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Global 2022
Ecommerce Report
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GLOBAL ECOMMERCE REPORT 2022 | INTRODUCTION © 2022 retailx.net, distributed by InternetRetailing.net
Introduction
Welcome to the
increased the value of the dollar which, in turn, has put
Global Ecommerce
pressure on central banks around the world to raise rates.
Report for 2022
Complicating matters, this is all happening at a time when,
in one reading of what’s happening in the retail sector, a
phase of rapid evolution driven by digital technologies
is slowing down. It may be that, in the months ahead, we
The Global Ecommerce Report is one of RetailX’s largest see more emphasis on making multichannel retail work
reports of the year. Its aim is to offer a picture of how rather than being fixated on, for example, new channels.
multichannel retail and ecommerce is developing around This is an idea we explore in our overview feature.
the world. It both takes an overview as well as looking at
different regions and countries. In doing so, we contrast Speaking of new channels, elsewhere in the report, we try
and compare the retail cultures of different territories to cut through the hype surrounding the metaverse.
and consider how they intersect with each other. We also take an in-depth look at logistics issues, we
consider where the next generation of tech companies may
2022 was a year when assessments of the overall economic emerge, and we focus on the sustainability agenda and the
outlook changed radically. Russia’s invasion of Ukraine lingering afterlife of the pandemic.
in February was a huge component in this, in that it had
a kind of negative multiplier effect. Economies and Thanks to RetailX’s researchers, designers and editors for
businesses that had already been hit by Covid-19 their efforts. We hope this report offers a combination of
and subsequent supply chain/logistics issues now data-driven insights, fresh ideas and new perspectives.
also had to contend with a spike in energy prices. As Please do get in touch to share your thoughts.
inflation began to bite, central banks raised interest rates.
US Federal Reserve chair Jerome Powell has stated that Ian Jindal
its rates may hit 4.4% by the end of 2023. This rise has CEO, RetailX
2 | RetailX | November 2022

GLOBAL ECOMMERCE REPORT 2022 | CONTENTS © 2022 retailx.net, distributed by InternetRetailing.net
Contents
Market context: global ecommerce, 2022 4 Japan 59 South America overview 109
Market overview: International indices 7 South Korea 62 Argentina 111
Global graphics: how different regions compare 9 Vietnam 66 Brazil 113
Happiness Index 12 Chile 116
Partner perspective: ACI Worldwide 14 Europe overview 68 Colombia 118
Partner perspective: Akeneo 16 France 70 Peru 120
Partner perspective: Asendia 18 Germany 72
Partner perspective: Rakuten 20 Italy 74 Global issues introduction 122
Norway 76 Sustainability 123
Introduction to the regions 22 Russia 78 Covid-19 129
Africa overview 23 The United Kingdom 80 Inflation 131
Algeria 25 Logistics 134
Egypt 27 Middle East overview 82 Ecommerce 3.0 142
Ghana 30 Iran 84 The metaverse & VR gaming 145
Kenya 32 Israel 86 Issues to track 152
Morocco 34 Qatar 88
Nigeria 36 Saudi Arabia 90 Index / directory 154
South Africa 40 Turkey 94 Conclusion 159
Tanzania 43 The United Arab Emirates 96
Asia overview 45 North America overview 98

Australia 47 Canada 100
China 50 Mexico 103
India 54 The United States Of America 105
Indonesia 57

GLOBAL ECOMMERCE REPORT 2022 | CONTEXT © 2022 retailx.net, distributed by InternetRetailing.net
Adjusting the pace

The digital economy, while still growing,
is also maturing. What does this mean
for retailers globally?
Sometimes, events seem to coalesce. One such moment
arrived in November 2022 with Amazon’s announcement
that it was to lay off around 10,000 workers[1]. This cut in
the workforce, which will be focused on corporate and
technology jobs, is the largest in the company’s history.
This news arrived around the same time as, in the wake
of Elon Musk buying Twitter for $44bn, the social media
company shed as many as two-thirds of its workers[2]. Over
at Meta, while announcing the loss of more than 10,000
jobs[3], Mark Zuckerberg has said the company over-
©Meta
invested at the start of Covid-19 because he and his
executives expected that online activity, and ecommerce Meta CEO Mark Zuckerberg at OC6, demonstrating the VR technologies that he believes are the future of his business
in particular, would continue to grow at an accelerated rate
associated with the pandemic. What are we to make of this slew of news stories? In the As for Twitter, squint and you could say that, in cutting
case of Amazon and Meta, one way to interpret them is costs, it too has prioritised in returning to its founding
“Unfortunately, this did not play out the way I simply to see them as examples of high-profile companies principles – Musk’s vision of a “global town square” where
expected,” he noted. “Not only has online commerce going back to basics at a time when the global economy is Donald J Trump is among those making his opinion known
returned to prior trends but the macroeconomic in a volatile state due to inflation, supply chain issues and seems in keeping with a microblogging site where debate
downturn, increased competition and ads signal loss have the war in Ukraine. has always been robust. In this reading, what some see as
caused our revenue to be much lower than I’d expected. the toxicity of Twitter is built-in.
I got this wrong and I take responsibility for that.”

In other words, move along, nothing much to see here, he can ever turn a profit on Twitter, if that’s even what he’s
just a set of unconnected decisions each taken for trying to do.
understandable commercial reasons.
Yet these are now all business stories that not only played
BUSINESS SUPERSTARS out in relatively more benign economic times, but that
But what if these stories are indicative of wider change also seem to belong to a different era when digital
within the technology sector, change that will inevitably technologies were still novel and tech companies
affect a retail sector that would grind to a halt without chased rapid expansion.
digital technologies? Such an alternative view begins
©AnamaXR
with the idea that each of these companies is a tech By way of contrast, in the 2020s, digital technologies are
behemoth headed by an entrepreneur whose fame woven into our everyday lives in a way that few predicted
AnamXR sees the emerging metaverse as an opportunity to sell virtual fashion items
far exceeds those of mere CEOs. Jeff Bezos, Musk and even 20 years ago. This is why big digital companies are
Zuckerberg are figures whose public utterances make now so often likened to utilities. It’s not just that we shop
news around the world. While this reflects their individual online or watch movies. In both developed and emerging whether certain companies actually need larger-than-life
successes, they also have other things in common. nations, we organise our lives online, consult with doctors, leaders into focus. Sometimes, might it not be better to
participate in meetings from home, interact with the tax appoint someone interested in securing a company’s long-
Each of these three, as with Bill Gates at Microsoft and authorities and even check the time of the next bus. term future through steady growth rather than reimagining
Steve Jobs at Apple before them, made their way at a an existing sector before cashing out with an IPO? Or, to
time when the tech sector was in an expansionary phase Yet as the adverse publicity around Musk’s takeover of put that another way, moving fast and breaking a utility
that began in the late 1980s, and was, with the benefit of Twitter shows, there can be tension when a service may not be the wisest business strategy.
hindsight, only mildly interrupted by the dotcom bust at people think of as a utility becomes associated with
the turn of the millennium. a single person. Entrepreneurship is so often about UNEVEN DISTRIBUTIONS
disruption whereas utilities are about reliability. We don’t Which seems an apposite moment to return to those
Amazon had first-mover advantage when it launched want to worry that a service may not be available to use redundancies at Amazon and Meta. If we read these as
out of a Bellevue, Washington garage in 1994. In 2004, tomorrow because it’s been bought out by the world’s evidence of large tech companies maturing, what does
Facebook filled a social media need nobody knew existed. richest man. that say about the future into which the digitally
Musk has displayed a risk-taking genius for taking the driven retail sector is heading? Even investor TCI Fund
money, as when eBay bought PayPal in 2002, and then None of this is to say that big companies should no longer Management has recently called on Google parent
starting again. That said, it’s currently difficult to see how have charismatic leaders, but it does put the question of company Alphabet to make job cuts and reduce its

spending on long-term projects that might not pay off selling virtual fashion[5]. But is even this scenario really so Or look at retail through the prism of the European Union’s
down the line[4]. alien to retailers? She is, after all, talking about trying to sell General Data Protection Regulation (GDPR), legislation
people stuff they will, if the right items are presented in the mirrored elsewhere in the world that’s already proved
One thing it should do is make everyone cautious about right way at the right price, want to buy. hugely challenging to personal data-driven business
the idea of retailers using constant technological change models. Inexorably, GDPR had made consumers more
to endlessly revolutionise the sector. To cite, not for the ANOTHER VIEW aware of the value of the data they share. Again, this isn’t
first time in these reports, William Gibson’s maxim that the That’s not to say that without the metaverse succeeding, technologically driven change, it’s the authorities stepping
future is all around us, it’s just unevenly distributed, we everything will stay the same and retail will become an in to protect citizens using those services that have
can broadly see how retail will probably evolve. established industry moving slowly and sedately into become essential to conducting day-to-day life.
the future. The key point here is more that, since we
More channels, more logistical complications, more work in an industry driven by technology, we have got It’s as if the recent redundancies, economically turbulent
multichannel purchases, more reliance on data, more used to looking at things through the lens of rapid as they are, represent a far more profound shift in the way
subscription models, more mobile, more digital products, technological change, often driven by developments in the world does business. An era of change driven by
more livestreaming. Yet, at the same time, consumers Silicon Valley. But maybe this way of seeing the world has digital tech and philosophically underpinned by ideas
growing more aware of their personal data’s value as become a stale orthodoxy. (This kind of thinking may also, and attitudes associated with Silicon Valley is perhaps
the internet becomes a pervasive, web 3.0 iteration. incidentally, partly explain why Zuckerberg latched onto ending. Without in any way suggesting that consumers will
the idea of us all spending more time online during the cease to look for value and great customer service, or that
Seen in this context, whether it succeeds or not, the pandemic and assumed this situation would endure.) business conditions will somehow become easier, it may
metaverse will be just one more channel. While there are also be that an era of moving more slowly and mending
still many more fortunes to be made in ecommerce, they Take just one of the big issues within retail – sustainability. things lies ahead.
are unlikely to be made by dominating the metaverse but Leaving aside it being caused by industrialisation, from
by working within it to figure out the sweet spots where a retail perspective, this has little to do with technology,
consumers will be rewarded enough to shop there. except in so far as consumers are looking for goods that
have a lower environmental impact. Citizens (consumers
Granted, going shopping in virtual reality may seem seems the wrong word in this context) have a growing [1] www.nytimes.com/2022/11/14/technology/amazon-layoffs.html
strange at first. Irene-Marie Seelig, co-founder and CEO of awareness of how their environment is changing and [2] www.sfchronicle.com/tech/article/Twitter-fires-even-more-sales-staff-as-cuts-17601922.php
[3] www.theguardian.com/technology/2022/nov/09/mark-zuckerberg-meta-to-sack-11000-workers-after-revenue-
“multiverse platform” AnamXR, says that some consumers this is altering their behaviour. Arguably, this will have a collapse-facebook-instagram
[4] www.reuters.com/technology/hedge-fund-tci-says-alphabet-cost-base-too-high-2022-11-15/
now “value their digital persona more than the physical far more profound effect on global retail in the years ahead [5] www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/fashion-forward-in-the-metaverse
persona” and sees the metaverse as an opportunity for than any new channel or clever widget.

GLOBAL ECOMMERCE REPORT | MARKET OVERVIEW: INTERNATIONAL INDICES © 2022 retailx.net, distributed by InternetRetailing.net
Market overview: E-GOVERNMENT

INTEGRATED INDEX
FOR POSTAL
OVERALL
INTERNET
HAPPINESS
INDEX
International indices
EASE OF DOING DEVELOPMENT DEVELOPMENT INCLUSIVE (0-UNHAPPY, CAGR
BUSINESS INDEX INDEX (21PD) AVAILABILITY AFFORDABILITY RELEVANCE READINESS INDEX 10-HAPPY) (2018-2022 %)
AFRICA MIDD
The level of development of different economies is shown ALGERIA 157 120 81 68 86 70 65 71 5.12 20.7 IRAN
in several international indices, which we track as part of EGYPT 114 111 91 49 67 66 47 57 4.29 39.5 ISRA
GHANA 118 101 53 75 57 74 65 73 4.87 31.9 QATA
RetailX research. The indices we currently track are:
KENYA 56 116 75 67 72 18 49 58 4.54 52.3 SAUD
• Ease of Doing Business: “The Doing Business project MOROCCO 53 106 77 48 69 5 77 51 5.06 20.8 TURK
provides objective measures of business regulations and NIGERIA 131 141 68 81 41 57 30 64 4.55 33.1 THE
their enforcement across 190 economies and selected SOUTH AFRICA 84 78 73 44 43 59 21 49 5.19 15.6 NOR
cities at the subnational and regional level.”[1] In September TANZANIA 141 152 99 93 68 82 58 87 3.70 29.6 CANA
2021, the World Bank discontinued updating this research ASIA USA
AUSTRALIA 14 5 17 15 8 35 33 13 7.16 22.1 MEX
following “data irregularities” being “reported internally”.
CHINA 31 45 25 24 30 13 41 22 5.59 7.6 SOU
A new Business Enabling Environment (BEE) index will INDIA 63 100 50 63 13 29 35 50 3.78 28.7 ARGE
follow at some point, but for now we continue to publish INDONESIA 73 88 67 45 74 23 13 46 5.24 43.8 BRAZ
the final Ease of Doing Business Index results. JAPAN 29 14 4 17 18 43 30 20 6.04 19.8 CHIL
SOUTH KOREA 5 2 27 2 37 11 9 2 5.94 14.2 COLO
• E-Government Development Index: “Along with PERU
VIETNAM 70 86 47 43 61 14 51 46 5.49 31.0
an assessment of the website development patterns
EUROPE KEY
in a country, the E-Government Development index FRANCE 32 19 5 9 10 7 29 4 6.69 17.3
incorporates the access characteristics, such as the GERMANY 22 25 2 11 19 44 19 14 7.03 18.4
infrastructure and educational levels, to reflect how a ITALY 58 37 11 32 6 24 28 20 6.47 27.4
country is using information technologies to promote NORWAY 9 13 51 N/A N/A N/A N/A N/A 7.37 14.2
access and inclusion of its people.”[2] RUSSIA 28 36 20 34 4 25 52 30 5.46 20.0
THE UNITED KINGDOM 8 7 8 16 1 28 8 5 6.94 11.6
• 2IPD: “The Integrated Index for Postal Development KEY: Top quartile Second quartile Third quartile Fourth quartile RetailX 2022
(2IPD) provides the most comprehensive view on
current global postal development. Relying on a unique
combination of postal big data and statistics made

GLOBAL ECOMMERCE REPORT | MARKET OVERVIEW: INTERNATIONAL INDICES © 2022 retailx.net, distributed by InternetRetailing.net
available by 172 countries, it paints a picture of an

OVERALL HAPPINESS INTEGRATED INDEX OVERALL HAPPINESS
asymmetric state of postal development.”
INTERNET
[3]
INDEX E-GOVERNMENT FOR POSTAL INTERNET INDEX
INCLUSIVE (0-UNHAPPY, CAGR EASE OF DOING DEVELOPMENT DEVELOPMENT INCLUSIVE (0-UNHAPPY, CAGR
BILITY • InclusiveRELEVANCE
AFFORDABILITY Internet Index:
READINESS “Commissioned
INDEX by Meta
10-HAPPY) and %)
(2018-2022 BUSINESS INDEX INDEX (21PD) AVAILABILITY AFFORDABILITY RELEVANCE READINESS INDEX 10-HAPPY) (2018-2022 %)
developed by Economist Impact, [the Inclusive Internet MIDDLE EAST
68 Index]86seeks to measure
70 the65extent to which
71 the5.12
Internet 20.7
is IRAN 127 89 54 47 66 21 7 45 4.89 40.5
49 not only
67 accessible66 and affordable,
47 but 57
also relevant
4.29 to all,
39.5 ISRAEL 35 30 32 N/A N/A N/A N/A N/A 7.36 28.2
75 57 usage that
allowing 74 enables65 73 and4.87
positive social economic31.9 QATAR 77 66 59 21 47 29 14 27 6.37 16.2
67 72
outcomes at the 18 49
individual and 58
group level.”[4] 4.54 52.3 SAUDI ARABIA 62 43 55 31 77 8 40 39 6.52 19.9
48 69 5 77 51 5.06 20.8 TURKEY 33 53 41 46 46 26 16 43 4.74 22.5
81 • World
41 Happiness
57 Report:30 “[This] uses64global 4.55
survey data
33.1 THE UAE 16 21 65 N/A N/A N/A N/A N/A 6.58 29.7
44 to report
43 how people
59 evaluate
21 their own 49lives in5.19
more than
15.6 NORTH AMERICA
93 150 countries
68 worldwide.
82 The58 World Happiness
87 Report 29.6
3.70 CANADA 23 28 9 13 15 41 16 12 7.03 19.1
2022 reveals a bright light in dark times. The pandemic USA 6 9 7 13 10 3 11 3 6.98 18.4
15 8
brought not only35pain and suffering
33
but13also an7.16
increase 22.1
in MEXICO 60 61 76 52 21 9 3 36 6.13 36.1
24 30 13 41 22 5.59 7.6 SOUTH AMERICA
social support and benevolence.” [5]
ARGENTINA 126 32 85 40 33 18 24 37 5.97 31.6
63 13 29 35 50 3.78 28.7
45 • Compound
74 Annual
23 Growth13 Rate (CAGR):
46 We5.24
have 43.8 BRAZIL 124 54 48 38 16 1 44 23 6.29 23.2
17 tracked
18 the CAGR43between 2018
30 and 202220 to see which
6.04 19.8 CHILE 59 34 72 27 13 36 4 16 6.17 27.4
2 37 11 9 2 5.94 14.2 COLOMBIA 67 67 52 52 32 31 45 48 5.78 30.0
economies have grown most consistently over time. PERU 76 71 88 52 36 16 6 42 5.56 29.0
43 61 14 51 46 5.49 31.0
As you would expect, the performance of different KEY: Top quartile Second quartile Third quartile Fourth quartile RetailX 2022
9 nations
10 across these7 indices
29 reflects strong
4 regional
6.69 17.3
11 variations.
19 Advanced
44 economies
19 in Asia,
14 Europe7.03and 18.4
32 North America
6 generally
24 perform
28 more 20
strongly6.47
in the 27.4 This year, for the first time, we have published both CAGR But the reports authors also note: “Many countries ought
N/A indices we
N/A track. In N/A N/A
contrast, developing African7.37
nations 14.2 data and information from the World Happiness Report. to revisit their postal business model and quickly adapt it
34 4
perform relatively25more poorly.
52 30
In the Middle 5.46
East and 20.0 We have ceased to track the Logistics Performance Index to the needs of the next generation of postal customers.” [6]
16 1 28 8 5 6.94 11.6
South America, the picture is more mixed. However, there because it has not been updated since 2018. Key findings in [1] www.doingbusiness.org/en/doingbusiness
RetailX 2022
are nuances here. In terms of CAGR, many African nations the latest 2IPD report include the observation that, overall, [3] https://publicadministration.un.org/egovkb/en-us/About/Overview/-E-Government-Development-Index
[3] www.upu.int/en/Universal-Postal-Union/Activities/Research-Publications/Integrated-Index-for-Postal-
outperform other countries, albeit from a lower base, as “Quality of service has substantially improved since postal Development
[4] https://theinclusiveinternet.eiu.com
their economies develop. services were hit by the waves of the Covid-19 pandemic.” [5] https://worldhappiness.report/ed/2022/
[6] www.upu.int/UPU/media/upu/publications/2IPD2022.pdf

GLOBAL ECOMMERCE REPORT 2022 | GLOBAL GRAPHICS © 2022 retailx.net, distributed by InternetRetailing.net
Global graphics: Population structure by age group

Silent Gen 2018 2019 2020 2021 2022
how different
Baby Boomers 7.3bn 7.3bn 7.4bn 7.5bn 7.6bn
Gen X 0.4bn 0.4bn 0.3bn 0.3bn 0.3b
0.3bn
1.3bn 1.3bn 1.2bn 1.2bn 1.2bn
Millennials
Gen Z 1.4bn 1.4bn 1.4bn 1.4bn
5bn 1.4bn
regions compare
Gen Alpha 1.7bn 1.7bn
1.7bn 1.7bn 1.7bn
1.8bn 1.8bn 1.8bn 1.8bn

1.8bn
0 8bn
0.8bn
8b 0 9b
0.9bn
b 1.0bn
b 1.1bn 1.3bn
0bn
How will the different regions of the Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
Source: RetailX, drawing on data from UN RetailX 2022
world cope with the economic and

Population growth
political challenges that lie ahead? 2.1% 2.1% 2.1% 2.1%
Global 2.0%
1.8% 1.7%
Africa 1.6% 1.6%
On 15 November 2022, the global population reached
1.5%
Asia
Europe
8bn for the first time ever.[1] This figure is projected to Middle East
1
1.1%
1%
1.0% 1 0%
1.0%
1.0% 1 0%
1.0%
0.9% 1.0%
0 9%
0.9%
1.0%
0
0.9
0.9%
0.8
0.8%
peak at 10.4bn in the 2080s before declining in the years North America
0.4%
South America
after 2100. First and foremost, we should recognise the 0.1% 0.2%
0.1%
0 1%
0.3%
0.1% 0.0% 0.0%
good news contained in these figures. As António Guterres, 2018 2019 2020 2021 2022
secretary general of the United Nations, announced on
World Population Day, “This is an occasion to celebrate our
diversity, recognize our common humanity, and marvel at GDP per capita (USD)
advancements in health that have extended lifespans and 40k
Global
dramatically reduced maternal and child mortality rates.” Africa
Asia 30k
Europe
However, these figures also reveal huge challenges. How Middle East 20k
will we feed so many people? Can emerging nations North America
South America 10k
enjoy the same living standards as those enjoyed in
Japan, the USA and the wealthiest parts of Europe? In 0k
2018 2019 2020 2021 2022
the years ahead, there will be a tension between growth
Source: RetailX, drawing on data from IMF RetailX 2022

and sustainability. How will the world’s nations manage Percentage of internet users
this? Evidence that such questions will prove difficult came Global 2018 2019 2020 2021 2022
at COP27 with the wrangling over the establishment of Africa
100%
58% 61% 64% 0% 0%
Asia
a Loss and Damage Fund to aid countries hit by climate Europe
disasters,[2] such as the flooding that afflicted Pakistan Middle East
North America 50%
recently following torrential monsoon rains.[3] South America
World Bank data not yet
available for 2021 and 2022
The need for such assistance in the developing world 0%

becomes clearer when you look at the relative population Source: RetailX, drawing on data from the World Bank RetailX 2022
growth and GDP per capita in different regions. In the

African countries we track, the population is growing by 2% Percentage of internet users who shop online
a year and the GDP per capita is $2.4k. In contrast, in the Global
2018
31%
2019
35%
2020
38%
2021
42%
2022
44%
European countries we track, the population is neither Africa 100%
Asia
growing nor falling, while GDP per capita is $34.2k. Europe
Middle East
North America 50%
GDP per capita per region South America
(thousand USD)
2022 0%
34.17 35.24
Source: RetailX, drawing on data from Statista RetailX 2022
This stark contrast between two continents reveals say that while richer nations may offer better returns in the
20.76 huge inequalities, but that’s not to say it will always be short term, emerging nations may offer better longer-term
thus. As the success of Asian nations such as Japan and prospects and ultimately a better return on investment.
11.67
8.52 South Korea reminds us, the economies of different
nations can be radically transformed over what are, As to how to determine which nations offer the best
2.42
in historical terms, short timescales. Witness what’s opportunities for such growth, it is perhaps tangentially
Africa Asia Europe Middle North South happened in China and India in recent years. Turning revealing to contrast the Qatar World Cup, which from the
East America America
specifically to global retail, one factor that businesses are off gave the impression of being an event parachuted in for
RetailX, drawing on data from IMF RetailX 2022 likely to need to take into account is potential, which is to the sake of international prestige, with the Indian Premier

Annual population growth per region Ecommerce revenue Index per region League (IPL). The IPL has been built on a scalable mix
2022 2022
of heavy investment, possible because India is now rich
2.0%
300 enough to pay the world’s best players, and organic growth
255 253 251
271
that relies on Indians’ huge enthusiasm for cricket. The IPL
1.5% looks a better long-term bet than football in Qatar.
197
0.9%
Then again, global figures appear to suggest potential
0.9%
0.8% may be evenly spread. It’s striking that the percentage
of internet users who shop online stands at around
50% on every continent except Africa. Offer people the
0.0%
Africa Asia Europe Middle North South
opportunity to shop digitally and they take it. Moreover,
Africa Asia Europe Middle North South
East America America East America America the ecommerce revenue index per region is highest in
Index 2018=100 Africa, suggesting the percentage of online shoppers on the
RetailX, drawing on data from UN RetailX 2022 Source: RetailX, drawing on data from Statista RetailX 2022
continent will catch up with the rest of the world.
Total population per region (millions) Percentage of internet users who Finally, it is fascinating to look at the relative populations
2022 of the regions we track (a figure lower than 9bn because
shop online
4234 2022 we don’t track every nation). Asia has by far and away the
59%
56% 56% largest population, thanks in great part to the numbers
47% who live in China and India. In these two countries, so
43%
many global tensions are dramatised: between growth
and the environment, authoritarianism and democracy,
27%
globalisation and protectionism, tradition and modernity.
1271
All of which at the very least makes these countries a
758
352
520 437 worthwhile study for anyone looking at how global retail –
and indeed the wider global economy – may develop.
Africa Asia Europe Middle North South Africa Asia Europe Middle North South
East America America East America America [1] www.un.org/en/desa/world-population-reach-8-billion-15-november-2022
[2] https://unfccc.int/news/cop27-reaches-breakthrough-agreement-on-new-loss-and-damage-fund-for-vulnerable-
countries
RetailX, drawing on data from UN RetailX 2022 RetailX, drawing on data from Statista RetailX 2022 [3] www.unicef.org/emergencies/devastating-floods-pakistan-2022

GLOBAL ECOMMERCE REPORT 2022 | HAPPINESS INDEX © 2022 retailx.net, distributed by InternetRetailing.net
Happiness Index Happiness Index

Africa, 2017-21
Tanzania
Egypt 5.87
The more content a population, the more Kenya 6 5.52 5.57
5 37
7
5.24
5 24 5
5 39
30
0
25 5 42
5.26
5 26
Nigeria 5.07
5
5.0
07
07 5.16
5 16
16 5
5.09
09
9 5 1
19
12
5.06
5 06
5.00
5 00
0 4.96
4 92
9 86
likely they are to spend on products Ghana 5 4 74
83
4.74
4 4 72 4.72 4.76
4 76
6 4.87
4 87
4.55
55 4.66 4
4.51
51
5 4.61
4 61
4.53
3 4.54
4 54
5
Morocco 4 25 4
4.42
4.
4 .42
42
4.41
4.31 4.40
4 40
0 4 28
4.28 4 29
9
4.29
4.12
4 12 4 17
4.17
they’d like rather than things they need Algeria
South Africa
4
3.35 3.30 3.23
3.62 3.70
Africa
Global 3
2017 2018 2019 2020 2021
We tend to assume that Gross Domestic Product (GDP)
has always been the measure by which countries measure Survey respondents evaluate the quality of their current lives on a scale of 0 (unhappy) to 10 (happy). Source: The World Happiness Report RetailX 2022
success. The truth is more nuanced. In 1937, Simon Happiness Index

Kuznets, the economist who developed the first Asia, 2017-21
comprehensive set of measures of national income, India 7.28 7.27 7.23 7.18 7.16
Indonesia 7
warned against the limitations of number crunching. Vietnam 5 92 5 92
5.88 5.89 5.94 6.04
5.94
5.84 5.85
He said, “The valuable capacity of the human mind to China
South Korea
6 5.53
5.5
57
53
5.2
5 26
26
5.26
07
3 5.49
5
5 49
9
25
5.10
5.09
5 09
0
9
5.47
5 47
7
5.19
5 19
8
9
5
5 55
2
41
5.35
35
35
5.34
4
5
5
59
5
5.49
5 49
4
24
2
5.24
simplify a complex situation in a compact characterisation Japan
Australia
5
4.32 4.19 4.02
becomes dangerous when not controlled in terms of Asia 4 3.82 3.78
Global
definitely stated criteria. With quantitative measurements 3
2017 2018 2019 2020 2021
especially, the definiteness of the result suggests, often
Survey respondents evaluate the quality of their current lives on a scale of 0 (unhappy) to 10 (happy). Source: The World Happiness Report RetailX 2022
misleadingly, a precision and simplicity in the outlines of
the object measured.” Happiness Index
Europe, 2017-21
In other words, numbers always need to be interpreted. Russia 7.54 7.59 7.55
7.39 7.37
7 16
The GDP per capitas of Norway, the UAE and the USA Italy
France 7
6.95
6.71
71
6.97
6.81
7.05
6.99 7.06
7 06
6.69
7
6 03
0
94
6.94
6.69
6 6
are broadly similar, yet how much that really tells United 6.44 6.49 6.59 6
6.48 6.4
6.47
6 33
6.33 6.3
6.38
Kingdom 6 00
08 6.22
6.17
us about the real economies of three such different Germany 6
6 03
5.96
5 96 6.00
6
5 81
8
5.81
5.65
Norway 5 52 5 57
countries is a moot point. 5.37 5.39 5.42
5 42 5.48 5 46
5.46
Europe
Global 5
2017 2018 2019 2020 2021
Survey respondents evaluate the quality of their current lives on a scale of 0 (unhappy) to 10 (happy). Source: The World Happiness Report RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | HAPPINESS INDEX © 2022 retailx.net, distributed by InternetRetailing.net
The World Happiness Report takes a different approach by Happiness Index

using “global survey data to report how people evaluate Middle East, 2017-21
7.36
their own lives in more than 150 countries worldwide”[1]. Qatar
Turkey
7.21 7.19
6 77
6.77
7.14
6.82
7.16
7 6.65
To do this, representative samples of respondents are Iran 6.38
6 38
6.34
4 6 37
6.37 6 37
6.37 6.56
6.49 6.58
6.52
Saudi Arabia
asked to think of a ladder, with the best possible life United Arab 6
5
5.50
50
0
5.43
5.37
37 5.48
5 48
8
5.41
5.39 5 42
40
0
5.37 5.52
5.43
5 43 5
5.44
5 57
44
Emirates
for them scoring a ten and the worst a zero. Its first Israel 5 4.69 4.71 4.55
4.95
4.72 4 89
4.74
4 74
publication, in 2012, followed the United Nations general Middle East
Global 4
Assembly adopting resolution 65/309 Happiness: Towards 2017 2018 2019 2020 2021
a Holistic Definition of Development[2], which invited Survey respondents evaluate the quality of their current lives on a scale of 0 (unhappy) to 10 (happy). Source: The World Happiness Report RetailX 2022
member countries to measure their citizens’ happiness

with a view to using the data to guide public policy. Happiness Index
North America, 2017-21
Mexico
This may sound abstract from a business perspective, yet USA 7.32 7.33 7.28
7.10 7 03
6.99 6.95
6 95 6.98
it’s worth remembering John Maynard Keynes’ work on Canada
North America
7
6.58
6.89
6.49
6.89
6.59 6.71
6 7
the role of “animal spirits” in the economy. Someone who Global 6.12 6.07 6.09
6.32
6.00
6 00 6.13
is confident about the future is more likely to spend 6
5.39 5.42 5.52 5.57
5.37
than someone facing redundancy. The potential of such
5
an approach can be seen that, even in 2021, Russians were 2017 2018 2019 2020 2021
growing progressively gloomier. Yet Norwegians, living in a Survey respondents evaluate the quality of their current lives on a scale of 0 (unhappy) to 10 (happy). Source: The World Happiness Report RetailX 2022
wealthy country with high levels of social security, are the

happiest of the European countries we track. Happiness Index
South America, 2017-21
Peru 6 65
The world’s happiest citizens live in North America and Colombia 6.5
6.60
6 60
6.36
6.48
6 48
6.39
6 39
9 6.44
6.30 6.33 6.29
Europe, suggesting a link between economic well-being Argentina
Chile 6.10
6.26
6 26
5.98
6.12
6 12
6.09
9 6.17
6 93
6.0
6.01
01
6.1
6.17
5.97
5.92
5 92 5
and happiness. Of the nations we track, only Norway, Brazil
South America
6
5.72 5.66 5.70
7
5.84
5 84 5 79
7
5.78
5 57
5.56
5
Australia, Germany, Israel and Canada scored more than Global 5.5 5.37 5.39 5.42 5.52
seven out of ten. In two countries – Tanzania and India –

5
the score was less than four out of ten. 2017 2018 2019 2020 2021
[1] https://worldhappiness.report Survey respondents evaluate the quality of their current lives on a scale of 0 (unhappy) to 10 (happy). Source: The World Happiness Report RetailX 2022

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GLOBAL ECOMMERCE REPORT 2022 | PARTNER PERSPECTIVE © 2022 retailx.net, distributed by InternetRetailing.net
Since the payments landscape and customer preferences What are the opportunities that these businesses
Expert insight
are constantly changing, merchants must always be ready should be making the most of and how can both
leading and growing retailers best tackle these?
Payments and
for the unexpected.
Business should look at the growth in demand for new
What challenges do you see for ecommerce and payment methods and be ready ahead of the competition
fraud solutions multichannel retailers and brands in the year ahead

and how they approach them?
to offer the preferred payment experience to shoppers. Real-
time payments, or Account-to-Account payments, or Open
We are living through a time of truly incredible change, Banking in Europe is expected to grow 25.6% in 2023. Card
Basant Singh, global head of the merchant which brings both challenges and opportunities. When transactions have been the default payment method for a
business unit at ACI, on why payment the Covid-19 pandemic sent consumers away from long time, yet this is set to change. If they are to compete,
the high street to shop online, some merchants, both merchants need to have all the payment options available.
orchestration solutions can give retailers
multichannel and pure play online retailers, struggled
the edge across all sales channels to keep up. Now, we are in an inflation economy around Managing the cost of reconciliation is another opportunity
the world and people are reining in their spending. At area for merchants. It is a challenge to manage settlement
What do customers expect of the retailers and brands in the same time, shoppers are shifting habits back to the across all the different payment methods. Merchants need
terms of payment and how are they adapting to meet online-instore mix we saw pre pandemic. This causes real to find a payment partner that covers all the options in the
these expectations? challenges for merchants, who need to adapt quickly to reconciliation process
Global and region-specific alternative payment methods shopper preferences while managing costs so as not to find
are growing in popularity at considerable pace. Account-to- themselves overstretched to a degree that caused so many
Account, real-time banking is more and more popular with retailers to recently stop trading. A payments strategy is
shoppers and is expected to grow 25.6% in 2023. BNPL central to navigating these times.
saw a meteoric rise to fame and mobile payments saw a
ACI Worldwide is a global software company that
49% transaction growth in 2021. By 2025, this is expected Facilitating this requires a true payments orchestration
provides mission-critical real-time payment solutions
to increase to 53%. Merchants need to be prepared to offer platform that has connectivity to emerging partnerships
to corporations. Customers use its proven, scalable
the payment methods shoppers want, in all channels. Yet and technology. It needs to deliver customer-centric
and secure solutions to process and manage
integrating these payment methods is a costly process and journeys and optimise payment acceptance across all digital payments, enable omnichannel ecommerce
in order to manage costs, business need to look at a single channels while, at the same time, also enabling payment payments, present and process bill payments, and
API payment orchestration platform that has access to experiences and connecting to payment partners that manage fraud and risk.
regional and global wallets. increase conversion. www.aciworldwide.com

and brains, it’s crucial that your organisation makes the Not only does this accelerate time-to-market and optimise
Expert insight
process of choosing your brand as easy as possible by product information for existing channels, it also makes it
tapping into the omnichannel nature of retail and showing easier to incorporate new channels.
up on the channels that shoppers are already using.
When a customer knows that they’re going to get the same
Product information But while taking full advantage of this truly global market
can reap massive rewards, it involves time-consuming
experience regardless of where they encounter a brand or
its products, that can serve as a foundation for loyalty. In
for a global audience work in setting up hundreds of new localisation processes

for every product, marketplace and channel.
such a tumultuous time, customers are looking for brands
they can trust and rely on. By focusing on the root of the
issue – proper management of your product information –
It’s not enough simply to have a presence across multiple your organisation will be able to embrace the omnichannel
James Barlow, UK director at Akeneo, on
channels. You also need to ensure that all your product nature of shoppers and meet them where they are, all
the value of simplifying omnichannel information is correct and up-to-date, regardless of where while ensuring you’re providing the best, most seamless
ecommerce by starting with robust and a potential customer has discovered you. They need to feel experience possible.
accurate product information they can trust an organisation. This trust can’t be built up if
they are struggling to read or even find product descriptions,
It’s no secret that pandemic lockdowns, along with understand product data or view product assets.
technological advancements, have driven a boom in
So how can you optimise your global omnichannel
ecommerce sales. Almost a quarter of all retail sales this Akeneo Product Cloud is a composable solution for
success without breaking the bank or burning out your
past year happened online and that percentage is growing orchestrating, activating, and optimising product
employees? As any good architect will tell you, it starts with
as new technologies offer never-before-seen shopping experiences across all owned and unowned
a solid foundation: your product information. Without a
experiences alongside new touchpoints. In short, shoppers channels. With its open platform, leading PIM,
dedicated solution for managing product information, your
around the world are heading online in droves. add-ons, connectors and marketplace, the Akeneo
omnichannel product activation efforts will be doomed from
Product Cloud improves product data quality and
Whether your customers are searching for you on a digital the start. Your organisation can’t afford to have siloed product
accuracy, simplifies catalogue management and
retail platform, social media app or search engine, or data. Having a central repository for product information that
accelerates the sharing of product information across
they’re utilising newer technologies such as voice search communicates seamlessly with all the other tools in your
all channels and locales.
or AI, all shoppers want to know they’ll be able to find your tech stack allows brands and retailers to create personalised
akeneo.com
brand. With thousands of options infiltrating their screens customer experiences across owned and unowned channels.

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How do you think ecommerce and multichannel How can leading and growing brands take advantage
Expert insight
retailers will approach the challenges ahead? of ecommerce and omnichannel opportunities?
Omnichannel continues to evolve at a staggering pace –
Keeping up
Becoming an omnichannel retailer and keeping pace with
the latest ideas and technology is both a challenge and a just look at the increasing numbers of players selling on,
major opportunity. Each player needs to think about how or even transforming into, marketplaces. If they are to
with expectations to strike the right balance between D2C, marketplaces and
traditional retail – it won’t be the same for every brand.
make the right decisions, digital and ecommerce directors
need to be very aware of how the landscape is evolving
and what it means for their businesses.
Renaud Marlière, Asendia’s chief business Then comes the challenge of selecting the right third-
development director, discusses the party ecommerce and logistics enabler. Are you a purely Social commerce is already established on platforms
domestic business or do have a need or ambition to sell like Facebook and Instagram but ByteDance’s platforms,
need to move with an ever-changing TikTok and Douyin, are also making strong headway.
cross-border? Do you need support with developing or
digital ecosystem improving webstores, localised checkouts, merchant of
records services or logistics and delivery? Thinking a little further ahead, the metaverse is also going
How are brands and retailers adapting to meet the to have massive implications, although it is still to early
expectations of consumers? What’s needed is a clear idea of what your brand is and to understand exactly what these implications will be, or
Whether today’s consumers are engaging with your brand where it is going. An ecommerce and logistics enabler like even exactly what the metaverse is going to look like.
via a webstore, a marketplace or a bricks-and-mortar shop, ESW can help you establish the digital infrastructure that
they expect the whole process to feel connected, coherent you need for successful online retail.
and simple. They may want to order a product online,
sample it instore, then have it delivered to their home. If you are planning to handle all this in-house, you must
assess which digital solutions will work together. CMS,
My practical advice for retailers is to dedicate resources PIM, OMS, marketplace aggregators, WMS, TMS, RMS…
Asendia is one of the world’s leaders in international
into integrating inventories and ordering systems across there is certainly a lot to consider. Given the complexity of
commerce and mail. Combining the expertise of
your business. A shop assistant should be able to check this digital ecosystem, agile SaaS solutions, such as those
its founding companies, La Poste and Swiss Post,
stock availability throughout your retail network and place provided by Anchanto, can help to optimise the digital
Asendia brings together a wealth of international
an order at the store of the customer’s choosing. In this side of your operation. This can be a great way to get your
and local know-how.
way, you can never under or over-sell. legacy and future omnichannel operations in order.
www.asendia.com

For brands, the combination of supply chain build-up and commerce. The evolution of media – for example, around
Expert insight
waning demand increases the probability that retailers the increased importance of influencers – creates both
challenges and opportunities for advertisers.
Growing your
will use promotions to offload inventory. In this market,
performance channels, such as affiliate marketing, will
benefit advertisers looking for resilience in their ROI. There is a pent-up demand for performance-based,
market share People are becoming more aware of the value of their
walled-garden alternatives. Retailers and publishers
are investing in selling their own audiences and more
during trying times data. How will this impact the ecommerce sector in the businesses are offering turn-key retail media programs
years ahead? via Retail Media as a Service. Additionally, consumer
With recent changes brought about by a combination of segmentation and targeting capabilities using affiliate
Apple, Google, government privacy regulations and overall publisher data – such as our Audience Engine – enhance
Kim Marks, SVP global strategy,
consumer sentiment shifts, brands are testing new digital the use of first-party data in marketing campaigns and
Rakuten Advertising, looks ahead advertising approaches. Advertisers will increasingly be provide new monetisation opportunities for publishers.
at the market trends that she believes forced to rely on alternative forms of measurement and
will shape ecommerce in 2023 targeting, such as those driven by correlation and context. The greatest paradigm shift we’re working through is how
we can better serve end-consumers and our clients in a
Affiliate is uniquely positioned to support post-cookie volatile economic environment. We will continue to search
The ecommerce sector has been buffeted by Covid-19,
strategies given its performance and partnership focus. for new growth opportunities through that lens .
supply chain problems, inflation and geopolitical issues.
What’s your take on the outlook for the year ahead? Most of Rakuten’s top publishers utilise user logins, and
The complex and unpredictable landscape of the last few we have developed a new technology named Audience
years has caused widespread uncertainty – especially with Engine that lets brands harness the untapped power of our
the geopolitical backdrop of 2022. publishers’ vast first-party data. We’ve seen great results
here with our closed beta partners. We are excited about
At Rakuten Advertising, we anticipate inflation will begin the announcements we have planned for early 2023. Rakuten Advertising helps global retailers to outthink
to settle in the first half of 2023, although it’s unlikely it the challenges presented by changing economic
will drop back to the levels of early 2022. We also do not Where are the biggest opportunities for future growth? climates and create strategic advertising campaigns
anticipate central banks to begin decreasing interest rates The acceleration of existing trends in the advertising that outperform expectations, please visit:
within the first half of the year, and in the US we expect the industry complicates investment decisions for many www.rakutenadvertising.com
dollar and the labour market to remain relatively strong. companies. Lines are blurring between content and

GLOBAL ECOMMERCE REPORT | INTRODUCTION TO REGIONS © 2022 retailx.net, distributed by InternetRetailing.net
Introduction NORTH AMERICA

Canada,
EUROPE
France, Germany
to the regions Mexico,

USA
Italy, Norway, Russia, UK
Over the following pages, we look

in detail at some of the world’s key
ecommerce markets – at both a
regional and country-specific level
The regions and countries highlighted for this report

represent ecommerce markets at different stages of
maturity and adoption. We have grouped countries as ASIA
far as possible into trading blocs. Broadly, these are Australia, China,
nations that are likely to trade with each other because India, Indonesia,
of geographical proximity, which makes the logistics of Japan, South Korea,
Vietnam
ecommerce far more straightforward.
MIDDLE
However, it’s important to recognise that retailers in many EAST
countries, especially nations with developed ecommerce
Iran, Israel, Qatar,
sectors, sell around the world. Retailers such as Amazon SOUTH AMERICA AFRICA Saudi Arabia,
international markets far away from the country where Turkey, UAE
Argentina, Algeria, Egypt, Ghana, Kenya
they are headquartered. Brazil, Chile, Morocco, Nigeria,
We should also emphasise that we have deliberately Colombia, Peru South Africa, Tanzania
selected a cross-section of countries. We have looked both
at nations that have developing ecommerce sectors as well
as those where online shopping is more established.

