E-Commerce Sales Set to Grow to US$8.1 Trillion Globally

The rise of e-commerce has been strongly linked to the COVID-19 pandemic, as people forced to stay at home turned to online retailers. This growth is leading retailers to rapidly adopt new technologies such as artificial intelligence (AI).

Globally, retail e-commerce sales grew from US$2.3 trillion in 2017 to US$5.2 trillion in 2021, Matt Maguire, E-commerce Director, EV Cargo, explained to theloadstar. Maguire also added that forecasts indicate that the figure could grow by a further 56% by 2026, reaching US$8.1 trillion.

While buyers have been quick to adopt e-commerce, they are also changing their consumption habits in response to the rising inflation, which has made them more price conscious. In Mexico, buyers are now more focused on Price, found a recent study by Google and Offerwise. Thus, research has become a vital factor before making purchases as buyers are now more financially cautious with their spending and make more punctual purchases. Google highlighted that social and economic dynamism are some of the most important factors in consumer behavior changes, as reported by MBN.

The joint study explored how Mexicans manage their personal finances. The study revealed that 70% of Mexicans surveyed consider that “they have a good financial organization when shopping.” Google and Offerwise explained that the price is the most important factor when buying, followed by the ease of purchase and previous experiences. 

The study found that nine out of 10 Mexicans research products before purchase through different channels. For research purposes, 46% of buyers visit physical stores, 42% research on Google and 38% on YouTube. When searching online, Google’s search engine was the most popular choice, with 76% of buyers reporting that they have used it in their purchasing processes, followed by YouTube, which was used by 56% of buyers. 

Pablo Castellanos, Research Director, Google Mexico, explained to Retailers.mx that Mexican retailers have begun to integrate AI to increase profitable growth while generating “more value and greater impact.”   

Google uses tools like Performance Max, which is an AI for brands that allows access to all Google Ads inventory. This AI uses a single campaign to find potential customers, helping companies to optimize costs and maximize campaign performance.

“We see that in the short term, price would be a priority for consumers. Bringing the best offers through the right channels will be essential, while better and innovative experiences will become more relevant among buyers' preferences," Castellanos tells Retailers.Mx. 

A 2021 Euromonitor International study developed for Google found that total retail sales in Mexico would increase 40% until 2026, which represented the highest percentage in the region. The study shows that 58% growth will come from eCommerce sales. The study analyzed projections from 2021 to 2025, explained Retailers.mx.

“The best channel is the one that works for the consumer and by 2025, online and omnichannel experiences will be essential for business growth,” says Marcos Aramburu, Research Marketing Manager, Google Latin America.