During the peak of the coronavirus (COVID-19) crisis (March-April 2020) when many countries worldwide introduced lockdown measures, e-commerce share in total retail sales saw proportions that were not seen before. In the United Kingdom, where an already mature e-commerce market exists, e-commerce share saw as high as 31.3 percent, before stabilizing in the subsequent periods. In the most current period (as of January 31, 2021), United Kingdom, United States and Canada were the leading countries where e-commerce had a higher share as a proportion of total retail, at 24, 17, and 15 percent, respectively.

Before the coronavirus pandemic, only seven percent of grocery retail sales involved e-commerce channels. During the peak of the emergency, the e-commerce share of grocery retail grew to ten percent, while a study showed that online shopping of grocery products is here to stay. Indeed, the current share of global e-commerce penetration was valued at nine percent.

The market size of the e-commerce industry in the Gulf Cooperation Council (GCC) region was expected to grow from 24 billion U.S. dollars in 2020, to reach 50 billion U.S. dollars by 2025 after the adjustments for the effect of the COVID-19 pandemic on e-commerce. From 2020 to 2022, there was an expected additional six percent annual market growth due to COVID-19.

The restriction enforced during the coronavirus pandemic and the related supply chain disruption induced U.S. businesses to engage in online purchases more than before. Indeed, half of B2B buyers answering a survey carried out in 2021 stated so. Thanks to digital channels, purchasing processes became more streamlined according to 45 percent of respondents. The increased use of online purchase channels was registered both in the private and public sectors. In the United States, 48 percent of professionals working for the government planned to make more than 50% of purchases online in 2021

Suppliers’ online presence Although challenged by marketplaces and e-commerce platforms, suppliers’ websites are still the most relevant online touchpoints in B2B purchases. In 2021, over four in ten B2B professionals, believed suppliers’ portals and mobile applications to be more popular after the coronavirus pandemic.

What drives B2B sellers Since B2B buyers have a wide array of options to shop for their purchases, vendors need to plan accordingly. A U.S. survey unveiled their priorities when setting up their online sales business. About half of them valued easy-to-use and convenient platforms with user-oriented backend, while another 45 percent of sellers considered discoverability by new online customers an important factor.

In the United States, the future shopping preferences of online luxury shoppers indicated that the intention of using product samples or virtual assistants after the COVID-19 pandemic would decrease. With the ease of restrictions, only 15 percent of shoppers would buy luxury products with a virtual assistant or live chat, nine percentage points lower than the share registered during the pandemic.

The market size of the e-commerce industry in the United Arab Emirates (UAE) was expected to grow from seven billion U.S. dollars in 2020 to reach 17 billion U.S. dollars by 2025, after the adjustments for the effect of the COVID-19 pandemic on e-commerce. From 2020 to 2022, there was an expected additional six percent annual market growth due to COVID-19 in the Gulf Cooperation Council (GCC) region.

Digital shopping in Africa increased since the coronavirus (COVID-19) outbreak. According to an online survey conducted in 2020 and 2021, 81 percent of consumers in Nigeria are shopping more online since the beginning of the pandemic. The health crisis led to increasing demand for e-commerce in Africa. Kenya and Ghana registered an increment of 79 percent in online purchases. In South Africa, online shopping grew by 68 percent. There, over half of consumers reported that they were buying more groceries and clothing items online.

According to the survey about consumer behavior after COVID-19 outbreak, about 30 percent of respondents from Taiwan said they improved their skills in using online shopping platforms. About 31 percent of respondents also said their ability of using mobile payment was not improved so far.

The e-commerce business has been on the rise in the past years, due to the gradual digitization of every day activities. Many marketers have forecasted the growth of e-commerce, and with the coronavirus outbreak, issues with proximity shopping have led to a strong acceleration of that said development. Thus, the source had asked online retailers as well as pure players in France in March 2020, if they had seen an impact on overall sales since March 15. Three quarters of the online sites have seen their sales decline since March 15. Less than 20 percent had an increase in turnover.

In 2022 nearly 50 percent of U.S. respondents from a survey on digital beauty shopping reported that they now buy more beauty products compared to before the Covid-19 pandemic. This figure is down 4 percent from the year before.

After the coronavirus (COVID-19) pandemic and the lockdowns in Turkey, online shopping gained significant momentum. The share of e-commerce in the total retail increased from four percent in 2016 and 2017 to 18.3 percent in 2023 in Turkey.

The market size of the e-commerce industry in Qatar was expected to grow from two billion U.S. dollars in 2020 to reach five billion U.S. dollars by 2025, after the adjustments for the effect of the COVID-19 pandemic on e-commerce. From 2020 to 2022, there was an expected additional six percent annual market growth due to COVID-19 in the Gulf Cooperation Council (GCC) region.

In 2021, about a third of marketing executives at consumer product manufacturers in the United States felt more dependent on Amazon as a result of the coronavirus pandemic. Only about one in ten surveyed execs stated they had become less dependent on the e-commerce platform since the outbreak, while approximately half did not experience any notable changes.

