Issue Date: November 2018

G LO B A L E C O M M E R C E
MARKET RANKING 2019

Sell Global. Feel Local

W W W.ESHOPWORLD.COM

GROWMYBR [email protected]
GLOB A L ECOMME RCE M A R K E T R A NK ING 2 0 19
For any brand looking at the cross-border growth to de-emphasise the sheer scale of the markets in the
opportunity, there is one crucial question: which USA and China. However, there are other important
countries are likely to offer the easiest path to criteria that allow markets such as Korea, India and
success? This is often not an easy question to answer Mexico to perform well in the ranking.
as there are multiple influencing factors, such as
In this whitepaper, we take a look at factors such as
shopper demand, ease of doing business, and
logistics and average shopper spending, and cover
number of cross-border shoppers.
which markets to watch, the state of cross-border
We have compiled the latest industry data to create shopping, and emerging markets with potential for
a global eCommerce market ranking that compares growth.
markets across a number of key, weighted criteria.
Let’s get started!
Some of the results will come as no surprise – it’s hard

GLOBAL ECOMMERCE MARKET RANKING 2019 - 2

TOP 3 0 M A R K E T S
Our top 30 ranking was scored and weighted along the following key metrics:

• Logistics ranking • Number of online shoppers

• Average revenue per shopper • Percentage of cross-border shoppers
• Total market revenue • Number of cross-border shoppers
• Percentage of population shopping online • CAGR 2018-2022

United
1 11 Sweden 21 Saudi Arabia
States

2 China 12 Austria 22 Denmark

United
3 13 Australia 23 Turkey
Kingdom

Nether-
4 Japan 14 24 Poland
lands

5 Germany 15 India 25 Ireland

6 France 16 Russia 26 Belgium

7 Canada 17 Norway 27 Singapore

8 Italy 18 Mexico 28 Finland

Switzer-
9 Spain 19 29 Hong Kong
land

10 Korea 20 Indonesia 30 Portugal

In the next section, we will take a closer look into the top 5 markets in the ranking.

GLOBAL ECOMMERCE MARKET RANKING 2019 - 3

SPOT LIGH T ON: U S A
The United States is the number one eCommerce A key metric that has placed the US at the top of our
market in the world for 2018. This is largely due to ranking this year is the number of cross-border online
the ease of doing business in America – there is great shoppers. The US has the second highest number
logistics infrastructure and high demand for cross- of cross-border online shoppers in the world – 82.72
border retailers with eCommerce market revenue million – although as a percentage of total online
totalling $504.58 billion USD this year alone. shoppers, it places significantly lower.

The US is a formidable online force – it was the

birthplace of the online marketplace and largely,
Americans are very trusting online shoppers who
have a high level of comfort shopping online – around
79% of the population, or 258.5 million people,
has made a purchase in the past year. This level of
comfort is also evident in both the amount of money
spent on average per shopper ($1951 USD annually)
and the size of the overall US eCommerce market.

1
GLOBAL ECOMMERCE MARKET RANKING 2019 - 4
SPOT LIGH T ON: CHIN A
China is second in our ranking, which should come As the largest eCommerce market in the world, China
as no surprise to brands who are looking to expand is a popular choice for foreign brands, however it
cross-border. This booming eCommerce market is should be noted that the ease of doing business in the
home to some of the savviest shoppers in the world, region can be regarded as somewhat complicated.
many of whom are cash-rich millennials that covet Brands need to assess the demand for their products
luxury high-end goods from foreign brands. in China, and be prepared to apply local marketing
strategies, especially via social media platforms such
China scored highly across a number of key metrics
as WeChat and Weibo.
in our ranking, largely in part thanks to a huge
population and a keen desire to shop online and
across borders. China consistently scored number
one in three key metrics: largest market by revenue
($636.09 billion in 2018), highest number of online
shoppers (1 billion), and the highest number of cross-
border online shoppers (149.42 million).

