Ecommerce is booming. In 2020, the global online retail market grew by 26%. And it’s going to carry on growing. One recent study predicated a compound annual growth rate of 29% between now and 2025.
But there are very few businesses that can afford to expand everywhere at once. So even if we accept that the outlook for ecommerce is fantastic everywhere, or almost everywhere, it’s still important to know which markets are growing the fastest. Based on PPRO’s original research, there are seven ecommerce markets to watch in 2022.
1. Brazil
With an ecommerce market worth USD 40 billion, Brazil is one of the top-10 biggest ecommerce markets in the world. And the value of its online retail sector is growing at an impressive 22% a year. Within just four years, the Brazilian market is expected to double in size. Crucially for new entrants, 71% of Brazilian online shoppers already shop cross-border.
2. Mexico
Over the next four years, the Mexican ecommerce market — already worth over USD 33 billion — will double in size. Just under half of Mexican online shoppers already buy cross-border, spending a total of USD 9.6 billion with merchants outside the country. The country also has high rates of digital penetration, with around 70% of Mexicans owning a smartphone and enjoying internet access.
3. Colombia
Although currently worth just USD 10 billion, the Colombian ecommerce is expected to grow to the value of USD 17 billion within just four years. Online spending per capita is expected to grow by over 60% between now and 2025. Not only has Colombia benefited from the surge of VC investments into Latin America in the last few years, but Colombian government initiatives are also paving the way for increased competitiveness and innovation in the Colombian digital ecosystem.
4. The Netherlands
Valued at USD 35 billion today, the Dutch ecommerce market is projected to be worth USD 50 billion within just four years. Fifty-four percent of online shoppers buy cross-border, indicating a willingness to buy from non-Dutch or unfamiliar merchants, if the experience and the bargain is right. During 2020, the average number of purchases made by a Dutch online consumer increased by 27%.
5. Belgium
Small today, with a value of USD 13 billion, the Belgian ecommerce market is growing at an astonishing rate of 50% And 72% of Belgian digital shoppers buy cross-border. That means millions of people shopping online who are willing to spend more and to try unfamiliar brands and merchants, if the experience and the offer makes it worth their while. And with an internet penetration rate of 91% and financial inclusion at 99%, Belgium is a highly connected market with the fewest possible barriers to participation.
6. Poland
Growing at an astonishing rate of over 60% a year, the Polish ecommerce market will be worth USD 47 billion by 2025. Almost 100% of the adult population is online. As part of the EU, it’s easy to serve the Polish market from almost anywhere in Europe. And almost 90% of the population has a bank account. Right now, a little under a fifth of Polish online shoppers buy cross-border.
7. Indonesia
While this list focuses mostly on Latin American and European markets, we’d be remiss to not mention Indonesia. Ecommerce sales in Indonesia are expected to double over the next 4 years from USD 24 billion to USD 54 billion. While relatively few shoppers shop cross-border now – only a quarter of all ecommerce purchases are made outside of Indonesia – the market is widely considered to be rich with opportunity.
So, how can businesses maximise their chances of success in these markets?
Localisation is the key. In particular, the localisation of payment methods.
Research by PPRO has found that failing to offer a payment method that consumers know and trust can lead to cart abandonment rates as high as 80%. As well as being fast growing and highly lucrative, every market here has its own particular payment preferences. To succeed in these markets, merchants and PSPs need a partner able to help them with technical, legal, and all other aspects of payment integration, and to do it quickly, while growth rates are still this high.
To learn more about the ecommerce markets on the rise – and what payment methods you need to offer there – don’t forget to check out our recent webinar with The Paypers, and to have a look at PPRO’s insights hub.
About Jamie Lee
Enterprise Partner Manager in EMEA, PPRO. Originally from New Zealand and currently based in London, Jamie has previously worked for Bank of America, BBC, Capita, and CBRE. In his current role at PPRO, Jamie is the brilliant account lead for the company’s largest payment service provider customers in EMEA, providing strategic consultancy and helping them grow their business even faster.
About PPRO
PPRO is a fintech company that globalises payment platforms for businesses, allowing them to offer more choice at the checkout and boost cross-border sales. Payment service providers, enterprises, and banks that run on PPRO's infrastructure are able to launch payment methods faster, optimise checkout conversions, and reduce the complexities of managing multiple fund flows. Citi, PayPal, and Stripe are just some of the names that depend on PPRO to expand their platforms beyond borders. In 2020 alone, the company processed EUR 8.84 billion for its partners. And with a growing global team of over 400 people, it’s no wonder why they’re considered the go-to local payments experts.
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