What is the eCommerce Market?
eCommerce systems and technology enables the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, typically the internet. Electronic commerce operates in all four of the major market segments: business to business, business to consumer, consumer to consumer and consumer to business. At a metaphorical level, it can be thought of as a more advanced form of mail-order purchasing through a catalog. Almost any product or service can be offered via ecommerce, from books and music to financial services and plane tickets.
Electronic commerce technology refers to providing software and associated services to facilitate online commerce. eCommerce software solutions provide a wide range of functionalities other than the basic shopping cart and online catalogues. Today, these software solutions are designed to provide a consistent shopping experience to consumers across various channels.
How Big is the eCommerce Market?
Many firms track the size of the eCommerce market by measuring the value of the transactions performed electronically. For example, one report by eMarketer estimates the global B2C ecommerce sales to be approximately $1.5 trillion and Forrester Research estimates that B2B eCommerce has reached the $1 trillion level.
The demand for eCommerce technology is growing rapidly. Forrester has also released a 5 year forecast for the commerce technology market that estimates that in the US alone, spend on commerce technology (licensing, subscriptions and support & maintenance fees) will grow from $1.2 billion in 2014 to nearly $2.1 billion by 2019. Globally, spending today is $2.4 billion and will also see significant growth through the end of the decade.
TechNavio’s analysts forecast the Global eCommerce Technology market will grow at a CAGR of 20.3 percent over the period 2013-2018.
How is the eCommerce Market Segmented?
eCommerce technology includes software, subscriptions and licensing and associated services.
eCommerce applications fall into a broad range of functional areas including:
- Product information – a digital catalog that includes product information, images, pricing and other information used in presenting the product to the customer
- Shopping – systems that support product comparisons, product configuration, shopping carts and checkout
- Secure payment systems
- Shipping, tracking and returns management software
- Traffic and purchasing analysis
- Middleware and other connectivity/integration software