GLOBAL ECOMMERCE REPORT 2022 | AFRICA © 2022 retailx.net, distributed by InternetRetailing.net
Africa Population structure by age group

Silent Gen
Baby Boomers
2018 2019 2020 2021 2022
1155.2m 1183.7m 1212.5m 1241.7m 1271.1m
17
17.7m
7m 155 99m
15.9m 113
13.9m
3.9m
9
9m
Gen X
With its young, growing and increasingly 21 3m
21.3m 19
19.6m
6m 155.7m
155.7m
92.0m
9
92.0
15
157.2m
Millennials 94.5
94.5m
158.6m
158 6
96.9
96.9m
159.8m
159 8
98.7
98.7m
160.7m
60
1000m 100.4m
100.4
Gen Z
urban population, Africa is set for digital Gen Alpha 267.7m 266.6m 265.5m 264.4m 263.0m
growth in the years ahead 500m

399.9m 399.1m 398.0m 396.8m 395.6m
205.2m 239.8m 275.8m 312.8m 350.9m

0m
As we noted last year, Africa has the potential to become Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
a world leader in ecommerce. This is because of a Source: RetailX, drawing on data from UN RetailX 2022
combination of factors, notably: Population growth

• A young and growing population Africa
2.1% 2.1% 2.0%
2.1%
• The rapid rollout of digital services
2.1%
Global
• Strong prospects for growth in the years ahead
The population in Africa is growing by 2% a year. Gen Z 1.1% 1.0% 1.0% 1.0% 1.0%
and Gen Alpha both have a huge influence on African
societies and economies. The percentage of those online 2018 2019 2020 2021 2022
is growing, albeit from a lower base than elsewhere in Source: RetailX, drawing on data from UN RetailX 2022
the world. We should note here that we have revised
the data we use, meaning the figures for percentage of GDP per capita (USD)
internet users/percentage of internet users who shop Africa 20k
online (see overleaf) show as lower than in previous years. Global
Nevertheless, the trend is clear. More and more African
consumers go online every year, often via mobile, and 10k
this will continue to be the case in the years ahead.

0k
African expertise in digital technology is growing too. 2018 2019 2020 2021 2022
As we note in our feature on new tech hubs later in this Source: RetailX, drawing on data from IMF RetailX 2022

report, Lagos in Nigeria is becoming a regional centre Percentage of internet users

for ecommerce. Cities such as Nairobi, Casablanca and Africa 2018 2019 2020 2021 2022
Dakar are also leading the way here. It will be intriguing Global
100%
30% 33% 37%
to see which African companies come to be ecommerce

leaders – and we expect many of the continent’s leading
50% World Bank data not yet
ecommerce companies in the future to grow from available for 2021 and 2022
startups, in part because Africa’s relatively low GDP per
0%
capita makes this, for now at least, a less attractive market
for companies headquartered in the developed world. Source: RetailX, drawing on data from the World Bank RetailX 2022
More positively, African companies understand local

conditions and so can make the most of opportunities. Percentage of internet users who shop online
Africa 2018 2019 2020 2021 2022
However optimistic the overall picture may be, Africa Global 14% 18% 21% 24% 27%
100%
remains relatively underdeveloped and there are factors
that will impact on the growth of the digital sector and
ecommerce in the years ahead. The Covid-19 pandemic 50%
was hit relatively poor countries without ready access to

vaccines harder than those in the developed world. While 0%
citizens in Africa’s cities typically have access to digital Source: RetailX, drawing on data from Statista RetailX 2022
services, that’s not always true in rural areas. Many

African nations are already dealing with climate change. Ecommerce revenue Index
Africa 350
300
Inequality, often historically linked to the colonial Global 300 266
era, is a huge issue. The World Bank has, for example, 250
195
highlighted South Africa, with its “legacy of exclusion” from 200
159
175
the apartheid years, as a country where “intergenerational 150

100
128
109
135
mobility is low”.[1] 100

50 2018 2019 2020 2021 2022
[1] www.worldbank.org/en/country/southafrica/overview Index 2018=100. Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | ALGERIA © 2022 retailx.net, distributed by InternetRetailing.net
Algeria Population structure by age group

Silent Gen
Baby Boomers
2018
42.2m
2019
43.1m
2020
43.9m
2021
44.6m
2022
45.3m
Gen X
With its growing cities and towns, this Millennials
5.6m
5.6m
15
1.5m 5.6m
5.6m
15
1.5m 5.5m
5.5m
14
1.4m 5.5m
5.5m
1
1.3m
3 5.4m
5.4m
1.2m
1 2m
2
Gen Z 8.1m 8.1m 8.0m
oil-rich North African nation has huge
8.2m 8.1m
Gen Alpha 25m 10.7m
10.7m 10.6m 10.6m 10.7m
potential as a centre for ecommerce 10.4m 10.4m 10.4m 10.3m 10.2m
58
5.8m 6.8m 7.8m 8.8m 9.8m
0m
The North African country of Algeria is the largest nation Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
on the continent. Around 90% of its population lives on Source: RetailX, drawing on data from UN RetailX 2022
the heavily urbanised Mediterranean coast. The Sahara Population growth

Desert, which covers much of the country, is only sparsely 2.0% 2.0% 2.1% 2.1% 2.0%
Algeria
populated. Its capital, Algiers, is also its largest city, with an Africa 1.9%
1.7%
estimated 4.5mn residents. Modern Algiers has enveloped Global
1.6%
the old citadel – a UNESCO World Heritage Site.
1.1% 1.0% 1.0% 1.0%
1.0%
Algiers was a French colony between 1830 and 1962.
Independence was achieved after an eight-year fight 2018 2019 2020 2021 2022
Algeria
Area: 2,381,741 km2 GDP per capita (USD)
Capital: Algiers Algeria 20k
Currency: Algerian dinar (DZD) Africa
Global
Official language: Arabic, Berber
languages spoken: Algerian Arabic (Darja), French 10k
Nationality: Algerian
Government: Constitutional semi-presidential republic
VAT: 19% | Reduced VAT: 9% 0k
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | ALGERIA © 2022 retailx.net, distributed by InternetRetailing.net
against the French that displaced 2mn Algerians and killed Percentage of internet users
hundreds of thousands. Despite such a fractious shared Algeria 2018 2019 2020 2021 2022
history, ties to France remain strong, with French still Africa
Global 100%
49% 57% 62%
used widely as an administrative language and up to

1.7mn Algerian migrants making their home there. 50%
Algeria produces 1.1mn barrels of oil per day and is
also a major exporter of gas to Europe. Unsurprisingly, 0%
around 60% of budget revenues, 30% of GDP and 88% of Source: RetailX, drawing on data from the World Bank RetailX 2022
export earnings are hydrocarbon-based, with much of

this business and revenue tightly controlled by the state – Percentage of internet users who shop online
a legacy of the system established post-independence. Algeria 2018 2019 2020 2021 2022
Africa 19% 22% 25% 28% 31%
Global 100%
Despite such natural resources – the country’s ranked
16th globally for oil reserves – the average Algerian is not
50%
particularly affluent. The IMF estimates Algerians to
have a per capita income of $4,294 – 138th globally,
immediately below Belize and immediately above 0%
Egypt. According to datareportal.com[1], the number of Source: RetailX, drawing on data from Statista RetailX 2022
internet users increased 16% between 2020 and 2021,

then a further 7.3% between 2021 and 2022. Currently, Ecommerce revenue Index
60.6% of the population have internet access. Algeria 350
Africa 300
300 266
Global
Ecommerce usage has increased steadily since 2017 250
212
195
and shows none of the spikes caused by the pandemic 200
151
185
159
5 175
150 135
3
seen elsewhere. By 2025, it is projected that 16.2mn
115
100 109
0
100
Algerians will shop online, up from 14mn in 2022, 50
an increase of 15.7%.[2] 2018 2019 2020 2021 2022
[1] https://datareportal.com/reports/digital-2021-algeria Index 2018=100.
[2] www.statista.com/forecasts/1331902/number-of-e-commerce-users-in-algeria Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | EGYPT © 2022 retailx.net, distributed by InternetRetailing.net
Egypt Population structure, by age group

Silent Gen
Baby Boomers 2018 2019 2020 2021 2022
Gen X 98.4m 100.4m 102.3m 104.3m 106.2m
The Egyptian ecommerce sector is Millennials 100m 2 8m
2.8m
8
11.8m
2 6m
2.6m
11.6m
2 3m
2.3m
11.4m 2 1m
2.1m
1
11.2m
16.3m
1 8m
1.8m
8
11.0m
16.1m
Gen Z
16.4m 16.4m 16.3m
growing and the country has ambitions Gen Alpha
50m 24.0m 23.9m 23.8m 23.8m 23.9m
to be a digital powerhouse 28.3m 28.4m 28.4m 28.3m 28.2m

15 2
15.2m 17.5m 20.1m 22.6m 25.2m
0m
As this report went to press, Egypt was preparing to host Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
COP27. Ahead of the event, the Egyptian government said Source: RetailX, drawing on data from UN
it wanted the conference to focus on implementation. Population growth

“There can be no room for delay in the fulfilment of 2.0% 2.1% 2.1%
Egypt 2.0%
climate pledges or backtracking on hard-earned gains Africa
2.1%
2 1% 2.1% 1.9% 1.9%
1.8%
in the global fight against climate change,” noted HE Global
Sameh Shoukry, Egyptian minister of foreign affairs and

COP27 president-designate.[1] Whether the conference 1.1% 1.0% 1.0% 1.0%
1.0%
is a success or not – and there is disquiet among African
nations over whether richer countries are doing enough to 2018 2019 2020 2021 2022
Egypt
Area: 1,010,408 km2 GDP per capita ($)
Capital: Cairo Egypt 20k
Currency: Egyptian pound (EGP) Africa
Official language: Arabic Global
Other languages spoken: Egyptian Arabic 10k
(most widely spoken), Sa’idi Arabic
Nationality: Egyptian
Government: Unitary semi-presidential republic
0k
VAT: 14% | Reduced VAT: 5% 2018 2019 2020 2021 2022

fight climate change[2] – the selection of Egypt as hosts is an Percentage of internet users
indication of the country’s geopolitical importance. Egypt
2018 2019 2020 2021 2022
46% 57% 71%
Africa 100%
Egypt boasts the second-largest economy in Africa, after Global
Nigeria. It is relatively wealthy compared to other African

50%
nations. Its GDP per capita stands at $3,772, compared World Bank data not yet
to an overall figure for the African nations RetailX tracks
of $2,207. Turning to ecommerce, 52% of Egyptian 0%
internet users also shop online. The equivalent Source: RetailX, drawing on data from the World Bank RetailX 2022
figure for the African countries that RetailX tracks

is 27%. According to Statista, the country’s annual Percentage of internet users who shop online
ecommerce spend will reach $7.7bn in 2022. In 2016, Egypt
2018 2019 2020 2021 2022
Egypt, supported by a $12bn IMF loan, embarked on Africa
26% 34% 40% 46% 52%
Global
a series of macroeconomic reforms. The Egypt Vision 100%
2030 programme announced that year envisages the
transformation of Egypt into a digital society.[3] 50%
Egypt is widely regarded as a stable country but this hasn’t 0%
always been the case in recent times. After the revolution Source: RetailX, drawing on data from Statista RetailX 2022
of 2011 brought down the presidency of Hosni Mubarak,

there was hope a new era of democracy might follow, yet Ecommerce revenue Index
Abdel Fattah el-Sisi, president since 2014, heads an Egypt
400
3 8
378
321
authoritarian regime.[4] To return to COP27, there are, Africa
300 266
300
Global
ironically enough, worries that environmentalists are 226
195
200 175
among those being silenced in Egypt.[5] 134
38
128 135
159
100 109
[1] https://reliefweb.int/report/world/egypts-cop27-presidency-sets-out-vision-un-climate-change-conference-and- 100
urges-world-act-now
[2] www.theguardian.com/global-development/2022/oct/06/african-countries-urge-rich-nations-to-honour-100bn-
climate-finance-pledge-cop27 [ 0
[3] https://mcit.gov.eg/en/Digital_Egypt
2018 2019 2020 2021 2022
[4] https://freedomhouse.org/country/egypt
[5] www.theguardian.com/environment/2022/oct/14/cop27-egypt-host-climate-talks Index 2018=100. Source: RetailX, drawing on data from Statista RetailX 2022

Average spending of the ecommerce eshopper ($) Preferred device for online shopping (%)
Egypt, 2017-22 150 Egypt, 2017-22
Total 135 Mobile Desktop
125 139
Beauty, Health, Personal 112
& Household Care 100 2017 2018 2019 2020 2021 2022
79 79 80 100%
Beverages 75
Electronics 57
56 63
61 62
56
Fashion 50 50
47 47 47
45 52
5
49
48
82 52
42
49
9
46
6
42
2
41
40
0 80% 38 40 41 41 42 43
Food 30
27 29
28
8 30
27
25 24
2 4 24 19 24 22
Furniture 10 10 11 11 10
Media 5 4 6
5 8 8 8
0 60%
Toys, Hobby & DIY 2017 2018 2019 2020 2021 2022
Source: Statista RetailX 2022 40%
Annual revenue for the ecommerce market ($bn)

62 60 59 59 58 57
20%
Egypt, 2017-22 9
8 7.7
Total 0%
Beauty, Health, Personal 7 6.6
& Household Care 6 Source: Statista RetailX 2022
Beverages 5 4.6
Electronics 4
Fashion 3 2.8
Food
Furniture
2 1.6
2.0
07
0.7 0.9
1.3
0.6
9
8
1.8
1 3
2
0..9
0.9
0.89
8
2.1
13
1.6
1
1..1
1.10 Age distribution of ecommerce eshoppers
1 0.2 5 6 0.6
0 6
Media 0.
0.2
0 ..0
0.0 2
0 0.2
0
0.2
0.0 4
..2
0 0.3
0
0.04
0..3
3
.0
0 2
0.1
0 1 0.1
0 2
1 0.1
0.13
2 Egypt, 2021
0
Toys, Hobby & DIY 2017 2018 2019 2020 2021 2022
Source: Statista RetailX 2022
34%
Annual change in revenue for the online ecommerce market (%) 25% 25%
Egypt, 2018-22
140%
Total 120% 122
116
1
Beauty, Health, Personal
& Household Care 100% 12%
80% 82
80
0
Beverages 74
64
69
9
68
8
Electronics 60% 61
1 56
56
55
Fashion 5
53 4
466 3%
43 41
44 42
42
Food 40% 3
32 8
6
5
34 30
6
34
4
22
2
29
28
269
8
6 30
0 24
24
20
0
Furniture 20% 19
1
18
18
17
7
6
12
2 18-24 25-34 35-44 45-54 55-64
Media
Toys, Hobby & DIY 0% years years years years years
2018 2019 2020 2021 2022
Source: Statista RetailX 2022 Source: Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | GHANA © 2022 retailx.net, distributed by InternetRetailing.net
Ghana Population structure by age group

Silent Gen
Baby Boomers 2018 2019 2020 2021 2022
29.8m 30.4m 31.1m 31.7m 32.4m
Gen X
0 5m
0.5m 02.7
0.4m
4m 02.7
0.4m
4m 0 3m
0.3m
3 0 33m
0.3m
There’s a strong sense of both increasing
2.5
2.5m
4.4m
2.6
2.6m
4.5m
2.7m
4.5m
Millennials 2.7m
4.5m
2.8m
Gen Z 4.6m
status and untapped potential for this Gen Alpha 20m 7.1m 7.1m 7.1m
7.2m 7.1m
9.8m
West African mini-powerhouse 9.9m 9.9m 9.9m
9.9m
4.9m 5.7m 6.5m 7.4m 8.2m
0m
Although Ghana’s economy was negatively affected by Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
the Covid-19 pandemic, which triggered the country’s first Source: RetailX, drawing on data from UN
recession in nearly four decades, it has quickly bounced Population growth

back. As in other countries, the population’s shopping 2.2% 2.2% 2.2%
Ghana 2.1%
1
1%
habits have now changed, to the benefit of ecommerce. Africa
2.1%
1 2.1%
1 2.1%
2.1%
1 2.1%
2.0
2.0%
0
Global
Agriculture is traditionally strong, while the services
and banking sectors are dynamic.[1] Famously, Ghana’s 1.1% 1.0% 1.0% 1.0%
1.0%
chief exports include gold, oil (specifically the sweet crude
variety) and cocoa (used in the manufacture of chocolate). 2018 2019 2020 2021 2022
Ghana
Area: 238,535 km2 GDP per capita (USD)
Capital: Accra Ghana 20k
Currency: Ghanaian cedi (GHS) Africa
Official language: English Global
Other languages spoken: Akan languages, Dangme, Ewe, 10k
Ga, Guan, Kasem, Mole-Dagbani languages
Nationality: Ghanaian
Government: Presidential representative democratic republic
0k
VAT: 12.5% | Reduced VAT: 5% 2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | GHANA © 2022 retailx.net, distributed by InternetRetailing.net
It could be argued that another of Ghana’s top exports Percentage of internet users
is people, in the form of emigration. Almost 1mn leave Ghana 2018 2019 2020 2021 2022
each year, often to seek more favourable economic Africa
100%
43% 53% 57%
opportunities in neighbouring African countries, but also Global
to the USA and the UK, with which Ghana has strong links,
50% World Bank data not yet
as well as the shared English language.
Population estimates for Ghana vary but numbers have 0%
risen for 50 years and are currently thought to be between Source: RetailX, drawing on data from the World Bank RetailX 2022
32.6mn (Worldometer) and 33.4mn (MacroTrends).

Females outnumber males by around 50.7% to 49.3%. Percentage of internet users who shop online
Ghana 2018 2019 2020 2021 2022
In terms of both development and human rights, Ghana Africa 14% 18% 21% 24% 27%
still has some way to go. Imperfect infrastructure affects Global 100%
areas such as electricity supply and until recently, less than

half of the population had internet access. However, the 50%
country benefits from a lively legacy media encompassing

newspapers, magazines, television channels and a radio 0%
sector that is still highly popular and influential. Source: RetailX, drawing on data from Statista RetailX 2022
In terms of ecommerce, notable sites include Hubtel, Ecommerce revenue Index

a platform to organise sales processes, and the online Ghana 350
shopping mall, Jumia. Also of note are Plendify, an online
303
300
Africa 300
Global 266
254
wholesale shopping platform, and Jiji, which is Ghana’s 250
biggest online classifieds site.[2] Smartphone use is 200 195
191
175
159
widespread and social media advertising is a key driver 150
100
128
125
5
109
135
of consumer spending in this area. 100

50
2018 2019 2020 2021 2022
[1] www.worldbank.org/en/country/ghana/overview
[2] www.trade.gov/country-commercial-guides/ghana-ecommerce Index 2018=100. Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | KENYA © 2022 retailx.net, distributed by InternetRetailing.net
Kenya Population structure by age group

Silent Gen
Baby Boomers
2018 2019 2020 2021 2022
51.4m 52.6m 53.8m 55.0m 56.2m
Gen X
03.6m
0.6m 0 5m
0.5m 0 5m
0.5m 03.5
.4m
4
4m 0.4m
0.4m
4
4m
This regional financial hub and centre Millennials
Gen Z
50m 3.7m
7.3m
3.
3.7m
7.3m
3.6m
7.2m
3.5m
7.2m
3.4m
7.1m
12.4m
for digital development still faces Gen Alpha 12.6m 12.6m 12.5m 12.5m
25m 18.7m
18.7m
many long-standing problems 18.8m 18.7m 18.7m
8.4m 9.8m 11.2m 12.7m 14.2m
0m
With GDP of more than $100bn in 2021[1], Kenya has Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
reached lower-middle income status. After Nigeria and Source: RetailX, drawing on data from UN
South Africa, Kenya has the third-largest economy Population growth

of sub-Saharan Africa and offers an entry point for 2.3% 2.3% 2.3% 2.3%
Kenya 2.2%
businesses trading in East Africa. Kenya is a regional Africa
2.1% 2.1% 2.1% 2.1% 2.0%
financial services hub, while the Nairobi Stock Exchange Global
is Africa’s fourth-largest in terms of market capitalisation.

1.1% 1.0% 1.0%
The agricultural sector is central to Kenya’s economy. 1.0% 1.0%
Exports such as tea and cut flowers help to offset the 2018 2019 2020 2021 2022
Kenya
Capital: Nairobi Kenya 20k
Currency: Kenyan shilling (KES) Africa
Languages: Swahili, English Global
Nationality: Kenyan 10k
Government:
Representative democracy
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | KENYA © 2022 retailx.net, distributed by InternetRetailing.net
balance of payments deficit that results from importing Percentage of internet users
machinery, oil and petroleum products, motor vehicles, Kenya 2018 2019 2020 2021 2022
iron and steel, resins and plastics. Other sectors are now Africa
100%
19% 22% 29%
growing in importance, notably tourism. Global
Despite strong growth in recent years, Kenya faces many 50%

challenges. In 2021, around 17% of the population were
defined as living in extreme poverty.[2] As this figure hints, 0%
there are huge inequalities in wealth. The humanitarian Source: RetailX, drawing on data from the World Bank RetailX 2022
organisation, Action Against Hunger, has talked of “an

explosion of needs” in Kenya and in its neighbours, Percentage of internet users who shop online
Somalia and Ethiopia[3]. This is because of factors such as Kenya
2018 2019 2020 2021 2022
20% 24% 28% 34% 40%
the inflation in energy prices and the residual effects of the Africa 100%
Global
Covid-19 pandemic. It’s also worth noting that another of
Kenya’s neighbours, Uganda, has been facing an outbreak 50%
of Ebola[4], driven in part by years of localised droughts.
Famine is a very real threat in some parts of East Africa.
0%
The digital sector is growing in importance in Kenya and Source: RetailX, drawing on data from Statista RetailX 2022
earlier this year, the government launched a ten-year

Information Communication Technology (ICT) Digital Ecommerce revenue Index
Masterplan.[5] In recent months, the Communications Kenya
600
508
Authority of Kenya has been running a programme to verify Africa 500 538
Global 400
SIM cards amid fears that fraudulently registered cards 304 300
300 266
may be linked to theft and data insecurity. 195 175
200 167
6 159
128
109 135
100
[1] https://data.worldbank.org/country/kenya 100
[2] www.statista.com/statistics/1227076/extreme-poverty-rate-in-kenya/
[3] www.theguardian.com/global-development/2022/oct/11/overlapping-shocks-are-undoing-efforts-to-end-hunger- 0
in-africa-un-warns 2018 2019 2020 2021 2022
[4] www.bbc.co.uk/news/world-africa-63212117
[5] www.trade.gov/market-intelligence/kenya-launches-new-ten-year-digital-masterplan Index 2018=100. Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | MOROCCO © 2022 retailx.net, distributed by InternetRetailing.net
Morocco Population structure by age group

Silent Gen
Baby Boomers
2018
36.0m
2019
36.5m
2020
36.9m
2021
37.3m
2022
37.8m
Gen X 1.4m
1.4
5.8m
1.3
1.3m
5.8m
1.2
1.2m
5.7m
1.1m
5.7m 5.6m
1.0m
Already a global hub for trade, the Millennials
Gen Z 6.7m 6.7m 6.7m 6.7m 6.7m
prosperous North African coastal state Gen Alpha 20m
8.7m 8.7m 8.7m 8.7m 8.7m
seems set to grow its ecommerce market 9.2m 9.2m 9.2m 9.2m 9.1m
0m
4 1m
4.1m 4 7m
4.7m
7 54
5.4m 60
6.0m 6.7m
Despite its modest-sized population (which at 36.9mn is Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
the 11th-largest on the continent), Morocco currently has Source: RetailX, drawing on data from UN RetailX 2022
the fifth-highest GDP of the African nations. Historically, Population growth

its economic prowess has benefited from its geographical 2.1% 2.1% 2.0%
Morocco 2.1%
location at the north west corner of the continent, with Africa 2.1%
access to both the Atlantic Ocean and the Mediterranean Global
Sea. At its closest point, Morocco is just 13km from Europe. 1.3%
1.2% 1.2% 1.2%
1.1% 1.0% 1.1%
1.0
1.0%
0
1.0% 1.0%
Boasting 22 ports, Morocco is a major player in the
region’s shipping and logistics. Its biggest city, 2018 2019 2020 2021 2022
Morocco
Capital: Rabat Africa
Currency: Moroccan dirham (MAD) Global 20k
Morocco
Official language: Arabic, Berber
Languages: Moroccan Arabic, Hassaniya Arabic, French 10k
Nationality: Moroccan
Government:
Unitary parliamentary semi-constitutional monarchy 0k
2018 2019 2020 2021 2022
VAT: 20% | Reduced VAT: 14%

GLOBAL ECOMMERCE REPORT 2022 | MOROCCO © 2022 retailx.net, distributed by InternetRetailing.net
Casablanca, also has the largest port in terms of area, while Percentage of internet users
Tanger Med handles the greatest volume of cargo. Africa 2018 2019 2020 2021 2022
Global 64% 74% 84%
Morocco 100%
A popular tourist destination, Morocco has also been
conspicuously successful in terms of agriculture,
50%
exporting fruit, vegetables and grains. There has even been World Bank data not yet
speculation (led by a spate of popular YouTube videos) that
Morocco will one day be the richest nation on the planet, 0%
due to its possessing 70% of the world’s phosphates,

phosphates which Source: RetailX, drawing on data from the World Bank RetailX 2022
are essential for producing agricultural fertiliser.[1]
Percentage of internet users who shop online
According to a recent report, despite near-universal Africa
2018 2019 2020 2021 2022
smartphone adoption, Morocco remains a largely cash- Global
Morocco 21% 30% 33% 36% 39%
driven economy, even in the digital realm.[2] Cash on 100%
delivery is still the most popular form of payment
for ecommerce transactions (74%) and just 22% of the 50%
population use debit cards. At 1%, credit card use is

almost non-existent. 0%

Morocco is currently the world’s 60th largest ecommerce
market. As in other territories, its ecommerce boom has Ecommerce revenue Index
outlasted its Covid-19 lockdown, with the ecommerce Morocco 350
300
market reportedly increasing by 36% during 2021. Africa
Global
300 266
What this amounts to in practice is many hundreds of 250
213
195
individual ecommerce operators using social media, 200
156
181
159
5
175
principally Facebook and Instagram, along with 150 114 135

3
100
WhatsApp groups, to find and retain customers. 100
50
2018 2019 2020 2021 2022
[1] https://youtu.be/GztRh8isKKc
[2] www.statista.com/forecasts/1306025/morocco-users-in-the-e-commerce-market2 Index 2018=100. Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | NIGERIA © 2022 retailx.net, distributed by InternetRetailing.net
Nigeria Population structure by age group

Silent Gen
Baby Boomers
2018
195.9m
2019
201.0m
2020
206.1m
2021
211.4m
2022
216.7m
2 6m
2.6m 2 3m
2.3m 2 0m
2.0m 1 8m
1.8m 111.5m
5m
5m
24.6m
24.6m
Gen X 200m
24.8m
24.8m
13.9m
13.9 13.4m
Although this African giant is on a slow 25.1m
25.1m
14.4m
14.4
25.4m
25.4m
14.8m
14.8
25.6m
25.6m
Millennials 15.2m
15.2
Gen Z 41.8m 41.4m
42.2m
path to prosperity, its ecommerce market Gen Alpha 42.7m 42.5m
100m 69.7m
70.5m 70.1m
shows signs of expansion 71.2m 70.9m
38.6m 45.1m 51.9m 58.9m 66.2m

0m
While only the 14th-largest country in Africa by area, Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
Nigeria boasts both the biggest population and the Source: RetailX, drawing on data from UN RetailX 2022
most sizeable consumer market in the continent. It is Population growth

a young nation, both in terms of existence – it has been
Nigeria 2.6% 2.6% 2.6% 2.6%
an independent federation since 1960 – and in terms of Africa
2.5%
a population where over 135mn of its total 217mn are Global 2.1% 2.1% 2.1% 2.1% 2.0%
Generation Alpha (born post-2010) or Generation Z (born

between 1997 and 2012). While population growth 1.1% 1.0% 1.0% 1.0% 1.0%
is very slightly down this year, it is still ahead of the
trend in Africa and 2.5 times the global rate. 2018 2019 2020 2021 2022
Nigeria
Area: 923,769 km2 GDP per capita ($)
Capital: Abuja Africa
Currency: Nigerian naira (NGN) Global 20k
Nigeria
Official language: English, Hausa, Igbo, Yoruba
Languages: Fulani, Pidgin English, Nupe, Tiv 10k
Nationality: Nigerian
Government: Federal presidential constitutional republic
VAT: 7.5% | Reduced VAT: 0% 0k
2018 2019 2020 2021 2022

Generally speaking, the northern states are predominantly Percentage of internet users
Muslim – Nigeria has the largest Muslim population in sub- Africa 2018 2019 2020 2021 2022
Saharan Africa – while the south is mainly Christian. Global
Nigeria 100%
31% 33% 35%
The centrally located planned city of Abuja (population

3.7mn) replaced the coastal megacity of Lagos as Nigeria’s 50%
capital in 1991, although Lagos remains the largest available for 2021 and 2022
population centre (15.4mn). Port Harcourt, Benin City, 0%

Ibadan and Kano all have populations between one and Source: RetailX, drawing on data from the World Bank RetailX 2022
three million.
Rich in natural resources, Nigeria is Africa’s biggest oil Africa 2018 2019 2020 2021 2022
producer, with other lucrative exports including palm oil Global
Nigeria
19% 26% 31% 36% 41%
and cocoa. Culturally, Nigeria is known for its domestic film 100%
industry, ‘Nollywood’, which is said to produce as many as

50%
2,500 films each year. However, Nigeria’s GDP per capita
lags behind the developed world and, according to the
0%
World Bank, “as many as four in ten Nigerians live below
the national poverty line”.[1] Source: RetailX, drawing on data from Statista RetailX 2022
Recent years have seen setbacks to economic progress, Ecommerce revenue Index
including the 2014 drop in international oil prices, the Nigeria 350
314
2016 recession[2], the 2020 Covid-19 pandemic, with Africa
Global 300 280
266
30
300
its associated lockdowns and curfews, and the 2022 250

Russian invasion of Ukraine. While Nigerian banks have 200 195
159 175
low exposure to Russia and Ukraine, Nigeria has still 150
100
134
128
28
8
109
135
experienced knock-on effects to food security[3], since 100

50
supplies of energy sources, wheat and fertiliser have all 2018 2019 2020 2021 2022
been affected. Index 2018=100. Source: RetailX, drawing on data from Statista RetailX 2022

Percentage of ecommerce eshoppers

Nigeria, 2017-22 45% Age distribution of ecommerce
Total 40% 37 42 eshoppers
Beauty, Health, Personal 35% 31 Nigeria, 2021
& Household Care 30% 26 37%
Beverages 25% 22
2 34%
Electronics 20% 20 19
18 19
9
Fashion 15 16
15
5 16 15
14
15% 13
12 12
12
11
13
1
12 11
Food 1
10 9
9 10
0 9 9
8
10% 8
7 8
7 7 7
Furniture 6
5 4 5
4 6
5 22%
Media 5% 2 3
Toys, Hobby & DIY 0%
2017 2018 2019 2020 2021 2022
6%
Average spending of the ecommerce eshopper ($)
Nigeria, 2017-22 120
Total 98 18-24 25-34 35-44 45-54
100 94 years years years years
82
& Household Care 80 71 70
69 69 68 Source: Statista RetailX 2022
Beverages 63 60 58 62
Electronics 60 55 51 50 55
47 42 47
Fashion 40 35 39
Food 25
19
28
18
31
20
20
26
26
19
9 24
2
20 The oil industry has also been hard hit by rampant theft
Furniture 20 17
16
6 16
6
and illegal refining operations. The near-collapse of the
2
12 4
14
10 10
9 14
4
12
2 13 12
Media 7 8 3 3 4 4
2 3
0
Toys, Hobby & DIY 2017 2018 2019 2020 2021 2022 Nigerian railway system means transportation is largely
dependent on the road network, which often suffers from
Annual revenue for the ecommerce market ($bn) congestion, poor infrastructure and lack of maintenance.
Nigeria, 2017-22 10
Nigeria has over 800 km of coastline and six major
Total 9 ports, including Lagos/Apapa, Tin Can Island and
8 8
Beauty, Health, Personal Calabar, yet all these have been criticised for their high
& Household Care
Beverages
6 5 cost of doing business and operational paralysis.
Electronics 4
Fashion 4 3
3 3
Food
2 2
1
2 2 2 Corruption in general remains a problem for Nigeria.
Furniture 1 1 1 1
Media
1
0
0 1
0
1
0
0
1
0
0
1
0
0
1
0
0 It ranks 154th in the Corruption Perceptions Index, which
Toys, Hobby & DIY 0
2017 2018 2019 2020 2021 2022 also links corruption with black market activity and over-

Annual change in revenue for the online ecommerce market (%) that online merchants were often able to step in to assist
Nigeria, 2018-22 100% with the distribution of essential goods and services.
90
Total 85
Beauty, Health, Personal 80% 72
71
& Household Care 64
63 61 Amazon reportedly has plans to launch in Nigeria in April
60% 55
54
4
53 53
Beverages
Electronics
48
8
44
44 46
422 46
46
45
5
43
47
49
47
44
44 2023. For now, the biggest player in Nigerian ecommerce
40% 37 3
399 38 37
Fashion 30
34
27
24
4
25 is Jumia, founded in 2012 and sometimes described
Food 22
Furniture 20% 17
196
12
1
10
6
2
0 as “Africa’s answer to Amazon”. With its own logistics
Media
network and payment app, Jumia operates in 13 other
2
2018 2019 2020 2021 2022
Source: Statista RetailX 2022 African countries and has been listed on the New York
Stock Exchange.[5] Online megastore Konga, meanwhile,
Number of ecommerce users (in millions) promises fast delivery from its warehouse network.
Nigeria, 2017-22 100 90.9
Total
Beauty, Health, Personal 80 78.0 Ominichannel retail company PayPorte serves the
& Household Care
60
64.7 women’s fashion market and first won recognition by
52.4
Beverages
Electronics 38.5 40.1
39.0
.0
0
47.9
46.8
41.
41
41.7
1. sponsoring the Nigerian Big Brother TV show in 2017.
40
Fashion
Food
28.8 25.6
25.0 0
32.6
31.5
25
5.7
22
2
21
21.1
5
5
1
33
33.3
33
27.7
27
77
25
25.55
32
32.6
25
30
30.5
24.
24.3
24
4 Konga and PayPorte both allow a number of smaller,
19.7
19.27 19
80
18.4
18 4 19
9
5..3
3 19
92
19.2
18.1
more local businesses some platform space to showcase
20 15.4
14 4
2 13.6
13
36
13.1
13. 17.1
17
7 1 14
4 8 15
15.3
14.43
Furniture 10.7
10.
10
0.7
0.
0
10.0
0.0.7
7
.0
0 7 1 11.0
11
1..4
8.9
8
8.440
9 11.8
11
1..8
11.1
4.3
4 5
.3
4.03
0 6.2
6
5.8
5 2
.8
8
Media
Toys, Hobby & DIY 0
2017 2018 2019 2020 2021 2022 their products. Another competitive online store is Kara,
Source: Statista RetailX 2022 which promises delivery in under 24 hours. Kara is well-
regarded as a destination for phones, computers and
regulation.[4] Nigeria has long had a reputation as a centre doing things. An estimated 90% of retail activity is still other electronics and again includes a marketplace
for cybercrime in general and email investment scams in conducted via community markets and small kiosks. section. Also of note is Jiji, a popular destination for online
particular. The country has also suffered long and violent Nigeria’s huge and growing population is giving rise to an shopping classifieds, which ranks among the most widely
terrorist campaigns, notably those pursued by Boko Haram expanding middle class, yet it’s an emerging market where downloaded mobile apps in Nigeria.
and the Islamic State West Africa (ISWA). almost 50% still live in rural areas and the majority of retail
[1] www.worldbank.org/en/news/press-release/2022/03/21/afw-deep-structural-reforms-guided-by-evidence-are-
choices still revolve around food and essentials. urgently-needed-to-lift-millions-of-nigerians-out-of-poverty
There are signs that consumer spending will have [2] www.reuters.com/article/nigeria-gdp-idUSL5N1GD2MJ
[3] www.ifpri.org/blog/russia-ukraine-crisis-presents-threats-nigerias-food-security-potential-opportunities
[4] https://tradingeconomics.com/nigeria/corruption-index
recovered to pre-pandemic levels by early 2023. However, The Covid-19 pandemic aided the rise of ecommerce in [5] www.csis.org/analysis/real-controversy-about-jumia-why-did-it-list-nyse
much of Nigeria retains a distinctly old-world way of Nigeria. The fragmented retail sector was so badly affected

GLOBAL ECOMMERCE REPORT 2022 | SOUTH AFRICA © 2022 retailx.net, distributed by InternetRetailing.net
South Africa Population structure by age group

Silent Gen
Baby Boomers
2018
57.8m
2019
58.6m
2020
59.3m
2021
60.0m
2022
60.8m
Gen X 1.6m 1.5m 1.4
1.4m 1 2m
1.2m
2 1
1.1m
1
1m
As inflation bites, South African shoppers 7.2m 7.0m 6.8m 6.6m
Millennials 50m 7.3m
10.7m 10.6m 10.5m 10.3m
Gen Z 10.7m
are limiting basket size and turning to Gen Alpha
15.5m 15.4m 15.4m 15.5m 15.5m
25m
online marketplaces for convenience 15.7m 15.7m 15.7m 15.7m 15.7m
69
6.9m 8.1m 9.3m 10.4m 11.5m
0m
The South African economic recovery from the Covid-19 Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
pandemic has been slower than forecast, with growth Source: RetailX, drawing on data from UN RetailX 2022
estimated at 1.9% this year[1]. After two consecutive Population growth

quarters of positive growth, real GDP decreased by 0.7% 2.1% 2.1% 2.0%
South Africa
in the second quarter of 2022[2]. Africa
2.1% 2.1%
Global
Previous fears over unemployment, expressed in the 1.4%

1.3% 1.3%
RetailX 2021 Global Ecommerce Report, remain. Poverty 1.1% 1.0% 1.0%
1.2% 1.2%
1.0%
1.0%
has reached levels not seen for more than a decade as
inflation has increased to a 13-year high. 2018 2019 2020 2021 2022

South Africa
Area: 1,221,037 km 2
GDP per capita (USD)
Capitals: Pretoria, Cape Town, Bloemfontein
Africa
Currency: South African rand (ZAR) Global 20k
Languages: English, isiZulu, isiXhosa, Afrikaans, South Africa
Sepedi, Setswana, Sesotho, Xitsonga, siSwati (Swazi),
Tshivenda, isiNdebele 10k
Nationality: South African
Government: Unitary dominant-party parliamentary
0k
republic with an executive presidency 2018 2019 2020 2021 2022