2
GLOBAL ECOMMERCE MARKET RANKING 2019 - 5
SPOT LIGH T ON: UK
In third place is the UK, another very lucrative UK online shoppers have high expectations for
eCommerce market for international brands. The foreign brands and want fast shipping and a flexible
market is driven largely by millennials who love fast free returns policy. They also love to shop on mobile,
fashion and want to find the best price possible. therefore brands considering expanding into the
Despite a desire for bargains, UK shoppers spend a UK need to provide a localized, dynamic website
huge amount online annually – nearly $1650 USD per that offers a seamless shopping experience. These
shopper, with an overall market revenue of $86.45 shoppers are fickle and will shop elsewhere if their
billion. Not only that, but the UK has the third- expectations are not met.
highest number of online shoppers in the world by
percentage – almost 80% of the population.

3
GLOBAL ECOMMERCE MARKET RANKING 2019 - 6
SPOT LIGH T ON: J A PA N
Fourth in this year’s ranking is Japan, one of Foreign brands that want to expand into Japan
the biggest eCommerce markets in Asia. With would be wise to enlist the help of a cross-border
$104.04 billion USD revenue in the past year, and eCommerce expert to help deal with the nuances of
excellent logistics infrastructure (5th globally), the the market, as Japanese shoppers are significantly
Japanese eCommerce market represents a great different to shoppers in Europe and the US – they’re
opportunity for foreign brands. Japan’s 89.9 million older, like to stay at home, and have a high average
online shoppers love foreign brands that they order spend.
can trust to provide an excellent product. Unlike
their counterparts in the UK and the US, Japanese
shoppers are willing to pay high prices for quality
products, and their love of high-end brands has led to
the emergence of a mass-luxury market.

4
GLOBAL ECOMMERCE MARKET RANKING 2019 - 7
SPOT LIGH T ON: GE R M A N Y
Germany, the biggest online shopping market The reasons Germany ranks so highly for logistics
in mainland Europe, has placed fifth on our are numerous: it is a trans-European hub that
eCommerce market ranking. As one of the most shares a border with nine neighbouring countries,
mature eCommerce markets in the world, Germany it is considered the gateway to Europe thanks to
is home to 63.9 million online shoppers who were its attractive location, and it has some of the most
among some of the first to embrace eCommerce. advanced transportation infrastructure in the world.
Additionally, Germany was ranked number 1 for This makes cross-border delivery significantly easier
logistics globally, making it the perfect market for for international brands as there are much lower
brands to consider in their cross-border strategy. barriers to entry.

5
GLOBAL ECOMMERCE MARKET RANKING 2019 - 8
GLOB A L
ECOMME RCE
MARKET
R A NK ING
2 0 19

GLOBAL ECOMMERCE MARKET RANKING 2019 - 9

THE R A NK ING
Discover the top performing
markets in each category.

S HOPPE R S PE NDING

When international brands are formulating their

cross-border strategy, they need to think about
shopper demand for their product, and average
shopper spend in the country.
2 000

The top 5 eCommerce markets for revenue per

shopper are: 1 500
Revenue in U.S. dollars

1. USA $1 951.11
1 000
2. Norway $1 719.96 
3. UK $1 639.23 
500
4. Denmark $1 383.15 
5. Austria $1 249.62 
0

USA NORWAY UK DENMARK AUSTRIA

GLOBAL ECOMMERCE MARKET RANKING 2019 - 10

 L A RGE S T M A R K E T S

As part of general research for a cross-border strategy,

it is important for retail brands to have knowledge of
the world’s largest eCommerce markets.
600

500
Top 5 eCommerce markets by revenue

Revenue in billion U.S. dollars

400
1. China $636.09 billion 
300
2. USA $504.58 billion 
3. Japan $104.04 billion  200

4. UK $86.45 billion
100
5. Germany $70.35 billion
0

CHINA USA JAPAN UK GERMANY

1 000

800
Top 5 markets by total number of online shoppers
Million of onilne shoppers

1. China 1 billion 600

2. India 360.1 million

400
3. USA 258.5 million
4. Indonesia 107 million 200

5. Japan 89.9 million

0

CHINA INDIA USA INDONESIA JAPAN

100

Top 5 markets by number of online shoppers

Percent of population shopping online

80
(% of population)

