China is predicted to be the largest ecommerce market in 2023, with online sales exceeding $3 trillion. To have a better understanding of the global ecommerce business, we must first determine where the most development potential exists—specifically, which nations are experiencing the fastest rise in ecommerce sales. Here are the fastest-growing ecommerce markets in 2023, together with their predicted annual gains in online sales.
According to a recent report by industry analysts, the Philippines is expected to be the fastest-growing ecommerce market in 2023. The country’s overall sales from online transactions are forecast to increase by 24.1% from last year’s figures.
Experts attribute this rapid rise to the increasing number of consumers shifting to online shopping and the country’s high internet and smartphone adoption rates. Electronics is set to be its largest ecommerce category, with an estimated $7.9 billion in total revenue. This is followed by beauty, health, personal, and household care, with $3.1 billion.
India, the world’s most populous country, is second on the list of the fastest-growing ecommerce markets in 2023. Total online sales there are forecast to rise by 22.3%. India also ranks among the biggest ecommerce markets, with ecommerce sales predicted to hit $118.9 billion this year. Experts expect the Philippines and India to continue topping the list of the fastest-growing ecommerce markets every year through 2026.
This is followed by Indonesia, with an expected ecommerce sales growth rate of 20%. Two other Southeast Asian countries, Malaysia and Thailand, round out the five fastest-growing ecommerce markets, with predicted growths of 18% and 16%, respectively.
Next on the ranking of the fastest-growing ecommerce markets is Mexico. By analysts’ forecasts, the country’s total online sales will rise by 14.2% in 2023. Argentina is next in seventh place, with a growth rate of 14%. Experts partly attribute Argentina’s presence on this list to the country’s soaring inflation rates.
Vietnam follows in eighth place. Online sales there are forecast to rise by 12.5% this year. South Korea and the United States complete the list of the fastest-growing ecommerce markets. Experts expect total ecommerce sales in these two countries to hit 10.6% and 10.5%, respectively.
Here’s a look at the world’s largest e-commerce markets (in terms of sales) per country, according to Oberlo data and e-commerce trends.
If you’re thinking about entering one of the areas listed below, check out the local legislation for doing business there, and if you’re seeking to expand your operation, check out our list of the finest tools for growing an e-commerce firm.
China is the world’s biggest e-commerce market, led by e-commerce subsidiaries of the Alibaba group – Taobao, Alibaba.com and Tmall. With an annual growth rate of 21%, China is also one of the fastest-growing e-commerce markets.
- Annual online sales: $2.78 trillion
- E-commerce share of total retail sales: 52%
2. United States
After ruling the e-commerce world for more than a decade, the United States is currently the second-largest e-commerce market. Led by e-commerce giants Amazon and eBay, the U.S. observes healthy e-commerce growth in all sectors and, for the most part, has been the innovation house for e-commerce trends.
- Annual online sales: $843 billion
- E-commerce share of total retail sales: 19%
3. United Kingdom
Despite its small size, the United Kingdom is a big e-commerce player and comfortably secures third place on this list. Amazon U.K., eBay U.K., and Asos are the U.K.’s top e-commerce websites, and the country has one of the highest percentages of total retail sales in e-commerce.
- Annual online sales: $169 billion
- E-commerce share of total retail sales: 4.8%
Coming in at fourth on the list, Japan is the leading m-commerce (mobile commerce, which, of course, is the future of e-commerce) player in the world. Rakuten is Japan’s leading e-commerce platform, which over the years has acquired many e-commerce sites across the world, including the U.K.’s Play.com.
- Annual online sales: $144 billion
- E-commerce share of total retail sales: 3%
5. South Korea
The country with the fastest wireless internet, South Korea, comes in at fifth place on this list. South Korea is also one of the leading e-commerce markets. The biggest e-commerce names in the country include Gmarket and Coupang.
- Annual online sales: $120 billion
- E-commerce share of total retail sales: 2.5%
Germany is Europe’s second-largest e-commerce market. Amazon is a major player in Germany’s market as well. eBay and local online retailer Otto are two other major e-commerce players in the country.
- Annual online sales: $101.5 billion
- E-commerce share of total retail sales: 2.1%
With local players like Cdiscount and Veepee, the French e-commerce market comes in at sixth place in the world. Like in other major European e-commerce markets, though, Amazon has edged out local brands to reign supreme in France.
- Annual online sales: $80 billion
- E-commerce share of total retail sales: 1.6%
India is one of the fastest-growing e-commerce markets. According to eMarketer, thanks to an increase in retailers joining the online shopping ranks, India was projected to see digital sales increase by 27% in 2021.
- Annual online sales: $67.5 billion
- E-commerce share of total retail sales: 1.4%
Canada is a huge e-commerce market but with little competition. Naturally enough, Amazon dominates the country’s e-commerce market, followed by Walmart. Given the opportunities Canada presents as an e-commerce market, foreign brands are also trying to take a slice of it.
- Annual online sales: $44 billion
- E-commerce share of total retail sales: 1.3%
Three main companies dominate the e-commerce market in Spain. According to EcommerceDB, Amazon, El Corte Ingles and PcComponentes account for 30% of all online revenue in Spain.
- Annual online sales: $37 billion
- E-commerce share of total retail sales: 0.72%
What is The Most Profitable Form of E-commerce?