It is perhaps no surprise then that shoppers are spending Percentage of internet users
less online and are focusing on smaller baskets. The Africa 2018 2019 2020 2021 2022
average purchase value of R390 was R60 less than the Global
South Africa 100%
62% 68% 70%
average in 2019, according to First National Bank[3].
Even though the amount spent online has declined in 50%

recent years, the switch to online shopping continues. 45% available for 2021 and 2022
of South African internet users now shop online, an 0%

increase from 31% in 2018 and a 4% rise from last year. Source: RetailX, drawing on data from the World Bank RetailX 2022
This ecommerce shift that began as a reaction to the Percentage of internet users who shop online
pandemic carries on as shoppers are drawn in by the Africa
2018 2019 2020 2021 2022
convenience and price point of marketplace offerings. Global
South Africa 31% 34% 37% 41% 45%
100%
Convenience topped the reason for shopping online
more. In a recent Deloitte Digital Commerce Survey, 26% 50%
of South Africans cited convenience as the key driver for

choosing to shop online[4]. 0%

This can only be good news for South Africa’s own
ecommerce retailers. Cape Town-based Takealot has Ecommerce revenue Index
10mn visits each month from 1.8mn shoppers. It is South Africa 350
estimated that marketplace sellers currently generate Africa
300
300
Global 266
36% of Takealot’s US$300mn in annual sales and that the 250
proportion of marketplace sales is increasing each year[5]. 200 195
179
175
159
154
150 107
128 138
135
100
[1] www.worldbank.org/en/country/southafrica/overview 100
[2] www.statssa.gov.za/?p=15728
[3] https://businesstech.co.za/news/business/568272/the-explosive-growth-of-e-commerce-in-south-africa/ 50
[4] https://www2.deloitte.com/content/dam/Deloitte/za/Documents/strategy/za-Digital-Commerce-Acceleration- 2018 2019 2020 2021 2022
2021-Digital.pdf
[5] www.webretailer.com/marketplaces-worldwide/online-marketplaces-africa/ Index 2018=100. Source: RetailX, drawing on data from Statista RetailX 2022

Percentage of ecommerce eshoppers Preferred device for online shopping (%)

South Africa, 2017-22 South Africa, 2017-22
50%
45 Mobile Desktop
Total 41
35
& Household Care 32 2017 2018 2019 2020 2021 2022
30% 29 100%
Beverages
Electronics 22
21
20% 17 19 17
Fashion 144 16
6 15 15
5
12 11 1
13
12
23 13
12
2 80% 41 43 44 45
Food 10
190 19
10
0 190
10 11 9 10 46 47
10% 6 8
5 6 8
6 7
6 8
7
Furniture 5
4 4 5
Media 0% 60%
Toys, Hobby & DIY 2017 2018 2019 2020 2021 2022
Average spending of the ecommerce eshopper ($)

59 57 56 55 54 53
20%
South Africa, 2017-22 350 322 308
Total 300 299 295 0%
269 276
Beauty, Health, Personal 240 257 251
243
4 253
250 236 237 Source: Statista RetailX 2022
& Household Care 204
200 193
Beverages 169 175 175
174 167 165
Electronics 151 144 157
5
146
46
4 15
157
5
150 131
121
2
21 137
13
37
3 7
115
Income status split of ecommerce
Fashion 110 103
102 108 101 104
Food 100 81 78 75 85 85 87
45
eshoppers
Furniture 50 41
34 37
31 34
32 41
35 35 42
33
Media
Toys, Hobby & DIY 0
2017 2018 2019 2020 2021 2022
South Africa, 2021
Annual change in revenue for the online ecommerce market (%) high income 39%
South Africa, 2018-22 70%
Total 60% 65
& Household Care 50% medium income 32%
40% 39
37
Beverages 34
34
Electronics 30% 29
29 27
25
23
24
24
23
3
Fashion 19 22
2
21
1
19
9
Food 20% 16 16 1
17
155 16
8
16
6
10
1 0 11
192
111 low income 29%
Furniture 10% 6
8
7
6
5 7
9
8
7
6 6 9
8
6
Media 4 4
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | TANZANIA © 2022 retailx.net, distributed by InternetRetailing.net
Tanzania Population structure by age group

Silent Gen
Baby Boomers
2018
56.3m
2019
58.0m
2020
59.7m
2021
61.5m
2022
63.3m
Gen X
00.7m
7m 0 7m
0.7m 03.8
0.6m
66m 0 6m
0.6
0.6m 00.5m
55m
7.0m
7.1m
3.7
3.7m 3.6m
With a focus by government on strategy 7.1m
3.8m
7.2m
3.9m
3.9
7.2m
Millennials 50m 4.0m
4.0
Gen Z 12.5m 12.4m
12.5m
alongside overcoming traditional Gen Alpha 12.6m 12.6m
25m 20.6m 20.6m
challenges, Tanzania could soon see 20.8m 20.7m
20.8m
19.2m
huge ecommerce growth 11.0m 12.9m 14.9m 17.0m
0m
Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
Tanzania’s ecommerce market continues to teeter on the

brink of growth, with the potential evident in a young, Population growth
growing population. Around a third of the country’s Tanzania
3.0% 3.0% 3.0% 3.0% 2.9%
population are Gen Alphas and another third are Africa
Global
2.1% 2.1%
Gen Z, with Millennials accounting for 12.4mn of the 2.1% 2.1% 2.0%
63.3mn population and older generations much less. 1.1% 1.0% 1.0% 1.0% 1.0%
Population growth has been consistently at around 3% for
the past four years. While its GDP per capita is minuscule,
the potential of such a young population is huge. 2018 2019 2020 2021 2022
Tanzania
Area: 947,303 km2
Capital: Dodoma Africa
Global 20k
Currency: Tanzanian shilling (TZS) Tanzania
Official language: Swahili
Other languages spoken: Sukuma, Nyamwezi, Chaga, 10k
Bena, Gogo, Haya, Dholuo, Makonde, Nyaturu
Nationality: Tanzanian
0k
Government: Unitary dominant-party presidential republic 2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | TANZANIA © 2022 retailx.net, distributed by InternetRetailing.net
Currently, however, ecommerce is not widely adopted. The Percentage of internet users
share of internet shoppers who shop online still stands Africa 2018 2019 2020 2021 2022
at a mere 15% but that figure has more than doubled from Global
Tanzania 100%
19% 20% 22%
6% in 2018. Tanzanian consumers tend to purchase by

directly contacting sellers[1] who have advertised on social
50%
media to arrange for delivery. Payments are subsequently World Bank data not yet
made via mobile or, more commonly, by cash on delivery
since Tanzanians are traditionally wary of online payments. 0%
Source: RetailX, drawing on data from the World Bank RetailX 2022
Many see potential in this market, though. The United Nations

Conference on Trade and Development (UNCTAD)[2] published Percentage of internet users who shop online
an assessment in which it said Tanzania’s location, as Africa 2018 2019 2020 2021 2022
well as market readiness, means that ecommerce could
Global
6% 9% 11% 13% 15%
Tanzania
boost the country’s economy, create employment 100%
opportunities and diversify income sources.

50%
Access to the internet is usually via mobile, which can

0%
lead to a disparity in coverage since mobile data prices are
unaffordable for much of the rural population. Source: RetailX, drawing on data from Statista RetailX 2022
Development will rely on challenges such as these being Ecommerce revenue Index
overcome, as well as a more focused effort by Tanzania Tanzania 350
282
on adopting a standalone ecommerce policy, although Africa 266 300
300 254
Global
the government is already looking at digitalisation. 250
206
195
UNCTAD has recommended a clearer focus on integrating 200
159 175
150 135
ecommerce into national development planning, as well
130
128
8
100 109
100
as engaging more strongly with the private sector. 50
2018 2019 2020 2021 2022
[1] www.trade.gov/country-commercial-guides/tanzania-ecommerce
Tanzania - eCommerce (trade.gov)
[2] www.tanzaniainvest.com/economy/trade/e-commerce-can-boost-tanzanias-economy-unctad-say Index 2018=100. Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | ASIA © 2022 retailx.net, distributed by InternetRetailing.net
Asia Population structure by age group

Silent Gen
Baby Boomers
2018
4105.9m
2019
4139.5m
2020
4172.2m
2021
4203.0m
2022
4234.3m
Gen X 4000m 184.6m 171.5m 158.0m 141.8
141.8m
Home to over a third of all people, Asia is,
196.3m 701.9m
Millenials 745.7m 735.7m 725.1m 712.4m
Gen Z 837.3m 832.9m
quite understandably, a powerhouse when 843.5m 841.2m 839.8m
Gen Alpha
2000m 977.2m 973.4m 970.6m 969.7m 972.0m
it comes to ecommerce innovation 961.5m 960.1m 958.9m 957.7m 956.9m
381 8m
381.8m 444 5m
444.5m
5 506 3
506.3m 567.9m 628.8m
0m
Revenue in the ecommerce market in Asia is predicted Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millenials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
to be $1,761bn in 2022.[1] This figure, lower than it would Source: RetailX, drawing on data from UN RetailX 2022
have been due to a combination of the rise in the value of Population growth
the dollar and the effects of the conflict in the Ukraine, will
likely rise to more than $2,000bn in 2023. 1.1%
1.0%
1 0% 1.0%
Asia 1.0%
Global 1.0%
1.0% 1.0%
These are figures that reflect the huge importance of the 0.9%
ecommerce sector in Asia. China, for example, is home to
many of the world’s largest online retailers, including 0.9% 0.9%
Alibaba. Between them, the company’s three main sites, 2018 2019 2020 2021 2022
Alibaba Taobao, Tmall and Alibaba.com, have hundreds
of millions of users. In addition, these sites offer channels Source: RetailX, drawing on data from UN RetailX 2022
for other retailers to get to market. Innovations in the GDP per capita (USD)
Chinese ecommerce market such as livestreaming are
Asia 20k
often adopted elsewhere and thus help to shape emerging Global
consumer behaviour around the world.
10k
Over recent decades, China has been the workshop of
the world, a centre for manufacturing. However, that is
beginning to change as it too begins to offshore some of 0k
2018 2019 2020 2021 2022
this kind of work to emerging countries such as Vietnam.

In itself, this change reveals the growing complexities of Percentage of internet users
the Asian market – which, for the purposes of our analysis, Asia 2018 2019 2020 2021 2022
56% 59% 62%
we have also taken to include Australasia – a region with Global 100%
countries at very different stages of development. This
helps explain why GDP per capita in the Asian countries 50%
we track is below the equivalent global figure. World Bank data not yet
We should also mention the sheer size of the Asian 0%
market. Out of a global population of around 8bn, Source: RetailX, drawing on data from the World Bank RetailX 2022
around 2.8bn people live either in China and India,

the world’s two most populous countries. India has Percentage of internet users who shop online
yet to become an ecommerce powerhouse to rival China Asia 2018 2019 2020 2021 2022
31% 36% 40% 43% 47%
but there are signs this may happen in the years ahead. It Global 100%
will also be fascinating to see how India develops digitally

when compared to its authoritarian neighbour. While 50%
there has been disquiet over the populist approach of
Narendra Modi, the official line is that India, the world’s
largest economy, wants to transform itself into “a digitally 0%
empowered society and knowledge economy”. Source: RetailX, drawing on data from Statista RetailX 2022
Asia’s population structure – with Gen X, Millennials and Ecommerce revenue Index
Gen Z present in more or less equal numbers – shows 300
Asia
early evidence of societies that are ageing, albeit at very
255
Global 250 227
different rates when you compare, for example, Vietnam 200 175
and Japan. Internet use and ecommerce are growing
168 159
150 135
across the region, with patterns of usage in the most
123
100 109
100
developed countries similar to Western Europe or the USA.
50
2018 2019 2020 2021 2022
[1] www.statista.com/outlook/dmo/ecommerce/asia#revenue Index 2018=100.
[2] https://digitalindia.gov.in/content/about-digital-india Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | AUSTRALIA © 2022 retailx.net, distributed by InternetRetailing.net
Australia Population structure by age group

Silent Gen
Baby Boomers
2018
24.9m
2019
25.2m
2020
25.5m
2021
25.8m
2022
26.1m
Gen X 2 1m
2.1m 2 0m
2.0m
With an ageing population happier with 2.5m 2.4m 2.2m
Millennials 5.5m 5.4m
Gen Z 20m 5.5m 5.5m 5.5m
desktop PCs than mobiles, ecommerce Gen Alpha 5.0m 5.0m 5.0m 5.0m 5.0m
10m 5.5m
growth is taking a traditional path 5.3m 5.3m 5.4m 5.5m
4.6m 4.7m 4.7m 4.8m 4.8m
1.9m 2.3m 2 7m
2.7m
7 3 0m
3.0m 34
3.4m
0m
Australia is the eleventh-largest ecommerce market in Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
the world and is expected to grow by 13.4% this year.[1] Source: RetailX, drawing on data from UN RetailX 2022
The country has a healthy GDP per capita of around Population growth
$60k, well above both global and Asian averages.
Australia 1.3%
Experts suggest it won’t be enough to stave off a predicted Asia
1.2% 1.2%
recession, with the Reserve Bank of Australia recently Global
1.1% 1.1% 1.1%
sounding warning bells around higher inflation. As of 1.0%
0%
% 1.0% 1.0% 1.0%
1.0% 1.0%
November, this was not leading to higher interest rates 0.9%
0.9% 0.9%
as the bank opted to keep a watching brief, although that
may change in the months ahead. 2018 2019 2020 2021 2022
Australia
Area: 7,741.220 km2 GDP per capita (USD)
Capital: Canberra Australia 70k
Currency: Australian dollar (AUD) Asia 60k
Global
Official language: English 50k
Nationality: Australian 40k
Government: Federal parliamentary democracy under 30k
20k
a constitutional monarchy
10k
0k
2018 2019 2020 2021 2022

The dwindling population of Australia is centred on the Percentage of internet users

under-50s, followed closely by the disposable income- Australia 2018 2019 2020 2021 2022
87% 88% 89%
friendly Baby Boomers. Hence, internet use is high, with Asia
Global
100%
figures suggesting that 89% actively used the internet
in 2020. We would expect this figure now to be above 90%. 50%
Online shopping stands at 74% of those who use the
internet, a figure boosted by the pandemic. This number 0%
is rising steadily every year, with Australian consumers Source: RetailX, drawing on data from the World Bank RetailX 2022
buying a lot from within the country but also relying

heavily on retailers headquartered in the USA and UK. Percentage of internet users who shop online
The UK-Australia trade deal, signed in 2021, will make Australia 2018
67%
2019
69%
2020
71%
2021
75%
2022
74%
it easier for Australian companies to operate in the UK Asia
Global
100%
and eliminate many tariffs on British imports.

50%
Australians are comfortable with the idea of using digital
technologies. The level of smartphone usage is high and
consumers are increasingly able to access 5G networks. 0%
Nevertheless, more shoppers use desktop (58%) than Source: RetailX, drawing on data from Statista RetailX 2022
mobile (42%) for shopping, a figure that can partly be

explained by Australia relatively early on developing a fixed Ecommerce revenue Index
internet infrastructure. In urban areas at least, this is not Australia 300
a mobile-first economy. Asia 255
Global 250 227 222
200 195
175
Ecommerce is a growing business in the country, with 168
148
135
3
159
150
around three-quarters of Australian businesses earning 100
123
110
110
1
109
100
part of their revenue from online sales. Pandemic-related
lockdowns led to food delivery businesses taking off 50
2018 2019 2020 2021 2022
and Amazon Australia saw a huge rise in monthly users. Index 2018=100.

According to Statista figures, the biggest spend among Percentage of ecommerce eshoppers
e-shoppers is in beauty, health, personal and household Australia, 2017-22
80%
69 72
care, followed by beverages and then electronics. Total
70% 65 67 75 75
60%
& Household Care 50% 43
Australia has infrastructure barriers to ecommerce. Beverages
Electronics 40% 34
33
37
36
40
39
32
42
35
32
30
These can be explained in part by the country’s size Fashion 30% 27 26
6 29
26
6 29
25 27
22
21
20
0 23 24
4
Food 20% 2
20
190
9 17 18 19
9
16
6
15
5 15
(same-day deliveries are always going to be an issue), Furniture 10%
12
82
9
14
10
0 12
11 13 15
5
14
4
Media
but Australia Post, the government postal service, has Toys, Hobby & DIY 0%
2017 2018 2019 2020 2021 2022
said it was spending $400mn by mid-2022 on new parcel Source: Statista RetailX 2022
facilities, fleet and technology, bringing its total committed

investment to more than $1bn over three years.[3] Average spending of the ecommerce eshopper (thousand USD)
Australia, 2017-22
3
The Australian federal election of May 2022 led to a change Total
2.5 2.4
2.1
in the country’s political order. The centre-right Liberal/ & Household Care 2
1.7
Beverages 1.5
Electronics 1.2 1.3 1.3
1
101
1.0
0 1
1.01
1..0
1
Preferred device for online shopping (%)
Fashion 1 0.88 0.88 0.8
088 0 9
0.88 0 0.7
8 0..7
0
0.78
Food 0
0..6
0
0.55
06
0
0
7
0..5
0.5
05
0 6
6
..4
0.5
0.44 07
0 6
6
0.6 0
0.7
0.5
Australia, 2017-22 Furniture
0.1 0.1 0.1 0.1 0.1 0.1
Media 0
Mobile Desktop Toys, Hobby & DIY 2017 2018 2019 2020 2021 2022
2017 2018 2019 2020 2021 2022 Source: Statista RetailX 2022
100%
80% 35 37 39 40
national coalition, led by Scott Morrison, was seeking a As in so many other countries, the Australian authorities
41 42
fourth successive term in office but lost out to the Labor see digital innovation as crucial in deriving future
60% Party, led by Anthony Albanese, which won a narrow growth, with a 2021 report, for example, highlighting
majority. One effect of Labor’s election win has been the importance of sectors such as artificial intelligence,
40%
65
to put environmental concerns higher up the political robotics and data science.[4]
63 61
20%
60 59 58
agenda, an overdue development in a country that has [1] www.worldfirst.com/au/grow-your-business/online-sellers/ecommerce-trends-statistics-2022
lagged behind similar economies in addressing, or even [2] www.theguardian.com/australia-news/2022/nov/15/rba-reserve-bank-australia-signals-it-may-pause-further-
interest-rate-rises
0% fully acknowledging, the issue of climate change. [3] https://auspost.com.au/content/dam/auspost_corp/media/documents/ecommerce-industry-report-2022.pdf
[4] www.dfat.gov.au/sites/default/files/business-envoy-april-2021-digital-trade-edition.pdf

GLOBAL ECOMMERCE REPORT 2022 | CHINA © 2022 retailx.net, distributed by InternetRetailing.net
China Population structure by age group

Silent Gen
Baby Boomers
2018
1427.6m
2019
1433.7m
2020
1439.3m
2021
1444.2m
2022
1448.4m
Gen X 81 2
81.2m
2m 76 4m
76.4m
4 71 1m
71.1m 65 3m
65.3m 57 9m
57.9m
9
The world’s largest ecommerce market Millennials
Gen Z 1000m
335.3m 331.3m 326.8m 321.6m 318.3m
328.0m
still has plenty of room for growth and 329.3m 329.2m 330.2m 330.5m
Gen Alpha
325.0m 323.2m 321.6m 321.8m 324.4m
opportunities for foreign merchants 253.7m 253.9
253.9m 253.6m 253.1m 252.4m
103 1m
103.1m 119 7m
119.7m 136 0m
136.0m 151 9m
151.9m
9 167 4
167.4m
0m
While China is often seen as a leading proponent of Age groups (year of birth): Silent Gen (1928-1947), Baby Boomers (1948-1967), Gen X (1968-1982), Millennials (1983-1997), Gen Z (1998-2012), Gen Alpha (2013-present)
technological innovation, it should be remembered that Source: RetailX, drawing on data from UN RetailX 2022
30% of the population – mainly in rural areas – is still Population growth

offline. However, residents of the major cities are
China
among the world’s most enthusiastic e-shoppers. Asia
1.1%
1 0%
1.0% 1.0%
1 0%
1.0% 1.0%
0 9%
0.9% 1.0% 1.0%
Global 0.9% 0.9%
As in other countries, the Covid-19 pandemic of 2020

influenced greater transition to online sales.[1] China was 0.5% 0.4% 0.4%
hit first, went into lockdown first (in Hubei province), and 0.3% 0.3%
has also seen subsequent localised lockdowns. 2018 2019 2020 2021 2022
Country
Capital: Beijing China 20k
Currency: renminbi (CNY) Asia
Global
Official language: Standard Chinese
Other languages spoken: Mandarin, Min, Wu, Yue 10k
Nationality: Chinese
Government: Unitary Marxist-Leninist one-party
socialist republic
0k
VAT: 13% | Reduced VAT: 9% 2018 2019 2020 2021 2022

Major companies, such as the electrical appliance retailer Percentage of internet users
GOME, adapted to pandemic conditions by taking more of 2018 2019 2020 2021 2022
their business online. Other notable ecommerce players Asia
Global 100%
59% 64% 70%
include tech leviathan Alibaba and Jingdong, better

known as JD.com. Alibaba owns online shopping platform 50%
Taobao, whose spin-off venture, Tmall Global, has available for 2021 and 2022
enabled thousands of small and medium-sized
0%
foreign merchants to enter the Chinese market.[2]
A Chinese ecommerce innovation that now seems likely

to spread globally, livestreamed marketing mixes Percentage of internet users who shop online
entertainment, celebrity and social media activity 2018 2019 2020 2021 2022
53% 59% 64% 68% 71%
with shopping, utilising mechanisms such as time-limited Asia
Global 100%
offers, coupons, rewards and prizes. More traditional
shopping bonanzas include the summer shopping spree
50%
in June, and Singles Day on 11 November, which has
become the world’s biggest retail event.
0%
China has also seen the rise of ‘super-apps’, such as Source: RetailX, drawing on data from Statista RetailX 2022
Tencent’s WeChat and Alibaba’s AliPay.[3] These allow

users to access multiple services – including messaging, Ecommerce revenue Index
ecommerce and payment – within a single app. Over China 300
Asia 255
70% of ecommerce payments are made by ‘alternative Global 250 227
payments’ such as mobile and digital wallets, with cards 200 175
168
(14%), bank transfers (11%) and cash (3%) accounting for 150 135
159
130 134
123 120
the remainder.[4] 100
100 109
09
104
As the world’s most populous nation – although it is set 50

2018 2019 2020 2021 2022
to be surpassed by India in 2023 – China has no shortage Index 2018=100. Source: RetailX, drawing on data from Statista RetailX 2022

Average spending of the ecommerce eshopper (thousand $) Preferred device for online shopping (%)
China, 2017-22 1.75 China, 2017-22
Total 1.4 Mobile Desktop
1.5 1.4 1.4 1.4 1.3
Beauty, Health, Personal 1.2 1.3
& Household Care 1.25 2017 2018 2019 2020 2021 2022
1.0 1.0 100%
Beverages 1
Electronics 0.7 0.7 0.8 0.7
0.75 0
0.7 7 0.6
Fashion 0.6 05
0.5 0.6
6 0.6 0.5 0.6 80%
0.5 0
0.5
.5
5 0 5
0.4
0 4 045 0.5
.5
Food 0.4 0 4
3 0
0.4
0 4 0.4
0.4
0 4
Furniture 0.3
3
0.2
2 0.3
. 03
0.3 0 3
0.3 03
0.3 0.
0.3
0
02
0.23
0.25 0.2 0.2 0.2
0 2 0.2
0 2 02
0.2 0.
0.2 72 75
Media 60% 77 78 79 80
Toys, Hobby & DIY 0 2017 2018 2019 2020 2021 2022
Annual revenue for the ecommerce market ($bn) 20%

China, 2017-22 1500 28 25 23 22 21 20
1368
1260 1412
Total 1250 0%
Beauty, Health, Personal 1053 1098
1015
Beverages 750
Electronics
Fashion 500
Age distribution of ecommerce eshoppers
356 345 340
3 0 386 398 394
Food 251
5 285
8 298
9 31
312
1
250 2288 240 199 223 232
Furniture 136
326
36 153
5 170
7
Media
135
7
72
38
2
27
248
7
4
122
272
7
77
46
37
3
337
182
112
1
82
48
48
42 105
665
94
96
63
2 1046
06
106
105
84
71 11
812
187
91
110
7440
7 China, 2021
Toys, Hobby & DIY 0
2017 2018 2019 2020 2021 2022 32%
25%
Annual change in revenue for the online ecommerce market (%)
China, 2018-22 60%
20%
18%
Total 50% 47
Beauty, Health, Personal 40% 37 38
& Household Care 29 33 32
30%
Beverages 23 20
Electronics 20% 15 17
7
5
15 5%
13 11 4
13
13 12
10
Fashion 10% 7
5 7 90 7
6
5
4 4 4
3 4
3
Food 0% -3 -1 0 -1
1
Furniture -10 -8 -7
-10% 18-24 25-34 35-44 45-54 55-64
Media
Toys, Hobby & DIY -20% years years years years years
2018 2019 2020 2021 2022

of manpower. Numerous logistics couriers such as the Income status split of ecommerce for foreigners with sufficient flexibility to adapt to local
ubiquitous JD ‘delivery guys’ are a familiar sight in China’s eshoppers business practices. In a country where networks
cities, regularly delivering hundreds of parcels a day, with China, 2021 are everything, it is crucial to employ facilitators,
some orders being fulfilled within one hour. JD boasts the especially in terms of language and understanding
world’s largest fleet of delivery drones and is currently high income 32% etiquette. While apps like WeChat can be used to establish
testing other autonomous delivery methods. connections, face-to-face meetings are still important,
along with traditional accessories such as business cards.[5]
Overall, 2022 has seen China retain its place as the world’s medium income 36%
second-largest economy by GDP after the USA. It remains There are also indications that China’s younger generation
by far the global number one for ecommerce, with a – along with its expanding middle class – are perhaps
projected 10-11% increase this year. In recent decades, low income 32% beginning to resist the demanding six-days-a-week
China has undoubtedly become the world’s leading working culture and instead adopt more Westernised
manufacturer (a position previously held by the USA), but attitudes to recreation and leisure. Although still a
it’s also a market that presents lucrative opportunities Source: Statista RetailX 2022
male-dominated society, there are signs that female
entrepreneurs are beginning to break through.
Preferred shopping channel for Gender split of ecommerce eshoppers However, China is also the land of tech surveillance, social
credit and uncompromising Covid-19 lockdowns, with the
ecommerce multichannel shoppers (%) China, 2021
China, 2017-22 female male current regime showing little sign of loosening its grip.
Online Offline [1] www.globaldata.com/media/banking/china-continues-to-lead-global-e-commerce-market-with-over-2-trillion-
sales-in-2022-says-globaldata/
2017 2018 2019 2020 2021 2022 [2] www.tmogroup.asia/tmall-global/
100% [3] https://blog.kms-solutions.asia/what-is-super-app-and-why-it-is-taking-over
[4] www.globaldata.com/media/banking/alternative-payments-account-for-almost-three-fourths-of-e-commerce-
27 25 25 28 29 28 payments-in-china/
80% [5] https://aexus.com/doing-business-in-the-apac-region/
48%
52%
60%
40%
73 75 75 72 71 72
20%
0%

GLOBAL ECOMMERCE REPORT 2022 | INDIA © 2022 retailx.net, distributed by InternetRetailing.net
India Population structure by age group

Silent Gen
Baby Boomers
2018
1352.6m
2019
1366.4m
2020
1380.0m
2021
1393.4m
2022
1406.6m
Gen X
The prevalence of Generation Z Millennials
44.5m
.5
195.3m
41.4m
191.8m
38.0m
188.4m
88.
34.6m
184.1m
8 . 30.6m
180.1m
80.
Gen Z 1000m 250.6m 249.2m
consumers in India is fuelling growth 254.8m 253.7m 252.4m
Gen Alpha 340.1m 339.8m
342.5m 341.4m 340.7m
in a market which is soon expected 500m
374.6m 373.4m 372.9m 372.8m 373.2m
to surpass the US in size 0m 140 8m
140.8m
8 164 8
164.8m 187.7m 211.1m 233.8m
India is a market that is seeing rapid ecommerce growth, Source: RetailX, drawing on data from UN RetailX 2022
in part thanks to the prevalence of younger customers.

Population growth
Generation Z is the most heavily represented age group
in the country. As of 2022, there were more than 373mn India
Asia 1.1%
1.0%
1 0% 1.0%
1.0%
1.0%
Generation Z consumers in India, compared to nearly Global 1.0% 1.0% 1.0% 1.0%
1.0%
340mn Millennials, making it critical that retailers meet 0.9% 1.0%
the needs of this customer segment.
0.9% 0.9%
Their growth is pushing ecommerce adoption and fuelling 2018 2019 2020 2021 2022
growth, making India an exciting market of opportunity.
In 2022, India finally passed the halfway mark when it comes Source: RetailX, drawing on data from UN RetailX 2022

India India 20k
Asia
Area: 3,287,263 km2 Global
Capital: New Delhi
Currency: Indian rupee (INR) 10k
Languages: Hindi, English
Nationality: Indian
Government: Federal parliamentary constitutional republic 0k
VAT: 28% | Reduced VAT: 18% 2018 2019 2020 2021 2022

to the share of internet users who shop online. 52% of Percentage of internet users
India’s internet users are now ecommerce shoppers, India 2018 2019 2020 2021 2022
20% 29% 43%
a number that, for the first time, is also higher than the Asia
Global
100%
figures for Asia and globally. However, the percentage of
Indian internet users is much lower than in Asia and globally. 50%
A recent report by Bain & Company[1] suggests that with
190mn online shoppers in 2021, India’s ecommerce market 0%
could, within two years, end up surpassing the US to Source: RetailX, drawing on data from the World Bank RetailX 2022
become the second-largest shopper base behind China.

India’s ecommerce market value hit $40bn in 2021 and Percentage of internet users who shop online
is expected to top $50bn in 2022. An annual growth of India 2018 2019 2020 2021 2022
27% 36% 39% 46% 52%
25% to 30%, alongside a steady increase in the user base, Asia
Global
100%
are both expected over the next five years.

50%
Such growth will mean that policies surrounding
ecommerce practises will need to be improved. For
example, clear and specific laws[2] around the use of 0%
consumer data and consumer privacy are currently Source: RetailX, drawing on data from Statista RetailX 2022
lacking, although India’s parliament is said to be looking

at how it can improve this, with a new bill covering Ecommerce revenue Index
personal data protection currently being planned. India 300
Asia 255
25
5
250 235 274
Global 227
2
Digital payments are also growing and expected to 200 179 175
account for more than 70% of total payment volume 168
6
135
159
150
by 2025, according to ACI Worldwide research.
126
123
3
100 109
0
100
50
[1] https://timesofindia.indiatimes.com/business/india-business/india-will-pip-us-to-become-worlds-second-largest- 2018 2019 2020 2021 2022
online-shopper-base/articleshow/94801621.cms Index 2018=100.
[2] www.trade.gov/country-commercial-guides/india-online-marketplace-and-e-commerce Source: RetailX, drawing on data from Statista RetailX 2022

Percentage of ecommerce eshoppers Preferred shopping channel for

India, 2017-22 60%
53 ecommerce multichannel shoppers (%)
Total 50%
46 India, 2017-22
40% 40
& Household Care 36 Online Offline
Beverages 30% 28
Electronics 24 25
25
23
3
2 2017 2018 2019 2020 2021 2022
21
2
20 20
0 100%
Fashion 20% 17
7 1
17
1
16 16 2 3 3 4 6 6
Food 14 1
14
12
12
11
14 16
14
4 13
8 10 11
9 8 18
10 9
Furniture 10% 7
5 7
6 6
5 6 7 80%
4
3
2 4
3
Media 0%
Toys, Hobby & DIY 2017 2018 2019 2020 2021 2022
60%
Source: Statista RetailX 2022 98 97 97 96 94 94
40%
Average spending of the ecommerce eshopper ($) 20%
India, 2017-22 400
350 380
Total 306 0%
& Household Care 250 222
Beverages 203 197
200 177
Electronics
150 133 135
Income status split of ecommerce
Fashion 118 111
1 11
117
1
Food 100 89 96 92 93
59 63 58 51 61 61
eshoppers
Furniture 50 42
3 2 4
41
38
3 8
6 38
38
37
7 40
433 42 40
0
Media 24
20
110
1 2
20
110 2
1
18
8
6
11
3
2
10
20
8
12 30
2
11
21
7
14
4 27
1
21
5
13
3
Toys, Hobby & DIY 0
2017 2018 2019 2020 2021 2022 India, 2021
Annual change in revenue for the online ecommerce market (%) high income 34%
India, 2018-22 120%
Total 100% 98
& Household Care 80% medium income 34%
Beverages 60% 57
52 5
50
Electronics 47
7
42
41
43
413
37
39
37
37 40
0
40
42
2 43
43
Fashion 40% 3
32
302
0 36
311 32
32
Food 26
2
266 26
2
26
22
22
8 28
28
6
23
3 28
Furniture 20%
21
16 177 21 19
9 16
18
1
16
6
4
2 low income 32%
11
11
Media
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | INDONESIA © 2022 retailx.net, distributed by InternetRetailing.net
Indonesia Population structure by age group

Silent Gen
Baby Boomers
2018
267.7m
2019
270.6m
2020
273.5m
2021
276.4m
2022
279.1m
Gen X
A stable economy and a younger Millennials 8.5m 7.9m 7.2m 6.6m
39.1m 5.8m
38.3m
41.1m 40.5m 39.9m
Gen Z 200m 55.7m 55.7m
population are driving the growth of 56.5m 56.2m 55.9m
Gen Alpha
62.8m 62.7m 62.6m 62.3m
62.8m
Indonesia’s ecommerce revenue index 100m
69.7m 69.7m 69.6m 69.6m 69.6m
29 1m
29.1m
1 33 6
33.6m 38.2m 42.8m 47.4m
0m
Nearly two-thirds (64%) of internet users in Indonesia Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
now shop online, a figure that’s surpassed the Asian and Source: RetailX, drawing on data from UN RetailX 2022
global shares since 2019. This is driving strong growth Population growth
in the ecommerce revenue index, which has risen to 427
Indonesia 1.1% 1.1% 1.1%
since the 2018 base and is also significantly higher than the Asia 1.1%
1
1%
1.0% 1.0%
Asian and global measures. Global
1.0% 1.0%
1.0% 1
1.0%
1.0%
0 1.0%
0.9%
The country’s GDP is also strong, with an average GDP
growth of more than 5% per annum[1], except during 0.9% 0.9%
Covid-19 in 2020. Projected growth is expected to be 2018 2019 2020 2021 2022
above the 5% mark each year for the next five years,
with President Joko Widodo, who has been in power Source: RetailX, drawing on data from UN RetailX 2022

Indonesia Indonesia 20k
Area: 1,904,569 km2 Asia
Global
Capital: Jakarta
Currency: Indonesian rupiah (IDR) 10k
Official language: Indonesian
Nationality: Indonesian
Government: Unitary presidential constitutional republic 0k
VAT: 10% | Reduced VAT: 0% 2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | INDONESIA © 2022 retailx.net, distributed by InternetRetailing.net
since being elected in July 2014, largely credited for the Percentage of internet users
country’s stability. Indonesia 2018 2019 2020 2021 2022
Asia 39% 47% 53%
Global 100%
Of the country’s 279mn population, 235mn are aged under
55, with a fairly similar split across the four generations.
This younger population is expected to be one of the 50%
main drivers of ecommerce growth in the short to available for 2021 and 2022
medium term. The country is also set to become one 0%
of the largest digital economies in Southeast Asia[2], with
around 40% of the market share in the region.
Although international players such as JD.com have a Indonesia 2018 2019 2020 2021 2022
strong presence, shoppers have embraced more local Asia 100%
34% 43% 50% 57% 64%
Global
ecommerce marketplaces such as Tokopedia and
Shopee, whose market shares are increasing.
50%
Indonesia is the largest economy in Southeast Asia,

making it an attractive focus for growth. Along with 0%
resilient economic growth, low government debt and
prudent fiscal management are also said to be key to
attracting international investment. Ecommerce revenue Index
Indonesia 500
A recent report by the Asian Development Bank[3] said that Asia 382
427
400
Indonesia’s economy is expected to grow by 5.4% in 2022 Global
and by 5% in 2023. However, inflation is also projected to 300

241 227
255
increase significantly before staying elevated into next year, 200 153
123
2
168
68
135
3 159 175
100 109
09
driven in part by high commodity prices and fuel prices. 100
0
[1] www.express.co.uk/comment/expresscomment/1689646/brexit-indonesia-cost-of-living-crisis-trading-economy-eu 2018 2019 2020 2021 2022
[2] https://uk.finance.yahoo.com/news/indonesia-b2c-e-commerce-markets-101300085.html Index 2018=100.
[3] www.adb.org/news/indonesia-economy-holding-well-2022-faces-headwinds-2023-adb Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | JAPAN © 2022 retailx.net, distributed by InternetRetailing.net
Japan Population structure by age group

Silent Gen
Baby Boomers
2018
127.1m
2019
126.8m
2020
126.4m
2021
126.0m
2022
125.5m
Gen X
24.2m 23.2m 22.0m 20.8m 19.6m
Although already huge, there’s still Millennials 100m
Gen Z 32.9m 32.8m 32.7m 32.6m 32.2m
greater potential in Japan’s ecommerce Gen Alpha
26.9m 26.8m 26.7m 26.8m 26.9m
50m
market, both at home and cross-border 19.9m 19.9m 19.9m 20.0m 19.9m
17.0m
.0
6.2m .0
17.0m
7.1m 17.0m
.0
8.0m 17.1m
8.9m 17.1m
9 7m
9.7m
0m
Japan sits within the top four ecommerce markets in Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
the world, behind China, the US and the UK. For 2022, Source: RetailX, drawing on data from UN RetailX 2022
it’s expected to register a 6.9% growth as shoppers shift Population growth

from offline to online. That’s a market size of $194.3bn,
Japan 1.1%
following a 5.2% compound annual growth rate between Asia 1.0%
1 0% 1.0%
1.0%
1 0% 1.0%
0.9%
0 9% 1.0%
0.9%
0 9%
1.0%
0.9%
2019 and 2021. It’s expected to grow by a further CAGR of Global
5.2% to reach $237.8bn by 2026.

-0.2% -0.3%
Around three-quarters of internet users shop online. -0.3% -0.3% -0.4%
However, that share has remained fairly static, rising only 2018 2019 2020 2021 2022
Japan
Capital: Tokyo Japan 50k
Currency: Japanese yen (JPY) Asia
Global 40k
Official language: Japanese
Nationality: Japanese 30k
Government: Unitary parliamentary 20k
constitutional monarchy 10k
0k
2018 2019 2020 2021 2022

four percentage points since 2020. This is most likely Percentage of internet users
due the country having a higher proportion of older Japan 2018 2019 2020 2021 2022
91% 92% 90%
consumers than in many other markets. Asia
Global
100%
Japan’s dense infrastructure offers huge potential, 50%

allowing easy access to ecommerce, an efficient logistics World Bank data not yet
infrastructure and speedy deliveries. Amazon Japan is can
deliver next-day to 95% of the country, for example. 0%
GlobalData’s 2022 Financial Services Consumer Survey Source: RetailX, drawing on data from the World Bank RetailX 2022
suggested that nearly 70% of Japanese consumers had

shopped online in the past month and only 8% said Percentage of internet users who shop online
they had never shopped online. Domestic retailers such Japan 2018 2019 2020 2021 2022
67% 69% 72% 74% 76%
as Rakuten and Mercari dominate the market, although Asia
Global
100%
international sites such as Amazon are gaining popularity.

50%
48% of smaller companies have already started, or are
considering, cross-border ecommerce, according to a
survey by the Japan External Trade Organisation. Such 0%
companies have taken advantage of a sharp decline Source: RetailX, drawing on data from Statista RetailX 2022
in the yen making Japanese products cheaper

overseas, as well as IT advances which make it easier to Ecommerce revenue Index
communicate with buyers and handle customs paperwork. Japan 300
Asia 255
Global 250 227
The scale of overseas opportunity is illustrated by figures 200 180
206
175
from the Ministry of Economy, Trade and Industry which 168
136
135
159
5
150
show that online sales to China hit $14.37bn in 2021, up 100
123
110
110
1
109
100
10% from 2020, while sales to the US grew by 26%. Luxury
items including accessories and watches are said to be 50
2018 2019 2020 2021 2022
leading the boom. Index 2018=100.

