COVID-19 accelerates ecommerce growth in Taiwan, says GlobalData

According to the press release, an analysis of GlobalData’s E-Commerce Analytics reveals that the country’s ecommerce market is expected to grow at a compound annual growth rate (CAGR) of 9.0% from USD 35.4 billion in 2020 to USD 49.9 billion in 2024. Moreover, the pandemic has benefited several ecommerce companies with online shopping sites PChome Online and Momo.com registering revenue increase of 12.5% and 26.7%, respectively, in July 2020, compared to same month last year. 

Besides, the use of electronic payments including cards and alternative payment solutions will rise as consumers move away from cash due to fear of getting infected. According to GlobalData’s 2020 Banking and Payments Survey, payment cards are the most preferred payment method for ecommerce purchases in Taiwan, accounting for 53.3% share in 2020. Alternative payment methods such as Line Pay and Apple Pay are gaining prominence among consumers and collectively account for 20.1% share.  

Furthermore, Taiwan launched several initiatives to promote ecommerce adoption in the country. One such initiative is the launch of a subsidy programme in April 2020 under which retailers are offered subsidies to cover costs including setup, marketing, logistics, and order processing. The government allocated USD 3.3 million, and about 1,000 retailers are expected to benefit from the programme, receiving USD 3,339.58 each.