Online retail to reach $6 trillion in sales by 2024
Written by Hannah McGrath
The value of physical and digital goods sold by online retailers is set to exceed $6 trillion globally by 2024, according to new research.
Data gathered by Juniper Research suggests that by 2024, the total transaction value of remote payments for physical and digital goods will have risen 53 per cent, compared to figures for 2019.
The data indicated that on average customers will spend more than $1,000 per year on a global basis by 2024.
For the most part, online sales will be dominated by physical goods, which will account for almost 80 per cent of online retail purchases by 2024.
The rise of mobile shopping will also change the landscape when it comes to payments, with the number of remote payments made by smartphone owners increasing by nearly 60 per cent between 2019 and 2024.
As a result, just 21 per cent of purchases will be made using PCs, laptops and connected TVs globally by 2024, according to the data.
This shift to mobile has impacted purchasing behaviour, with consumers spending less on average on this channel, meaning the average value of transaction is likely to decline within the next five years.
The report suggested that the key trend underpinning this change in average transaction values is the adoption of mobile ticketing - where consumers order, pay for and validate tickets using mobile - which is becoming increasingly remote and cashless.
Research author Morgane Kimmich said: “Bricks and mortar retailers have to go beyond simple e-commerce to become digital-first companies.
"Retailers must fundamentally embrace the digital era by optimising data analytics and embracing new technologies; enabled by radical internal organisational change.”