To expand your e-commerce abroad, consider emerging markets alongside mature ones, and take the following factors into account:
- Growth rate of national e-commerce market
- Existing logistics infrastructure
- Current size of market
- Internet penetration rate
- Government and regulatory environment
We’ve picked 5 of the most promising e-commerce markets for all online businesses to tap into:
#1 South Korea
Remember that well-developed markets with moderate growth rates still offer ample opportunity for e-commerce retailers, one of which is South Korea. Its infrastructure is extensive and well-developed, and it has an impressively high internet penetration of 99.6%. Almost 100% of Koreans between the ages of 10 and 49 have smartphones, and mobile commerce is extremely popular.
In fact, South Korea is the 3rd largest e-commerce market in Asia-Pacific, plus the 10th richest country in the world, and its upper class loves spending their disposable income on everything from clothing to home appliances.
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#2 Vietnam
Vietnam was the 9th fastest-growing e-commerce market in the world last year at a growth rate of 12% YoY. Internet penetration rate has grown from around 70% in 2020 to nearly 80% by the beginning of 2024. Rising incomes with growing internet penetration adds up to a significant e-commerce shopping growth.
#3 Mexico
Being the fastest-growing e-commerce market in Latin America and the 5th fastest in the world, Mexicans have been buying more food and beverage products, beauty products, and other home goods online, with an estimated 98% of purchases last year happening through smartphones.
Internet connectivity in Mexico has the trajectory of growth expected to continue to reach 98% by 2029. On top of that, the nation is a welcome place for foreign business and investment.
#4 Canada
Number 9 on the fastest-growing e-commerce market list, Canada also has a well-established market in a highly stable economy.
A marked inclination towards sustainable brands and a steadily increasing rate of mobile shopping, one of the greatest advantages is that much of Canada’s e-commerce network is integrated with the United States (not to mention Free Trade Agreements).
#5 The UK
Internet access is one of the most important advantages of this competitive, well-formed e-commerce market, with 96.7% of the UK is online, compared with the European average of 93.8.
Although the UK is quite a mature market, it is constantly evolving, and consumers are very comfortable buying from international sellers, making market expansion easy for many e-commerce retailers. Plus, their logistics infrastructure is well-established, and storage is secure with clear and strong regulations protecting consumers.
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This article is originally published by CBIP Logistics:
CBIP Logistics provides full-scope logistics services for DTC businesses, including freight logistics, order fulfillment, and logistics consulting. As a fourth-party logistics provider, we work with an extensive partner network of warehouses, fulfillment centers, and other logistics providers around the world to design optimized logistics operations for all of our DTC clients. Learn more about our company and services at cbiplogistics.com.
