The global consumer electronics e-commerce market is expected to grow from $310.23 billion in 2020 to $343.34 billion in 2021 at a compound annual growth rate (CAGR) of 10.7%. The market is expected to reach $511.06 billion in 2025 at a CAGR of 10%.
Major players in the consumer electronics e-commerce market are Alibaba, Amazon, JD.com, eBay, Shopify, Rakuten, Walmart, Newegg, Target, and Flipkart.
The consumer electronics e-commerce market consists of sales of electronic goods that include video products such as television, navigation products, digital cameras and accessories, digital camcorders and accessories, e-Readers, DVD and Blu-ray players, audio products such as MP3 players and accessories, home theatre audio systems and components, musical instruments and mobile electronics, and others.
Augmented reality (AR) technology enhances online shopping experience. AR technology is a solution for online shopper’s ‘uncertainty’ about a product that they wish to purchase online. AR solutions allow customers to visualize products in real time, from the comfort of their homes. The 3D visualizations via AR provide an opportunity for customers to see how products could look in their space before they commit to purchase.
They can try different options and choose the best product. It reduces the inconvenience due to the return/exchange of products, and saves time and cost of returns. AR helps online retailers significantly reduce returns by providing ‘try-before-you-buy digital experience. For example, Augment is an augmented reality tool that allows customers to view a product in real-time. Augment helps customers to rotate and see products so that it can be visualized in a natural setting. Also, customers can change the product colors and finishes.
Consumers are shifting from offline to online shopping, and this factor is the key driving factor of the consumer electronics e-commerce market. Globally, nearly 53% of the global population (more than 4 billion people) is connected to the internet, and nearly all of them (92.6%) go online using their mobile devices. Internet connectivity has presented an opportunity of hassle-free shopping – anytime, anywhere.
The internet accessibility, mobile technology and digital innovations are changing consumers’ shopping experiences. With the building customers’ trust in buying high-value products including electronics on the Internet, the number of online shoppers is skyrocketing. Therefore, with the increased penetration of online shopping in consumers’ lives, the value of the electronics e-commerce market is expected to only rise but not slow down.
Amazon.com Inc. signed pacts with the Future Group to sell products from India’s second-largest brick-and-mortar retailer on its online marketplace. Amazon will become the authorized online sales channel for Future Retail Ltd.’s stores, which sell everything from groceries to cosmetics and apparel, according to an exchange filing Monday. The e-commerce giant will also have a tie-up with Future Consumer Ltd. that makes consumer goods like packaged snacks and household cleaners.