazon in mind. This eCommerce giant invests in renewable energy and works dynamically with projects in this area around the world. It is followed by platforms such as Zalando, which joined the Globalclean Energy consortium, committing itself to reduce CO2 emissions in its own operation by 80% over the next five years.

How will it be? Nobody knows. But we hope that a top-down movement towards ecology will result in a global movement in the green direction.

Is the Internet really global?

It has been known for a long time that the Internet revolutionized the world. Developing countries gained new opportunities, those already developed only strengthened their position.

Unfortunately, access to the Internet was not evenly distributed and countries such as Africa or the Middle East became online later than the USA. What does this mean for eCommerce?

The diversity is best illustrated by China, which is ahead of the US and Europe in terms of eCommerce – this market is worth around five trillion dollars. This corresponds to over 1/3 of the country’s GDP. As can be seen from the information above, China is a power in the eCommerce market. 

The situation is different in Latin America. On the one hand, there has been an increase in users in terms of mobility, but on the other hand, the infrastructure is not sufficiently developed. And may cause a slowdown in the development of digitization in this country. 

Conclusion 

In 2020 eCommerce has faced unexpected popularity. Many companies have had to cope with unprecedented demand and do their best to meet the requirements of in-house customers. Undoubtedly, the pandemic has significantly influenced trade, transport, and tourism.

It also influenced eCommerce, but in a completely different dimension – a positive one. Will this market live up to expectations and stay on the wave of popularity? We do not know this for sure, but we will be watching it closely.

If you are interested in reading the full report, you can download it here.