1. Sweden 84.65%  60

2. Korea 80.56%
40
3. UK 79.8%
4. Norway 79.25% 20

5. USA 78.9%
0

SWEDEN KOREA UK NORWAY USA

GLOBAL ECOMMERCE MARKET RANKING 2019 - 11

 LOGI S T IC S

Logistics are one of the most crucial considerations for any brand
expanding internationally. A successful logistics strategy not only requires
an excellent delivery experience, it encompasses the entire supply
chain: inventory, fulfilment and warehousing, customs processing and
reverse logistics. The World Bank’s LPI Ranking is the global standard for
logistics and compares 160 countries across 6 subindicators: customs,
infrastructure, international shipment, logistics competence, tracking and
tracing, and timeliness. Three particularly important metrics in the LPI
Ranking are:

The top 5 countries for

logistics globally :

1 Germany

The top 5 countries for

2 Sweden
international shipments:

3 Belgium 1 Belgium

The top 5 countries

4 Austria 2 Sweden
for customs:

5 Japan 3 Austria 1 Germany

4 Germany 2 Sweden

United Arab
5 3 Japan
Emirates

4 Denmark

5 Netherlands

GLOBAL ECOMMERCE MARKET RANKING 2019 - 12

 CROS S BOR DE R S HOPPING

As consumer trust for eCommerce grows, a significant

amount of online shoppers are now shopping across
borders. This is an important metric for brands as it
will provide insight into the appetite for international
brands within a region.
150

Top 5 countries by number of cross-border online

Million cross border online shoppers

shoppers 
100
1. China 149.42 million
2. USA 82.72 million
3. India 53.02 million 50

4. Russia 49.66 million

5. Mexico 40.33 million
0

CHINA USA INDIA RUSSIA MEXICO

% of overall online spend for cross-border eCommerce

100

Top 5 countries for cross-border eCommerce by % 80

of overall online spend

1. Portugal 86% 60

2. Latvia 86%
40
3. Ireland 81%
4. Croatia 81% 20

5. Switzerland 80%
0

PORTUGAL LATVIA IRELAND CROATIA SWITZERLAND

GLOBAL ECOMMERCE MARKET RANKING 2019 - 13

 GROW T H

The high-growth region of Southeast Asia represents

a huge opportunity for international brands. This
exciting region is home to over 350 million online
shoppers, however it is has not yet been saturated by
international retail players, unlike China or Japan.

Double-digit eCommerce growth in emerging Asian

markets has been triggered by the introduction of
marketplaces such as Flipkart in India, and increased
20
logistics and broadband infrastructure.

Top 5 countries by % of CAGR growth 2018-2022 15

% of CAGR growth 2018-2022

1. India 19.8%
10
2. Malaysia 17.6%
3. Indonesia 16.6% 
5
4. Philippines 15.2%
5. Vietnam 13.5% 
0

INDIA MALAYSIA INDONESIA PHILIPPINES VIETNAM

GLOBAL ECOMMERCE MARKET RANKING 2019 - 14

 M A R K E T S TO WATCH

Outside of the top 30 ranking, there are some other

very interesting markets that should not be ignored
when it comes to CAGR. The following countries have
seen incredible growth in the past few years and are
forecasted to continue the same trajectory until 2022.

These five countries are experiencing extraordinary

growth in the eCommerce sector thanks to a strong
population of internet users that are well-versed in
the use of digital technologies, mobile and online
shopping.
15
Growing internet users mean these countries are
ideal markets for foreign brands to sell into.