Annual change in revenue for the online ecommerce market (%) Preferred device for online shopping (%)
Japan, 2018-22 70% Japan, 2017-22
Total 59 Mobile Desktop
60%
50% 2017 2018 2019 2020 2021 2022
& Household Care 100%
Beverages 40% 38
35 36
Electronics 32
2 32
32
29
9
30% 28
8 26
Fashion 26
23
22 24
24
24
22 22
22
2
80% 39 43 44 45
18 20 46 47
Food 20% 16 14
18
14 6
18
14
16
14
4
Furniture 11
1
11
101 10
19
10
0 13 12
1 2
10% 70
9
8 8
7 8
7 60%
Media
2018 2019 2020 2021 2022
Average spending of the ecommerce eshopper (thousand USD)

61 57 56 55 54 53
20%
Japan, 2017-22 2.5
2.2
Total 2.0 0%
& Household Care 1.6 Source: Statista RetailX 2022
1.5 1.3
Beverages 1.2 1.2
Electronics 0.9 1.0
1 0.9 0.8 0.8 0.8 0.8
0 8 0.8
0
Fashion
Age distribution of ecommerce
06
0.6 0.5
6 0.7
0.7
0
Food 0.6 0.6 0.6 0.5
0.5 6
0.5
0 0.6
0
0.6
0.5 0.4
04 0.4
0 4
4 0.4
0 4
0.3
0.3
3 0.4
4 0.4
0 4 0.4
Furniture 0..3
0.3
0 .3 0.3
0..3
3 0.3
.3
3 0.3
0.3
Media 0
0.1 0.1 0.1 0.1 0.1 0.1
eshoppers
Toys, Hobby & DIY 2017 2018 2019 2020 2021 2022
Japan, 2021
24%
Annual revenue for the ecommerce market (bn USD) 19% 19%
Japan, 2017-22 250
215.1
Total
Beauty, Health, Personal 200 188.0 12%
& Household Care 142.6
150
Beverages 115.2
100
Fashion
Food 48.4 54.4
Furniture 50 29 1 35.6 6 35.4
5 38
38.2
382
32.7
25.3
18 2
9 27.2
19 8
2 2
21 5 27.5
27
27
22.2
2.2
18.0
1
18
8 5
0 22.0
24.6
22
260 25
2
15..3
.6
25.6
17.3
17
7 6
4
3 18-24 25-34 35-44 45-54 55-64
Media 11.7
14
11
1.7
1
4...7
97
.3
3.53 13.5
15
13
3.8
.45
5.4
3 4 15.3
15
145.3
5..7
11.4
6.7
6 .3
73
.14 19
9.264
.2
5.6 1 1 .4
14.
14.6
4
6.3 6.8
Toys, Hobby & DIY 0 years years years years years
2017 2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | SOUTH KOREA © 2022 retailx.net, distributed by InternetRetailing.net
South Korea Population structure by age group

Silent Gen
Baby Boomers
2018
51.2m
2019
51.2m
2020
51.3m
2021
51.3m
2022
51.3m
Gen X 50m 4.6m 4.4m 4 2m
4.2m 4 0m
4.0m 3 7m
3.7m
Mobile-first digital leader South Korea Millennials
Gen Z 13.7m 13.6m 13.5m 13.5m 13.4m
is one of best-connected ecommerce Gen Alpha

25m 12.4m 12.4m 12.3m 12.3m 12.3m
markets in the world 10.4m 10.3m 10.3m 10.4m 10.4m

7.6m
2.5m 7.6m
2.9m 7.6m
3.3m 7.6m
3.6m 7.6m
3.9m
0m
South Korea lies on the southernmost part of the Korean Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
peninsula, between the East China Sea and the Sea of Source: RetailX, drawing on data from UN RetailX 2022
Japan and south of heavily militarised North Korea. South Population growth
Korea is one of the most densely populated countries in 1.1%
South Korea 1.0%
1 0% 1.0%
1 0%
1.0% 1.0% 1.0% 1.0%
the world, with a population of 51.3mn living in an area of Asia 0.9%
0 9%
0.9% 0.9%
100,370 km2. Around 82% of that population lives in cities. Global
Its capital, Seoul, has a population of 10.3mn[1], with 16.5%

of the country’s population aged 65 and over[2]. Birthrates
0.2%
are at record lows, with no population growth expected at 0.1% 0.1% 0.1% 0.0%
all in 2022, well below the average for Asia. 2018 2019 2020 2021 2022
South Korea
Area: 100,370km2 GDP per capita (USD)
Capital: Seoul South Korea 40k
Currency: Won (KRW) Asia
Global
Official language: Korean 30k
Other languages spoken: English 20k

Government: Presidential republic
0k
2018 2019 2020 2021 2022

South Korea is one of the few countries to have Percentage of internet users
transformed itself from a low-income economy to a South Korea 2018 2019 2020 2021 2022
96% 96% 96%
high-income one, says the World Bank.[3] It is a leading Asia
Global
100%
digital economy, ranked number one on the online
participation index in 2020 and first in the world for 5G 50%
internet speeds. Key industries include the production of World Bank data not yet
semiconductors. Key local businesses include Samsung
and Hyundai alongside local retailers such as Coupang. 0%
com, SSG.com and yes24.com. Tourism, mining and Source: RetailX, drawing on data from the World Bank RetailX 2022
manufacturing are also key sectors.[4] In 2022, the country

has been affected by the global slowdown that has held Percentage of internet users who shop online
back demand for the products it exports. South Korea 2018 2019 2020 2021 2022
Asia 64% 68% 72% 74% 77%
100%
Global
Most (96%) South Koreans use the internet while 77% shop
online, a figure that has grown steadily from 64% in 2018. 50%
Rates of South Korean internet use puts this market
well ahead of the regional average, with ecommerce
revenues estimated at $124.2bn and per capita average 0%
online spending of $3.1k. Some 28.7% of retail sales Source: RetailX, drawing on data from Statista RetailX 2022
took place online in 2021, according to Invest Korea/

Statistics Korea, putting the market fifth in the world for Ecommerce revenue Index
ecommerce participation rates. This, says Invest Korea, has South Korea 300
Asia 255
been fostered by convenient online payments and fast and Global 250 227
flexible deliveries, including early morning timeslots. 200 175
168 164
159
59 170
150 138
135
Electronics, fashion and food are among popular
123
115
1
100 109
0
100
ecommerce categories, although fast growth seen
during the Covid-19 pandemic appears to have slowed
50
2018 2019 2020 2021 2022
Index 2018=100.
somewhat in 2022. This level of maturity means that while Source: RetailX, drawing on data from Statista RetailX 2022


South Korea, 2017-22 90% South Korea, 2017-22
Total 80% 74 77 Mobile Desktop
72
61 64 64
61 2017 2018 2019 2020 2021 2022
56 100%
Beverages 53
5
51 51
50% 47
46 46
Electronics 43
42 41 41 43
41
40% 39
38 37 37 38 80%
Fashion 33 33
3 3
34
Food 30
28
8 30
28 31 27 30
30% 25 24 55 59
Furniture 21 19
9 21
20
0 23
21 62 63 66
20% 17 19
16 17
7
16
6 18
8 69
Media 15
14
4 15 60%
2017 2018 2019 2020 2021 2022
Average spending of the ecommerce eshopper (thousand USD) 20% 45 41 38 37 34 31

South Korea, 2017-22 4
Total 0%
Beauty, Health, Personal 3.1 3.1
3 2.7 Source: Statista RetailX 2022
Beverages 2.2
2.0
Electronics 2

Fashion 1.2 1.2
Food 0 1.0 1.1
1 0
0.8
0.7
0 9
8
7 0.9
0.8
8 0.7
0.8
8
0.7
0.7 07
0.8
0
0.78 0.8
8 0.7
0.8
0.
0 8
eshoppers
Furniture 0.5
.5
5 0.5
0 5 0 5 0.5
0 6
..5
5 0.7
0.7
0.6
6 6
0.4
0 0.4
0.4
Media 0 .3
0.3
0.2
.2
2 0.4
0.3
0.2
2 02
0.2 0.2 0.2 0.2
Toys, Hobby & DIY 0
2017 2018 2019 2020 2021 2022 South Korea, 2021 25%
21%
Annual revenue for the eCommerce market (bn USD)
19%

119.5 124.2 12%
Total 120
Beauty, Health, Personal 100.9
100
Beverages 80 72.9
Electronics 63.1
60
Fashion
Food 40 36.0 37.2
23.9 28.4 24
24.3
43 24
24.6
4
Furniture 16 9
15.92 19
17.4
17 8
4 18.9
8 21.8
1 16.3
16
68 3 16.9
16
69
20 9.2
9.22 10.7
10
1 07
0.7 12.3
12
2 04
10.43 14.6
14
14 86
12.9 14.8
9 2 15.3
9 18-24 25-34 35-44 45-54 55-64
Media 9
6 2.9
2 ..5
2.5 9 8
3.7
3..7
3.27 8
5.3
5..4
.3
4.9
4
4.43
9
4 7.0
7..0
4.90 7.
7.6
7
5.27
..6
6
2.1
2.
2 .1
.1
1.99 years years years years years
Toys, Hobby & DIY 0
2017 2018 2019 2020 2021 2022

Annual change in revenue for the online ecommerce market (%) Preferred shopping channel for
South Korea, 2018-22 60% ecommerce multichannel shoppers (%)
Total 50% 50 South Korea, 2017-22
& Household Care 40% Online Offline
34
33 36 34
Beverages 30
0
Electronics 30% 25 27 100% 2017 2018 2019 2020 2021 2022
Fashion 22 21 21
20% 9
18
8 18
Food 16
14
14 15
145 15 14 22 25 28
10 12
12 11 80% 32
Furniture 10% 10 90 10 8
6
37 37
Media 5 4 5 5
3
4
1
Toys, Hobby & DIY 0% 60%
2018 2019 2020 2021 2022
40% 78 75
Number of ecommerce users (in millions)
72 68 63 63
20%
40 38.2 39.5
Total 36.9 0%
35 31.2 32.8 32.7
31.
31.2
1. Source: Statista
28.8
8. RetailX 2022
30 27.1
26.2
.
Beverages 24.2 26.0
25 23.8
8 23.8 22
Electronics 19.8
19.7
21.8
21.6
19.0
21.2 20
20.8
05
19
19.58 20 1
20.88
18
86 9
Gender split of ecommerce eshoppers
Fashion 20 17.0 17.0 17
7
17.6
Food 15.4
14 15.5
15
5.5
45 15 7
15.7 15.6
15 21
12
12.7 7 14 1
14.1
10.9 12.3 13.9
11.6
10.
10.9
0.
Furniture 9.6 98
9.8
9.2 10 8
10.8
10.1 South Korea, 2021
10 8.6
7
7.4 8.1
8.6
1
7.6
6 8.9
8 9
8.4
.4
4
Media ..4
7.0 4
.0
0
Toys, Hobby & DIY 5 female male
2017 2018 2019 2020 2021 2022
the South Korean ecommerce market is growing in line South Korean multichannel shoppers have a preference for
with global averages, it is growing more slowly than the buying offline (63%) rather than online (37%), while online
Asian market as a whole. shoppers heavily prefer buying via mobile devices (69%) 50% 50%
over desktops (31%). Indeed, 71% of online transactions
Shoppers of all ages buy online in this market, with a are via mobile, according to Pymnts.com.[5]
quarter (25%) of ecommerce shoppers aged between 45
[1] www.worldometers.info/world-population/south-korea-population/
and 54, followed by the 35 to 44-year-old age group (23%) [2] www.koreaherald.com/view.php?ud=20210929000712
[3] www.worldbank.org/en/country/korea/overview#1
and those aged between 55 and 64 (21%). [4] https://www.investkorea.org
[5] www.pymnts.com/news/cross-border-commerce/2022/pymnts-intelligence-meeting-the-challenges-of-the-south-
korean-ecommerce-market/

GLOBAL ECOMMERCE REPORT 2022 | VIETNAM © 2022 retailx.net, distributed by InternetRetailing.net
Vietnam Population structure by age group

Silent Gen
Baby Boomers
2018
95.5m
2019
96.4m
2020
97.3m
2021
98.1m
2022
98.9m
Gen X 100m
3.9m 3.6m 3.4m 3.0m
Strong domestic ecommerce growth and
4.1m 15.5m
Millennials 16.3m 16.1m 15.9m 15.7m
Gen Z 20.2m 20.1m 20.0m
a growing digital economy mean that
20.3m 20.3m
Gen Alpha
50m 24.4m 24.5m
24.6m 24.4m 24.4m
in Southeast Asia, Vietnam is emerging 20.8m 20.8m 20.7m 20.6m 20.4m
second only to Indonesia 0m

9 3m
9.3m 10 9m
10.9m
9 12.4m
12 4 14.0m 15.5m
Ecommerce continues to boom in Vietnam, with more
domestic retailers entering the online retail market for Population growth
the first time. Such an increased appetite to embrace Vietnam 1.0%
1.1% 1.0% 1.0%
1.0%
ecommerce is shown by the fact that the number of Asia
Global
1.0% 1.0% 1.0%
1.0% 0.9%
Vietnamese sellers on Amazon has risen 80%[1] since 0.9%
September 2020. Local traders sold nearly 10mn ‘Made 0.9%
0 9%
0.9%
0.9%
in Vietnam’ products to global buyers via the marketplace 0.8%
between September 2021 and August 2022.
2018 2019 2020 2021 2022
Vietnam GDP per capita (USD)

Area: 331,699 km 2 Vietnam 20k
Asia
Capital: Hanoi Global
Currency: Vietnamese dong (VND)
Official language: Vietnamese 10k
Nationality: Vietnamese
Government: Unitary Marxist-Leninist one-party
socialist republic 0k
VAT: 15% | Reduced VAT: 10% 2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | VIETNAM © 2022 retailx.net, distributed by InternetRetailing.net
The country is expected to have the highest rate of digital Percentage of internet users
economy growth in Southeast Asia between 2022 and Vietnam 2018 2019 2020 2021 2022
69% 68% 70%
2025, growing by 31%[2] according to e-Conomy SEA 2022. Asia
Global
100%
That compares to 19% for Indonesia. Eretail’s share of the
total retail sales of goods and services in 2021 was 7%[3], up 50%
27% from 2020. Eretailing spend is expected to grow by World Bank data not yet
20% this year to $16.4bn, compared to $5bn in 2015.
0%
This rate of growth is being fuelled by the Vietnamese Source: RetailX, drawing on data from the World Bank RetailX 2022
consumers’ hunger for digital engagement, with Meta

saying that virtual reality adoption rates, at 29%, are Percentage of internet users who shop online
the highest in Southeast Asia. Vietnam 2018
35%
2019
41%
2020
46%
2021
52%
2022
58%
Asia 100%
Global
The country has a high rate of internet adoption, both in
city and rural areas, as well as an above-average share of
50%
internet users who shop online (58% as of 2022). Vietnam
also has the highest average volume of cross-border
online purchases in Southeast Asia, at 104 orders per 0%
year[4], compared to the regional average of 66. Source: RetailX, drawing on data from Statista RetailX 2022
Despite such high ecommerce adoption, there are still Ecommerce revenue Index
challenges. For instance, cash on delivery payments for Vietnam 350
digital transactions still account for 11%[5] of the total Asia
Global
300 295
256 255
spend, so online payments still need to improve. 250 227
2
200 190 175
168
6 159
[1] https://e.vnexpress.net/news/industries/number-of-vietnamese-sellers-on-amazon-up-80-over-past-year-4530366.
html 150 134
123
12
23
2 135
[2] https://e.vnexpress.net/news/business/data-speaks/vietnam-digital-economy-growth-expected-to-be-highest-in- 100 109
0
southeast-asia-4530127.html 100
[3] https://en.vietnamplus.vn/eretailing-to-grow-20-this-year/239588.vnp
[4] https://e.vnexpress.net/news/business/data-speaks/vietnam-tops-region-in-online-cross-border-purchase- 50
volume-4486706.html 2018 2019 2020 2021 2022
[5] https://en.vietnamplus.vn/more-favourable-mechanisms-needed-to-attract-firms-engagement-in- Index 2018=100.
ecommerce/243022.vnp Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | EUROPE © 2022 retailx.net, distributed by InternetRetailing.net
Europe Population structure by age group

Silent Gen
Baby Boomers
2018
756.6m
2019
757.4m
2020
758.0m
2021
758.2m
2022
758.0m
Gen X 90.3m 84.9m 79.1m 73.4m 67.4m
The continent has so far been resilient Millenials
Gen Z 500m
192.3m 190.0m 188.1m 186.3m 184.6m
to both Covid-19 and global events due Gen Alpha 158.7m 158.6m 158.2m 157.7m 157.2m
to stable governance and high incomes 146.6m 146.9m 147.3m 147.7m 148.2m
119.7m 120.1m 120.1m 120.1m 120.2m
48.9m 57.1m 65.1m 72.8m 80.4m
0m
While we should not underestimate Europe being a Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millenials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
continent of uneven development and one that still has Source: RetailX, drawing on data from UN RetailX 2022
vast areas of deprivation, it is also home to many of the Population growth

globe’s most advanced economies. The European Single
1.1%
Market makes it relatively easy for European Union (EU)
1.0% 1.0% 1.0% 1.0%
Europe
and European Economic Area (EEA) nations to trade across Global
borders. Even nations that are not part of the EU or EEA

– notably the United Kingdom and Switzerland – have
businesses that are tightly integrated into the wider 0.1% 0.1% 0.1% 0.0% 0.0%
European economy. 2018 2019 2020 2021 2022
Against this macroeconomic backdrop and with Europe Source: RetailX, drawing on data from UN RetailX 2022
early to roll out vaccines against Covid-19, as 2021 ticked GDP per capita (USD)
over into 2022, it at first seemed likely that the retail story 40k
Europe
of the year would be one of recovery. Instead, when Russia Global
invaded Ukraine, a new crisis beckoned. 30k
20k
Countries dependent on Russian energy supplies, notably
Germany, had to balance the day-to-day considerations 10k
of keeping the lights on and industry moving with 0k

wider strategic and humanitarian concerns. Since the 2018 2019 2020 2021 2022

invasion by Russian forces, more than 7mn Ukrainian Percentage of internet users
refugees have been recorded across Europe, with Poland Europe 2018 2019 2020 2021 2022
alone having taken in 1.4mn people.[1] While this has put a Global 100%
80% 83% 85%
huge strain on European nations, we should not lose sight

of this part of the world being blessed with a mix of strong
50%
institutions, sophisticated infrastructure and reserves World Bank data not yet
of underlying wealth to help it cope. The GDP per capita
of the European nations tracked in RetailX research is a 0%
little more than $34k against a global figure of $14.4k. Source: RetailX, drawing on data from the World Bank RetailX 2022
At least nine out of every ten European citizens goes Percentage of internet users who shop online
online. Of these, 59% shop online and, while the upsurge Europe 2018 2019 2020 2021 2022
in ecommerce due to the pandemic has not remained, as Global 100%
46% 51% 54% 56% 59%
many had predicted, ecommerce growth remains steady.

Those least-likely to go online to shop are, by and large, older
consumers, and when looking at ecommerce usage it’s worth 50%
noting that Europe has more of these consumers than other

parts of the world. In the comparatively near future, an ageing 0%
population will put a strain on resources and on younger Source: RetailX, drawing on data from Statista RetailX 2022
generations as Baby Boomers reach their dotages.
Ecommerce revenue Index
Finally, we should add a note about why 225
we have not provided extra graphics on the Europe 200 197
Global
countries we have featured. This is because 175
174
159
175
these are covered in far more detail in both 150

148
135
our RetailX Europe 2022 Ecommerce Region 125 111
109
09
100
Report and in reports focused on countries 100
and European sub-regions.[2] 75
2018 2019 2020 2021 2022
Index 2018=100.
[1] https://reliefweb.int/report/poland/refugees-ukraine-poland-profiling-update-august-2022
[2] https://retailx.net/countries/ Source: RetailX, drawing on data from Statista

GLOBAL ECOMMERCE REPORT 2022 | FRANCE © 2022 retailx.net, distributed by InternetRetailing.net
France Population structure by age group

Silent Gen
Baby Boomers
2018
65.0m
2019
65.1m
2020
65.3m
2021
65.4m
2022
65.6m
Gen X 8.5
8.5m 8.
8.1m 7.6m 7.1m 6.6m
State intervention has shielded French Millennials
Gen Z
50m
16.1m 16.0m 15.9m 15.8m 15.7m
citizens from the cost-of-living crisis, Gen Alpha

25m
12.6m 12.6m 12.6m 12.6m 12.6m
11.6m
letting the economy grow modestly 11.5m 11.5m 11.5m 11.6m
11.7m
11.7 11.7m
. 11.7m 11.7m 11.7m
4 5m
4.5m 5 2m
5.2m 6 0m
6.0m 6 7m
6.7m
7 74
7.4m
0m
Despite turbulence in the global economy, France’s Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
ecommerce sector is mature, sophisticated and thriving. Source: RetailX, drawing on data from UN RetailX 2022
Its leading companies include the supermarket Carrefour, Population growth

which RetailX research in 2022 ranked as among Global Elite
France 1.1%
retailers because of its innovative approach.
1.0% 1.0% 1.0% 1.0%
Europe
Global
Turning to the wider economy, France enjoyed post-

pandemic growth of 6.8% in 2021.[1] This was, arguably,
0.2% 0.2% 0.2% 0.2%
in part thanks to state intervention. The second-biggest
0.2%
0.1% 0.1% 0.1% 0.0%
economy in the eurozone, France also has the highest state
0.0%
2018 2019 2020 2021 2022
France
Capital: Paris France 50k
Currency: euro (EUR) Europe
40k
Global
Official language: French
30k
Nationality: French
Government: Semi-presidential republic 20k
VAT: 20% | Reduced VAT: 5.5% 10k
0k
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | FRANCE © 2022 retailx.net, distributed by InternetRetailing.net
spending. The authorities have intervened, for example, Percentage of internet users
to cushion consumers from energy price rises linked to the France 2018 2019 2020 2021 2022
82% 83% 84%
war in Ukraine and will continue to do so through 2023.[2] Europe
Global
100%
In the third quarter of 2022, France’s economy grew 50%

by 0.2%. Bank of France Governor Francois Villeroy de World Bank data not yet
Galhau is also a policy maker at the European Central
Bank. While he saw no reason to revise downwards his 0%
forecast for 2.6% GDP growth in 2022 he also warned of Source: RetailX, drawing on data from the World Bank RetailX 2022
signs of weakness in the eurozone as a whole.[3]

In April 2022, French voters re-elected Emmanuel France 2018 2019 2020 2021 2022
65% 68% 70% 74% 76%
Macron of the centrist LREM as president after a runoff Europe
Global
100%
against Marine Le Pen of the far-right National Rally party.
Macron faces huge challenges, not least because, following
50%
elections in June that produced the country’s first hung
parliament since 1988, he does not command a majority
in the National Assembly. 0%
The economic challenges Marcon faces include a rising
trade deficit. In September 2022, this was $17.5bn, a record. Ecommerce revenue Index
More positively, France is a nation of startups. In 2019, France 225
Macron identified a goal of having 25 French ‘unicorns’ Europe 200 190
Global
(a private company valued at $1bn or more) by 2025. 171 17
175
175 159
This was reached in January 2022, when robotics company 150
148
135
Exotec raised $335mn in funding, bringing its valuation 125 111
110
0
109
09
100
close to $2bn. 100
[1] https://economy-finance.ec.europa.eu/economic-surveillance-eu-economies/france/economic-forecast-france_en 75
[2] www.lemonde.fr/en/france/article/2022/09/14/france-to-limit-energy-price-hikes-to-15-in-2023_5996945_7.html
2018 2019 2020 2021 2022
Index 2018=100.
[3] www.reuters.com/markets/europe/french-economy-grows-02-third-quarter-insee-2022-10-28/
Source: RetailX, drawing on data from Statista

GLOBAL ECOMMERCE REPORT 2022 | GERMANY © 2022 retailx.net, distributed by InternetRetailing.net
Germany Population structure by age group

Silent Gen
Baby Boomers
2018
83.1m
2019
83.5m
2020
83.8m
2021
83.9m
2022
83.9m
Gen X 12.5m 11.8m 11.0m 10.3m 9.5m
While an over-reliance on Russian Millennials
Gen Z 23.0m 22.7m 22.4m 22.3m 22.2m
50m
gas has left the country scrabbling for Gen Alpha
16.2m 16.3m 16.4m 16.4m 16.3m
15.0m 15.2m 15.3m 15.4m 15.6m

alternatives, the digital economy is sound
0m
4 66m
4.6m
11.8m 5 5m
5.5m
12.0m 6 4m
6.4m
12.2m 7 2m
7.2m
12.2m
8 0m
8.0m
12.3m
The German economy is the largest in the European Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
Union and made a good recovery from the global Source: RetailX, drawing on data from UN RetailX 2022
challenges of Covid-19 and Brexit. GDP per capita is high Population growth
($49.6k), well above global, EU and eurozone averages. In 1.1%
Germany 1.0% 1.0% 1.0%
2020, Germany’s population declined for the first time Europe
1.0%
in more than a decade. Studies suggest the population – Global

0.6%
currently 83.4mn – will have decreased by 14% by 2060. 0.5%
0.3%
0.1% 0.1% 0.1%
0.1% 0 0%
0.0%
As gas supplies decline, the country faces an energy 0 0%
-0.0%
crisis. Businesses and householders are being asked to 2018 2019 2020 2021 2022
Germany
Capital: Berlin Germany 60k
Currency: euro (EUR) Europe 50k
Global
Official language: German 40k
Other languages spoken: Danish, Frisian, Sorbian, Romani 30k
Nationality: German 20k
Government: Federal parliamentary republic
10k
0k
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | GERMANY © 2022 retailx.net, distributed by InternetRetailing.net
ration usage and it is difficult to see when, if ever, the Percentage of internet users
Nord Stream 2 pipeline from Russia will once again bring Germany 2018
87%
2019
88%
2020
89%
2021 2022
gas to Germany. Instead, the government is focusing Europe

Global
100%
on building liquefied natural gas terminals.[1] It is also

restarting coal-fired power plants to ease the pressure on 50%
energy supplies over the winter of 2022-23.[2] World Bank data not yet
Looking ahead, the outlook for the German economy is 0%
unusually gloomy. With its energy-intensive industries Source: RetailX, drawing on data from the World Bank RetailX 2022
under pressure, it is predicted the country’s GDP will

contract by 0.6% in 2023.[3] Percentage of internet users who shop online
Germany 2018 2019 2020 2021 2022
70% 71% 74% 77% 80%
The German shopper is digitally savvy. Of the more Europe
Global
100%
than 90% of Germans who are online, 80% are internet
shoppers. Much like the Netherlands, Germans favour
50%
bank transfer (28%) over other forms of online
payment, thanks to the rise of services such as SOFORT
and iDEAL. E-wallets are at 23% and cards are at 19%. 0%
The 2021 elections left the country with a coalition,
governed by the chancellor Olaf Scholz, between the Ecommerce revenue Index
Social Democrats (SPD), Greens and the Free Democrats Germany 225
(FDP). All members of the coalition have made clear Europe 200 197
Global 178
they want to see a decade of digital and social renewal, 174
74 175
175
159
with plans already in place to address digital skills and the
143
150 135
digitalisation of business. 125 111
110
0
109
09
100
100
[1] https://abcnews.go.com/International/wireStory/germanys-1st-lng-terminal-takes-shape-north-sea-93327182 75
[2] www.reuters.com/business/energy/germany-fires-up-extra-coal-power-capacity-plug-winter-supplies-2022-11-02/ 2018 2019 2020 2021 2022
[3] https://economy-finance.ec.europa.eu/economic-surveillance-eu-economies/germany/economic-forecast- Index 2018=100.
germany_en Source: RetailX, drawing on data from Statista

GLOBAL ECOMMERCE REPORT 2022 | ITALY © 2022 retailx.net, distributed by InternetRetailing.net
Italy Population structure by age group

Silent Gen
Baby Boomers
2018
60.6m
2019
60.5m
2020
60.4m
2021
60.4m
2022
60.2m
Gen X 9.6m 9.1m 8.5m 8.0m 7.4m
After bouncing back well from the
50m
Millennials 16.0m
16.3m 16.2m 16.1m 16.1m
Gen Z
pandemic, war in Ukraine and political Gen Alpha
25m 13.4m 13.4m 13.4m 13.4m 13.5m
turmoil threaten Italy’s economy 9.8m 9.8m 9.9m 9.9m 9.9m

8.5m
3.0m 8.6m
3 5m
3.5m 8.6m
3 9m
3.9m 8.6m
4
4.4m
4m 8.7m
4 8m
4.8m
0m
In September 2022, following the fall of the government Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
led by technocrat banker Mario Draghi, Italians went to Source: RetailX, drawing on data from UN RetailX 2022
the polls. The snap election brought a centre-right Population growth

coalition to power, led by Giorgia Meloni’s Brothers of 1.1%
Italy 1.0% 1.0% 1.0%
Italy, a radical-right party with roots in neo-fascism. Europe
1.0%
An election that, it was hoped, would restore international Global
market confidence instead created widespread disquiet.

0.1% 0.1% 0.1% 0.0%
Italy was the first country in Europe to be hit by the -0.1% -0.1% -0.2% -0.2%
0.0%
-0.2%
coronavirus pandemic. Its economy suffered a sharp 2018 2019 2020 2021 2022
Italy
Capital: Rome Italy 40k
Currency: euro (EUR) Europe
Global 30k
Official language: Italian
Nationality: Italian 20k
Government: Parliamentary republic
0k
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | ITALY © 2022 retailx.net, distributed by InternetRetailing.net
downturn in 2020 before recovering in 2021 as disposable Percentage of internet users

income grew and confidence improved, according to Italy 2018 2019 2020 2021 2022
74% 76% 70%
Banca d’Italia figures[1]. Early in 2022, the bank warned Europe
Global
100%
that war in Ukraine represented an increase in the risks to

financial stability through a slowdown in economic activity 50%
and rising interest rates. With energy prices rising, World Bank data not yet
the new government has pledged to double its gas
production yet it won’t be easy for the country to move 0%
away from its recent reliance on supplies from Russia.[2] Source: RetailX, drawing on data from the World Bank RetailX 2022
Whatever its electoral volatility, economic challenges and Percentage of internet users who shop online
the perennial problems caused by a pronounced north- Italy 2018 2019 2020 2021 2022
48% 52% 55% 59% 61%
south divide, Italy is a major European market. Italy is Europe
Global
100%
both home to many leading retail brands, notably

in the luxury sector, and attractive to foreign-based
50%
retailers looking to expand overseas. It’s a highly
educated country where 99.6% of students learn English.[3]
0%
While Italy’s economy unexpectedly grew over the Source: RetailX, drawing on data from Statista RetailX 2022
summer, there are fears it is heading for recession.[4]

Italy has an ageing society. World Bank figures show that Italy 300
264
over the last decade, the proportion of over 65s in the Europe
250 227
Global
country has steadily increased, from 20% in 2010 to 200
197
177 17
175
23% in 2020. By contrast, 19.1% of Europeans were 65 or
174
148 159
150 135
older in 2021, according to Indexmundi figures. 100
121
111
109
09
100
[1] www.bancaditalia.it/media/notizia/financial-stability-report-no-1-2022/ 50
[2] www.reuters.com/business/energy/new-italian-govt-aims-double-national-gas-production-2022-10-27/ 2018 2019 2020 2021 2022
[3] www.statista.com/statistics/1080527/high-school-students-learning-foreign-languages-in-italy/ Index 2018=100.
[4] https://capital.com/italy-recession-growth-inflation-gas-dependence-consumer-spending Source: RetailX, drawing on data from Statista

GLOBAL ECOMMERCE REPORT 2022 | NORWAY © 2022 retailx.net, distributed by InternetRetailing.net
Norway Population structure by age group

Silent Gen
Baby Boomers
2018
5.3m
2019
5.4m
2020
5.4m
2021
5.5m
2022
5.5m
Gen X 0.6m 0.5m 0.5m 0.5m 0 4m
0.4m
This rich nation has embraced Millennials
Gen Z
4m 1.2m 1.2m 1.2m 1.2m 1.2m
ecommerce as it looks forward to a Gen Alpha 1.1m 1.1m 1.1m 1.1m 1.1m
2m 1.1m 1.1m
digitally enabled, post-carbon future 1.1m 1.1m 1.1m
1.0m 1.0m 1.0m 1.0m 1.0m
0.4m 0.4m 0.5m 0.6m 0.6m
0m
Norway is one of Europe’s richest nations, with a GDP per Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
capita of a $76k. This is down to its energy wealth. In the Source: RetailX, drawing on data from UN RetailX 2022
1960s, oil was found in Norwegian waters under the North Population growth
Sea and the country has also benefited from its natural
Norway 1.1% 1.0% 1.0% 1.0%
gas reserves. In 1990, the government established the Europe 1.0%
0.8% 0.8%
Government Pension Fund Global, also known as the Oil Global 0.8% 0.8% 0.8%
Fund, a sovereign wealth fund investing surplus petroleum

revenues. The value of the Oil Fund passed $1tn in 2017.
Following the Nordic model, Norway is a highly taxed 0.1% 0.1% 0.1% 0.0% 0.0%
country with high levels of social welfare. 2018 2019 2020 2021 2022
Norway
Capital: Oslo Norway 80k
Currency: Norwegian krone (NOK) Europe
Global 60k
Languages: Bokmal Norwegian,
Nynorsk Norwegian 40k
Nationality: Norwegian
Government: Parliamentary constitutional monarchy 20k
0k
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | NORWAY © 2022 retailx.net, distributed by InternetRetailing.net
In the years ahead, Norway’s wealth may be needed as Percentage of internet users
the global economy shifts to a post-carbon age. This Norway 2018 2019 2020 2021 2022
96% 98% 97%
massive transition to a greener economy is a big issue in Europe
Global
100%
Norway. In the general election of September 2021, the

Social Democratic Labour Party won the largest number 50%
of votes. Labour’s leader, Jonas Gahr Støre, hoped to World Bank data not yet
form a majority government in coalition with the agrarian
Centre Party and the Socialist Left Party. But the latter, 0%
which opposes further oil and gas exploration, left talks. Source: RetailX, drawing on data from the World Bank RetailX 2022
Støre formed a minority government[1] but the future of

the energy sector and global heating will again be live Percentage of internet users who shop online
issues when Norway next goes to the polls, in 2025. Norway 2018
70%
2019
73%
2020
75%
2021
79%
2022
81%
Europe 100%
Global
Nearly all Norwegians can access the internet. Norwegians
are happy to shop online, with 81% of people also happy
50%
to buy goods and services online.
This digital adoption is captured in a report 0%

produced as part of research towards the European Source: RetailX, drawing on data from Statista RetailX 2022
Commission’s Digital Economy and Society Index

(DESI) 2021[2]. This tracks “digital competitiveness in Ecommerce revenue Index
the areas of human capital, broadband connectivity, Norway 225
the integration of digital technologies by businesses Europe
Global
200 197
174 175
and digital public services”. A mini-report on 175 159
170
151
Norway reveals it to be among the most digitally 150 142
135
sophisticated countries in Europe,[3] broadly on a par 125 111
109
9
09
100
with its Nordic neighbours and the Netherlands. 100
75
[1] www.worldoil.com/news/2021/10/8/norway-s-labor-center-agree-to-form-pro-oil-minority-coalition 2018 2019 2020 2021 2022
[2] https://digital-strategy.ec.europa.eu/en/policies/desi Index 2018=100.
[3] https://digital-strategy.ec.europa.eu/en/policies/desi-norway Source: RetailX, drawing on data from Statista

GLOBAL ECOMMERCE REPORT 2022 | RUSSIA © 2022 retailx.net, distributed by InternetRetailing.net
Russia Population structure by age group

Silent Gen
Baby Boomers
2018
145.7m
2019
145.9m
2020
145.9m
2021
145.9m
2022
145.8m
Gen X 12.8m 11 9m
11.9m 11 0m
11.0m 10 0m
10.0m 9 0m
9.0m
The world’s largest country has become Millennials
Gen Z 100m
36.7m 36.0m 35.5m 35.1m 34.5m
something of an international pariah, Gen Alpha 30.6m 30.5m 30.2m 29.9m 29.6m
31.4m 31.5m
yet its ecommerce continues to grow 31.4m 31.3m 31.3m
22.9m 23.0m 23.0m 22.9m 22.8m
11.3m 13.1m 14.9m 16.6m 18.4m
0m
The invasion of neighbouring Ukraine, which Russia Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
embarked upon in February 2022 has, for all the wrong Source: RetailX, drawing on data from UN RetailX 2022
reasons, been the single-most significant event influencing Population growth

the year’s global economic activity. 1.1%
Russia 1.0% 1.0% 1.0% 1.0%
Europe
While the invasion has been condemned by much of the Global
international community, the majority of which has rallied

to Ukraine’s support, Russia has seemingly thus far 0.1%
0.1%
1% 0.1% 0.1%
0.0% 0 0%
been able to withstand the economic sanctions levied -0.0%
-0 0% 0.0%
-0.1%
0 1%
against it by the USA, the EU, the UK and others. 2018 2019 2020 2021 2022
Russia
Capital: Moscow Russia 40k
Currency: Russian ruble (RUB) Europe
Global 30k
Official language: Russian
Other languages spoken: varies by region 20k
Nationality: Russian
Government: Federal semi-presidential 10k
constitutional republic
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | RUSSIA © 2022 retailx.net, distributed by InternetRetailing.net
In Russia’s favour is the sheer size of its territory and Percentage of internet users
population (145.8mn, the world’s ninth-largest), along with Russia 2018 2019 2020 2021 2022
80% 82% 85%
the rich diversity of the resources it can draw on, including Europe
Global
100%
oil and natural gas. The International Monetary Fund

ranks Russia’s economy as the world’s ninth-largest by 50%
GDP and, in 2021, Russia had the world’s twelfth-largest World Bank data not yet
ecommerce sector. Moreover, with 23% of the population
under the age of 18, the new generation is likely to adapt to 0%
ecommerce as an element of everyday life. Source: RetailX, drawing on data from the World Bank RetailX 2022
This year, it may be difficult to get accurate figures, Percentage of internet users who shop online
allowing for elements of propaganda. However, Russia Russia 2018
38%
2019
40%
2020
43%
2021
45%
2022
46%
itself claims that ecommerce has increased in 2022.[1] Europe
Global
100%
Along with hundreds of other major Western brands,

Amazon has suspended operations in Russia, although
50%
it remains to be seen if this mass withdrawal will be
permanent. According to reports, Russian ecommerce
sites such as Wildberries and Ozon have been able to 0%
acquire Western branded items from countries that are Source: RetailX, drawing on data from Statista RetailX 2022
not participating in the sanctions, such as Turkey.[2]

While most of the big players in Russian ecommerce are Russia 225
207
around 20 years old, including Wildberries (launched Europe
Global
200 197
19
176
174
4 175
2004), Ozon (1998), DNS (1998) and Utkonos (2000) 175
152 159
148
48
and have established consumer recognition and trust, 150
135
security remains an issue, with anxiety around fraud in 125
100
112
2
111
1
109
09
particular affecting both customers and merchants. 100
75
[1] https://russoft.org/en/news/russian-e-commerce-up-50-in-h1-2022/ 2018 2019 2020 2021 2022
[2] www.euractiv.com/section/global-europe/news/russian-e-commerce-firm-opens-turkish-office-to-help-goods- Index 2018=100.
flow-to-home-market/1 Source: RetailX, drawing on data from Statista

GLOBAL ECOMMERCE REPORT 2022 | UNITED KINGDOM © 2022 retailx.net, distributed by InternetRetailing.net
United Kingdom Population structure by age group

Silent Gen
Baby Boomers
2018
67.1m
2019
67.5m
2020
67.9m
2021
68.2m
2022
68.5m
Gen X 8.2m 7.7m 7.2m 6.7m 6.3m
For all of its current problems, both Millennials
Gen Z
50m 15.9m 15.8m 15.7m 15.6m 15.5m
external and self-inflicted, the UK Gen Alpha 13.2m 13.2m 13.2m 13.2m 13.2m
25m 13.7m 13.8m
remains a wealthy country 13.4m 13.5m 13.6m
11.6m 11.7m 11.7m 11.8m 11.8m
4.8m 5.6m 6.4m 7.2m 8.0m
0m
Prior to the Brexit referendum of 2016, the UK was widely Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
regarded as a stable and pragmatic country, albeit Source: RetailX, drawing on data from UN RetailX 2022
one with a seam of Euroscepticism in its politics. Fast Population growth

forward to October 2022 and Rishi Sunak became the
United Kingdom 1.1%
country’s third prime minister within a two-month period,
1.0% 1.0% 1.0% 1.0%
Europe
succeeding Liz Truss and Boris Johnson. While the UK’s Global
politicians are reluctant to discuss Brexit, Britain leaving

0.6% 0.6% 0.5% 0.5% 0.4%
the European Union has much to do with this churn.
According to the Office for Budget Responsibility , 0.1% 0.1% 0.1% 0.0% 0.0%
Brexit represents a permanent 4% hit to the economy.[1] 2018 2019 2020 2021 2022
United Kingdom
Capital: London United Kingdom 50k
Currency: pound sterling (GBP) Europe
40k
Global
Official language: English
30k
Other languages spoken: Scots, Scottish Gaelic, Welsh
Nationality: English 20k
Government: Parliamentary constitutional monarchy 10k
0k
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | UNITED KINGDOM © 2022 retailx.net, distributed by InternetRetailing.net
In less extraordinary times, the country might have been Percentage of internet users
better placed to withstand such a shock. But Brexit United kingdom 2018 2019 2020 2021 2022
90% 92% 94%
arrived in the wake of years of austerity and was Europe
Global
100%
followed by the pandemic, the war in Ukraine and the

return of inflation. It is hardly surprising that, as we went 50%
to press, more moderate Conservatives were flying a kite World Bank data not yet
for the idea of a “Swiss-style” deal with the EU.[2]
0%
This idea has been officially rejected and causes apoplexy Source: RetailX, drawing on data from the World Bank RetailX 2022
among certain Conservatives, yet it’s difficult to see

how the current situation is sustainable. Polls suggest Percentage of internet users who shop online
that 56% of voters, including one in five who voted United kingdom 2018 2019 2020 2021 2022
74% 76% 79% 81% 81%
for Brexit, now think it was a mistake to leave the Europe
Global
100%
EU.[3] However, because of the political climate, it seems

likely any changes to the status quo will be after the next
50%
election, which can be held no later than January 2025.
In the meantime, it is worth remembering that the UK 0%

remains one of the world’s biggest economies. Although Source: RetailX, drawing on data from Statista RetailX 2022
inequality is an issue, GDP per capita is relatively high,

at $45.9k against an overall European figure of $31.2k. Ecommerce revenue Index
Turning specifically to multichannel retail, the country has United Kingdom 225
been an innovator. Among the 98% of the population Europe
Global
200 197
174 175
that’s online, 81% also shop online. While few would 175 159 155
148
doubt the UK faces huge challenges, it has underlying 150 135
127
137
strengths too. 125
100
111
9
104
4
100
[1] www.theguardian.com/business/2022/nov/13/truss-brexit-covid-who-is-really-to-blame-for-the-tories-fiscal-hole
[2] www.theguardian.com/politics/2022/nov/23/jeremy-hunt-denies-briefing-that-uk-wants-swiss-style-ties-with-eu 75
[3] https://yougov.co.uk/topics/politics/articles-reports/2022/11/17/one-five-who-voted-brexit-now-think-it-was- 2018 2019 2020 2021 2022
wrong-d
Index 2018=100.
Source: RetailX, drawing on data from Statista

GLOBAL ECOMMERCE REPORT 2022 | MIDDLE EAST © 2022 retailx.net, distributed by InternetRetailing.net
Middle East Population structure by age group

Silent Gen
Baby Boomers
2018
331.1m
2019
336.3m
2020
341.4m
2021
346.6m
2022
351.8m
Gen X 10.4m 9.8m 9.0m 8.3m
40.8m 74
7.4m
4m
40.1m
The move away from oil incomes and the 42.4m 42.0m 41.4m
67.3m 66.9m 66.4m
Gen Z
changing attitudes of young people make Gen Alpha 200m
87.0m 87.3m 88.0m 88.3m 88.8m
change a constant factor in this region 85.2m 85.1m 84.9m 84.9m 84.9m
38 8
38.8m 45.2m 51.6m 58.2m 64.9m
0m
The Middle East is a region of diverse languages, cultures Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
and religions. The first impressions are of a rich region Source: RetailX, drawing on data from UN RetailX 2022
in which GDP per capita is above the global average. Population growth
However, look at individual countries and it soon becomes 1.8%
clear that wealth is the Middle East is unevenly distributed. Middle East
1.7%
1.6%
1.6%
While those nations that have energy reserves are most Global 1.5%
likely to be richest, they are also the countries facing

the near-future challenge of diversifying away from 1.1% 1.0% 1.0% 1.0% 1.0%
a reliance on receipts for oil and gas exports.
2018 2019 2020 2021 2022
The Gulf States of Bahrain, Kuwait, Oman, Qatar, Saudi
Arabia and the United Arab Emirates work together to Source: RetailX, drawing on data from UN RetailX 2022
foster economic and political ties under the flag of the Gulf GDP per capita (USD)
Cooperation Council. Other countries are more insular, 30k
Middle East
while some, such as Iran and Iraq, are antagonistic towards Global
each other. Countries such as Syria and Yemen, neither 20k
of which we look at in detail here, have endured brutal
conflicts in recent years. 10k
Iran and Turkey are the most populous countries in the 0k

2018 2019 2020 2021 2022
Middle East but are very different in character. Sanctions

and government control restrict internet usage in Iran, Percentage of internet users
a country where ongoing protests against women having Middle East 2018 2019 2020 2021 2022
79% 83% 87%
to wear the hijab have shown signs of becoming a threat to Global 100%
the theocratic regime[1]. By contrast, Turkey’s government

and industries are looking overseas to expand trade, 50%
although the country has its own ongoing political tensions available for 2021 and 2022
rooted in urban opposition to the populist government of
President Recep Tayyip Erdogan[2]. 0%
The Middle East figures are an aggregate of the six countries profiled in this report
Source: RetailX, drawing on data from the World Bank. World Bank data for 2021 not available. RetailX creates forecast values by extrapolating the previous five years’ growth. RetailX 2022
Nevertheless, global brands have a huge presence in the

Middle East. To understand why, consider how a country Percentage of internet users who shop online
such as the United Arab Emirates has invested to build Middle East 2018 2019 2020 2021 2022
40% 47% 50% 53% 55%
Dubai into an international centre. This is a country that Global
100%
has worked hard to attract foreign investment. It’s also
one of a number of nations in the region that relies heavily 50%
on foreign workers. This, in turn, helps explain why the
UAE has its own Amazon store, amazon.ae, a marketplace
that aims at both citizens and those living in the country 0%
looking to buy familiar brands associated with home.

