E-commerce markets are growing at an incredibly high rate, thanks to the countries in Asia and Latin America. Here are the top ten fastest growing e-commerce markets according to an industry report for 2018, along with a breakdown of their preferred payment methods.
While it takes only the 10th place in our list of fastest-growing markets, China, in fact, is the largest e-commerce market, constituting 40% of all online transactions in the world. In addition, it is also growing with a rate of 27% per year, mainly due to the popularity of Alibaba – the world’s largest online store.
Similarly to China, the Indian e-commerce market is also growing with a rate of 27% per year.This is primarily due to its cheap internet connectivity and rising mobile usage. In addition, more than 800 million people are active internet users in India.
The e-commerce market in Israel, one of the most technologically advanced countries, is growing with a rate of 31% per year. It also has one of the highest average online spendings in the world as most shoppers in Israel pay via e-wallets or credit cards.
7. Saudi Arabia
In recent years, the Saudi government has been trying to diversify its economy which is highly dependent on oil. Its e-commerce sector has an annual growth rate of 32%.
Vietnam also has an annual growth rate of 32% and takes enormous influence from the Chinese e-commerce market.
5. United Arab Emirates
While it’s considered to be one of the wealthiest countries in the world, the e-commerce market in this Gulf nation, with a population of only 9 million, is growing at 33% per year.
With the third largest economy in South America, the Columbian e-commerce market has been growing with a staggering 45% per year. This is mostly thanks to the customers’ desire to be able to compare prices and due to the advanced home delivery network.
3. The Philippines
As we approach the top 3 growing e-commerce markets, Philippines presents a very interesting addition to this list. Even though it remains the smallest e-commerce market compared to the countries mentioned above and 60% of the online shoppers still prefer to pay in cash, the Philippines has shown an impressive annual growth rate of 51%.
The Mexican economy has been greatly benefiting from the US-China Trade war over the past couple of years. It has also shown drastic improvements in shipping times and logistics, which has led to the annual growth rate of 59%.
The number one spot in our list, with an annual growth rate of 78% goes to Indonesia. Most Indonesian shoppers pay via credit cards and e-wallets, while only 15% of all the transactions are carried out in cash.
Preferred Payment Methods:
The major feature that makes these growing e-commerce markets stand out is their flexible payment options. For instance, in Latin America, most online shoppers, pay at a local grocery store, from where the payment is wired to the online merchant. Meanwhile, in south-east Asia, e-Wallets are the most popular method of payment, constituting almost 50% of all transactions. This has made WeChat Pay the largest e-Wallet in the world, while Alipay is a close second.
It is also statistically proven that 50% of all current shoppers simply abandon online shopping carts that do not offer payment methods that are familiar to them.
Is your business targeting fast-growing e-commerce markets? Make sure to check our solutions to integrate various local payment solutions which shoppers are so eagerly looking for.