Top 5 countries to watch (beyond the top 30) 10

% of CAGR growth 2018-2022

1. Thailand – 13.3%
2. South Africa – 13.2%
5
3. New Zealand – 13%
4. Romania – 11.3%
5. Estonia – 10.6%
0

THAILAND SOUTH AFRICA NEW ZEALAND ROMANIA ESTONIA

GLOBAL ECOMMERCE MARKET RANKING 2019 - 15

 PE A K S E A S ON

Retail brands need to prepare for an influx of sales Additionally, we saw significant sales increases during
during the peak holiday season in that starts in early the peak 2016 and 2017 retail periods across our
October and runs until after Christmas. To provide an top 5 best performing markets: Australia, Canada,
insight for brands forecasting their peak season sales, Germany, Mexico and the UK. It is evident from our
we have analysed our own data and found the top data that there has been a consistent spike in sales
performing markets by percentage uplift during the starting around early October, before peaking in late
previous 2017 holiday period. November – Black Friday and Cyber Monday and
gradually decreasing back to steady sales through
January. Across these 5 markets, our data shows an
average order increase of 117% between November
23 and November 24 (Black Friday 2017).

Average peak season % uplift in eCommerce market

0 100 200 300 400 500 600

Top 10 eCommerce markets by average peak IRELAND

season % uplift
ITALY
1. Ireland – 634%
2. Italy – 311% POLAND

3. Poland – 308%
DENMARK
4. Denmark – 300%
NETHER-
5. Netherlands – 291% LANDS

6. USA – 291% USA

7. Sweden – 279%
SWEDEN
8. UK – 270%
9. Slovenia – 264% UK

10. Hungary – 263%

SLOVENIA

HUNGARY

GLOBAL ECOMMERCE MARKET RANKING 2019 - 16

CONCLU S ION
As the appetite for online shopping grows, retailers Brands need also be prepared to enhance every
need to consider their strategy for gaining cross- aspect of the end-to-end online shopping experience
border shoppers. Brands should not fear increased from fully-landed pricing, localized payment
competition by expanding internationally – delaying methods, international shipping, customs clearance,
this will be much more detrimental to sales in the international returns to duty drawback.
long term.
To do this, consideration should be made to partner
With this in mind, brands wishing to expand should with a provider that can navigate each market’s
weigh up all the considerations outlined in the above intricacies and nuances, so the retail brand can focus
market ranking and compare this to their own figures on doing what they do best – sell products.
to decide which markets should be entered.

GLOBAL ECOMMERCE MARKET RANKING 2019 - 17

A BOU T E S HOP WOR LD
eShopWorld guides the world’s best brands and promotions, checkout messaging, shipping thresholds,
retailers to make global shopping better, safer, simpler pricing strategies and more. And all shopper data
and faster, by optimizing the end-to-end cross- remains the property of the brand.
border eCommerce customer experience. From local
Our global eCommerce experts and active account
pricing with duty and tax calculations, to optimized
managers are located around the world, to guide
checkout, local payments, preferred shipping,
brands in delivering optimal shopper experiences,
customer service and returns, our solution manages
market by market. Our deep local shopper
the entire shopper journey. Leveraging their existing
knowledge and our suite of reporting and analytical
site, retailers can rapidly enter markets with high
tools give retailers deep insight into what is driving
converting, hyper-localized experiences that drive
success in each market, with strategic and tactical
profitability and growth.
recommendations on how to maximize performance.
With mature, in-country solutions across Nth America,
eShopWorld takes the complexity and uncertainty
Europe and Asia, our platform protects the brand
out of global eCommerce, empowering brands and
relationship with the shopper at every touchpoint
retailers to Sell Global, Feel Local TM
on the shopper journey, and offers full branding,
control and flexibility over key propositions such as

Sources include: eShopWorld, Statista, WorldBank, eMarketer, New Zealand

EVERY GREAT JOURNEY BEGINS WITH THE FIRST STEP

That first step is a conversation. If you’re ready to talk, we’re ready to share with
you how we can drive success on your global eCommerce journey.

Ready?

SCHEDULE A DEMO

GLOBAL ECOMMERCE MARKET RANKING 2019 - 18

Issue Date: November 2018