The Middle East figures are an aggregate of the six countries profiled in this report
Source: RetailX, drawing on data from the World Bank. World Bank data for 2021 not available. RetailX creates forecast values by extrapolating the previous five years’ growth.
Overall, the Middle East has a young population, with Ecommerce revenue Index
high numbers of Gen Z consumers and Millennials. The 300
Middle East
internet usage across the region is relatively high and Global 250
253
the adoption of ecommerce is growing rapidly. Over

214
200 175
the coming years, it will be intriguing to see how the more 165
135
159
150
liberal attitudes of younger citizens are reflected in political 100
119
109
100
developments in the region.
50
2018 2019 2020 2021 2022
[1] www.bbc.co.uk/news/topics/cw97d85vjzmt Index 2018=100.
[2] www.bbc.co.uk/news/topics/c207p54mdq3t Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | IRAN © 2022 retailx.net, distributed by InternetRetailing.net
Iran Population structure by age group

Silent Gen
Baby Boomers
2018
81.8m
2019
82.9m
2020
84.0m
2021
85.0m
2022
86.0m
2.8m 2.6m 2.4m 2.2m 1.9m
Gen X 11.6m
.6 11.5m
.5
Ongoing political turmoil and a tendency 12.0m 11.9m 11.8m
Millennials
Gen Z 17.8m 17.7m 17.7m 17.6m
17.8m
to be inward-looking both make Iran Gen Alpha 50m
22.4m 22.4m 22.5m 22.6m
22.5m
a challenging country to do business in 17.9m 17.9m 17.9m 17.7m 17.6m
8 8m
8.8m
8 10 3
10.3m 11.8m 13.3m 14.8m
0m
Iran’s population is growing steadily, increasing to 86mn Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
in 2022 from around 82mn in 2018. The majority of Source: RetailX, drawing on data from UN RetailX 2022
Iran’s population is under 40, so has grown up in a Population growth

country governed as a theocratic republic, a situation 1.8%
Iran
that began with the 1979 Islamic Revolution. But for all Middle East 1.7%
1.6%
1.6%
that Iran has one of the largest populations in the Middle Global
1.4% 1.4%
1.5%
East, GDP per capita is rising yet remains below that 1.3%
1.2% 1.2%
of the region as a whole, at least in part because large 1.1% 1.0% 1.0% 1.0% 1.0%
sections of the world regard its regime with such suspicion
that it is subject to US, UN and EU trade sanctions. In 2022, 2018 2019 2020 2021 2022
Iran
Capital: Tehran Iran 20k
Currency: Iranian rial (IRR) Middle East
Global
Official language: Persian Farsi
Nationality: Iranian 10k
Government: Theocratic republic
0k
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | IRAN © 2022 retailx.net, distributed by InternetRetailing.net
Iran’s GDP stands at $12.1k against a global figure of $13.2k Percentage of internet users
and a Middle East figure of $19k. Iran 2018 2019 2020 2021 2022
Middle East 70% 77% 84%
100%
Global
While Iran has a larger proportion of the population
using the internet than its neighbours, this has not 50%
translated through to ecommerce. In 2020, 84% of the World Bank data not yet
population used the internet but just 47% of these users
shopped online. By 2022, the proportion shopping online 0%
had risen to 56% – the average for the region as a whole. Source: RetailX, drawing on data from the World Bank RetailX 2022
While ecommerce is growing faster in Iran than in Percentage of internet users who shop online
other countries in the region, the country has a very Iran 2018 2019 2020 2021 2022
34% 42% 47% 52% 56%
closed market, with 94% of traffic to Iranian websites Middle East
Global
100%
originating domestically. Even some companies that
could, in theory, trade freely are wary of entering Iran.
50%
This extends to US tech companies that in September
2022 were told by the US Treasury Department they could
trade with Iran if it would increase internet access for 0%
Iran’s population.[1] Source: RetailX, drawing on data from Statista RetailX 2022
The recent disturbances that followed Mahsa Amini’s death Ecommerce revenue Index
seem set to be followed by further political upheaval and Country 500
Middle East
one way the authorities have reacted to these protests Global 400 389
is to restrict internet access. While it is hardly the most 300

314
253
important issue here, this has impacted on ecommerce. 200
214 214
175
165
6 159
A clampdown on Instagram in September resulted in 100
130
119
1
19
109
09
135
100
retailers losing both sales and a key marketing channel.[2]
0
2018 2019 2020 2021 2022
[1] www.bbc.co.uk/news/technology-62996100 Index 2018=100.
[2] www.iranintl.com/en/202210097430 Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | ISRAEL © 2022 retailx.net, distributed by InternetRetailing.net
Israel Population structure by age group

Silent Gen
Baby Boomers
2018
8.4m
2019
8.5m
2020
8.7m
2021
8.8m
2022
8.9m
Gen X 0 6m
0.6m 0 6m
0.6m 0 5m
0.5m 0 5m
0.5m 0 5m
0.5m
This advanced country with a thriving 1.4m 1.4m 1.4m
Gen Z 1.5m 1.5m 1.5m 1.5m
startup culture wasn’t quick to embrace 5m 1.5m
Gen Alpha 1.7m
1.7m 1.7m 1.7m 1.7m
ecommerce yet is quickly catching up 2.1m 2.1m 2.1m 2.1m 2.1m

1.0m
1 0 1.2m 1.3m 1.5m 1.7m
0m
The establishment of Israel in 1948 took place against a Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
backdrop of civil war between the Jewish and Muslim
populations of British-administered Mandatory Palestine. Population growth
To a greater or lesser extent ever since, Israel’s relations Israel
1.8%
1.7%
1.7%
with its immediate neighbours, including those living in Middle East
Global
1.6% 1.6%
1.6%
1 6% 1.6%
1.5%
the de jure sovereign state of Palestine, have been tense.
1.1% 1.0%
Despite existing for long periods on a quasi-war footing, 1.0% 1.0% 1.0%
Israel is both a liberal democracy – albeit one where

2018 2019 2020 2021 2022
Israel
Capital: Jerusalem Israel 60k
Currency: New shekel (ILS) Middle East 50k
Global
Official language: Hebrew 40k
Other languages spoken: Arabic 30k
Nationality: Israeli 20k
Government: Unitary parliamentary republic 10k
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | ISRAEL © 2022 retailx.net, distributed by InternetRetailing.net
the government changes regularly as coalitions form and Percentage of internet users
dissolve, most recently with the comeback of Benjamin Israel 2018 2019 2020 2021 2022
Netanyahu[1] – and an advanced economy. Middle East 100%
83% 86% 90%
Global
A little more than half of Israel’s internet users shop

50%
online, with the number of e-shoppers rising sharply World Bank data not yet
in recent years. Just 31% of Israel’s internet users
shopped online in 2018. Since then, the country has seen 0%
ecommerce growing at a rate faster than the wider Middle Source: RetailX, drawing on data from the World Bank RetailX 2022
East region. Along with Turkey, Israel now has the highest
proportion of GenZ consumers shopping online. Percentage of internet users who shop online
Israel 2018 2019 2020 2021 2022
31% 44% 44% 47% 50%
Israel has a strong startup community in the tech Middle East
Global
100%
sector. It raised $25.6bn in 2021, with high levels of
investment continuing into the first quarter of 2022. Its
50%
digital technologies have gathered VC backing among
international retailers. For instance, Flytrex is delivering
takeaway food by drone in five US towns and is being 0%
tested as a way to speed up deliveries by Walmart.[2] Israel Source: RetailX, drawing on data from Statista RetailX 2022
also attracts international companies, including Intel,

Microsoft, Apple, IBM, Google, Meta and Cisco Systems, Ecommerce revenue Index
all of which have opened R&D facilities in the country. Israel 300
270
Middle East 253
25
5
Global 250 235
Many Israeli consumers are happy to shop with foreign-
214
1
200 175 175
based businesses, which makes the country an attractive 150
165
6
135
159
market for international retailers. Indeed, Amazon.com is

125
5
119
19
100 09
109
100
the leading marketplace in Israel.
50
[1] www.bbc.co.uk/news/world-middle-east-18008697 2018 2019 2020 2021 2022
[2] https://wraltechwire.com/2022/09/28/want-lunch-flytrex-now-delivering-by-drone-in-durham-holly-springs Index 2018=100.

GLOBAL ECOMMERCE REPORT 2022 | QATAR © 2022 retailx.net, distributed by InternetRetailing.net
Qatar Population structure by age group

Silent Gen
Baby Boomers
2018
2.8m
2019
2.8m
2020
2.9m
2021
2.9m
2022
3.0m
0.3m 0 3m
0.3m 00
0.0m
0.2m 0 0m
0.0m
Gen X 0.3m
With over 80% of its residents living in Millennials
Gen Z 2m 0.8m 0.7m 0.7m 0.7m 0.6m
the capital Doha, this small desert nation Gen Alpha

1.2m 1.2m 1.3m 1.3m 1.3m
is rich and highly urbanised 0.4m 0.4m 0.5m

0.5 0.5m
0.4m
0.2m 0 2m
0.2m 0 2m
0.2m 0 2m
0.2m 0 3m
0.3m
3
0m
Qatar is one of the smallest countries in the Middle East Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
but it holds the position of being the richest in terms of
GDP per capita. It also ranks in the top ten globally. The Population growth
majority of this wealth relates to oil and gas, the revenue Qatar 2.1%
1.8%
from which makes up around 85% of the country’s export Middle East
Global
1.8%
1.7% 1.7%
1 6%
1.6% 1.7% 1.7%
1 6%
1.6%
earnings and 60% of GDP. Qatar has the world’s third- 1.5%
largest natural gas reserves. As a result, the economy

1.1% 1.0%
has recovered quickly from the impacts of the pandemic. 1.0% 1.0% 1.0%
GDP increased by 4.3% in the first half of 2022.

2018 2019 2020 2021 2022
Qatar
Capital: Doha Qatar 60k
Currency: Qatari rial (QAR) Middle East 50k
Global
Official language: Arabic 40k
Nationality: Qatari 20k
Government: 10k
Absolute monarchy 0k
VAT: 0% | Reduced VAT: 0% 2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | QATAR © 2022 retailx.net, distributed by InternetRetailing.net
Most of Qatar’s population has access to the internet Percentage of internet users
and goes online regularly. This has been helped in Qatar 2018 2019 2020 2021 2022
recent years by government initiatives to improve digital Middle East
100%
99% 99% 99%
Global
infrastructure, to strengthen the regulatory framework
and to promote ecommerce.
50%
Qatar’s National Vision aims to see the county
becoming “an advanced society capable of sustaining 0%
its development and providing a high standard of Source: RetailX, drawing on data from the World Bank RetailX 2022
living for its people”. This modernisation programme
includes expanding the use of digital services within Percentage of internet users who shop online
government agencies and public bodies as well as in Qatar 2018 2019 2020 2021 2022
49% 62% 64% 68% 71%
these bodies’ dealings with the country’s citizens. Middle East
Global
100%
In 2022, 71% of internet users shop online, a rise of

50%
22 percentage points over the position in 2018, when
less than half shopped online. However, ecommerce
revenue has grown at a rate similar to that seen globally 0%
over the last four years rather than at the higher level Source: RetailX, drawing on data from Statista RetailX 2022
recorded across the Middle East region as a whole.

At the time of writing, Qatar is hosting the World Cup, Qatar 300
253
Middle East
which has drawn the eyes of the world to the country. Global 250
214
This has sometimes been an uncomfortable process for 200
165
182
17
175
7
159
the Qatari authorities, as when security staff were pictured 150 135
1
134
34
154
119
confiscating a shirt bearing Mahsa Amini’s name from an 100
100 107
0
Iranian fan.[1] 50
2018 2019 2020 2021 2022
[1] https://inews.co.uk/sport/football/world-cup-security-staff-mahsa-amini-iran-shirt-woman-wales-1993684 Index 2018=100.

GLOBAL ECOMMERCE REPORT 2022 | SAUDI ARABIA © 2022 retailx.net, distributed by InternetRetailing.net
Saudi Arabia Population structure by age group

Silent Gen
Baby Boomers
2018
33.7m
2019
34.3m
2020
34.8m
2021
35.3m
0.4m
2022
35.8m
0.6m 0.5m 0.5m 0.4m
0.
0.4m
4m
Gen X 3.6m 3.6m 3
3.4m
Tourism and technical innovation will,
3.9m 3.8m
Millennials 8.8m
9.0m 9.0m 8.9m
Gen Z 9.0m
it is hoped, wean this country off the vast Gen Alpha 20m
9.0m 9.3m 9.5m 9.6m 9.8m
incomes from its huge oil reserves 7.6m 7.6m 7.5m 7.5m 7.5m
3 6m
3.6m
6 42
4.2m 4.8m 5.3m 5.9m
0m
The Kingdom of Saudi Arabia occupies the majority of Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
the Arabian Peninsula. At more than 2mn km2, it is the
largest country in the Middle East. It has a population of Population growth
around 5mn, less than half that of Turkey or Iran, the most Saudi Arabia 1.8%
1.7%
1.7%
1 7%
populous neighbours highlighted in this report. It is one of Middle East
Global
1.6%
1.6%
1 6% 1.6%
1.5%
1.5%
the least-densely populated countries of the Middle East. 1.4%
1.1%
Saudi Arabia is governed as an absolute monarchy 1.0% 1.0% 1.0% 1.0%
under Salman bin Abdulaziz Al Saud. He appointed his

2018 2019 2020 2021 2022
Saudi Arabia
Capital: Riyadh Saudi Arabia 30k
Currency: Saudi riyal (SR) Middle East
Global
Official language: Arabic 20k
Other languages spoken: English
Nationality: Saudi 10k
Government: Unitary Islamic absolute monarchy
2018 2019 2020 2021 2022

son, Crown Prince Mohammed bin Salman Al Saud, as Percentage of internet users
Prime Minister in 2022. Saudi Arabia 2018 2019 2020 2021 2022
Middle East 93% 95% 97%
100%
Global
A large part of the country’s economy is based on fossil
fuels. In 2016, Saudi Arabia announced plans to diversify
50%
its economy in a bid to move away from its dependence World Bank data not yet
on the fluctuating prices of oil and gas. Saudi Arabia’s
Vision 2030 is aimed at unlocking growth and investment 0%
opportunities, increasing its citizens’ quality of life, while Source: RetailX, drawing on data from the World Bank RetailX 2022
also trying to change how the country appears on the
world stage.[1] However, it is worth noting disquiet over Percentage of internet users who shop online
the country’s human rights record. Saudi Arabia 2018 2019 2020 2021 2022
Middle East 48% 56% 56% 60% 61%
100%
Global
Vision 2030 emphasises the country’s location at
the heart of the Arab and Islamic worlds as well as
50%
its ability to connect Africa, Asia and Europe. Supply
chain and tourism initiatives are being presented as
opportunities for international businesses and consumers. 0%
The International Monetary Fund (IMF) has praised

the strength of Saudi Arabia’s financial position and Ecommerce revenue Index
its recovery from recession caused by the pandemic. Saudi Arabia 300
Middle East
“The Kingdom’s continued implementation of structural Global 250
253
reforms will help ensure a strong, comprehensive, and

214 207
200 173 175
environmentally friendly recovery,” it has noted. 150
165
1
146
135
3
159
5
122
119
100 09
109
100
GDP growth is predicted to reach 9.9% in 2022, the
highest rate among G20 countries, notes the Organization 50
2018 2019 2020 2021 2022
Index 2018=100.
for Economic Co-operation and Development (OECD). Source: RetailX, drawing on data from Statista RetailX 2022


Saudi Arabia, 2017-22 70% Saudi Arabia, 2017-22
61 61 Mobile Desktop
Total 60% 57 56
50% 45 4
44 2017 2018 2019 2020 2021 2022
40 100%
Beverages 40% 38
35
34 34
Electronics 30% 30 28 28
27
26
24 25
5 26
25 24
4 36
Fashion 27
21 22
23
20 23 20 80% 37 39 41 42 43
Food 20% 19 17 1
16 17
16
13 13 13
12
2 15
14
4
Furniture 10
9
8 11
10
0
10% 7
Media 60%
2017 2018 2019 2020 2021 2022
64 63 61 59
Average spending of the ecommerce eshopper (USD)
58 57
20%
Saudi Arabia, 2017-22 600
533
Total 500 0%
424
400 Source: Statista RetailX 2022
Beverages 294
Electronics 300 261
6
61 248 255
245
219
1 229
218
18 233
228
28 240
24
4
22
22
2
215 215
1 200 212 21
211
11
Fashion 200 180
8
80 188
Food
eshoppers
Furniture 100 80
63 73
55 69 73 76
63 73
58
8
42
42 44 49
46
6 51
4
40
0 39
9 39
9
Media 11
81 12
9 12
9 15
9 6
10
0 10
0
0
Toys, Hobby & DIY 2017 2018 2019 2020 2021 2022 Saudi Arabia, 2021
28%
Annual revenue for the ecommerce market (bn USD)
Saudi Arabia, 2017-22 14 20%
Total 12 11.7
Beauty, Health, Personal 9.9 13%
10
Beverages 8 7.0 8%
Electronics 6 5.7
Fashion 4.4 3.9
Food 4 3.2
3.0
. 3.5
3 5
2.2
270 2.7
2 2.4
Furniture 1
18 1.7
1 1.8
18 2.0
2 1.3
1.13
1 1.4
4 09
0.9 1.1 18-24 25-34 35-44 45-54 55-64
Media 0 3
1 0.1
0 4
2 0.2
0 5 02
0.7
0 7 0.1
01 3 0.3
0
0.1
0.
0 3
2
1
0.0
0..0
.0 0.0
0 0.0
0 0.0
.0 years years years years years
Toys, Hobby & DIY 0
2017 2018 2019 2020 2021 2022

Saudi Arabia, 2018-22 50%
45%
46 ecommerce multichannel shoppers (%)
41
Total 40%
40
0 Saudi Arabia, 2017-22
3
35% 32 31
1 31 Online Offline
& Household Care 30
30 29
29
30% 27 26
6
Beverages 4
24 255
4 2
244 23 2017 2018 2019 2020 2021 2022
25% 22
22 23 23 22
21
21 100%
Electronics 20
2 18 9
19 3 4 5 6 7 8
20% 18
1
178
7 17 17 17
Fashion 155 16
15% 11
Food 10%
10 10 9 80%
Furniture 6 6
Media 5%
2018 2019 2020 2021 2022
RetailX 2022 97 96 95 94 93 92
40%
Number of ecommerce users (in millions) 20%

Saudi Arabia, 2017-22 25
21.4 22.0
Total 19.6 0%
Beauty, Health, Personal 20 19.4
16.5 15.9 Source: Statista RetailX 2022
& Household Care 14.8 15
15.
15.2
5
4.2
14.5
14.
4.
15 14.1
13.6
Beverages 12.3
11.9
1.9 12.0
Electronics 10.2
10.1 9
9.6
6 9
9.3 10.1
9.8
10 8.8 8.6
8 6 8.8
8 8 8.7
.7
7
Fashion 8.2
8 .2
2 7 7
6 8.0
8 0
7.0
6.1
6 0
..7
.1
1 69
6.9 6.8
6 8 7.1
7 1 6.2
Food 5.7 7 5.7
5 .7
7 5
5.6
6 5
5.3
3
5.0
0 5.9
5 44
4.4
4.2 4
4.4
4
3.7
3.7
7 4.5
4 5
4.2
2
Furniture 2
2.2
2.1 3
2 3 .3
3.0
.0
2.80 3.5
.5
5 Saudi Arabia, 2021
Media
2017 2018 2019 2020 2021 2022
Saudi Arabia is becoming a hub for innovation in city a model for nature preservation and enhanced human
planning, technology and artificial intelligence. liveability. ” With a growing online economy and 97% of 43%
The Line, which is a mirrored, 200m wide, 170km long, the population using the internet, new digital initiatives
zero-carbon settlement, currently under early stages of in Saudi Arabia have the opportunity to showcase new 57%
construction, is planned to become home to 9mn people.[2] forms of digital innovation. These will be needed if the
country is to transition from an economy reliant on its
HRH Crown Prince Mohammed bin Salman has noted of energy reserves.
the project: “The city’s vertically layered communities will
[1] www.vision2030.gov.sa
challenge the traditional flat, horizontal cities and create [2] www.neom.com/en-us/regions/theline Source: Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | TURKEY © 2022 retailx.net, distributed by InternetRetailing.net
Turkey Population structure by age group

Silent Gen
Baby Boomers
2018
82.3m
2019
83.4m
2020
84.3m
2021
85.0m
2022
85.6m
4.1m 3.9m 3.6m 3.4m 3.1
3.1m
Gen X
13.6m 13.5m 13.4m 13.3m 13.1m
Soaring levels of ecommerce are sending Millennials
16.9m 16.9m 16.8m 16.8m
Gen Z 16.9m
most Turkish online shoppers to home- Gen Alpha 50m
19.3m 19.3m 19.3m 19.3m 19.2m
grown websites and marketplaces 20.3m 20.4m 20.4m 20.3m 20.2m
0m
8 1m
8.1m 9 4m
9.4m 10 7m
10.7m
7 11 9
11.9m 13 2
13.2m
Turkey stands at the crossroads between Europe and Asia. Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
It has a population of 85.6mn, 77% of whom are online.
51% of these consumers shop online, up from just 39% Population growth
in 2019. The pandemic accelerated ecommerce uptake, Turkey
1.8%
1.7%
1.6%
particularly among older demographics. There’s plenty of Middle East
Global 1.5%
1.6% 1.5%
potential for growth online, with existing players jostling 1.3%
for position and innovative pureplays disrupting existing 1.1% 1.0% 1.1% 1.0%
1.0% 1.0%
categories. In 2021, online orders rose by 46% year- 0.8%
0.6%
over-year to nearly 3.35bn.[1]
2018 2019 2020 2021 2022
Turkey
Capital: Ankara Turkey 20k
Currency: Turkish lira (TRY) Middle East
Global
Official language: Turkish
Other languages spoken: Kurdish 10k
Nationality: Turkish
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | TURKEY © 2022 retailx.net, distributed by InternetRetailing.net
In 2022, ecommerce accounts for 18% of retail sales, Percentage of internet users
with much of this dominated by local marketplaces Turkey 2018 2019 2020 2021 2022
such as Trendyol, Hepsiburada, Sahibinden, N11 Middle East 100% 71% 74% 77%
Global
and CicekSepeti. These major players are competing
to become the “ultimate super app,” according to Mine
50%
Ozmen, co-founder of commerce platform Rierino. World Bank data not yet
Turkey has an active startup ecosystem, with founders 0%

keen to secure their place in a growing ecommerce and Source: RetailX, drawing on data from the World Bank RetailX 2022
omnichannel market. According to Halit Develiouglu,
founder of fulfilment and robotics company Oplogsome, Percentage of internet users who shop online
some pureplays overstretched themselves post-pandemic. Turkey 2018 2019 2020 2021 2022
Middle East 35% 39% 44% 48% 51%
100%
Global
Although Turkey is expected to see GDP growth of
4.7% in 2022, its economy remains unstable. Economic
50%
activity is predicted to weaken in the later months of 2022,
with GDP in 2023 reaching 2.7%. Inflation is currently
running high, having reached 73% in October 2022 after 0%
peaking above 80% in August. Interest rates are 13%. Source: RetailX, drawing on data from Statista RetailX 2022
This is affecting consumer spending as well as investment Ecommerce revenue Index

opportunities, resulting in technology companies looking Turkey 300
Middle East
abroad for investment and retailers expanding overseas. Global 250
253
225
Russian marketplace Ozon has opened an office in Istanbul
214
200 187 175
in order to attract local sellers to the marketplace while 150
165
159
135
13
159
Hepsiburada has launched in Azerbaijan. 100

119
110
1
109
09
100
50
2018 2019 2020 2021 2022
[1] www.dailysabah.com/business/economy/pandemic-driven-shift-lifts-turkish-e-commerce- Index 2018=100.
volume-to-2587b Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | UNITED ARAB EMIRATES © 2022 retailx.net, distributed by InternetRetailing.net
United Arab Emirates Population structure by age group

Silent Gen
Baby Boomers 10m
2018
9.6m
2019
9.8m
2020
9.9m
2021
10.0m
2022
10.1m
Gen X 0.1m 0.1m
0.1 00
0.0m
0.8m 0.0m
0.8m 0 0m
0.0m
0 8m
0.8m 0 8m
0.8m
Fashion, the internet and a fusion of the Millennials
Gen Z 2.8m 2.6m 2.4m 2.3m 2.1m
two – social media influencers – feel Gen Alpha 5m

4.1m 4.3m 4.4m 4.4m
right at home in this oil-rich state
3.9m
1.4m 1.4m 1.5m 1.6

1.6m 1.7m
0m 0 6m
0.6m 0 7m
0.7m 0 8m
0.8m 0 9m
0.9m 1 0m
1.0m
0
The Gulf state of United Arab Emirates is one of the richest Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
countries in the Middle East, with an economy built on
energy reserves. In recent years, the UAE has diversified Population growth
and built up an international reputation, with Dubai United Arab Emirates 1.8%
1.7%
becoming a centre for tourism and trade. Middle East
Global
1.6%
1.6%
1.5%
1.5%
1.4%
The Dubai International Financial Centre (DIFC) is a special 1.2%
1.1%
economic zone and financial hub for the Middle East, Africa
1.0% 1.0% 1.0%
1.0% 1.0%
0.9%
and South Asia. It is home to an internationally recognised,
2018 2019 2020 2021 2022
United Arab Emirates

Capital: Abu Dhabi United Arab Emirates 50k
Currency: UAE dirham (AED) Middle East
40k
Global
Official language: Arabic
30k
Other languages spoken: English
Nationality: Emirati 20k
Government: Federation of monarchies 10k
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | UAE © 2022 retailx.net, distributed by InternetRetailing.net
independent regulator and a proven judicial system with Percentage of internet users
an English common law framework. It offers companies United Arab Emirates 2018 2019 2020 2021 2022
100% ownership without a local partner.[1] Dubai attracts Middle East 100%
98% 99% 100%
Global
VCs, trade shows, retailers and social influencers.
50%
Millennials make up the largest proportion of the UAE’s World Bank data not yet
citizens. With a GDP per capita of close to $40k, many
enjoy a high-spending lifestyle. Everyone is able to access 0%
the internet and 69% of consumers shop online. Source: RetailX, drawing on data from the World Bank RetailX 2022
Dubai has become synonymous with social media Percentage of internet users who shop online
influencers in the fashion and beauty sectors. Some United Arab Emirates 2018 2019 2020 2021 2022
60% 65% 67% 69% 69%
influencers have founded beauty brands in their own right, Middle East
Global
100%
launching products for the global market or with ranges
of more inclusive colour cosmetics for women of Middle
50%
Eastern heritage, or items certified as halal.[2]
UAE’s ecommerce market is growing faster than any 0%

other in the region and is predicted to be the fastest Source: RetailX, drawing on data from Statista RetailX 2022
growing globally over the coming year. Market Machine

predicts growth of 23.11% for the UAE online market Ecommerce revenue Index
in 2022-23, with per capita spending rising by 22.32%. United Arab Emirates 300
Middle East
An initiative worth highlighting is the Dubai Metaverse Global 250
255 253
283
2 83
Strategy, which aims to make the city a major hub for the
214
200 175 175
65
global metaverse community.[3] 150
165
135
159
123
119
19
100 09
109
[1] https://internetretailing.net/reports/retailx-country-reports/the-middle-east-2021-ecommerce- 100
country-report/
[2] https://internetretailing.net/reports/retailx-sector-reports/middle-east-beauty-2022- 50
ecommerce-region-report/ 2018 2019 2020 2021 2022
[3] www.arabianbusiness.com/industries/technology/new-strategy-unveiled-at-dubai-metaverse- Index 2018=100.
assembly-to-place-emirate-as-major-hub Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | NORTH AMERICA © 2022 retailx.net, distributed by InternetRetailing.net
North America Population structure by age group

Silent Gen
Baby Boomers
2018
504.8m
2019
508.5m
2020
512.2m
2021
515.9m
2022
519.6m
Gen X 500m 39 9m
39.9m 37 5m
37.5m 34 9m
34.9m 32 2m
32.2m
42 1m
42.1m
US retailers lead the world, but the biggest Millennials
Gen Z
109.0m 107.7m 106.7m 105.6m 104.7m
growth in North American ecommerce is 95.6m 95.6m 95.4m 95.1m 94.7m

Gen Alpha 250m
110.0m 110.1m 110.4m 110.9m 111.4m
occurring in Mexico 107.1m
07.1 107.3m 107.4m 107.8m 108.2m
0m 41 1m
41.1m 48 0m
48.0m 54 8m
54.8m
8 61 6
61.6m 68.4m
If ecommerce can be said to have a spiritual home, it surely Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
has to be North America – and in particular Silicon Valley. Source: RetailX, drawing on data from UN RetailX 2022
It’s really not too much of an exaggeration to say that Population growth
innovations in digital technologies in California have 1.1% 1.0% 1.0% 1.0% 1.0%
driven the spread of ecommerce around the world. North America
Whether that will continue to be the case is another matter. Global 0.8%
Ecommerce is now an international business and, as we

0.4%
look at in our feature on emerging tech centres, other 0.3%
0.2%
nations are proving to be just as innovative. 0.1%
2018 2019 2020 2021 2022

That said, the North American ecommerce market remains
vibrant and hugely attractive to international brands Source: RetailX, drawing on data from UN RetailX 2022
hoping to secure sales. Larger US companies also heavily GDP per capita (USD)
influence the ecommerce markets in foreign territories. 40k
In Israel, for example, many consumers choose to shop at North America
Amazon.com, despite shipping costs and potential issues Global 30k
with shipping in items from abroad. 20k
Overall, this is a wealthy region. The GDP per capita 10k
for North America is $35.2k against a global figure 0k

of $14.4k. However, to get a true picture of the relative 2018 2019 2020 2021 2022

strengths of the three nations covered by the North Percentage of internet users
American Free Trade Area, it helps to contrast the GDP North America 2018 2019 2020 2021 2022
72% 75% 76%
figures in Canada and the USA, respectively $51.1k and Global 100%
$67.7k, with Mexico, where the figure is $9.5k.

50%
These figures help to explain why so much North American World Bank data not yet
manufacturing now takes place in Mexico. Despite this,
many retailers are now targeting Mexico. This is because, 0%
for all it is a developing country with many social issues – Source: RetailX, drawing on data from the World Bank RetailX 2022
and moreover a country where drug cartels exert a malign

influence – ecommerce is taking off in Mexico in earnest. Percentage of internet users who shop online
If the USA and Canada are countries where retailers 2018 2019 2020 2021 2022
North America 44% 47% 50% 53% 56%
and brands have to look at making incremental gains, Global
100%
Mexico holds out the promise of high growth.

50%
The politics of North America continue to be heavily
influenced by events in the USA. Joe Biden’s win in
the 2020 presidential election delivered a USA that, 0%
internationally, has been less isolationist and more Source: RetailX, drawing on data from Statista RetailX 2022
reliable than under Donald J Trump. The fact that

a widely anticipated red wave failed to wash over the Ecommerce revenue Index
Democrats in the 2022 mid-term elections suggests that, 300
North America 251
even if the Republicans win the presidency in 2024, it may Global 250
218
be with a less populist candidate. Indeed, there are reasons 200 175
168
to be far more worried about the politics of Mexico, where 150 135
159
120
the left-wing populism of President Andrés Manuel López 100
100 109
Obrador is perceived as a threat to democracy.[1]

50
2018 2019 2020 2021 2022
[1] www.economist.com/the-world-ahead/2021/11/08/mexicos-president-will-continue-to-damage-the-countrys- Index 2018=100.
democracy? Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | CANADA © 2022 retailx.net, distributed by InternetRetailing.net
Canada Population structure by age group

Silent Gen
Baby Boomers 40m
2018
37.1m
2019
37.4m
2020
37.7m
2021
38.1m
2022
38.4m
Gen X 3.8m 3.6m 3.4m 3 1m
3.1m
High internet user rates make ecommerce
4.0m
Gen Z 9.6m 9.6m 9.5m
popular with Canadians, who favour Gen Alpha 20m 7.3m 7.4m 7.4m 7.3m 7.3m
online destinations in the USA 7.7m 7.8m 7.9m 8.0m 8.1m

6.1m 6.1m 6.2m 6.3m 6.3m
0m 2.4m 2.8m 3.2m 3.6m 4.0m
By area, Canada is the second-largest country in the world Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
after Russia[1], yet it’s sparsely populated, with a total Source: RetailX, drawing on data from UN RetailX 2022
population of 38.4mn. Most people live within 300km of Population growth

its southern border with the United States (a northern 1.1%
Canada 1.0% 1.0% 1.0% 1.0%
border also separates it from the American state of Alaska) North America 0.9% 0.9% 0.9% 0.9% 0.8%
in cities led in size by Toronto, Montreal (capital of French- Global 0.8
0.8%
8
speaking Quebec), Vancouver and the capital, Ottawa.

0.4%
0.3%
0.2%
Canada is part of the Commonwealth, a founding 0.1%
member of the UN and a member of the G7 group of 2018 2019 2020 2021 2022
Canada
Capital: Ottowa Canada 60k
Currency: Canadian dollar (CAD) North America
50k
Global
Official Languages: English, French 40k
Other languages spoken: Mandarin, Punjabi, Cantonese 30k
Nationality: Canadian
20k
Government: Federal parliamentary
constitutional monarchy 10k

2018 2019 2020 2021 2022

leading industrial democracies. The country is officially Percentage of internet users

bilingual, speaking English and French. Canada is ageing, Canada 2018 2019 2020 2021 2022
94% 96% 97%
with 19% of its population aged 65 and over in 2021, North America
Global
100%
according to census figures from Statistics Canada[2],

although 64.8% of its relatively slow-growing population 50%
are still of working age (15-64). World Bank data not yet
Key industries include the service sector, which employs 0%

75% of working Canadians[3], manufacturing – from Source: RetailX, drawing on data from the World Bank RetailX 2022
aerospace technology to clothing – and natural resources.

The US is Canada’s largest trading partner, with free Percentage of internet users who shop online
trade agreements in place since 1988. Canada 2018 2019 2020 2021 2022
North America 100% 64% 66% 69% 72% 75%
Global
Almost all Canadians (97%) use the internet, while 75%
also shop online. Just over half (51%) of online shoppers
50%
are female. Revenues from ecommerce have doubled
in the last five years, with drinks, electronics and fashion
amongst the most popular online purchases. Many of its 0%
most-visited online retailers hail from the neighbouring US. Source: RetailX, drawing on data from Statista RetailX 2022
According to SimilarWeb analysis[4]

Amazon and Walmart are among the top sites in a Canada 300
list that also includes local classifieds site, Kijiji and North America
Global 250
218
251
department store, Canadian Tire. 200 5

175
201
175
168 159
150 139
135
5
Some 18% of multichannel shoppers prefer to buy 100
108
100
online, according to Statista research from 2022, a
proportion that has grown steadily from 10% in 2018. 61% 50
2018 2019 2020 2021 2022
of Canada’s online shoppers are under 44, while 18% Index 2018=100.


Canada, 2017-22 Canada, 2017-22
80%
Total 70% 65 67 75
60%
& Household Care 2017 2018 2019 2020 2021 2022
50% 46
47 100%
Beverages 39
3 9 43
42
Electronics 40% 36
35 38 38
35 28
Fashion 30% 29
28 32
311
27 3
31
28 3
30
28 31
30 80% 29 31 32 33 34
24
24 25
24
24 26
Food 20% 22
2
202
0 21 19 21
1
15 16 18 16
15 17
7
16
Furniture 13 11 13
12
2 1
14
13
10% 10
9 100
Media 60%
2017 2018 2019 2020 2021 2022
72 71 69 68 67 66
Average spending of the ecommerce eshopper (thousand USD) 20%
Canada, 2017-22 2.5
Total 2.1 2.3 0%
1.8
& Household Care Source: Statista RetailX 2022
1.5 1.4 1.4 1.4
Beverages 1.2
Electronics 1.0 0.9 1.0 1.0
1 0 1
1.0
0.9
0 9
1 0.9 0.9
0
0.8
0 8 0.9
Fashion 0
0.77 067 0.7
0 0 8 0.88 0
0.8
Food
0
0.77 0
0.6 .7
0.6
0 6 0.7
0 7
0.5 0.6 06
0.6
0.5 0.4 0.4 0
0.44
eshoppers
Furniture 0.2
0 2 0
0.2 0.2 023
Media 0.1
0.
0 .1
1 0.2
1
0.1 0
0.2
.2
0.1
0 1 0.2
0.2 .
0.2 0.2
Toys, Hobby & DIY 0
2017 2018 2019 2020 2021 2022 Canada, 2021
22%
are between 55 and 64. Bank cards remain the most of online sales as shoppers return in-store. This in turn 20%
18%
popular payment option, preferred by 52% in 2022, means there is likely less pressure on retailers’ logistics 14%
although e-wallets (23%) and bank transfers (8%) are infrastructure.
quickly gaining traction.
Parcelmonitor analysis[5] suggests that Canadian delivery

times are improving steadily, with an average time of [1] www.britannica.com/place/Canada
[2] www.cbc.ca/news/politics/canada-working-age-poupulation-census-1.6432398 18-24 25-34 35-44 45-54 55-64
2.7 days to first delivery attempt in the first quarter of 2022. [3] www.canada.ca/en/immigration-refugees-citizenship/corporate/publications-manuals/discover-canada/read-
online/canadas-economy.html years years years years years
However, this may be partly due to a declining proportion [4] www.similarweb.com/top-websites/canada/category/e-commerce-and-shopping/
[5] www.parcelmonitor.com/insights/ecommerce-logistics-race-2022-canada-vs-the-united-states Source: Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | MEXICO © 2022 retailx.net, distributed by InternetRetailing.net
Mexico Population structure by age group

Silent Gen
Baby Boomers
2018
126.2m
2019
127.6m
2020
128.9m
2021
130.3m
2022
131.6m
Gen X 5.4m 5.1m 4.7m 4.4m 4.0m
As its consumers embrace online shopping, Millennials 18.8m 18.6m 18.3m 18.0m
8.0 17.7m
.
Gen Z 100m 24.4m 24.3m 24.3m 24.2m
24.5m
Mexico is emerging as one of the world’s Gen Alpha
30.6m 30.5m 30.4m 30.4m 30.3m
50m
fastest-growing ecommerce markets 33.5m 33.5m 33.4m 33.4m 33.3m
13 4m
13.4m
4 15 5
15.5m 17.7m 19.8m 22.0m
0m
Post-pandemic, Mexico’s ecommerce growth continues Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
to be rapid, with the country cited as being one of the top Source: RetailX, drawing on data from UN RetailX 2022
five fastest-growing online retail markets globally. Mexico Population growth

currently has the second-highest rate of ecommerce 1.1%
1.1%
1
1% 1.1% 1.1%
Mexico 10
1.0%
0% 1.0%
0 1.0% 1.0%
1.0%
1 0%
growth in Latin America, behind Brazil. North America
Global 0.8%
Only four years ago, just 32% shopped online yet

0.4%
today, that figure is almost half (48%). The country’s 0.3%
ecommerce revenue index is also strong and at 343, it’s 0.1% 0.2%
above both the North America and global measures. 2018 2019 2020 2021 2022
Mexico
Capital: Mexico City Mexico 40k
Currency: Mexican peso (MXN) North America
Global 30k
Official language: Spanish
Other languages spoken: Amerindian languages 20k
Nationality: Mexican
Government: Federal presidential constitutional republic 10k
0k
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | MEXICO © 2022 retailx.net, distributed by InternetRetailing.net
Between 2020 and 2021, the number of ecommerce Percentage of internet users
shoppers rose 11% to 57.5mn[1], with the domestic Mexico 2018 2019 2020 2021 2022
65% 70% 72%
ecommerce market worth $19.7bn in 2021, up 27% on North America
Global
100%
2020 according to the Mexican Online Sales Association.

