The E-Commerce Market 

is expected to reach USD 16,215.6 billion by 2027, at a CAGR of 22.9%

during the forecast period of 2020 to 2027. This market is majorly driven by factors such as rising
penetration of the Internet and smartphones, growing dependency on social media to promote e-commerce
platforms, growing omni-channel business models, and the advent of new payment modes. In addition, e-
commerce automation offers immense growth opportunities for players operating in the e-commerce
market. However, online frauds and cybersecurity issues are some factors restraining the market growth.
Moreover, local laws and regulations for international e-commerce and trust deficit due to touch and feel
experience are the major challenging factors for the overall market growth.
Impact of COVID-19 on the E-Commerce Market

The outbreak of COVID-19 has immensely impacted e-commerce firms on different levels. E-commerce
businesses faced several key challenges, such as disrupted supply chains, limited operations due to the
lockdown, managing inventory, and overall lack of employees. Governments worldwide have enforced
social distancing measures, instituted lockdowns or temporarily closed non-essential businesses, and other
measures in response to the COVID-19 pandemic that has led consumers to ramp up online shopping. This
has resulted in spikes in e-commerce sales. The pandemic has augmented the adoption of e-commerce.

The COVID-19 pandemic has changed consumer lifestyles and buying patterns, enabling them to switch
from purchasing goods and services from traditional retail stores to online portals. This, in turn, forced
marketers to acclimatize to the new reality and revise their existing strategies. Changes in consumer
behavior are anticipated to be long-lasting. These shifts in consumption habits have been supplemented by
a rapid acceptance of cashless payment methods. E-commerce is also pouring greater use of cashless
payments. The overall card and digital wallet transactions grew during the pandemic. According to IBM’s
U.S. Retail Index, the COVID-19 pandemic has accelerated the shift from physical stores to online
shopping by almost five years. The physical store retailers will need to pivot more rapidly to omni-channel
fulfillment capabilities to remain competitive in the new business environment.