According to Cognitive Market Research, the global e-commerce software market size will be USD 7351.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 16.20% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 2940.60 million in 2024 and will grow at a compound annual growth rate (CAGR) of 14.4% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 2205.45 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 1690.85 million in 2024 and will grow at a compound annual growth rate (CAGR) of 18.2% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 367.58 million in 2024 and will grow at a compound annual growth rate (CAGR) of 15.6% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 147.03 million in 2024 and will grow at a compound annual growth rate (CAGR) of 15.9% from 2024 to 2031.
The end-to-end platform category is the fastest growing segment of the e-commerce software industry

Market Dynamics of E-commerce Software Market

Key Drivers for E-commerce Software Market

Advancements in Cloud Computing and Saas Solutions Propel Market Growth

Advancements in cloud computing and SaaS (Software as a Service) solutions are significantly propelling the growth of the e-commerce software market. These technologies enable businesses to offer scalable, flexible, and cost-effective solutions that meet the diverse needs of online retailers. Cloud-based platforms provide businesses with the ability to manage large volumes of data, enhance security, and ensure system reliability without heavy upfront investments. SaaS solutions allow for easier software deployment, faster updates, and the ability to integrate with other business systems seamlessly. As a result, e-commerce companies can improve operational efficiency, reduce costs, and offer better customer experiences, which drives continued demand and market expansion. For instance, Relevant Industrial announced the launch of its state-of-the-art e-commerce platform in July 2024, designed to transform the industrial purchasing experience. The platform provided customers with a seamless, efficient, and user-friendly way to purchase industrial equipment and custom-engineered solutions.

Rising Preference For Subscription-Based E-Commerce Models Drives Market Growth

The rising preference for subscription-based e-commerce models is significantly driving the growth of the e-commerce software market. Consumers increasingly favour subscription services for their convenience, personalized experiences, and cost savings. This shift is prompting businesses to adopt advanced e-commerce platforms that can efficiently manage recurring billing, subscriptions, and customer data. Software solutions are evolving to integrate subscription management features, automate renewals, and offer flexible pricing models. As subscription-based models gain popularity across various industries, including media, fitness, and retail, the demand for specialized e-commerce software continues to rise. This trend is expected to accelerate further the growth of the global e-commerce software market in the coming years.

Restraint Factor for the E-commerce Software Market

Difficulty in Maintaining Cybersecurity and Preventing Data Breaches Hampers Market Growth

Difficulty in maintaining cybersecurity and preventing data breaches significantly hampers the growth of the e-commerce software market. As online transactions and customer data become increasingly vulnerable to cyber threats, businesses face rising concerns over data protection, security breaches, and compliance with privacy regulations. The financial and reputational costs associated with data breaches often discourage new businesses from adopting e-commerce platforms, especially in regions where cybersecurity infrastructure is weak. Additionally, the constant evolution of cyber threats necessitates ongoing investment in advanced security measures, which can be a barrier for small and medium-sized enterprises. These challenges impede the widespread acceptance of e-commerce software and slow market expansion.

Impact of Covid-19 on the E-commerce Softwa...

During the peak of the coronavirus (COVID-19) crisis (March-April 2020) when many countries worldwide went into lockdown mode, e-commerce share in total retail sales saw proportions that were not seen before. In the drug store segment, this share reached 16 percent during the months when the cases and lockdown measures peaked, around March-April 2020. In the current period, e-commerce share of drug store sales is measured at 14 percent.

In Germany, online apparel sales substantially increased as a result of the COVID-19 pandemic. In 2020, e-commerce accounted for 38 percent of all apparel sales, about 11 percentage points higher than the previous year. Although a slight decline was expected in 2021 as the country adapted to the new normal, forecasts suggest that the online segment has come to stay and will continue to gain momentum in the years to come.

In-store or brick-and-mortar retail sales in the United States fell by 29.3 percent in the second quarter of 2020. This decrease was likely a result of the COVID-19 pandemic. Total retail sales in the United States amounted to 5.47 trillion U.S. dollars in 2019.

Unlike the boom experienced during the COVID-19 pandemic in 2020, the e-commerce sector in Latin America suffered from global economic instability in 2022. Following an 8.5 percent decline that year, Brazil is forecast to emerge as the region's fastest-growing market in online revenue for 2024, surpassing Mexico. Peru and Argentina are projected to grow by over 13 percent each, Chile by nearly 12 percent, and Colombia by slightly over nine percent during the same period.

According to the Statista Digital Market Outlook, e-commerce users in Latin America were forecast to reach 290 million in 2024. By 2029, this figure would grow by 52 percent, resulting in approximately 419 million users across the region.

The digitalization of retail The term "e-commerce" refers to those activities that involve the purchase and sale of products and services over the internet. The growing popularity of digital commerce has led to a profound transformation of the retail sector worldwide. From 2020 to 2021, Latin America's e-commerce market grew an estimated 37 percent. Capitalizing on that growth, Mexico and Brazil each recorded more than 40 billion U.S. dollars in e-commerce sales revenue in 2021.

COVID-19, an opportunity for sellers Economies across the globe were quickly put in jeopardy by the coronavirus outbreak, and Latin American countries were no exception. However, not all businesses suffered from the abrupt crisis. Argentina-born online marketplace Mercado Libre was one of the clear winners from the high demand for distance shopping options, breaking sales revenue records during the peak of the pandemic in the region. According to a survey, the e-commerce momentum is here to stay. Almost nine out of ten digital shoppers surveyed in Latin America said they were willing to continue shopping online after the sanitary emergency.

The market size of the e-commerce industry in Saudi Arabia was expected to grow from 11 billion U.S. dollars in 2020, to reach 21 billion U.S. dollars by 2025 after the adjustments for the effect of the COVID-19 pandemic on e-commerce. From 2020 to 2022, there was an expected additional six percent annual market growth due to COVID-19 in the Gulf Cooperation Council (GCC) region.