Part of this is likely due to the generational makeup 50%
of the country. Gen Z accounts for the largest share of World Bank data not yet
the 131.6mn population in 2022, with 33.3mn Gen Z
consumers. Millennials account for 30.3mn. 0%
It’s expected that more than 77.9mn Mexican

consumers will be shopping online by 2025, making the Percentage of internet users who shop online
market a magnet for international retailers, especially since Mexico 2018
32%
2019
36%
2020
39%
2021
44%
2022
48%
Mexican consumers have a huge appetite for international North America
Global
100%
brands. According to the Mexican Internet Association, half of

Mexican online shoppers buy from international retailers, with 50%
nearly two-thirds (64%) of purchases from US sites.
Many buy from marketplaces and Mercado Libre is the 0%

biggest ecommerce retailer in the country with a 15.4% Source: RetailX, drawing on data from Statista RetailX 2022
share[1], followed by Amazon, with 13.2% of the market.

Food delivery led online purchases in 2021[2], followed Ecommerce revenue Index
by fashion and electronics, then online purchases of Mexico 400
343
North America
appliances and furniture up 47% and 42% respectively. Global
350
298
300
251
250 221 218
The country’s economy is projected to expand by 1.9% in 200 168 175
159
2022[3], rising to 2.1% in 2023. The inflation rate of 6.9% in 150
100
141
120
109
135
2022 is expected to fall back to 4.4% in 2023. 100

50
2018 2019 2020 2021 2022
[1] www.statista.com/statistics/742821/leading-e-retailers-mexico/
[2] www.trade.gov/country-commercial-guides/mexico-ecommerce Index 2018=100.
[3] www.oecd.org/economy/mexico-economic-snapshot/ Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | USA © 2022 retailx.net, distributed by InternetRetailing.net
USA Population structure by age group

Silent Gen
Baby Boomers
2018
327.0m
2019
329.0m
2020
330.9m
2021
332.8m
2022
334.7m
Gen X 32.0m 30.3m 28 5m
28.5m 26 6m
26.6m 24 6m
24.6m
The USA is a world leader when it comes Millennials
Gen Z 78.5m 77.6m 76.9m 76.2m 75.6m
200m
to ecommerce, with average spending Gen Alpha 61.3m 61.4m 61.3m 61.1m 60.8m
69.6m
68.8m 69.1m
expected to reach $3,700 this year
68.2m 68.4m
63.4
63.4m 63.5
63.5m 63.7m 64.0m 64.4m
0m
23 6m
23.6m 27 7m
27.7m 31 7m
31.7m 35 7m
35.7m
7 39 7
39.7m
The United States of America (USA) is the second-largest Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
ecommerce market in the world, after China. Source: RetailX, drawing on data from UN RetailX 2022
Population growth
It is bordered to the north by Canada, with which it also has
USA 1.1% 1.0% 1.0% 1.0%
a further northern border between Canada and Alaska, and North America
1.0%
to the south by Mexico. The US population of 334.7mn Global 0.8%

0.6% 0.6% 0.6% 0.6%
has a large baby boomer contingent, with some 16.5% 0.6%
0.4%
of the population are aged 65 or older according to the 0.3%
US Census Bureau in May 2022.[1] Key industries include 0.1% 0.2%
healthcare, real estate and manufacturing. 2018 2019 2020 2021 2022
USA
Capital: Washington DC USA 80k
Currency: US dollar (USD) North America
Global 60k
Official language: English
Other languages spoken: Spanish, indigenous languages 40k
Government:
Constitutional federal republic 20k
VAT: The US is the only major economy with
a ‘sales and use tax’ | Reduced VAT: 0% 0k
2018 2019 2020 2021 2022

Nine out of ten people in the US the internet, according Percentage of internet users
to World Bank figures, with 74% shopping online, and USA 2018 2019 2020 2021 2022
88% 89% 90%
ecommerce revenues have almost doubled since 2018. North America
Global
100%
Some 25% of shoppers who buy from a range of channels,

favour online, while 75% prefer to buy in-store, according 50%
to Statista. US shoppers are forecast to spend $986.1bn World Bank data not yet
online in 2022 – an average of $3,700 each. Just over a
fifth (20.6%) of US retail sales took place online in the third 0%
quarter of 2022, according to Digital Commerce 360.[2] Source: RetailX, drawing on data from the World Bank RetailX 2022
Sales through all channels grew by 7.7% in the same

period, with online sales growing by 10.8% and in-store Percentage of internet users who shop online
and other offline channels growing by 7%. USA 2018
68%
2019
70%
2020
72%
2021
74%
2022
74%
North America 100%
Global
Key ecommerce categories include beauty and heath
products, drinks, fashion, toys, hobby and DIY products. 50%
Around half (53%) of US online shoppers prefer to buy
via desktop, while 47% favour mobile. Bank cards (37%)
are most commonly used for payments. E-wallets are 0%
growing in popularity, (24%), while 13% favour direct debit Source: RetailX, drawing on data from Statista RetailX 2022
payments, according to Statista. More than 90% of US

shoppers expect free delivery within two to three days Ecommerce revenue Index
of ordering, according to McKinsey research[3] – with one USA 300
North America 251
in five willing to pay slightly more for faster shipping. Global 250
218
200 196
168 172 175
17
US retailer Amazon has set the pace here, making same- 150 110
141
135
35
159
day and quick delivery available in many cities to members 100

100
of its Amazon Prime subscription scheme. Amazon is now
50
operating its own shops in categories from grocery to 2018 2019 2020 2021 2022
Index 2018=100.
books in the US, making it a multichannel retailer in a Source: RetailX, drawing on data from Statista RetailX 2022


USA, 2017-22 USA, 2017-22
90%
80% 76 79 80 Mobile Desktop
Total 72 74
Beauty, Health, Personal 70% 66 2017 2018 2019 2020 2021 2022
& Household Care 60% 53 100%
Beverages 50% 49
46 49
41 45
4
435
Electronics 40% 37 40 38 40
33
32 32 3
35
3
31 32
3
31 34
4
33 33
Fashion 29
28
8 29
29
27 29 80% 37 40 42
30% 2
25
225 25
5 2
23 25 44 47
Food 20% 17 18 20
16 18
16
6 19
9
18
14
12
11
11 14
14
13
3 15
5
14
4 15
Furniture
Media 10% 60%
2017 2018 2019 2020 2021 2022
67 63 60 58
Average spending of the ecommerce eshopper (thousand USD)
56 53
20%
USA, 2017-22 4 3.7
Total 3.3 0%
Beauty, Health, Personal 3 2.8 Source: Statista RetailX 2022
Beverages 2.1 2.1
2 1.9
.
.9 1.8 1.8 1.8
Electronics 1.7 1.6 1..
1.6
15
1.5
1.3 1.3
Preferred payment type for online
Fashion 1.1 1.0 1.2 1.
1.2
1 2
1.0
0
0.99 1 0
1.0 1.0
0.8
0.
0.8 0.9
0 0
9
Food 1 0.88 0.8
0 8 0 8 0.8
0
0 8
.7
0.7 0.8 0...8
8
0.6
0
0.5
0. 6
.5
5 0 6
0.5
0.5 0.6
0 .6
shopping (%)
Furniture 0.2 0.3 0.3 0.3
0.2 0.2
Media
Toys, Hobby & DIY 0
2017 2018 2019 2020 2021 2022 USA, 2017-22
Cash on delivery E-Invoice Bank transfer Direct debit
Other E-wallet Card
Annual revenue for the ecommerce market (bn USD)
USA, 2017-22 2017 2018 2019 2020 2021 2022
1200 100% 5 5 4 4 4 4
6 6 6 7 9 10
Total 1000 986.1 7 7 7 7 7
80% 7
Beauty, Health, Personal 862.4 12 12 12 15 14
800 13
& Household Care 706.4 6 6 6
60% 17 17 17
Beverages 600 552.1
Electronics 458.8 502.6 21 22 24
40% 18 18 18
Fashion 400
Food 191 2 216 5
207.7 7
Furniture 200 89 146.0
144
144.88 180.7
18077
137.6
137
187.46
1 147.1
1
147
47 5
7 71 20%
9
87 0
5
6 102.0
95
95.22
40 115
151
103.3 8
4
3 1
120.1
120
20.1
1
7 8
87
7 9
99
99.7
9.7
9 36 40 38 37
Media 39.0
3
39
29.0
9
23.2
19 ..5
3.2
9.5.0
0
2
5 4
44.5
444
26.8
6
22.35
8
1.4
2 4 51.1
5 1
31
31.0
3
25.5
5
23.30
5 6
65.9
655
5.9
44.6
44
4 4
35.4
5
30.0
0 9
6
4 14
59.1
59
41
4
41.5
5
31.7
7 72
72.5
332
35
59.8
5
599
33.3
3 8 35 35
Toys, Hobby & DIY 0
2017 2018 2019 2020 2021 2022 0%

USA, 2018-22 50%
45% 44 44 ecommerce multichannel shoppers (%)
Total
40% 40
39 USA, 2017-22
35% 3
33
3
31 Online Offline
28
28
Beverages 25% 25
25 25 2017 2018 2019 2020 2021 2022
22 22 23
Electronics 100%
20% 16
6 16 17
7
Fashion 15
14
14 5
15
4 15 15
14
1 14 15 16
15% 1
11
14
4 11 14
12
2 20 23 25
Food
10% 191
100 90
10
8 80%
Furniture 7 5 6 7
5
5% 4
Media
2018 2019 2020 2021 2022

40% 86 85 84 80 77 75
Number of ecommerce users (in millions) 20%
USA, 2017-22 300
264.5 268.2
Total 243.6 252.7
250 234.8 0%
200 Source: Statista RetailX 2022
163.1
154.2
4 165
165.4
5
Beverages 150 147.7
142.9
42.9
Electronics 122 5
121.2 133.6
131.7 125 4
125.4 134.2
108.5
105.5 104
104.5
4 05 115
57
103.0
103 108
08
32 113
113.6
1093
109.7
9
9
97 5 80 103.0
103 0
Fashion 100 94
9
9146
91.00 89.0
89 0 95
95.8 82
82.7
2
81
81.5
15
80.5
71.3
71 3 81.6
81 75
75.2
52
Food 60 67
67.1
1 63
63
63.0
3.0
46.5
6
39.5
39
7.55
..1
5
544
45.0
455.
42.32
0
2.3
2 93
49.0
49
46.
46.00 53.5
53
335
50.3 58.4
58
894
54.9 5
59.3
Furniture 50 37
7. USA, 2021
Media
2017 2018 2019 2020 2021 2022
market where leaders also include Walmart, eBay, Apple season. It has become a date with particular significance
and Home Depot. Buy online, pick up in store (BOPIS) for online shoppers. Younger shoppers are among those
gained popularity as a fulfilment method during the most likely to have used social media for inspiration when 49% 51%
pandemic as shoppers opted for kerbside pick-up options. buying holiday gifts, says Parcelmonitor, citing Statista,
Shoppers are most likely to have returned clothing especially among GenZ (84%) and millennials (81%). [5]
orders (26%) in the last year, according to Statista.[4] [1] www.census.gov/newsroom/stories/older-americans-month.html
[2] www.digitalcommerce360.com/article/quarterly-online-sales/
[3] www.mckinsey.com/industries/retail/our-insights/retails-need-for-speed-unlocking-value-in-omnichannel-delivery
Black Friday hails from the USA, where it marks the day [4] www.statista.com/forecasts/997235/returns-of-online-purchases-by-category-in-the-us
[5] www.parcelmonitor.com/insights/planning-for-peak-season-2022-ecommerce-shopping-trends-in-the-united-
after Thanksgiving as the start of the festive shopping states

GLOBAL ECOMMERCE REPORT 2022 | SOUTH AMERICA © 2022 retailx.net, distributed by InternetRetailing.net
South America Population structure by age group

Silent Gen
Baby Boomers
2018
423.5m
2019
427.2m
2020
430.7m
2021
434.2m
2022
437.3m
70.2m 69.3m
Gen X
71.9m 71.1m
20.0m
20.0 18.6m
18.6 17.1m
72.7m
22.3m
22.3 21.2m
21.2
The is huge potential for growth in Millennials
Gen Z 84.1m
South America, but the logistics of 85.2m 85.0m 84.8m 84.4m
Gen Alpha 250m
102.7m 102.5m 102.4m 102.4m
ecommerce remain an issue
103.0m
100.9m 100.7m 100.6m 100.4m
39 1m
39.1m 45 4m
45.4m 51 7m
51.7m
7 58 0m
58.0m
0 64 2
64.2m
101.2m
101.
0m
Around the world, the pandemic led to a surge in Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
the number of consumers using ecommerce. Yet as Source: RetailX, drawing on data from UN RetailX 2022
lockdowns ended, retailers had to temper their Population growth

expectations over the idea of consumers continuing 1.1%
1.1%
1% 1.0%
to spend as much time shopping online. Many who South America 1.0%
1.0% 1.0% 1.0%
had been unable to leave their homes for long periods Global 1.0%
appeared more than happy to return to town centres,

markets and shopping centres. 0.9%
Nevertheless, the fillip given to ecommerce was real. 2018 2019 2020 2021 2022
There is plenty of anecdotal evidence to suggest this was

especially the case in South America, something tragically Source: RetailX, drawing on data from UN RetailX 2022
not unrelated to the severity of Covid outbreaks on the GDP per capita (USD)
continent, notably in Brazil where there have been more 20k
than 680,000 Covid-related deaths. As Professor Pedro South America
Hallal, the leader of the country’s largest Covid study, Global
noted in July 2021, “Everything that you should not do, 10k
Brazil has done.”[1]
A particular issue for South American retailers is around 0k

logistics. While the continent is home to global cities such 2018 2019 2020 2021 2022

as Buenos Aires and Rio, vast areas are comparatively Percentage of internet users
inaccessible: much of the Amazon, communities in the 2018 2019 2020 2021 2022
Andes and chilly Patagonia. This is reflected in the South America
Global
100% 65% 69% 74%
Integrated Index for Postal Development (2IPD), where

all of the South American countries RetailX tracks are in
50%
the third and fourth quartiles. World Bank data not yet
That said, as the success of the Mercado Libre marketplace 0%

proves, there are opportunities in South America. The Source: RetailX, drawing on data from the World Bank RetailX 2022
size of the company, dubbed the Latin American can
be gauged by its announcement in 2021 that it was Percentage of internet users who shop online
to invest $1.8bn in Brazil. As the Argentine company, 2018
28%
2019
33%
2020
37%
2021
40%
2022
43%
South America
headquartered in Montevideo, Uruguay, has grown, it Global
100%
has moved into such ecommerce-related services as a

payment platform, advertising and offering credit.
50%
While parts of South America, notably in its urban areas,

are highly developed, the overall GDP per capita of the 0%
countries RetailX tracks is comparatively low at $8.5k, an Source: RetailX, drawing on data from Statista RetailX 2022
increase from $7.8k in 2018. The equivalent global figures

are, respectively, $14.4k and $12k. The population Ecommerce revenue Index
of the continent is young, with the largest cohorts 300 271
South America
concentrated in Gen Alpha and GenZ. As younger Global 250 235
consumers are more likely to shop online, this augers well 200 179 175
for the sector. The number of internet users shopping 135
159
150
online has increased by at least five percentage points
125
100 109
100
in all of the past five years.
50
2018 2019 2020 2021 2022
Index 2018=100.
[1] www.bbc.co.uk/news/world-latin-america-57733540 Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | ARGENTINA © 2022 retailx.net, distributed by InternetRetailing.net
Argentina Population structure by age group

Silent Gen
Baby Boomers
2018
44.4m
2019
44.8m
2020
45.2m
2021
45.6m
2022
46.0m
Gen X 3.1m 2.9m 2.7m 2.5m 2.3m
Over half of all online sales take place Millennials
Gen Z
7.5m 7.5m 7.4m 7.3m 7.2m
8.3m
8.4m 8.3m
on mobile phones, showing a clear future
8.4m 8.4m
Gen Alpha 25m
10.1m 10.1m 10.1m 10.1m
10.1m
path for the country’s ecommerce 10.7m 10.7m 10.7m 10.7m 10.7m
4 5m
4.5m
5 52
5.2m 6.0m 6.7m 7.5m
0m
Internet and mobile usage are both high in Argentina, Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
helping to drive ecommerce and mcommerce adoption. Source: RetailX, drawing on data from UN RetailX 2022
Likely now to be around 90%, the percentage of Population growth

internet users is approaching levels of far richer 1.1%
Country 1.1%
1
1% 1.0%
nations. Of these users, 58% shop online. Both figures South America 1.0%
1.0%
0 1.0% 1.0%
are higher than the global and Latin American totals. Global
1.0%
1.0%
1.0%
0.9%
According to the Argentine Chamber of Information and 0.9%
0.9%
0
0.9
0.9%
0. 9
Communications (CICOMRA)[1], nine out of ten people have
a mobile phone and access the internet through it. 2018 2019 2020 2021 2022
Argentina
Capital: Buenos Aires Argentina 20k
Currency: Argentine peso (ARS) South America
Global
Other languages spoken: Italian, English, German, French, 10k
indigenous Mapudungun and Quechua
Nationality: Argentinian
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | ARGENTINA © 2022 retailx.net, distributed by InternetRetailing.net
The Argentine Chamber of Electronic Commerce (CACE) Percentage of internet users

is responsible for helping to promote the growth of Argentina 2018 2019 2020 2021 2022
ecommerce in the region and has carried out an annual South America
Global
100%
77% 79% 85%
study of the sector since 2010.

50%
Its figures show that ecommerce in Argentina grew by World Bank data not yet
68% in 2021 compared to the year before [2] with 381mn available for 2021 and 2022
units sold – a 52% increase on 2020. Its figures also show 0%

that eight out of ten transactions were made through a Source: RetailX, drawing on data from the World Bank RetailX 2022
credit card.
In 2021, mcommerce in Argentina overtook desktop Argentina
2018
49%
2019
51%
2020
54%
2021
58%
2022
58%
commerce for the first time, according to CACE, with South America
Global
100%
more than half (56%) of purchases made via a smartphone,

as opposed to 41% via desktop. 50%
Like many other markets in Latin America, growth is often

concentrated in the more populated areas, such as the 0%
greater Buenos Aires region. Source: RetailX, drawing on data from Statista RetailX 2022
Argentina is the home of Mercado Libre, the biggest Ecommerce revenue Index
marketplace in the Latin American region, with Argentina Argentina 350
making up 22% of the company’s net revenue. The South America
Global 300
300
27
271
company’s co-founder, chairman, president and CEO 250
252
235
Marcos Galperin is the richest person in the country 200 189

179 175
159
with an estimated net worth of $6.1bn as of April 2021.[3] 150 135
125
12
125
109
135
100
100
[1] www.trade.gov/country-commercial-guides/argentina-ecommerce 50
[2] https://cace.org.ar/estadisticas/ 2018 2019 2020 2021 2022
[3] https://cace.org.ar/estadisticas/
Index 2018=100.

GLOBAL ECOMMERCE REPORT 2022 | BRAZIL © 2022 retailx.net, distributed by InternetRetailing.net
Brazil Population structure by age group

Silent Gen
Baby Boomers 200m 10.4m 9.8m 9.1m 8.4m
10 9
10.9m
9m
Gen X 37.3m 36.8m 36.3m 35.9m
The use of ecommerce and multichannel
37.7m
Millennials
Gen Z 44.4m 44.3m 44.1m 43.9m 43.7m
retail looks set to rise in a market that is Gen Alpha 100m
51.5m 51.4m 51.4m 51.3m 51.3m
already the largest in the region 47.3m 47.3m 47.3m 47.3m 47.2m
17.6m
17 6m 20.4m
20 4
4m 23 2
23.2m 26.1m
26 1 28.8m
0m
Pre-pandemic, Brazil was the largest ecommerce and Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
multichannel market in South America. Its evolution Source: RetailX, drawing on data from UN RetailX 2022
during the pandemic saw it retail sector further hone its Population growth
operations. In 2021, online sales more than doubled 1.0% 1.0%
1.0%
0 1.0% 1.0%
Country 1.1%
1
1%
1.1%
1 1%
when compared to 2019 and were also 30% up on the 1.0%
0
South America
previous year[1]. Mcommerce has also grown strongly, and Global
0.9%
Brazil is the region’s leader here too. 0.8%
0.8%
0.7%
0.7%
Approaching 90% of the population are internet users, 0.6%
but ecommerce adoption is lower with just over half 2018 2019 2020 2021 2022
Brazil
Capital: Brasilia Brazil 20k
Currency: Brazilian real (BRL) South America
Global
Official language: Portuguese
Other languages spoken: 10k
Spanish, German, Italian, Japanese, English
Nationality: Brazilian
Government:
Federal presidential republic 0k
2018 2019 2020 2021 2022

(53%) of internet users shopping online, up from 41% in Percentage of internet users
2018. Brazilian ecommerce shoppers tend to be younger Brazil 2018 2019 2020 2021 2022
70% 73% 81%
with just under half (49%) of Brazilian ecommerce South America
Global
100%
shoppers less than 35 years old. Only 9% are aged 55

or above. However, as this is a country with a relatively 50%
young population, ecommerce will likely continue to grow World Bank data not yet
strongly over the years ahead.
0%
Online is now the preferred shopping channel for 6% of Source: RetailX, drawing on data from the World Bank RetailX 2022
ecommerce multichannel shoppers, twice the number in

2019. As a result, ecommerce revenue has grown steadily, Percentage of internet users who shop online
especially since the pandemic. Ecommerce shoppers Brazil 2018
41%
2019
45%
2020
49%
2021
53%
2022
57%
now spend an average of $397 online versus $245 in South America
Global
100%
2019. Spend is highest in the electronics sector. Like many

countries in the region, Brazil is dominated by ecommerce 50%
giant Mercado Libre, which was the most-visited
ecommerce website in the country in 2022.
0%
The country’s politics remain volatile. On 30 October, the Source: RetailX, drawing on data from Statista RetailX 2022
left-wing candidate Luiz Inácio Lula da Silva narrowly

beat the right-wing populist, Jair Bolsonaro, in a Ecommerce revenue Index
presidential run-off. For Lula, jailed in 2018 over charges Brazil 300 271
South America
of corruption and money laundering, this completed a Global 250 235 231
stunning political comeback. However, as with the USA, 200 179
193
175
it leaves Brazil as a divided country where a significant 150
135
159
150
percentage of the population is suspicious of the election
125
100 111
109
9
100
result and is even contesting it.[2]
50
2018 2019 2020 2021 2022
[1] www.statista.com/topics/4697/e-commerce-in-brazil/ Index 2018=100.
[2] https://apnews.com/article/jair-bolsonaro-caribbean-brazil-b7c872b541371ff2925fae793007af87 Source: RetailX, drawing on data from Statista RetailX 2022

Average spending of the ecommerce eshopper ($) Preferred device for online shopping (%)
Brazil, 2017-22 450 Brazil, 2017-22
Total 359
305 2017 2018 2019 2020 2021 2022
& Household Care 300
250 245 244 249 234 100%
Beverages 201 220
200 199 186 182 179
Electronics 176
Fashion 135 27 31
150 1144 109 125
119
119 131 11
110
1 80% 37
Food 89
848
4 8
844 1055 91
87 100
0
94 98 43 46 48
100 82
812 80
80
76
6
Furniture 50 44 42 40 45 48 49
Media 13
73 13
7 13
7 15
9 16
6
10
0 16
6
10
0
0 60%
Toys, Hobby & DIY 2017 2018 2019 2020 2021 2022
73 69
Annual revenue for the ecommerce market ($bn)
63 57 54 52
20%
Brazil, 2017-22 60
Total 50 49.2 0%
32.0
Beverages 30
20 19.4 20.0
Fashion 16.4
Food
Furniture
10 7.8 8.6
9
9.7
4.8
4.33
12.9
5
5.07
0 7
6.2
4
4.41
6..4
.2
2
4
8.9
7
7.4 4
4...8
4.8
4 8
Age distribution of ecommerce eshoppers
36 34
3.4 3
3.88 3
3.2
.22 3.
3.7
3 .7
7
Media 0
3.0
.0
0.1
0.
0 6
3
5
.1
1 0.1
0 4
5
..1
1 0.1
0 6
..1
1 2..7
0.2
0 7
7
2 2
0.3
0.38 0.3
0.3 8 Brazil, 2021
Toys, Hobby & DIY 2017 2018 2019 2020 2021 2022 29%
Annual change in revenue for the online ecommerce market (%) 20%
Brazil, 2018-22 80% 16%
73
Total 70%
60%
& Household Care 9%
50%
Beverages 40% 35
5
Electronics
30% 34
30
0
9 29
28
8
7
Fashion 25
25 26
25
5 25
22
Food 20%
22 22
20
0
18
8
122 13
3
2
1
11 13 15
5
13
3
Furniture 10
180
9 10
10 8
10% 5 18-24 25-34 35-44 45-54 55-64
Media
Toys, Hobby & DIY 0% years years years years years
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | CHILE © 2022 retailx.net, distributed by InternetRetailing.net
Chile Population structure by age group

Silent Gen
Baby Boomers 20m
2018
18.7m
2019
18.9m
2020
19.1m
2021
19.2m
2022
19.2m
Gen X 11.3m
3
3m 11.2m
2
2m 11.2m
2
2m 11.1m
1
1m 11.0m
0
0m
With government assistance, internet Millennials 3.8m 3.8m 3.8m 3.7m 3.7m
Gen Z
3.8m 3.9m 3.9m 3.9m 3.8m
provision is being made to the many Gen Alpha 10m
4.5m 4.5m 4.5m 4.5m 4.5m
far-flung and mountainous areas of Chile 3.8m
3.8m 3.8m
3.8 3.8m
3.8 3.8m
0m
1 5m
1.5m 1 7m
1.7m 1 9m
1.9m 2 1m
2.1m 2 4m
2.4m
4
Linked to the country’s relative wealth, Chile’s ecommerce Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
market is maturing quickly. GDP per capita is well above Source: RetailX, drawing on data from UN RetailX 2022
the regional average. Population growth

Country
Internet usage in the country is now in excess of 90%. Of South America
1.4%
1.1%
1.2%
0
0%
1.0% 1.0% 1.0% 1.0%
1.0
1.0%
0
those online, 66% also shop online. At $780 for 2022, the Global 0.9% 0.9%
average spend of ecommerce shoppers in the country
0.5%
is high and more than double the likes of Brazil. This is less
surprising when we see that 37% of Chilean ecommerce
0.2%
shoppers are high-income earners. In other countries 2018 2019 2020 2021 2022
Chile
Capital: Santiago Chile 20k
Currency: Unidad de Fomento (CLF) South America
Global
Nationality: Chilean
VAT: 19% | Reduced VAT: N/A
0k
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | CHILE © 2022 retailx.net, distributed by InternetRetailing.net
in South America, the split between low, medium and Percentage of internet users
higher income earners is more evenly distributed. In part, Chile 2018 2019 2020 2021 2022
84% 86% 88%
this links back to uneven distributions of wealth that have South America
Global
100%
endured since the Pinochet era, when the country was

a military dictatorship, and even before that. 50%
The online share of spending on food peaked during 2020
with a 79% change in revenue. Although it has since fallen 0%
back, it remains above pre-pandemic levels. Source: RetailX, drawing on data from the World Bank RetailX 2022
In 2021,Chilean authorities published the Electronic Percentage of internet users who shop online
Commerce Regulation.[1] This is aimed at strengthening the Chile 2018 2019 2020 2021 2022
50% 55% 58% 62% 66%
transparency of information provided to consumers via South America
Global
100%
ecommerce platforms around important elements such as

price and product details. Ecommerce development in 50%
the country is supported by Matrix Digital 2018-2022, a
Chilean government roadmap on national connectivity
that aims to help the development of the digital economy. 0%

At the end of 2018, nearly half (44%) of Chilean families
didn’t have ready access to fixed connection, so the high Ecommerce revenue Index
internet adoption rates seen today illustrate a dramatic Chile 300 271
264
change.[2] In this context, it is worth highlighting Chile’s South America
Global 250 235
232
geography. With the Andes running through much of the 200 179 175
country and a long Pacific coastline, it’s a country with 169 159
150 135
many remote regions and communities. Getting Chile 100
125
122
2
109
online has certainly been challenging. 100
50
2018 2019 2020 2021 2022
[1] www.dlapiper.cl/en/2021/09/24/alerta-legal-nuevo-reglamento-de-comercio-electronico/ Index 2018=100.
[2] www.diarioelpulso.cl/2019/06/19/serem Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | COLOMBIA © 2022 retailx.net, distributed by InternetRetailing.net
Colombia Population structure by age group

Silent Gen
Baby Boomers 50m 2.5m 2.3m 2.2m 2.1m 1.9m
Gen X 8.4m 8.3m 8.2m 8.1m
The country’s poor transport is an
8.5m
Millennials 9.6m
9.7m 9.7m 9.7m 9.7m
Gen Z
ongoing problem for ecommerce retails, Gen Alpha 25m
12.4m 12.5m 12.5m 12.4m 12.4m
who struggle to get goods to customers 12.2m 12.2m 12.3m 12.2m 12.2m
4 5m
4.5m 5 2m
5.2m
2 59
5.9m 6.7m 7.4m
0m
Greater accessibility online is helping to speed up the Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
adoption of ecommerce in Colombia. The country’s Source: RetailX, drawing on data from UN RetailX 2022
multichannel retail sector is benefiting from Population growth

improvements in banking and payment services. The 1.5%
Country
number of multichannel shoppers stating that online is South America
1.4%
their preferred shopping channel has tripled since 2017, Global

1.1% 1.0% 1.1%
1.0%
0
0% 1.0%
1.0
1.0%
0 1.0%
albeit 91% still say they prefer to shop offline. 0.8%
0.9%
0.5%
At $5.7k, GDP per capita is below the South American
average American average. This figure is a reflection of 2018 2019 2020 2021 2022
Colombia
Capital: Bogota Columbia 20k
Currency: Colombian peso (COP) South America
Global
Nationality: Colombian 10k
0k
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | COLOMBIA © 2022 retailx.net, distributed by InternetRetailing.net
the country’s troubled history. While Colombia is far more Percentage of internet users
stable than in years gone by, when drug cartels and guerilla Columbia 2018 2019 2020 2021 2022
64% 65% 69%
groups exerted a malign influence, there are still vast South America
Global
100%
swathes of the country that the UK government advises

travellers not to visit unless the journey is essential.[1] 50%
In 2020, a little more than two-thirds of the population was
using the internet. Half of Colombians who use the internet 0%
also shop online, up from 32% in 2018. According to Source: RetailX, drawing on data from the World Bank RetailX 2022
Statista figures, more than half (53%) of ecommerce

shoppers are aged 34 or under. Percentage of internet users who shop online
Columbia 2018 2019 2020 2021 2022
32% 40% 43% 49% 50%
Where other countries have seen a variety of peaks in South America
Global
100%
changes in revenue across sectors, all ecommerce sectors

in Colombia have followed a similar pattern. But despite 50%
the potential for ecommerce, infrastructure is an ongoing
issue for retailers, impacting both supply chains and
delivery. Transport networks are underdeveloped and 0%
inadequate for the level of demand, leading to extra costs Source: RetailX, drawing on data from Statista RetailX 2022
and delays for both retailers and customers alike[2].

This has made Colombia a focus for those looking to Columbia 300 27
271
overcome such challenges. For example, in January, South America
Global 250
257
235
286
Mellon[3], a Colombian startup that provides fulfilment and 196

200 179 175
software services to SMEs in Latin America, announced it 159
150 125
25
132 135
had raised $20mn in a Series A funding round.[4] 100 109
100
[1] www.gov.uk/foreign-travel-advice/colombia 50
[2] www.trade.gov/country-commercial-guides/colombia-ecommerce 2018 2019 2020 2021 2022
[3] www.melonn.com/que-hacemos Index 2018=100.
[4] https://techcrunch.com/2022/02/02/colombian-e-commerce-enablement-startup-melonn-raises-20m Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | PERU © 2022 retailx.net, distributed by InternetRetailing.net
Peru Population structure by age group

Silent Gen
Baby Boomers
2018
32.0m
2019
32.5m
2020
33.0m
2021
33.4m
2022
33.7m
1.5m 1.4m 1.3m
4.9m 4 88m
4.8m
5.0m
1.5m
4.9m
Gen X 1.2m
1 2
2m
As in many developing countries, Millennials 4.9m
Gen Z 6.4m 6.4m 6.4m 6.4m
6.3m
ecommerce in Peru is concentrated in the Gen Alpha 20m
7.9m 8.0m 8.0m 8.0m 8.0m
cities and mostly absent from rural areas 8.1m 7.9m 7.7m 7.7m 7.7m
0m
3 3m
3.3m 3 9m
3.9m 4 4m
4.4m
4 50
5.0m 5.6m
After a 2020 peak, which saw ecommerce grow by 50% Age groups (year of birth): Gen Alpha (2013-present), Gen Z (1998-2012), Millennials (1983-1997), Gen X (1968-1982), Baby Boomers (1948-1967), Silent Gen (1928-1947)
during the pandemic compared to the previous year[1], Source: RetailX, drawing on data from UN RetailX 2022
Peru’s use of ecommerce has settled down, although the Population growth
sector is still growing steadily. The pandemic is reported
Country 1.7% 1.6%
to have seen a quadrupling of businesses selling online South America
during 2020. Overall, ecommerce in Peru is forecast to see Global 1.4%
a yearly growth rate of 8%[2] between 2021 and 2025. 1.2%

1.1%
1.1%
1 1% 1.0% 1.0% 1.0%
1.0%
1.0%
0 1.0%
1 0%
By 2020, around two-thirds of Peruvians were internet 09
0.9%
users. Of these consumers, 48% also shop online, a figure 2018 2019 2020 2021 2022
Peru
Capital: Lima Peru 20k
Currency: Nuevo sol (PEN) South America
Global
Languages: Spanish, Quechua, Aymara
Nationality: Peruvian 10k
VAT: 18% | Reduced VAT: N/A
0k
2018 2019 2020 2021 2022

GLOBAL ECOMMERCE REPORT 2022 | PERU © 2022 retailx.net, distributed by InternetRetailing.net
that has been growing by 4% or more per year since Percentage of internet users
2018. The number of consumers shopping online has Peru 2018 2019 2020 2021 2022
55% 60% 65%
nearly doubled since 2017, when it stood at 25%, and South America
Global
100%
the number of consumers expressing a preference for

online shopping has tripled during the same period. 50%
A third (33%) of ecommerce shoppers in Peru are aged World Bank data not yet
between 25 and 34 years of age, while only one in five
(20%) are aged 45 or older. 0%
According to the Peruvian Chamber of Electronic

Commerce, CAPECE, nearly half (47%) of online Percentage of internet users who shop online
purchases take place on marketplaces.[3] This tallies with Peru 2018
29%
2019
35%
2020
40%
2021
44%
2022
48%
the situation in many developing countries, where retailers South America
Global
100%
use marketplaces as a way to get online quickly.

50%
While the long-term trends for Peruvian ecommerce
are positive, the majority of buyers still live in the
capital, Lima. As elsewhere in South America, there is 0%
an opportunity to build ecommerce in Peru’s regions, Source: RetailX, drawing on data from Statista RetailX 2022
although this comes with the huge challenge of reaching

consumers in remoter parts of the country. Ecommerce revenue Index
Peru 300
Peru’s politics are currently volatile. As we compiled this South America
Global 250 243 277
report, the country’s embattled president, Pedro Castillo, 200 190
175
who came to power in 2021, was preparing to appoint his 159
150 135
fifth prime minister in 13 months. 100
126
109
100
50
[1] www.trade.gov/country-commercial-guides/peru-ecommerce 2018 2019 2020 2021 2022
[2] www.ecommercedb.com/en/markets/pe/all Index 2018=100.
[3] www.capece.org.pe/ Source: RetailX, drawing on data from Statista RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | GLOBAL ISSUES © 2022 retailx.net, distributed by InternetRetailing.net
Global issues
Over the following pages, we look in more
depth at some of the strategic issues that
will be on the agenda for retailers in the
months and years ahead
This section focuses on global challenges and

opportunities facing ecommerce stakeholders. As with
last year, we begin with sustainability, a recurring theme
due to its growing importance. Our focus here is in part
because consumers, who can see the evidence for climate
change around them, seem to be ahead of politicians in
worrying about such issues. We also return to the Covid-19
pandemic. What effects has it had on the development of
multichannel retail and ecommerce?
Section contents
Sustainability 123
Covid-19 129
Inflation 131 We also consider the return of inflation to the global ahead, before turning our attention to the metaverse. Is it
Logistics 134 economy. How will retailers cope with this development? being over-hyped or is this the future of online retail?
Ecommerce 3.0 142 We focus on logistics, so disrupted by the pandemic and, Finally, we round up issues that, while they may not have
The metaverse & gamification 145 latterly, the war in Ukraine. We next focus in some of the an immediate impact on the bottom line, are certainly
Issues to track 152 digital innovation centres that may shape retail in the years worth tracking by boards and senior managers.