1. Sell Homemade Treats to Pet Owners
If you love animals, a handmade treats e-commerce store may be the perfect fit for you. In particular, dog treats are popular as they meet both owner and pup needs. Some baked treats are even made with ingredients to solve frequent pet-owner challenges. For example, cannabidiol (CBD)-infused treats are helping dog moms and dads relieve their pups’ anxiety even while delighting their canine senses.
To start this type of e-commerce business, do your research to find out what business licenses are necessary in your state. Also, pay attention to Food and Drug Administration (FDA) label requirements and testing pet food protocols delineated by the Association of American Feed Control Officials (AAFCO). Specifically, this idea is best for e-commerce entrepreneurs living in Nevada and Alaska because these states do not have pet food laws that create barriers to entry.
2. Educational Platform
An educational platform is a great way to create passive income by selling products that help people meet their personal or professional goals. Your educational platform can center around an expertise you’ve worked to develop. But instead of working one-on-one with students, you can sell courses, ebooks, workbooks and other educational materials in multiple formats to pass on your expertise to those who need it.
You can either create a website or take advantage of other platforms made for people like you to sell educational materials around their expertise. Udemy, for example, allows educators to sell educational materials in video format, complete with a landing page. Other sites, such as Amazon, allow you to self-publish ebooks for free, then sell them. By offering your educational material in various formats, you appeal to different learning styles and, therefore, wider audiences.
3. Sell Handmade Toys
If you sew, knit or crochet, this idea is for you. There are a few easy approaches you can take to selling handmade toys online. You can simply research what’s trendy now, then find similar knit, crochet or sewing patterns to create them yourself. Or, you can charge a premium price to take orders for custom toys based on parents’ nursery themes or children’s preferences. Finally, for an extra niche approach, consider making nostalgic gifts for adults.
If you plan on following trends and crafting your inventory to match, be sure to research trends by asking other crafters what sells the most from their handmade toy inventories. You can easily do so via Facebook groups dedicated to your craft. Alternatively, if creating custom toys, be sure to get a deposit to cover the full-price cost of materials before you begin crafting each toy.
4. Sell Biodegradable/Reusable Baby Toiletries
More than 18 billion disposable, chemical-filled diapers make it to landfills each year. One child uses 6,000 to 7,000 diapers before the age of three. Parents are quickly learning that they can make a big positive impact on caring for the earth simply by using disposable or reusable diapers to care for their children and many are quite passionate about it.
For a healthy profit, you can help them. There are a couple of ways to start an earth-friendly baby toiletries e-commerce store. You could, for example, purchase biodegradable diapers and other toiletries in bulk and sell them in smaller batches for a markup. You can also learn to use affordable biodegradable materials like cotton to make your own adorable but reusable diapers for children, then sell them at a premium price.
5. Flip and Sell Thrifted Goods
Flipping thrift goods has become quite a trend. More importantly, buying flipped thrift goods has become a trend. From unraveling wool thrift store sweaters and crocheting or knitting them into luxurious clothing items to antiquing furniture and marketing them as heirlooms, there are multiple markets for these goodies.
They’re not difficult to flip. A little paint or a few craft supplies and some YouTube tutorials are enough to create an heirloom masterpiece to display in your e-commerce store. Just be sure to use natural light to photograph them, then upload minimalist photos that keep your new prize in the spotlight. Use clear keywords so searchers can find your pieces. Then, watch trend-minded consumers empty your virtual shelves.
6. Online Specialty Food Ordering
With chain produce stores carrying much the same items across the board, there is a market for specialty foods. By sourcing foods that speak to consumers’ tastes or other preferences, you can fill this gap.
For example, many people use honey to treat minor seasonal allergies. But for utmost effectiveness, they must digest honey from the locations that induce their allergies. By sourcing honey from local beekeepers across the United States, you can solve this problem for Americans via a profitable e-commerce store.
Some ways to source niche foods include building relationships with local food producers or buying produce from local markets. If sourced directly from local suppliers, you can upcharge your food products to make a profit. If sourced from local markets, correct marketing that highlights your products’ premium features can help you demand prices that earn a profit. Just be sure to follow FDA and other laws when selling food products to keep your brand thriving.
7. Dessert Boxes Store
Especially in the era of COVID-19, people are looking for ways to connect. Desserts bring people together around flavors and comfort foods. Starting a dessert box e-commerce store can further these trends by bringing people together around comfort food, even when they’re miles apart. They can send treat boxes to loved ones or order them for the people who live under their own roofs. Providing subscription boxes can help to keep the profits rolling in.
The trick is to offer a specialty that differentiates you from dessert trays that can be found in chain stores easily. For example, you could specialize in treats from Latin America by looking up their dessert recipes online and mastering them at home. Then, fill orders for treats from Guatemala or Ecuador. In doing so, culture aficionados can taste foreign flavors by ordering them online. Likewise, families from those countries can enjoy the comforts of home.
8. Brand-Name Fashion Reselling
Another trend you can easily tap into for profit is the decluttering trend. Once or twice a year, many people donate their clothing to thrift shops. If you’re an avid thrifter, you know that name brands land in thrift shops regularly. Fashion reselling at a profit is as easy as purchasing those items at thrift store prices and reselling them in your own e-commerce store for a more fitting price.
When buying pieces to resell, look them over thoroughly to ensure you don’t also purchase stains and rips. In addition, try to buy clothing in in-demand sizes. A size zero is often more difficult to sell than a size eight or 12. When selling your items, include multiple photos from different angles. Also, offer close-up photos of the brand name and other attractive details. Then, list your clothing for sale during the seasons they’re most likely to be worn.