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Climate pressures Carbon dioxide emissions (kilotonnes)

Global, 2000-18
increase for retailers

South America 40000000
Africa
Asia 30000000
Middle East
Europe 20000000
North America
As the planet heats up, governments, Global 10000000
retailers and consumers are all being 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
called upon to act on climate change Source: The World Bank RetailX 2022
Consumer and business concerns about the environment Carbon dioxide emissions (kilotonnes)
Africa, 2000-18
are growing. Brands and retailers that operate on a
Tanzania 1500000
global level are feeling the pressures of geopolitical and Nigeria
social changes, as well as the impact of environmental
Algeria
Ghana 1000000
devastation brought about by the changing climate. Kenya
Egypt
South Africa 500000
Morocco
Current projections put parts of the world at serious risk of Africa
increased heavy rains, such as the ones causing the recent 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
deadly floods in Pakistan and South Africa. Yet elsewhere, Source: The World Bank RetailX 2022
extreme heat, more frequent droughts and a rise in

the number of the most powerful category 4-5 tropical Carbon dioxide emissions (kilotonnes)
Asia, 2000-18
cyclones are all predicted, as are rainfall increases in the
20000000
tropics and rainfall declines in the subtropics. China
Japan
India 15000000
Vietnam
Such changes to the climate are disrupting supply chains, Australia 10000000
Indonesia
halting production in the factories producing goods for South Korea 5000000
global and local brands and affecting workers’ lives. Yet Asia
extreme weather events are predicted to get even worse. 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
While 2022 is expected to finish as one of the hottest years Source: The World Bank RetailX 2022

Carbon dioxide emissions (kilotonnes) on record, the World Meteorological Organization (WMO)
Europe, 2000-18
believes there’s a 50:50 chance of the annual average
7500000
Russia
France
global temperature temporarily reaching 1.5°C above pre-
Italy 5000000 industrial levels for at least one of the next five years.
United Kingdom
Norway
Germany
Europe
2500000 1.5°C is the all-important temperature rise to which
governments and companies are tying plans in order
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 to restrict CO2 levels. The Intergovernmental Panel on
Source: The World Bank RetailX 2022 Climate Change says that climate-related risks for natural
and human systems are higher for a global warming of
Carbon dioxide emissions (Mton) 1.5°C more than present.
Middle East, 2000-18
United Arab Emirates 3000
Turkey The WMO believes that there is a 93% likelihood of at
Saudi Arabia
Israel 2000 least one year between 2022 and 2026 becoming the
Iran warmest on record, dislodging 2016 from the top ranking.
Qatar
Middle East 1000 The chance of the five-year average for 2022-2026 being
higher than the last five years (2017-2021) is also 93%,
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 according to the Global Annual to Decadal Climate Update,
Source: The World Bank RetailX 2022 which is produced by the UK’s Met Office, the WMO lead
centre for such predictions.
Carbon dioxide emissions (kilotonnes)
North America, 2000-18
Dr Leon Hermanson of the Met Office led the report. He
7500000
Mexico
USA
said: “Our latest climate predictions show that continued
Canada
5000000 global temperature rise will continue, with an even
North America
chance that one of the years between 2022 and 2026 will
2500000 exceed 1.5°C above pre-industrial levels. A single year
of exceedance above 1.5°C does not mean we have
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 breached the iconic threshold of the Paris Agreement
Source: The World Bank RetailX 2022 but it does reveal that we are edging ever-closer to

Carbon dioxide emissions (kilotonnes) Consumers willing to pay a

South America, 2000-18
Argentina 1500000 sustainability premium
Brazil Selected countries, 2021
Peru
Colombia 1000000
China 52%
Chile
South America
500000 Brazil 46%
0 UAE 44%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
USA 42%
Source: The World Bank RetailX 2022
Italy 38%
a situation where 1.5°C could be exceeded for an Accelerating progress, particularly in terms of finance, was
Spain 35%
extended period.” a key theme for COP27, held in Sharm El-Sheikh, Egypt, in
November 2022. It is hoped that this summit will be the UK 33%
COP27 PRESIDENT CALLS FOR ACTION turning point to the international community working Switzerland 33%
Factors such as these will have been front of mind when for the common good of our shared planet.
world leaders, NGOs and businesses met at the global Austria 32%
environmental conference, COP27. While 2022’s COP26 Against this backdrop, Egypt is urging countries to Germany 32%
was heralded as a success, Alok Sharma, UK President upgrade their nationally determined contributions (NDCs)
Denmark 31%
of COP26, closed the summit by proclaiming the 1.5°C in accordance with the Paris Agreement and raise the
target had been kept alive but “its pulse is weak and it ambition of their climate action to include support and Sweden 30%
will only survive if we keep our promises and translate finance for developing countries reducing emissions France 29%
commitments into rapid action.” and adapting to the negative impacts of climate change.
Netherlands 26%
Sharma’s sentiment was seconded by the UN Climate Meetings before COP27, under Egypt’s Minister of Foreign Australia 26%
Change secretariat. Its 2021 annual report marked the Affairs, Sameh Shoukry, hoped the event would “build on
Norway 24%
outcomes of COP26 as having signalled “a shift from the outcomes from Glasgow and discussions during the
negotiations and setting targets to implementing actions first semester of 2022, recognising the new headwinds and Japan 17%
and raising ambition further.” tailwinds that the overall geopolitical situation in the world
presents for global climate cooperation.” Source: Simon-Kucher & Partners, Global Sustainability Study 2021 RetailX 2022

Average sustainability premium Current purchasing behaviour, workers. While a small number have shifted their lifestyles
consumers are willing to pay by generation 2021 around their ethical stance in the last five years, the
Selected countries, 2021 Does not affect my purchasing behaviour majority of consumers have made either a “moderate”
Does not directly affect my purchasing behaviour, but aware if sustainable
For certain categories, I only buy sustainable alternatives
or “significant” change to how and what they buy.
USA 37% I always choose sustainable alternatives when available
I only buy sustainable alternatives, if not possible I will not buy Millennials are the most likely to have made changes
UAE 37%
Baby Boomers 1%
1 23% 34% 24% 18% to how they shop and the importance they place
Denmark 34% on sustainability as a purchasing criterion. Given
Brazil 28%
Gen X 3% 26% 33% 23% 15% the opportunity, 33% of millennials will choose a
Millennials 4%
sustainable option of a product over one that’s not.
UK 25% 29% 33% 21% 13%
GenZ, which has grown up with sustainability front
Norway 25% Gen Z 4% 24% 35% 22% 15% of mind, is becoming a driving force in sustainable
China 24%
consumption. In Germany, this group accounts for the
Source: Simon-Kucher & Partners, Global Sustainability Study 2021 RetailX 2022
largest share of the sustainable fashion market.
Sweden 22%
TAKING RESPONSIBILITY FOR CHANGE “Sustainability used to be pretty niche from a
Australia 22%
Consumers don’t feel that governments should be working consumer standpoint and very Europe-centric,” says
France 21% on climate change alone. A third of consumers in Asia Chip Bergh, President and CEO of Levi Strauss. “Now
Netherlands 18%
believe that they can make as much of a difference as it’s truly global and cuts across generations. The young
national governments, according to a study by strategy consumer in particular is really focused on this. If you ask
Germany 18%
marketing consultancy, Simon-Kucher & Partners. a teenager today, they will very likely say climate change is
Spain 17% Consumers in Europe have more faith in their own actions top of mind in terms of their concerns.”
than those of political actors while in North America,
Japan 17%
consumers believe for-profit companies can have the most Overall, 41% of consumers in Brazil say that sustainability
Austria 17% impact (25%), compared to consumer action (23%). is an extremely important factor when shopping. A similar
Switzerland 16% percentage of consumers in China say that it’s “slightly
Consumers around the world have concerns about important”, with 30% believing sustainability to be an
Italy 16%
sustainability that extends beyond weather patterns to extremely important part of their purchasing criterion. UAE,
RetailX 2022
care for the oceans, animal habitats and the welfare of with its high proportion of young, educated consumers and
Source: Simon-Kucher & Partners, Global Sustainability Study 2021

Current purchasing behaviour those with high incomes, has over a third of consumers their ecommerce sites. Research conducted by RetailX[1]
Selected countries, 2021 (35%) saying sustainability is “extremely important”. finds that the majority of the world’s leading brands and
Does not affect my purchasing behaviour
Does not directly affect my purchasing behaviour, but aware if sustainable retailers online include messaging about sustainability on
For certain categories, I only buy sustainable alternatives Consumers are also willing to pay extra for products their consumer-facing ecommerce sites but very few go so
I always choose sustainable alternatives when available
I only buy sustainable alternatives, if not possible I will not buy
that are sustainable. While consumers in China are more far as to link to plans and policies from their homepage.
willing to pay a premium, it is shoppers in the USA who
China 6% 45% 18% 17% 13% are willing to pay the most. 52% of consumers in China The RetailX investigation into the Global Elite 250, those
Brazil 3% 43% 31% 16% 7% will pay a premium, compared to 42% in the US, who are brands and retailers that are market leaders in the RetailX
also willing to pay up to 37% extra. Dimensions in multiple countries and regions around the
Italy 5% 35% 37% 17% 6%
world, shows that just 10% of these companies link to
UAE 3% 32% 29% 25% 10% Japanese consumers are the least-likely to worry about full corporate social responsibility or sustainability
Austria 3% 30% 36% 21% 11% the impact of their purchases and, as such, only policies from their ecommerce site homepages. 48%
17% say they would pay extra, according to Simon- of the 250 retailers outline their sustainability goals and
Spain 3% 29% 40% 18% 9%
Kucher & Partners. Italians, who are among the most commitments on their websites in a way that consumers
Germany 3% 28% 38% 18% 13%
environmentally conscious shoppers, will pay up to 16% can access, with 44% sharing their plans on how they plan
Switzerland 2% 27% 39% 18% 14% extra for a product that has less impact on the planet. on meeting their sustainability goals.
USA 6% 22% 29% 22% 20%
With their stance of being proactive about sustainability, What is interesting to see in the investigations into the
France 2% 25% 37% 19% 16%
consumers will look for information about a product RetailX Global Elite 250 is the increasing number of
Sweden 2% 23% 38% 26% 11% before purchasing and investigate the brand that companies sharing details of how products are made,
UK 3% 21% 35% 27% 14% produced it. This is true of 16% of consumers in China the impact they have on the environment and working
and in the US who “very often” look for information about conditions across the supply chain. As the Levi Strauss
Australia 2 19%
2% 39% 23% 17%
lifestyle brands’ sustainability practices. A further 40% in CEO told delegates at the World Retail Congress: “It is no
Denmark 3%
% 18% 24% 29% 26%
the US say they do this “somewhat often”. secret that the apparel industry is a bad guy when it comes
Japan 0%2
21% 10% 38% 30% to planet Earth. A lot of our products end up in landfill and
Norway 1%
113
13% 39% 24% 23%
COMMUNICATING THE JOURNEY that’s not good. We also use a lot of chemicals, we use a lot
This behaviour is highlighted not just in how brands of water, all of these are putting stress on the planet.”
Netherlands
and retailers behave but also in the ways they are
2%
212
12% 43% 28% 15%
Source: Simon-Kucher & Partners, Global Sustainability Study 2021 RetailX 2022 presenting sustainability information to consumers on

Importance of sustainability as Actors for positive change, according Bergh explained that the global jeans company is working
a purchase criterion to consumers “flat out” to reduce its environmental footprint, using
Selected countries, 2021 Selected countries, 2021 fibres such as hemp that are more sustainable as well as
Not important at all Others looking for ways to reduce water usage. “Sustainability
Slightly unimportant Non-profit organisations
Neutral National political actors has been a strategic issue for us,” he said. “We weave it
Slightly important International political actors
For-profit companies
into everything we do. We drive our innovation programme
Extremely important
Civil society around sustainability.”
China 30% 43% 22% 4%
1%
% Brazil 55% 17% 8% 10% 8%2%
%
Brazil 41% 31% 22% 4%3
3%
% The past year has seen a huge increase in the number
Italy 38% 18% 26% 8% 8%2%
%
of brands providing proof of their actions and gaining
UAE 35% 37% 21% 5%2% Japan 36% 29% 4% 24% 3%
3%
certification in a bid to validate sustainability ambitions
Italy 30% 38% 25% 4%3
3%
% Austria 34% 22% 23% 11% 7%2%
% and avoid complaints of greenwashing. In 2021, B Lab,
Spain 29% 36% 26% 6%3
3%
% Switzerland 33% 22% 28% 8% 7%2%
% which certifies companies as B Corporations for putting
UK 25% 37% 27% 7% 4
4%
% Spain 33% 19% 29% 11% 6%1%
% people, the planet and profit on equal standing when
France 22% 39% 28% 6% 5%
5 Germany 29% 27% 22% 9% 10% 4%
4
making business decisions, received more than 6,000
USA 28% 33% 26% 7% 6%
6
applications for certification from businesses around the
Denmark 28% 13% 27% 23% 6%3%
world. This is a 38% increase over 2018. The total number
Germany 24% 34% 29% 7% 6%
6 Sweden 26% 21% 28% 16% 5%3%
of companies certified for the first time rose by 18%.
Austria 26% 31% 29% 7% 7% France 26% 24% 29% 11% 7%3%
[1] https://internetretailing.net/sustainable-ecommerce/sustainability-report-2022/
Australia 19% 38% 30% 7% 6%
6 China 26% 19% 17% 35% 3%
1%
%
Sweden 23% 34% 30% 8% 5%
5 Norway 25% 17% 29% 18% 8% 3%
Switzerland 21% 36% 30% 8% 5%

5 Australia 24% 20% 19% 18% 14% 5%
Denmark 22% 33% 32% 8% 6% USA 23% 25% 14% 17% 16% 4%
Netherlands 17% 35% 32% 9% 7% Netherlands 23% 34% 23% 13% 5%3%
Norway 18% 32% 35% 8% 7% UK 21% 26% 21% 13% 14% 5%
Japan 13% 35% 36% 10% 5%

5 UAE 21% 20% 24% 19% 15% 1%
%
Source: Simon-Kucher & Partners, Global Sustainability Study 2021 RetailX 2022 Source: Simon-Kucher & Partners, Global Sustainability Study 2021 RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | COVID-19 © 2022 retailx.net, distributed by InternetRetailing.net
Covid-19 and
ecommerce
After years of slowly attracting people
to shop online, ecommerce became a
vital lifeline overnight due to Covid-19
lockdowns. Paul Skeldon wonders this
global pandemic has forever changed
the world of retail
“The refrain of the pandemic has been that no one is

safe until everyone is safe. The pandemic is not over but
©www.shutterstock.com
the end is in sight.” So said Tedros Ghebreyesus, director
general of the World Health Organisation (WHO) in late
summer 2022. For retail, though, is the pandemic
actually over? And if so, what state has it been left in?
Even when lockdowns weren’t in force, fears around crowds kept many shoppers out of high street stores
There are two factors at play when it comes to looking at
how the pandemic has impacted retailers. Firstly, has it to or not. This caused online shopping rates to rocket. By October 2022, the proportion of online sales was back
changed how they do business and how shoppers shop? According to the UK’s Office for National Statistics (ONS), by down to 24% – in line with the slow, almost flat, growth of
Secondly, might Covid-19 return in a different form, forcing May 2020, online accounted for 32.8% of all shopping, ecommerce seen in 2019.
shoppers and retailers to once again adapt? compared to around 20% pre-pandemic. By January
2021, it hit just shy of 40%. Undoubtedly, ecommerce is growing, yet it appears that as
CHANGING SHOPPING HABITS the pandemic subsides and we learn to live with Covid-19,
In the early months of the pandemic, lockdowns forced However, talk of ecommerce now being the only retail it remains just one part of the consumer retail journey, just
shoppers to embrace ecommerce, whether they wanted game in town seems to have been greatly exaggerated. as the death of the high street remains an exaggeration.

GLOBAL ECOMMERCE REPORT 2022 | COVID-19 © 2022 retailx.net, distributed by InternetRetailing.net
This picture appears to be global. According to figures EMBRACING HYBRID RETAIL WHERE COVID-19 GOES NEXT
from the IMF, the average online share of total spending This doesn’t mean that ecommerce is slipping. Instead, The other factor that may yet see all this change again
worldwide rose sharply from 10.3% in 2019 to 14.9% at the what’s changed is consumers being more inclined to use is where Covid-19 goes next. While heavily vaccinated
peak of the pandemic, but then fell to 12.2% in 2021. digital channels as part of their overall shopping journey. countries seem to be bouncing back strongly, there is the
ever-present threat that the virus will mutate enough to
Although the latest online share of spending is higher A study by Mood Media of over 12,000 shoppers across make this vaccine protection irrelevant, plunging the world
than before the pandemic started, it’s only 0.6 the UK, US, France, Spain, Germany, the Netherlands and back into a more rerstricted, even locked-down state.
percentage points (pp) above the growth trend for China, found that 30% of UK consumers are shopping
ecommerce had the crisis not happened. in-store more often now than two years ago. This is one factor that no one can predict. It appears that
Omicron is a more transmissible yet milder variant, so
However, there are exceptions. According to the IMF’s However, a separate study of 3,000 European shoppers by we are heading towards endemic status, where Covid-19
figures, ecommerce increased more in economies with messaging company Sinch discovered that 73% want to becomes more like a seasonal cold or flu. However, since
a higher pre-pandemic share of online retail, exacerbating visit a store and then make a final purchase on their any future mutation could be more contagious yet also
the digital divide across economies. mobile phones, often from within the store itself. deadlier, all countries must remain vigilant.
For example, Singapore, Canada and the UK had high Until this feared event, the growth of ecommerce
shares to begin with and together saw the largest continues to slow, physical retail continues to see some
growth in ecommerce during the pandemic. On the expansion and shoppers continue to explore new, hybrid
other hand, Brazil and Thailand, which both had low online ways to shop.
share pre-Covid-19, experienced less acceleration.
Perhaps more striking is that these spikes don’t appear to

have persisted. The IMF suggests that where the average
online spending share peaked at 4.3pp above the level
predicted pre-pandemic, now it sits at just 0.3pp above.
There is an ever-present threat that Covid-19 might never go away, forcing us all to live with it

GLOBAL ECOMMERCE REPORT 2022 | INFLATION © 2022 retailx.net, distributed by InternetRetailing.net
Inflation
As geopolitical events continue to rock the
world, ecommerce is taking a double hit
from rising operating costs and budget-
conscious consumers thinking twice
before hitting the ‘buy’ button
Inflation rates continue to rise in many economies across

the world, with food and energy prices hitting record
highs, causing an ongoing global cost-of-living crisis. This
is impacting how consumers spend, particularly for
lower-earners, who are understandably restricting their
spending to food and energy.
In June, the UK thought it had seen a recent record high

when inflation hit 9.4%, the highest rate in 40 years. Yet by With prices rising everywhere and all the time, shoppers are cutting back to essential purchases and looking for bargains both online and instore
October ,it hit 11.1%[1], up from 10.1% the month before.
while in Africa, it’s highest in Ghana. In South America, 12-month Consumer Prices Index (CPI) inflation rates
This rate was 9.6% when housing is also factored in.
Argentina’s CPI is the highest while in the Middle East, above 6% in September 2022. The ONS says this is the
Meanwhile, in the US, inflation slowed for a fourth month
it’s Turkey. In Asia, India has the highest CPI and in North most widespread inflation has been since 2008.
to 7.7%[2], the lowest rate since January and down from
America, it’s the USA.
8.2% the month before. Consumers are, understandably, struggling. In its most
As of November, more than two-thirds (69%) of 29 [3]
recent global survey, EY’s Future Consumer Index[4] found
Globally, inflation is at levels not seen since the 1970s,
countries have high or very high inflation compared to that 92% of global respondents were extremely or
when two major oil shocks caused it to spike. When we
their 50-year trends, according to the Office of National moderately concerned by their country’s economy,
look by region, we see big differences in rates, though. In
Statistics. Of these, more than three-quarters (79%) saw while 87% were concerned by their finances, with plans to
Europe, the Consumer Price Index is highest in Germany

cut their spending as a result. Consumers everywhere are Indexed Consumer Price Index
cutting discretionary spend to cope and focusing instead Africa, July 2021-22
160
on spending on the essentials such as food and fuel. Algeria
Egypt
137 141
Ghana 140 133
128
8 126 128
The survey shows that more than half (58%) of global Kenya 121
120 122 124
120 116 117 1
117
7
115 118 118
115 11
119
Morocco 1100 111 112
1100 114
112 1144 110 113
3
112
2 114 110
0 11
114
14
11
1114
108 108
8 1
108
08
8 10
1099 109
09 109 108
8 10
1099
consumers are very concerned about the rising cost of Nigeria 107
1044 107
105
05
104 108
1
107
1058
07
7
5
4 107
7 107
1047
4 107
107
0
1057
6
5 108
1058
5
4 106
6 107
07
7
106
6 108
8
106
6 108
8
107 107 10
07
1
103
03
0
1013
01 04
103
103
2
101
01
1 10
103
1022 104
04
4
103
03
3
102 103 103
10
03 10
103
033 1
104
4
South Africa 100
living, with Japanese respondents the most concerned Tanzania 85 86 86 87 88 89 90
with affordability (41%) compared to the countries 80

2021-07 2021-08 2021-09 2021-10 2021-11 2021-12 2022-01 2022-02 2022-03 2022-04 2022-05 2022-06 2022-07
where considerations about affordability are least. These Index January 2021=100. Source: Diverse National Institutes of Statistics RetailX 2022
include India (4%), China (6%) and Nigeria (11%).

Indexed Consumer Price Index
It’s been a frustrating time for retailers. Soaring inflation Asia, July 2021-22
115
has been caused in part by the Russian invasion of Ukraine, Australia
China 110 110 111
110 109
particularly when sanctions imposed on Russia saw India 106 107 106 106 106 107
106 106 106
106
06
108
107
07 108
10
106
105
105
105 105
global energy prices rise. But it’s also been demand- Indonesia 105 104 104 104 103 104
103
0 104
103 104 104
10
104 104
102
02 102 102 102
02 103
102
02 103
03 1022 102
10 2 103 102 102 103
102
Japan 101
01
0
101 102
02
101 101 1
10
101
01
00
1 10
1 02
102
02 101 101
101 01
101 102
driven, influenced by the pent-up consumer demand South Korea 100 901
091
100
99 0 101
10
100
0 101
0
100
0 100
00
100 100 100
0
Vietnam
following the pandemic that led to product shortages and 95
subsequent price increases. 2021-07 2021-08 2021-09 2021-10 2021-11 2021-12 2022-01 2022-02 2022-03 2022-04 2022-05 2022-06 2022-07
Index January 2021=100. Source: Diverse National Institutes of Statistics RetailX 2022
Traditionally, the ecommerce industry has avoided many
of the impacts of inflation since its overhead costs have Indexed Consumer Price Index
been lower than physical stores. This has meant that Europe, July 2021-22
France 112
consumers have always looked online for cheaper Germany 110 109 110 111 110
11
111
10
109 109 109 111 111
prices, casting their search net worldwide. Italy 108
08 8
108 108
108 108 107
Norway 107 107
106 7
106 106
066 106
Russia 106 105 105 105 105 105
5
104 4 104 10
104
However, the supply chain impact of the pandemic, the 104 103 104
04
4 104
04 03
104 103
03 103 10
103
1 03 103
102 103 103 103
1 3
102
02 10
102
102
102
02
2 102
Ukraine war and rising oil prices increasing transport 102 102
10
02
02
101
100
and distribution costs are all taking their toll. According 2021-07 2021-08 2021-09 2021-10 2021-11 2021-12 2022-01 2022-02 2022-03 2022-04 2022-05 2022-06 2022-07
to Statista, Amazon’s median price increased by 11% Index January 2021=100. Source: Diverse National Institutes of Statistics RetailX 2022

in beauty and 7% in electronics in August 2022 on the Indexed Consumer Price Index
previous 12 months[5]. Middle East, July 2021-22
Iran 200
176 182 195
Israel 2
172 190
172 172
For ecommerce shoppers, this means a greater focus on Qatar
175
156
164 165
149 147
the deals and offers that can be found online. In Chile[6], for Saudi Arabia
Turkey
150
124 127 130 135
134
4 137 142
120
example, when inflation was at 2.9% in the first quarter of United Arab Emirates 125 115
109
0
09
102
02
0
199
1002
0
110
1
102
02
100
0
111
1
103
03
102
2
100
00
0
114
10
1
1
103
03
03
1012
118
18
105
05
0
05
10
103
3
2
101 105
5
103
03
2
101
1 104
103
03
101 104
3
101 104
04
102
2 106
105
102
02 106
102
0 106
103
03
0 107
10
102
02
0 7
6
2
2021, just over a third (37%) of digital shoppers felt that price 100
was important in their online purchasing. A year later, though, 75

2021-07 2021-08 2021-09 2021-10 2021-11 2021-12 2022-01 2022-02 2022-03 2022-04 2022-05 2022-06 2022-07
and with inflation at 8.3%, more than half (55%) were keenly Index January 2021=100. Source: Diverse National Institutes of Statistics RetailX 2022
checking of prices and offers before buying online.
Indexed Consumer Price Index
Such caution has given rise to new habits. According North America, July 2021-22
to Statista, inflation impacted on whether to buy and sell Canada 114
112 112
Mexico 112 113
1 3
second-hand goods in the past 12 months for 93% of US USA 110
110 111
110 110
111 111
109
consumers, while more than half (58%) plan to increase 108 107
107
108
108 108 108
106 107
106
their use of recommerce in the next 12 months. The EY 106 106
106 105 105 105 105
104 104 1
104 104 104
survey has similar findings, with 71%[7] of consumers 104 10
0
103
033 103 103
saying that they are not willing to buy new products 102
2021-07 2021-08 2021-09 2021-10 2021-11 2021-12 2022-01 2022-02 2022-03 2022-04 2022-05 2022-06 2022-07
when they can repair what they already own. Index January 2021=100. Source: Diverse National Institutes of Statistics RetailX 2022
It’s hoped that we’ve seen the worst, though. According to Indexed Consumer Price Index
the IMF[8], global inflation is expected to rise from 4.7% in South America, July 2021-22
2021 to 8.8% by the end of 2022 but then to decline to 6.5% Argentina
Brazil
225
200
200 190 215
in 2023 and to 4.1% by 2024. Chile
Colombia 175 171
181
153 160
Peru 141 147
[1] www.ons.gov.uk/economy/inflationandpriceindices
150 133 138
125 128
[2] https://tradingeconomics.com/united-states/inflation-cpi 125 113 115
5 115
5
113
112
2 116
114
4
113
3 116
115
6
114
4
112
[3] www.ons.gov.uk/economy/inflationandpriceindices/articles/globalinflation/1970to2022 105
5 105
4 107
4
104 108
8
105
104 109
9
106
06
6
104
4 110
106
6
105 110
0
108
8
107
7
106 111
108
08
107
10 9
8 110
1100
08 112
2
109 110 111
102 102
[4] www.ey.com/en_gl/news/2022/11/ey-future-consumer-index-consumers-opt-for-caution-this-holiday-season-to- 100
cope-with-rising-cost-of-living-and-environmental-concerns-new-data-finds
[5] Impact of inflation on e-commerce - statistics & facts | Statista 75
[6] www.statista.com/statistics/1338133/price-importance-online-shopping-inflation-chile/
2021-07 2021-08 2021-09 2021-10 2021-11 2021-12 2022-01 2022-02 2022-03 2022-04 2022-05 2022-06 2022-07
[7] www.ey.com/en_gl/consumer-products-retail/five-types-of-consumer-that-you-need-to-understand#1
[8] www.imf.org/en/Publications/WEO/Issues/2022/10/11/world-economic-outlook-october-2022 Index January 2021=100. Source: Diverse National Institutes of Statistics RetailX 2022

GLOBAL ECOMMERCE REPORT 2022 | LOGISTICS © 2022 retailx.net, distributed by InternetRetailing.net
Logistics
Getting products into warehouses then
out to customers has been a difficult
challenge due to ever-changing
geopolitical events. Could technology
play a part in changing behaviours?
How to get your products to customers is a major concern

when deciding whether to launch abroad, or even when
you’re a retail brand considering promoting yourself via
marketplaces and concessions.
This is especially true following the coronavirus pandemic,
©Shutterstock
which rocked the global supply chain networks in ways never
seen before. Whole operations were shut down for weeks,
or even months, while aftershocks to the system are still
Following years of Covid-19 disruption, retailers are now facing supply chain problems caused by geopolitics events, so are looking for smart solutions
being felt and, in some areas such as China, lockdowns
remain a reality. With new Covid-19 outbreaks in the East, However, some argue that the supply chain crisis has Retailers large and small will need to be innovative if they
there has been renewed strain on global supply chains created an opportunity for the ecommerce industry, since want to survive the pending recession. However, many
compounded, of course, by recent geopolitics developments. it has created a “sense of urgency”[2]. Some businesses want to do more than survive – they want to expand
have transformed bricks-and-mortar stores into micro- and grow their reach internationally. Such businesses
The Russia-Ukraine conflict, tensions between China and fulfilment centres, while others are now looking closer need to understand how easy, or difficult, it is to get
Taiwan and an economic slowdown are all negatively to home for manufacturing partners in order to avoid the products to customers on different continents.
impacting supply chains across multiple sectors[1]. Prices are stalling global supply chain. Others, Amazon included, [1] https://deliveryx.net/geopolitical-tensions-increasing-supply-chain-disruption-says-smart-cube/
continuing to rise across numerous industries, mainly due have even taken control of their own global distribution [2] www.forbes.com/sites/theyec/2021/11/12/how-the-global-supply-chain-crisis-is-creating-opportunities
to shortages and restricted access to critical supply routes. in order to ensure that they can deliver.

AFRICA infrastructure is a must for all online platforms that want

With over a billion people, almost 60% of who are under to succeed.”
the age of 25[3], the African continent has a huge
One of the biggest challenges for the logistics
consumer base that companies want to engage with.
industry in Africa is the lack of a unified address
With a growing number of these people now online,
system. This leaves companies having to rely on
there are huge opportunities for ecommerce to take off.
customer descriptions and landmarks during the
A recent report by online payment service provider PayU checkout process, with the driver required to keep
found that South Africa has the continent’s highest in constant contact while en-route.
internet usage, at 56% of the population, with Nigeria
In a number of African countries, firms are repurposing
and Kenya at 46% and 31%, respectively. However,
‘Boda Bodas’ – bicycles or motorcycles once used as
ecommerce uptake was only at 37% in both Nigeria and
taxis – for deliveries to deal with such challenges. Others
South Africa, and 25% in Kenya.
are taking to the skies.
Further investment in infrastructure and logistics is
Zipline is a firm which designs, manufactures and
needed to realise any potential, says Mahmood Al-
operates drones from distribution centres in Rwanda
Bastaki, chief operating officer of DT World, a subsidiary
and Ghana (as well as recently expanding into Japan).
of DP World Group[4].
Growing from a medical essentials distribution startup,
“Ecommerce’s continued growth cannot be feasible the company now uses autonomous drones to deliver
if logistics cannot support the increased movement grocery and ecommerce parcels direct to consumers.
of goods,” he notes. “Supply chain optimisation is
For Africa’s ecommerce sector and logistics industry to
crucial, as poorly timed deliveries can lead to major
really take off, technology seems likely to play a part –
monetary loss. Improving delivery routes, identifying
whether on the ground or in the air.
the stumbling blocks in the supply chain and optimising
shipping processes are not only cost-effective but also
©Zipline
create a good customer experience and grow loyalty [3] www.weforum.org/agenda/2022/09/why-africa-youth-key-development-potential
[4] www.logupdateafrica.com/latest-news/growth-on-the-horizon-for-african-e-commerce-and-logistics-
among consumers. Investing in physical and digital in-2022-1344797 Zipline has made nearly 450,000 commercial deliveries using drones

ASIA
The pandemic resulted in a ‘new normal’ across Asia of
social isolation, working from home and online shopping
becoming the standard. As more people subsequently
remained indoors over fears of the virus returning,
consumers have turned to ecommerce for their
everyday essential purchases, as well as retail and
technology orders. It’s therefore not surprising that the
revenue from the ecommerce market in Asia is projected
to reach $2.093bn this year[5].
The sheer size of the ecommerce market has resulted
in a very competitive logistics sector, with worldwide
players wanting in on the action. DHL Express, FedEx
and Best Express have all made strategic investments
to establish logistics networks, build new distribution
centres or create smart warehouses across Asia.
©FedEx
It is now expected that Asia will account for 57% of
the growth of the global ecommerce logistics market FedEx has been growing its AsiaOne network for over 20 years
by 2025[6]. Logistics firms have realised that Asia will
likely be the single-most-important addition to their Due to the dense nature of many Asian cities, warehouses According to JLL data, three major multi-storey projects
business portfolios. are going up rather than out, with multi-storey in Shanghai are running at 100% occupancy. With such
facilities becoming increasingly popular with a success rate, and the growing demand for ecommerce
This, in turn, has resulted in a race for warehouse space.
developers. “These types of facilities appeal to logistics warehouse space globally, multi-storey facilities are certain
“There’s a land grab for space among all the carriers
companies because they offer practical business solutions, to be a growing trend – and not only in Asia.
that’s not going to end soon” notes Paul Good, owner
especially for retail and ecommerce companies,” says [5] www.statista.com/outlook/dmo/ecommerce/asia
of GL Terminal in Jakarta, Indonesia[7]. [6] www.mckinsey.com/featured-insights/asia-pacific/asia-the-highway-of-value-for-global-logistics
Stuart Ross, JLL China’s head of industrial. [7] https://glginsights.com/articles/e-commerce-logistics-challenges-in-southeast-asia/

EUROPE
The UK, France and Germany are Europe’s largest
ecommerce markets and between them, in 2021, they
totalled €477bn in ecommerce revenue[8]. UK retail
businesses alone receiving £2.8bn worth of website
orders from EU-based customers in 2019, according
to the Office for National Statistics.
This was, of course, prior to Brexit. Experts in the
industry are now seeing the negative impacts of the
UK leaving the EU. The ending of VAT exemption on low-
value goods, increased paperwork requirements and rules
of origin issues have all taken a toll on ecommerce logistics.
“For ecommerce sellers, Brexit basically means more
bureaucracy and tax,” says Richard Asquith, global
vice-president of Indirect Tax at Avalara. Commercial
©Shutterstock
property consultancy Knight Frank describes Brexit as
creating “competitive challenges for UK ecommerce
retailers selling to the EU and vice versa.” It predicts Queues stretched for ten kilometres (six miles) west of Dover in early 2022
tariffs and taxes will result in higher prices for cross-
border ecommerce transactions. Such hurdles are already putting businesses off exporting think more about manufacturing and shipping bases closer
between the UK and EU. German logistics firm Codept has to home. While Brexit may slow cross-border trade, it does
Furthermore, delivery delays caused by the additional
reported the UK’s total exports to the EU fell by 40.7%, provide an opportunity for domestic ecommerce to grow
paperwork, border checks and stricter regulations are
while imports from the EU declined by 28.8% when in the long-term.
causing headaches for e-tailers. A recent survey by
comparing January 2021 to December 2020 figures[10].
fulfilment firm Shipbob found that UK brands saw
post-Brexit red tape on EU shipments as a key risk The additional charges, admin and delays will drive [8] www.statista.com/statistics/1113005/market-size-of-e-commerce-in-europe-by-country/
[9] https://deliveryx.net/shipping-costs-biggest-growth-risk-survey-finds/
to their growth[9]. many shoppers to stay local, in turn driving retailers to [10] www.codept.de/blog/brexit-impact-ecommerce-logistics

MIDDLE EAST
The importance of shopping malls and the in-person
experience in the Middle East had slowed the uptake of
ecommerce in the continent for many years. Yet during
the pandemic, consumers did move online in a shift that
now seems unlikely to revert to the previous norm.
Growing wealth combined with digital-savvy shoppers
across the region now provide an opportunity for
e-tailers, especially those selling luxury goods. “The
Middle East represents a big opportunity for luxury
©Dario Ciraulo/Unsplash
brands,” says Herve Ballantyne, consumer and
industrial products leader, Deloitte (Middle East).
The continent ranks 9th in the luxury goods market,
with leather goods and shoes being key sellers and
accessories topping the Middle East market share for More than 80 million people visit the Dubai Mall annually
luxury items.
shores of the Arabian Gulf, and on the Arabian Peninsula and free shipping methods, have largely persuaded many
The United Arab Emirates (UAE) alone features the market’s – has enabled it to become a global logistics hub. The buyers to purchase products from outside the region.
greatest segment, with a market volume of $553mn in 2020. UAE can therefore act as a connection between the
The UAE has become the heart of the luxury segment in Well-developed logistics infrastructure across the
growing economies of Africa and Southeast Asia with the
the Middle East, with a major share of population (almost continent is also helping to sustain the growing
established markets of Northern America and Europe.
90%) residing in the urban areas and increased per capita ecommerce demand, with ease of obtaining licences and
income. Dubai and Abu Dhabi comprise of more than 50% A large chunk of online shoppers in the Middle East better warehousing facilities providing high investment
of the country’s entire population. have also begun accepting cross-border products. potential. Deloitte concluded the region’s ecommerce
Online shoppers in the UAE made 58% of their market looks poised for strong growth.
Furthermore, the geographical significance of the online purchases from overseas vendors in 2016[11].
UAE – located between Oman and Saudi Arabia, on the Improvements in gateway security, along with reliable [11] https://www2.deloitte.com/xe/en/pages/about-deloitte/articles/we-are-25/e-commerce.html

NORTH AMERICA
The North America ecommerce retail market is
anticipated to grow at a significant CAGR of 11.7%
between 2022 and 2028[12], with high internet and
smartphone usage in the region driving growth.
It is also predicted that it will overtake Asia Pacific’s
current dominance in the market by 2026[13]. This will
no doubt be achieved through the region’s technological
advancements and the development of infrastructure
in major economies such as the US and Canada.
Wide connectivity, not just online but also the continent’s
infrastructure of roadways and railways, is behind this
prosperity. The railways of the US and Canada form
one of the major railway networks across the region,
providing a critical logistics network.
©Shutterstock
However, the high cost of logistics could put a spanner
in the works. Costs of ecommerce logistics in the
US increased from around $117bn in 2017 to
approximately $196.2bn in 2020[14].The cost of reverse The Port of Vancouver facilitates trade to 170 world economies
logistics in major countries of North America is also in air freight costs is putting pressure on an already to technology to ensure continued success, just as the
a concern for ecommerce companies. In 2021, retail stressed supply chain. consumers of North America have turned to using their
merchandise returned in the United States accounted mobiles to shop.
for $761bn, a big increase from $428bn reported in While rising shipping costs and further supply chain
[12] www.businesswire.com/news/home/20220908005919/en/North-America-e-Commerce-Logistics-Market-Report-
the previous year. Additionally, the Federal Reserve disruption will impact on the North American logistics 2022-2028-High-Internet-and-Smartphone-Penetration-Driving-11.7-Growth---ResearchAndMarkets.com
[13] https://finance.yahoo.com/news/global-e-commerce-logistics-market-113000176.html
Bank of New York stressed earlier this year, in its latest sector, retailers, brand and delivery companies will turn [14] www.technavio.com/report/e-commerce-logistics-market-industry-analysis
[15] https://libertystreeteconomics.newyorkfed.org/2022/05/global-supply-chain-pressure-index-may-2022-update/
Global Supply Chain Pressure Index[15], that the increase

SOUTH AMERICA
National Geographic describes South America as a inland locations. And that is before considering the final
continent of extremes, home to the world’s largest river mile, a timely first delivery attempt being very important in
(the Amazon) as well as the world’s driest place (the the ecommerce sector.
Atacama Desert). There are similarly extreme hurdles Could collection solutions offer a solution? In the first half
to overcome for the ecommerce and logistics industries of 2022, Brazil ranked top in the region, with around
in the region. 5% of parcels delivered to collection points. While this
Many of the twelve sovereign states have their own may seem small, when compared to Argentina at just 1.5%,
currencies, taxation and customs authorities, which it hints at the developing collection movement in Brazil[16].
can cause problems. In addition to customs taxes, If other South American countries looked at parcel
tariffs and fees, it can take up to a month for certain locker networks, some of the continent’s logistics
goods to be cleared through customs, especially in headaches could be avoided.
Brazil and Argentina. Despite the obstacles, like all continents, the pandemic
The requirement by a number of destination countries saw many shoppers turn to ecommerce who are unlikely
– among them Peru – that any package being delivered to ever turn back. This has led to significant jumps in
features the recipient’s tax ID number is a further ecommerce sales. Argentina was the fastest-growing
hindrance. Brazil also requires a World Customs with a retail ecommerce increase rate of 79%, while
Organization Harmonized System (HS) code for the Brazil’s ecommerce growth rate was 35%[17].
merchandise being shipped.
Such red tape can lead to delays, inventory build-
ups, rising costs and, ultimately, customers waiting
longer for their products to arrive. Once through
©Shutterstock
customs, there is then the issue of infrastructure. Roads
remain the primary means of transportation yet 60% are [16] www.parcelmonitor.com/insights/e-commerce-logistics-race-in-latin-america-h1-2022
[17] https://futureofsourcing.com/data-is-key-to-latin-american-e-commerce-logistics
unpaved, hampering the speed of delivery by truck to
Parcel lockers and pick-up stations are growing in popularity across Brazil

GLOBAL ECOMMERCE REPORT 2022 | Q&A © 2022 retailx.net, distributed by InternetRetailing.net
Q&A More than half of companies have changed their UK-

based suppliers as a result of escalating supply chain
‘emergencies’ affecting retail SCs. It is important to modernise
the logistics sector by investing in data-driven digital
issues, while 40% have switched providers outside the transformation to prevent and mitigate risks. Furthermore,
Dr Chris Papanagnou is a lecturer in UK. With the prices of certain products going up even after predicting the outcome of risk scenarios and the increase
logistics engineering at Aston University the pandemic, the logistics sector faces new challenges in home deliveries or sales of products can become very
as companies quit their existing distribution channels. challenging. Therefore, logistics managers should actively
Ecommerce has traditionally had a positive impact on develop intelligent decision-making models to cope with the
While supply chain disruption seems to be
direct exports and a negative influence on indirect exports. unprecedented demand levels and elaborate agile supply
easing following the pandemic, geopolitical and
While ecommerce does help companies run resilient chains to handle online deliveries in shorter times.
macroeconomic issues are still ongoing. Should
supply chains, these chains have a minor effect on indirect
consumers and retailers expect more empty shelves As many shoppers look to make more sustainable
exporting. Therefore, companies may focus on to Direct-
and lengthy delays? buying decisions, what is the logistics sector doing to
to-Consumer business models and ship goods without
The recent geopolitical crisis shaped mainly by the Russia- ensure it is more environmentally friendly?
relying on traditional bricks-and-mortar storefronts or
Ukraine war has had an enormous impact on global supply Companies should bring forward sustainability initiatives
intermediaries. Companies should be aware, however, of
chains. The flow of goods has been impeded, leading to cost by investing in advanced technologies such as predictive
the associated costs of shipping abroad and should always
increases and product shortages, which has a tremendous analytics and the Internet of Things. Data analytics and
consider sea freight over air freight, compare shipping
impact on consumers. The macroeconomic crisis that acquisition technologies enabling data sharing and real-
quotes and contact shipping companies well in advance.
causes anxiety for millions of UK households and pressure time communication across the supply chain have become
on supply chains is set to last throughout 2022. Consumers As the number of people shopping online increases, essential elements to model risks and provide more
will continue to experience shortages of some products how is the logistics sector adapting? environmentally friendly services, products and solutions.
along with price gouging, especially for imported products. In emerging situations such as the Covid-19 pandemic, Logistics managers should also invest in digital skills and
The expectation is that fleet management and supply chain logistics managers should recognise the importance of training for their employees to establish supply chain
networks will continue to face disruptions and will become developing and maintaining holistic technology-based resilience efficiently. The logistics sector needs people in
less responsive to increasing customer requirements. management systems, tools and processes to address critical positions, such as at fulfilment centres, to have
supply chain risk and disruptions. This constitutes a starting access to the predictive analytics skills needed to respond
Rising shipping costs are a concern for retailers selling
point for establishing robust models that will respond more effectively to global events and move towards sustainable
online and looking to export. Can ecommerce retailers
effectively to changes in customer shopping behaviour, supply chain risk management.
deal with these rising costs, or will they have to
product ranges and value, model different risk scenarios and
reconsider shipping abroad?
apply probabilities to provide a decision tree and likelihood of

GLOBAL ECOMMERCE REPORT 2022 | ECOMMERCE 3.0 © 2022 retailx.net, distributed by InternetRetailing.net
Beyond Silicon Valley

The next generation of tech companies
is as likely to emerge from an innovation
park in Europe or India as it is from
California, writes Paul Skeldon
Once known as the Valley of Heart’s Delight due to

its verdant orchards, today’s Silicon Valley is so
synonymous with the fruits of tech innovation that
it has become shorthand for the tech industry itself.
Yet as the internet has spread around the world,

propagated by those technologies created in Silicon Valley,
so innovation hubs have sprung up around the world
anywhere that young and creative workers, venture capital
and manufacturing centres can all come together.
While there are many reasons why Silicon Valley

has become a state of mind, a major one is that the
original Silicon Valley has priced itself out of the
startup market. As real estate in the region has become
astronomically expensive on the back of skyrocketing
demand, talent in the Valley has commanded an equally
high price, leading to a growing global demand for
home-grown expertise and solutions to meet the
demands of local tech scenes. Berlin is second only to London in Europe as a home to ‘unicorn’ startup businesses valued over $1bn, having 11 compared to London’s 45

Governments across the globe have regarded creating their The city of Shenzhen has grown at an equally blistering BENGALURU (BANGALORE), INDIA
own tech hubs as a vehicle for inward investment that, pace, rising from a population of 30,000 in 1979 to 13mn Back in the day, India’s undisputed tech capital of Indiait
if successful, can at some point generate export revenue by 2020. This enormous workforce has kept pace with was the outsourcing capital of the world and the unseen
when sold abroad. It’s both the entrepreneurial spirit and increasingly sophisticated manufacturing processes, power behind many leading Western companies. As the
the end product of Silicon Valley being emulated. attracting many tech giants to the area to tap into such outsourcing model has matured, Bengaluru has used
localised innovation. these links with Western tech giants to create its own
Ecommerce, in particular, has created much of the thriving R&D centre, birthing many of India’s – and the
impetus for this raft of ‘The Silicon Valley of…’ with The city also has a staggering number of venture world’s – latest unicorns and ‘soonicorns’, those companies
the boom in online retail during the pandemic, along capital firms attracted by so many innovative startups. worth more than $100mn and likely to become $1bn
with associated payments, marketing, social media, According to CrunchBase, there are 236 VCs in the city. By unicorns. Indeed, Bengaluru is now the startup capital
marketplaces, logistics, cloud tech and SaaS, being ripe comparison, CrunchBase lists 707 servicing Silicon Valley. of the world, with 14 unicorns based there, including
targets for innovation. Flipkart and ride-sharing app, Ola.
In ecommerce, Tencent – originally a video games
So where are these emerging tech centres and what do developer, now a multinational tech and media company – According to CrunchBase, the city has 53 venture
they offer their local markets? Equally interestingly, what owns WeChat, an instant messaging, social media, mobile capitalists actively investing and has spawned a raft of
can the original Silicon Valley learn from these young payment and ecommerce-led ‘super-app’. Tencent owns innovative apps, particularly around new models of online
upstarts and imitators? the closest thing to a Silicon Valley campus, only theirs buying. These include OnceAgain, a pre-owned fashion
is arranged vertically in twin beach-front towers. site; Spoyl, an influencer-led fashion ecommerce platform
SHENZHEN, CHINA that is taking India by storm; BuyHatke, an online shopping
China’s Shenzhen is widely known as the “Hardware This has prompted an explosion of interest in ecommerce price comparison site; and Mesh, a product rental site.
capital of the world” and it’s where factories churn out startups, with a raft of new companies extending
iPhones along with many other high-end gadgets. It is ecommerce and mobile commerce tech development to The city has created many other apps and ecommerce
also synonymous with rapid development and a can-do service the Chinese ecommerce market both within and tech companies, from those that offer technical integration
attitude, with ‘Shenzhen Speed’ coming to define the outside China. There is a growing number of ecommerce and headless commerce, right through to job-hunting
region’s impressive tech capabilities. When, for example, and ‘super-app’ developers spread across the city. sites to leverage the growing and increasingly mobile tech
Steve Jobs told manufacturers a month before launch that workforce in India.
the iPhone was to have a glass screen, Shenzhen Speed
made it happen. This raft of devs and investors, along with the city’s
general air of innovation, make this a place that Western

companies are returning to in order to outsource their companies from China, which are using Lagos as the dev centred on mobility and connectivity for ecommerce,
work, only this time it’s development and R&D very much base for expansion across African ecommerce. while Breezeup focuses on natural, close to consumer
on the terms of the Bengalurians themselves. product recommendations.
Compared to Shenzhen and Bengaluru, there are more
LAGOS, NIGERIA modest numbers of VCs in Lagos – CrunchBase lists 34. Yet Such is the level of growth in these two German markets
Lagos is home to Nigeria’s largest ecommerce company, the city does have its own Silicon Valley of sorts in the that investors see them as hotbeds for unicorns. According
Jumia. While ecommerce has come late to Africa, it has form of the Co-creation Hub (CC-HUB). Based around to a 2020 Dealroom study, there are 11 unicorns in
now exploded across the continent, with many domestic the University of Lagos and the Yaba College of Technology Berlin and nine in Munich, placing them second and
innovators looking to replicate the success of Amazon, in the Yaba district of the city, this areas has been dubbed third in Europe behind only London, which has 45. The
Asos and more in their local regions. Nigeria is perhaps the ‘Yabacon Valley’. two German cities have a potential 29 and ten further
preeminent African country for this innovation. ‘soonicorns’ in the offing.
BERLIN AND MUNICH, GERMANY
Until recently, Lagos’ tech development sector was Two of the fastest-growing tech hubs in the world can be While these two German ‘Silicon Valleys’ largely service
driven by fintech as a way to safely move money around found in Berlin and Munich in Germany. As of 2021, there the expanding domestic ecommerce market, they are
the country and use smartphones to serve a population were just under 2,000 verified startups in Berlin, 200 of seen as fertile ground for acquiring developers and for
largely without access to traditional banks. Now that such which were formed in 2020 alone. These include hand- establishing tech outposts by both European and further-
fintech is largely in place and working well, innovators in picked grocery delivery firms Gorillas and Flink, e-bike flung companies.
Lagos are turning to the next logical step – ecommerce. rental company Dance, and SellerX, which buys up
businesses selling on Amazon.de and scales them for
While Jumia currently dominates this space, there are new markets.
also many startups centred around Lagos that are pushing
services such as delivery carrier aggregation (Terminal), AI While Munich lags behind Berlin in terms of startup
for ecommerce firms (ShareCube), and mobile commerce action, it is catching up fast. Customer-facing ecommerce
(HauteApp and Farmz2U). Web design companies and newbies coming out of the Bavarian city include Jaimie
payment players are also springing up which, in turn, Jacobs, with its customisable women’s shoes and
are attracting talent from the more mature fintech dev Glamloop’s high-end fashion. Many of the ecommerce
sector towards ecommerce and mobile app startups. startups in and around Munich are focused on ecommerce
The city has recently attracted the attention of numerous tech. Parser.run, for example, focuses on data, Unu is

GLOBAL ECOMMERCE REPORT 2022 | GAMIFICATION © 2022 retailx.net, distributed by InternetRetailing.net
Into the matrix?

Our two experts debate whether the
metaverse is pure hype or solid hit
The metaverse is the future of the internet, at least

according to its proponents. In ecommerce terms, it’s
offering a new, user-friendly way to go shopping. Why
go in person when your avatar can go for you?
Yet others aren’t so sure, pointing out that virtual reality

(VR) technology has been around for years but remains
a niche offering for many reasons, not least the confusion
that grips many users in virtual environments.
So who’s right? We asked two of our experts to offer their

personal takes on what’s happening. Cam Winstanley, who
takes a sceptical stance on virtual reality technology, is a
video game expert and a former editor of Amiga Power,
a magazine so irreverent it still has a cult following more
than 25 years after its closure. Paul Skeldon, who takes
a positive view of the metaverse, is a mobile expert and
one of RetailX’s most senior editors.
Access our forthcoming report on the metaverse,

the first report to look at the technology in detail
©Meta
from a multichannel retail perspective.
The Meta Quest 2 is Meta’s own stand-alone VR headset with hand-held controllers that currently sells for £400

What can the WHAT’S VIRTUAL REALITY?

A VR headset works by tricking enough of a user’s senses
It took the disruptive power of the smartphone to make
VR headsets a commercially attractive proposition.
metaverse learn that they can believe they’re standing inside a virtual
world. In a high-tech iteration of the Victorian era’s
Launched by a Kickstarter campaign in 2012, the Oculus
Rift headset used smartphone flat screens, motion
from VR gaming?
stereoscopic viewers, a screen in front of each eye shows sensors and off-the-shelf processing power to create an
a slightly differing images of the same computer-generated incredible VR experience straight out of the box. Just
scene. The brain then merges them and interprets the two years later, Facebook bought the company for $2bn,
scene as a single, 3D view. with the likes of PlayStation, Microsoft quickly joining the
Video gamers have had VR headsets for VR party with their own headset and gaming offerings.
Tilt switches and accelerometers – the same smartphone
a full decade now. Cam Winstanley asks components that count steps and maintain the orientation VR GAMING TODAY
whether metaverse ecommerce can learn of the screen – detect head movement so that as the Video games have been more profitable than Hollywood
anything from their experiences user looks up, down or around, their view adjusts for many years. For comparison, Avatar’s $2.85bn box-
correspondingly. Finally, headphones create stereo sound office receipts make it the biggest-grossing film of all time,
Facebook’s 2021 rebranding as Meta may have pushed from point sources, so, for example, users can hear a yet Grand Theft Auto V, the 2013 console smash, has made
virtual reality (VR) into the mainstream yet it’s been a sci-fi virtual river off to their right even before they turn to face it. over $7.5bn, while the largely PC-based World of Warcraft
concept for decades and a hands-on reality since 2012, has, to date, banked $11.3bn[1].
when the game-changing Rift headset was released. The Yet such a virtual reality is far easier to describe that it is to
global gaming industry has always been a test-bed for, and create. A 1935 sci-fi short story, Pygmalion’s Spectacles, By comparison, even the biggest VR games have notched
driver of, digital innovation but even after a decade in the describes VR glasses almost identically to William up only modest sales and even smaller profits. VR’s
mainstream, VR gaming remains a surprisingly niche Gibson’s 1993 cyberpunk novel, Virtual Light. But while number one game, the pop music/sword slashing combo
pastime. Let’s find out why by looking at the factors that warehouse-sized, computer-powered training simulators Beat Saber, generated sales of $97mm in 2021[2] but due
have limited its popularity . Let’s also see how these same for aviation became widespread from the 1960s onwards, to high production costs, its Czechia-base developer saw
issues – including hard-to-overcome physiological ones VR headsets have always struggled against the profits of under $3m. The second-best selling VR game,
– could limit Mark Zuckerberg’s dream of the metaverse limitations of size and processing power. Cathode ray Valve’s Half Life: Alyx, scored 93/100 on Metacritic and won
becoming the main way to immersively navigate Web 3.0. tube TV screens were always too bulky, hot and heavy to fit Best VR/AR at the 2020 Game Awards. While it’s made
into headsets, while the computers capable of generating $74mn since release in March 2020, that’s just a fraction
smooth, real-time 3D environments stubbornly remained of the £720mn that Valve made selling 12mn copies of its
too large and expensive for home use. non-VR prequel, Half-Life 2.

Why such a disparity? One reason is that computer and

console gaming are mature markets, while the VR user
base is still growing. Statista estimates that VR gaming
sales will rise from $12bn in 2022 to $22bn by 2025[3].
But another reason is perceived value for money… or

lack of. The Meta Quest 2 headset is a stand-alone system
that costs £400. While that’s about half the price of an
entry level gaming PC, VR gamers can only choose from
handful of top-tier games compared to the thousands
available for PC. This is partly because games developed
for a flat screen can span any genre and display them from
any viewpoint, while the nature of VR restrict viewpoints
to the first-person. When there’s a real risk of a VR headset
supported by just a few games becoming a seven-day
wonder, it’s no surprise that fewer people take the gamble.
©Valve Corporation
There’s one final reason though and it’s the big one.
Remember how we said that VR works by tricking the
user’s senses? The downside is that by doing so, VR
makes a lot of its users sick. By ‘a lot’ we mean at least While many VR experiences are simplified to encourage casual use, Half-Life: Alyx throws players into a tense, demanding and immersive top-tier video game
10% of everyone. By ‘sick’, we mean actually nauseated.
Sometimes for hours after the event.
resulting in less neck strain and face sweat. Headsets now technology might never be able to solve entirely. The big
even work tirelessly to protect the user from bruised problem is that human brains are just too good.
THE DIZZYING WORLD OF VIRTUAL REALITY
shins by letting wearers define a ‘safe space’ within a
Iterative redesigns and improving technology have
room, then employing outward-looking cameras to ensure There’s an evolutionary survival imperative to spotting when
mitigated many of the issues around VR headsets. Some
they don’t stray. Yet ticking off such problems has merely something’s ‘not quite right’, whether that’s an unexpected
headsets now accommodate spectacles, for example,
pushed the biggest issue to the front and it’s one that hand tremor warning of oncoming disease or a moving
while all are lighter and cooler than older versions,

ward off car sickness by looking at the road ahead instead anywhere from 40% to 70%,” with common symptoms
of their phone. Yet since VR cocoons the user in a virtual being headaches, dizziness, nausea and fatigue that
world, the only way to ‘watch the road’ is to stop playing. can last up to four hours after gaming sessions. Informal
polls on games blogs put rates among regular gamers far
Specific triggers to VR sickness can often be addressed lower at around 15%, with 40% experiencing no symptoms
by reducing the mismatch of sensations between the at all. This suggests that VR sickness might affect
virtual and real worlds. For example, many users were newcomers more than regular players, who perhaps
struck down by early VR games by pointing at something simply learn get over it.
©Beat Games
but not seeing their hands inside the game view. The
solution? To track hand movements using external ECOMMERCE, THE METAVERSE AND YOU
controllers or cameras, then replicate them in-game. Mark Zuckerberg has pinned the future of Facebook so
Best Saber plays to the many strengths of VR by letting players crouch, duck and slash away
closely to the metaverse that he’s rebranded the company
with virtual swords to destroy music-times blocks, all from a safe, stationary position
Similarly, while looking around in VR rarely causes as Meta. If you watch only Meta’s promotional material,
sickness because it’s intuitively controlled by actual you could be forgiven for believing that the internet
shadow warning of an imminent saber-toothed tiger attack.
head movements, controlling in-game walking with will soon only exist within virtual spaces, with every
So while VR has got good at fooling the eyes and ears of
a hand-held joystick makes many users feel they’re online purchase, Zoom call and social media interaction
a user, the brain’s not getting caught out any time soon.
constantly on the brink of falling flat on their faces. via VR goggles. While we’re not here to trash that vision,
It recognises when something’s ‘not quite right’ most of the
we are here to offer a reality check before you and your
time and when it does so, it howls in protest. Due to this phenomena, gamers have fewer problems with business pivots towards a VR-only future.
flight simulators since, just like their virtual ‘other’ strapped
Motion sickness occurs when your eyes see a static cabin
inside the cockpit, they are also sitting down. It’s also why So let’s assume that Intel’s head of accelerated computer
but your inner ear detects the ship’s pitch and roll. Or
many current VR games opt to have players ‘teleport’ from systems and graphics[5] was being excessively gloomy
when, as a car passenger, you try to read your texts on a
one static location to the next rather than walk between when he said that the metaverse’s “…persistent and
winding road. It’s the same deal with ‘VR sickness’ when
them, since this significantly reduces discomfort. immersive computing, at scale and accessible by billions
a computer simulation displays motion that a user’s brain
of humans in real-time, will require a 1,000-times increase
knows isn’t really happening. How widespread a problem is VR sickness? A University in computational efficiency from today’s state of the art.”
of Minnesota kinesiologist told inside science.org[4] that, And let’s assume that Meta’s $15bn R&D spend on the
Many can quell sea sickness by going on deck so the sight
“with contemporary commercially available VR systems, metaverse alone (compared to Apple’s $4bn budget for all
of the moving sea swell matches the motion. Most can
the incidence of motion sickness after only 15 minutes is product research) has gone into producing some usable

products. What other factors might limit VR adoption at

such a scale that in the next few years, it wouldn’t seem out
of place to see your mum in a headset shopping online?
Well, as long as they remain the size of cycling helmets,

shoppers are unlikely to carry their own VR headsets
to the high street. But since they can sweaty, they’re
unlikely to use instore headsets either. So how can the
metaverse ever slot at scale into the instore physical
sales journey? And will the general public ever enter the
metaverse in a public space full of pedestrians and traffic?
Even if such issues go away due to a future generation

of sunglasses-sized headsets with integrated situational
awareness, what about VR sickness? Any experience that
leaves 10% of first-time users feeling dizzy is unlikely to
ever achieve mass market appeal. For ecommerce within
©EagleDynamics
the metaverse, ubiquitous VR would be a literal headache
for businesses. It’s easy for shoppers to browse webstores
all night long on a screen, yet all-but the most dedicated
VR gamer are fatigued by headsets after an hour. While Digital Combat Simulator is designed to run on the desktop screen of a high-end gaming PC, adding a VR headset immerses the ‘pilot’ in an incredibly realistic world
and computer screens seems to be a more user-friendly a full decade, it’s hard to see it ever gaining public
Which raises the existential question – what is the option than an expensive additional headset. favour. Viewed as a Venn diagram, the circles of ‘regular
metaverse for? If Web 3.0 is destined to become the ecommerce users’ and ‘dedicated VR headset users’ seem
single online ‘third place’ for users to meet, mingle, shop Everyone agrees that the metaverse is coming in unlikely to ever touch, let alone overlap.
and interact, that doesn’t automatically have to be in some form or other, not least because Mark Zuckerberg
VR. Indeed, once you start to consider search, view and has willed it so. But when a user base as dedicated as
[1] https://vgsales.fandom.com/wiki/List_of_highest-grossing_video_games
[2] www.roadtovr.com/beat-saber-100m-revenue-2021/
interaction use cases, a combination of current and video gamers has largely ignored VR technology for
[3] www.statista.com/topics/2532/virtual-reality-vr/#topicHeader__wrapper
[4] www.looper.com/215435/the-real-reason-vr-makes-some-people-sick/
augmented reality (AR) interfaces on existing smartphone [5] www.intel.com/content/www/us/en/newsroom/opinion/powering-metaverse.html#gs.fedr2u

VR: headsets will roll

Virtual reality, pioneered in the gaming
sector, is creeping into everyday life – so
why aren’t we all wearing headsets? Paul
Skeldon shares his radical theory…
They look dorky, they are quite heavy, they are isolating
and, for 10% of users, they can be disorientating. These are
all reasons why we aren’t already all wearing virtual reality
headsets and immersing ourselves in the virtual world.
That and the fact that, unless you’re a purist, you don’t
even need a VR headset to get into that virtual world.
My daughter Catie, 11, and her friends spend much of their

non-school time essentially in the metaverse. She is in
©Roblox
there right in front of me now. She’s not wearing a headset.
Nor are any of her friends. They are all playing together in
Roblox on their iPads, phones and laptops. The experience Is the online shared space of Roblox, where users can explore and interact via their smartphones, a more practical VR experience than one viewed through VR headsets?
is semi-immersive – Catie is certainly engrossed – yet WHAT IS VR REALLY? she does on her iPad, not in a headset. What she
there is no need for specialist equipment. Virtual reality already has a pretty solid definition: “VR is experiences isn’t reality. It isn’t the internet through a
the simulated experience that employs pose tracking and browser, nor is it augmented reality that overlays stuff on
This little vignette playing out in my living room 3D near-eye displays to give the user an immersive feel of the real world. What she and her friends are using is a
demonstrates two things. Firstly, that the metaverse is a virtual world”. This definition needs to change, though. sort of democratised, low-fi version of VR.
already here and the consumers of tomorrow, our kids, In reality, if you’ll pardon the pun, VR is increasingly
love it. Secondly, the VR tech sitting behind it doesn’t have becoming any sort of simulacrum of reality generated And that is all you need. While expensive VR headsets
to be different to the gadgetry any 11-year-old already has. by computer. My daughter certainly sees it as something can deliver a mind-bending, vomit-inducing experience,

No, not the defined way they look at VR in the purist world, This will change how we interact with the web and it will
but a more popularist, consumer-led view of VR. change what we think of as VR, which will become that
thing we do on our phones when we want to visit the
WHY DOES THIS MATTER? virtual shopping mall.
It matters because VR, which is an immersive experience
of a virtual world for individuals, is slowly becoming This will also bring AR –augmented reality –to bear on
conflated and confused with the metaverse – and the the real world, creating an amalgam of VR and AR as the
metaverse has the potential to radically change how we interface to the internet. That is what the metaverse
interact with the internet. really is: an on-ramp to accessing the web in a more
realistic, but totally virtual, way.
Unlike VR, the metaverse doesn’t really have a proper
definition. It is a sort of virtual world, or worlds, where you Literally ‘virtual’ ‘reality’.
can interact with other users and do – and buy – stuff. You
©Roblox
create a version of yourself – an ‘avatar’ – and meet other
A generation raised on Roblox is likely to want interactions such as ecommerce to be comparable avatars as well as interact with brands and games.
anyone wanting to deliver VR to ‘the kids’ needs none of All virtually.
that. And if you want VR to take off, then it has to get
Yes, you could do that with a headset, sick bag clutched
away from the ‘nerdy gamer’ vibe.
in your real right hand, or you could do what my daughter
In effect, what this ‘VR lite’ offers is a new way to interact does and just get on with buying stuff and playing and
with the internet. Looking over her shoulder at what interacting with friends on her screen.
Catie is doing, it does kind of make the browser-based
No, Roblox isn’t the pinnacle of VR, nor of the metaverse for
experience seem antediluvian. I mean, why am I typing
that matter, but it’s the start. As the metaverse becomes
when I could be pointing and clicking a virtual finger?
more refined – and the graphics get better – Catie and
If you consider these ‘flat’ VR experiences as VR, as I do, her friends, who by then will be young consumers keen
then Roblox alone, which is enticing 47mn individuals to spend their pocket money, will expect their shopping
a day to use VR, has nailed it – certainly into Gen Alpha’s experiences and other interactions with online entities to
minds. This, like all the other sim-like games, I argue, is VR. be more like Roblox.

GLOBAL ECOMMERCE REPORT 2022 | ISSUES TO TRACK © 2022 retailx.net, distributed by InternetRetailing.net
Issues to track
We consider some of the areas that may
turn out to be strategically important in
2023 and beyond
It’s a thankless task to look ahead because, so often, it’s

the problems up ahead that we do not foresee that turn
out to pose the biggest challenges. That said, it is one of
the prime responsibilities of boards and senior managers
at least to try to glean the opportunities and problems that
may lie on the horizon, and each year we at least try to
©www.deeleyfreed.co.uk
offer some input here.
Looking back to 2021, we identified seven areas to watch:

• Non-Fungible Tokens (NFTs): on the rise
• 5G: its rollout matters The centre of Bristol may soon be the subject of major regeneration. Will the same be true of other city centres around the world?
• Cloud-based technologies: how to balance core tech
stacks and scalable services object and ownership/collecting is breaking down”. One is still important because, as we noted, it encompasses
• Livestreaming: on the rise year on, we would argue this is an ongoing process. As this “the idea that retailers will increasingly have to move
• Social media: integral to our lives report went to press, Christie’s was preparing to sell fast to make the most of the opportunities that digital
• The metaverse: the future or a fad? more than 15 works via its auction platform, Christie’s commerce offers”. Whether livestreaming has really taken
• Work-life balance: changing work patterns enabled by 3.0, as part of its Next Wave: The Miami Edit Sale. off outside Asia is another matter.
digital technologies
5G rollout continues apace. Cloud-based technologies Social media continues to fascinate and appal us in
To revisit each of these briefly in turn, we saw the rise of continue to become more and more integral to the equal measure, meaning it continues to be a channel that
NFTs as “evidence that the connection between physical technology stacks of the largest companies. Livestreaming retailers have to use while being aware of risks around

GLOBAL ECOMMERCE REPORT 2022 | ISSUES TO TRACK © 2022 retailx.net, distributed by InternetRetailing.net
reputational damage. We cover the metaverse in detail retailers to look long and hard at their retail footprints. PRIVACY MATTERS
elsewhere. Work-life balance in the post-pandemic age can Although, as the CEO of RetailX has dryly observed, we may Implemented on 25 May 2018, the effects of the European
be filed under things we’re working out as we go along. yet end up building shopping centres to cater for those Union’s General Data Protection Regulation have arguably
moving into high-density, inner-city developments. been under-reported, perhaps because GDPR was not the
In short, these are all areas where retailers will likely Year Zero that many expected. Rather, as companies have
monitor developments, and we would also add in four DON’T GET CAUGHT IN THE MIDDLE grappled with its implications, a slow realisation that
other areas too (in addition of course to sustainability, also We would argue it is not enough for multichannel retailers data-driven retail may need to change has been coming
dealt with in detail elsewhere). to think about how many shops to keep open and where to the fore. In late 2021, the French data protection
to locate these stores. It’s also important to ask what’s authority, CNIL, fined Google €150mn because it was too
THE CHANGING FACE OF TOWN AND CITY CENTRES the point of stores? At the risk of sounding like a retail difficult for users to refuse to allow cookies when accessing
In July 2022, plans were announced to demolish The fundamentalist, we either go shopping for essentials, for google.fr and youtube.com.[3]
Galleries shopping centre in the centre of Bristol.[1] In example, the day-to-day business of buying food or for fun,
some respects, this was hardly surprising. The gravitational to buy clothes, books or hobby items. You could argue that such fines are a price of doing
centre of retail in Bristol shifted in September 2008 with the business. However, that’s an argument that’s easier to
opening of Cabot Circus, a state-of-the-art new shopping As consumers, we want different experiences from these make when economies are booming, which is certainly not
centre where House of Fraser was the anchor store. Across kinds of shopping. At the supermarket, we want items to true at the moment. Arguably more seriously, such stories
the road from this vast new development, the Quakers be competitively priced. Or maybe we will just go online damage consumer confidence.
Friars area welcomed a new branch of Harvey Nichols. to buy these items. At a book or record store, by way of
contrast, we want special events, expert staff who can VIRTUAL CURRENCY WOES
Owners LaSalle Investment Management and the city make recommendations and a sense of theatre. Even if The recent collapse of FTX may not directly affect many
council want to replace The Galleries with a mix of flats, we buy online from these retailers, we very likely want to retailers, but it does serve as a warning over the dangers
offices, a hotel and bars as well as shops. The idea is to look forward to picking up items in person. of accepting inadequately regulated cryptocurrencies.[4]
replace an increasingly tired-looking part of the city centre Looking further ahead, though, an interesting question is
with a mixed-use development that better reflects the One way to read the fact that the UK lost 83% of its whether such problems will lead to more oversight of the
way people want to live in the city. Increasingly, this kind department stores in the wake of the collapse of BHS[2] is sector, which means that in turn more people will actually
of redevelopment scenario will be played out across to say these are retailers that got caught in the middle. No use cryptocurrencies.
the world as the continuing rise of multichannel retail longer exciting places to visit, they didn’t offer sufficient
[1] www.bristolpost.co.uk/news/bristol-news/galleries-demolished-replaced-huge-new-7282673
changes how we live in use town and city centres. It is value for money either. Boards making decisions about [2] www.bbc.co.uk/news/business-58331168
[3] www.cnil.fr/en/cookies-google-fined-150-million-euros
yet another reason, if any were needed, for multichannel retail footprints may be well advised to remember this. [4] www.theguardian.com/technology/2022/nov/21/crypto-exchange-ftx-creditors-cryptocurrency

GLOBAL ECOMMERCE REPORT 2022 | FIGURES © 2022 retailx.net, distributed by InternetRetailing.net
Figures Algeria
Population structure, by age group
Population growth
25
25
Percentage of internet users
33
33
33
GDP per capita ($) 25
Percentage of internet users 26 Morocco
Figures Percentage of internet users who shop online 26 Population structure, by age group 34
Population structure, by age group 9 Ecommerce revenue Index 26 Population growth 34
Population growth 9 GDP per capita ($) 34
GDP per capita ($) 9 Egypt Percentage of internet users 35
Percentage of internet users 10 Population structure, by age group 27 Percentage of internet users who shop online 35
Percentage of internet users who shop online 10 Population growth 27 Ecommerce revenue Index 35
GDP per capita per region ($1,000) 10 GDP per capita (USD) 27
Annual population growth per region 11 Percentage of internet users 28 Nigeria
Total population per region (millions) 11 Percentage of internet users who shop online 28 Population structure, by age group 36
Ecommerce revenue Index per region 11 Ecommerce revenue Index 28 Population growth 36
Percentage of internet users who shop online 11 Average spending of the ecommerce shopper ($) 29 GDP per capita ($) 36
Annual revenue for the ecommerce market ($bn) 29 Percentage of internet users 37
Happiness Index Annual change in revenue for the online ecommerce market (%) 29 Percentage of internet users who shop online 37
Happiness Index: Africa, 2017-21 12 Preferred device for online shopping (%) 29 Ecommerce revenue Index 37
Happiness Index: Asia, 2017-21 12 Age distribution of ecommerce e-shoppers 29 Percentage of ecommerce e-shoppers 38
Happiness Index: Europe, 2017-21 12 Average spending of the ecommerce ($) 38
Happiness Index: Middle East, 2017-21 13 Ghana Annual revenue for the ecommerce market ($bn) 38
Happiness Index: North America, 2017-21 13 Population structure, by age group 30 Age distribution of ecommerce eshoppers 38
Happiness Index: South America, 2017-21 13 Population growth 30 Annual change in revenue for the online ecommerce market (%) 39
GDP per capita ($) 30 Number of ecommerce users (in millions) 39
Africa Percentage of internet users 31
Population structure, by age group 23 Percentage of internet users who shop online 31 South Africa
Population growth 23 Ecommerce revenue Index 31 Population structure, by age group 40
GDP per capita ($) 23 Population growth 40
Percentage of internet users 24 Kenya GDP per capita ($) 40
Percentage of internet users who shop online 24 Population structure, by age group 32 Percentage of internet users 41
Ecommerce revenue Index 24 Population growth 32 Percentage of internet users who shop online 41
GDP per capita ($) 32 Ecommerce revenue Index 41

Percentage of ecommerce eshoppers 42 China Percentage of internet users 58

Average spending of the ecommerce eshoppers ($) 42 Population structure, by age group 50 Percentage of internet users who shop online 58
Annual change in revenue for the online ecommerce market (%) 42 Population growth 50 Ecommerce revenue Index 58
Preferred device for online shopping (%) 42 GDP per capita ($) 50
Income status split ecommerce eshoppers 42 Percentage of internet users 51 Japan
Percentage of internet users who shop online 51 Population structure, by age group 59
Tanzania Ecommerce revenue Index 51 Population growth 59
Population structure, by age group 43 Average spending of the ecommerce eshoppers ($1,000) 52 GDP per capita ($) 59
Population growth 43 Annual revenue for the ecommerce market ($bn) 52 Percentage of internet users 60
GDP per capita ($) 43 Annual change in revenue for the online ecommerce market (%) 52 Percentage of internet users who shop online 60
Percentage of internet users 44 Preferred device for online shopping (%) 52 Ecommerce revenue Index 60
Percentage of internet users who shop online 44 Age distribution of ecommerce eshoppers 52 Annual change in revenue for the online ecommerce market (%) 61
Ecommerce revenue Index 44 Preferred shopping channel for ecommerce multichannel shoppers (%) 53 Average spending of the ecommerce eshopper ($1,000) 61
Income status split of ecommerce eshoppers 53 Annual revenue for the ecommerce market ($bn) 61
Asia Gender split of ecommerce eshoppers 53 Preferred device for online shopping (%) 61
Population structure, by age group 45 Age distribution of ecommerce eshoppers 61
Population growth 45 India
GDP per capita ($) 45 Population structure, by age group 54 South Korea
Percentage of internet users 46 Population growth 54 Population structure, by age group 62
Percentage of internet users who shop online 46 GDP per capita ($) 54 Population growth 62
Ecommerce revenue Index 46 Percentage of internet users 55 GDP per capita ($) 62
Percentage of internet users who shop online 55 Percentage of internet users 63
Australia Ecommerce revenue Index 55 Percentage of internet users who shop online 63
Population structure, by age group 47 Percentage of ecommerce eshoppers 56 Ecommerce revenue Index 63
Population growth 47 Average spending of the ecommerce eshopper ($) 56 Percentage of ecommerce eshoppers 64
GDP per capita ($) 47 Annual change in revenue for the online ecommerce market (%) 56 Average spending of the ecommerce eshopper ($1,000) 64
Percentage of internet users 48 Preferred shopping channel for ecommerce multichannel shoppers (%) 56 Annual revenue for the ecommerce market ($bn) 64
Percentage of internet users who shop online 48 Income status split of ecommerce eshoppers 56 Preferred device for online shopping (%) 64
Ecommerce revenue Index 48 Age distribution of ecommerce eshoppers 64
Preferred device for online shopping (%) 49 Indonesia Annual change in revenue for the online ecommerce market (%) 65
Percentage of ecommerce eshoppers 49 Population structure, by age group 57 Number of ecommerce users (in millions) 65
Average spending of the ecommerce eshopper ($1,000) 49 Population growth 57 Preferred shopping channel for ecommerce multichannel shoppers (%) 65
GDP per capita ($) 57 Gender split of ecommerce eshoppers 65

Vietnam Italy Middle East

Population structure, by age group 66 Population structure, by age group 74 Population structure, by age group 82
Population growth 66 Population growth 74 Population growth 82
GDP per capita ($) 66 GDP per capita ($) 74 GDP per capita ($) 82
Percentage of internet users 67 Percentage of internet users 75 Percentage of internet users 83
Percentage of internet users who shop online 67 Percentage of internet users who shop online 75 Percentage of internet users who shop online 83
Ecommerce revenue Index 67 Ecommerce revenue Index 75 Ecommerce revenue Index 83
Europe Norway Iran

France Russia Israel

Germany United Kingdom Qatar


Saudi Arabia North America Percentage of internet users who shop online 106
Population structure, by age group 90 Population structure, by age group 98 Ecommerce revenue Index 106
Population growth 90 Population growth 98 Percentage of ecommerce eshoppers 107
GDP per capita ($) 90 GDP per capita ($) 98 Average spending of the ecommerce eshoppers ($1,000) 107
Percentage of internet users 91 Percentage of internet users 99 Annual revenue for the ecommerce market ($bn) 107
Percentage of internet users who shop online 91 Percentage of internet users who shop online 99 Preferred device for online shopping (%) 107
Ecommerce revenue Index 91 Ecommerce revenue Index 99 Preferred payment type for online shopping (%) 107
Percentage of ecommerce eshoppers 92 Annual change in revenue for the online ecommerce market (%) 108
Average spending of the ecommerce eshoppers ($) 92 Canada Number of ecommerce users (in millions) 108
Annual revenue for the ecommerce market ($bn) 92 Population structure, by age group 100 Preferred shopping channel for ecommerce
Preferred device for online shopping (%) 92 Population growth 100 multichannel shoppers (%) 108
Age distribution of ecommerce eshoppers 92 GDP per capita ($) 100 Gender split of ecommerce eshoppers 108
Annual change in revenue for the online ecommerce market (%) 93 Percentage of internet users 101
Number of ecommerce users (in millions) 93 Percentage of internet users who shop online 101 South America
Preferred shopping channel for ecommerce multichannel shoppers (%) 93 Ecommerce revenue Index 101 Population structure, by age group 109
Gender split of ecommerce eshoppers 93 Percentage of ecommerce eshoppers 102 Population growth 109
Average spending of the ecommerce eshoppers ($1,000) 102 GDP per capita ($) 109
Turkey Preferred device for online shopping 102 Percentage of internet users 110
Population structure, by age group 94 Age distribution of ecommerce eshoppers 102 Percentage of internet users who shop online 110
Population growth 94 Ecommerce revenue Index 110
GDP per capita ($) 94 Mexico
Percentage of internet users 95 Population structure, by age group 103 Argentina
Percentage of internet users who shop online 95 Population growth 103 Population structure, by age group 111
Ecommerce revenue Index 95 GDP per capita ($) 103 Population growth 111
Percentage of internet users 104 GDP per capita ($) 111
United Arab Emirates Percentage of internet users who shop online 104 Percentage of internet users 112
Population structure, by age group 96 Ecommerce revenue Index 104 Percentage of internet users who shop online 112
Population growth 96 Ecommerce revenue Index 112
GDP per capita ($) 96 United States of America
Percentage of internet users 97 Population structure, by age group 105
Percentage of internet users who shop online 97 Population growth 105
Ecommerce revenue Index 97 GDP per capita ($) 105
Percentage of internet users 106

Brazil Peru
Population structure by age group 113 Population structure by age group 120
Population growth 113 Population growth 120
GDP per capita (USD) 113 GDP per capita (USD) 120
Percentage of internet users 114 Percentage of internet users 121
Percentage of internet users who shop online 114 Percentage of internet users who shop online 121
Ecommerce revenue Index 114 Ecommerce revenue Index 121
Average spending of the ecommerce shopper ($) 115
Annual revenue for the ecommerce market ($bn) 115 Sustainability
Annual change in revenue for the online ecommerce market (%) 115 Carbon dioxide emissions (kilotonnes) Global, 2000-18 123
Preferred device for online shopping (%) 115 Carbon dioxide emissions (kilotonnes) Africa, 2000-18 123
Age distribution of ecommerce e-shoppers 115 Carbon dioxide emissions (kilotonnes) Asia, 2000-18 123
Carbon dioxide emissions (kilotonnes) Europe, 2000-18 124
Chile Carbon dioxide emissions (kilotonnes) Middle East, 2000-18 124
Population structure by age group 116 Carbon dioxide emissions (kilotonnes) North America, 2000-18 124
Population growth 116 Carbon dioxide emissions (kilotonnes) South America, 2000-18 125
GDP per capita (USD) 116 Consumers willing to pay a sustainability premium 125
Percentage of internet users 117 Average sustainability premium consumers are willing to pay 126
Percentage of internet users who shop online 117 Current purchasing behaviour, by generation 2021 126
Ecommerce revenue Index 117 Current purchasing behaviour 127
Importance of sustainability as a purchase criterion 128
Colombia Actors for positive change, according to consumers 128
Population structure by age group 118
Population growth 118 Inflation
GDP per capita (USD) 118 Indexed Consumer Price Index Africa, 2021-22 132
Percentage of internet users 119 Indexed Consumer Price Index Asia, 2021-22 132
Percentage of internet users who shop online 119 Indexed Consumer Price Index Europe, 2021-22 132
Ecommerce revenue Index 119 Indexed Consumer Price Index Middle East, 2021-22 133
Indexed Consumer Price Index North America, 2021-22 133
Indexed Consumer Price Index South America, 2021-22 133

GLOBAL ECOMMERCE REPORT 2022 | CONCLUSION © 2022 retailx.net, distributed by InternetRetailing.net
Conclusion
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Researcher Anna Segarra Fas system, distributed or sold in whole or in part
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Global 2022

€999 I NOVEMBER 2022

2 | RetailX | November 2022

Asia overview 45 North America overview 98

3 | RetailX | November 2022

Adjusting the pace

4 | RetailX | November 2022

5 | RetailX | November 2022

6 | RetailX | November 2022

Market overview: E-GOVERNMENT

7 | RetailX | November 2022

available by 172 countries, it paints a picture of an

8 | RetailX | November 2022

Global graphics: Population structure by age group

1.8bn 1.8bn 1.8bn 1.8bn

world cope with the economic and

9 | RetailX | November 2022

The need for such assistance in the developing world 0%

growth and GDP per capita in different regions. In the

10 | RetailX | November 2022

11 | RetailX | November 2022

Happiness Index Happiness Index

success. The truth is more nuanced. In 1937, Simon Happiness Index

12 | RetailX | November 2022

The World Happiness Report takes a different approach by Happiness Index

member countries to measure their citizens’ happiness

wealthy country with high levels of social security, are the

seven out of ten. In two countries – Tanzania and India –

13 | RetailX | November 2022

ACI ® Payments Orchestration Platform™

To see how ACI Payment Orchestration Platform

© Copyright ACI Worldwide, Inc. 2021

fraud solutions multichannel retailers and brands in the year ahead

15 | RetailX | November 2022

for a global audience work in setting up hundreds of new localisation processes

17 | RetailX | November 2022

With 4 options for delivery, e-PAQ gives you the exibility

19 | RetailX | November 2022

21 | RetailX | November 2022

Introduction NORTH AMERICA

to the regions Mexico,

Over the following pages, we look

The regions and countries highlighted for this report

22 | RetailX | November 2022

Africa Population structure by age group

growth in the years ahead 500m

205.2m 239.8m 275.8m 312.8m 350.9m

combination of factors, notably: Population growth

this will continue to be the case in the years ahead.

23 | RetailX | November 2022

report, Lagos in Nigeria is becoming a regional centre Percentage of internet users

to see which African companies come to be ecommerce

More positively, African companies understand local

was hit relatively poor countries without ready access to

services, that’s not always true in rural areas. Many

the apartheid years, as a country where “intergenerational 150

mobility is low”.[1] 100

24 | RetailX | November 2022

Algeria Population structure by age group

the heavily urbanised Mediterranean coast. The Sahara Population growth

Source: RetailX, drawing on data from UN RetailX 2022

Source: RetailX, drawing on data from IMF RetailX 2022

25 | RetailX | November 2022