There Couldn’t Be a Better Time to Own an Ecommerce Automation Business.

But any average Googler can see that online shopping is still thriving. There may never be a better time to own an eCommerce automation business.

Here are the numbers, and they are very telling for any investor or entrepreneur:

The Ecommerce market worldwide is currently at $3.3 trillion, and it’s projected to grow to $5.4 trillion by 2026.

Whoa. That’s a huge gain.

The surprising part is that the forecasted increases are happening while other passive income investment vehicles are failing.

How are your equities performing? Your dip into crypto? The flyer you took on NFTs? Did you go all-in on the real estate market and now wish you would’ve cashed out last year?

A lot of people are feeling the same way.

Here’s what happened with online shopping, and especially the managed model called the eCommerce automationbusiness.

During COVID-19, the global eCommerce phenomenon surged basically out of necessity. Malls were out. Grocery stores were sketchy. The big box stores a danger zone.
Online shopping became a practical alternative as retail locations shuttered their doors and people stayed home to avoid the virus. In fact, worldwide ecomm revenue rose from 15% of total retail sales in 2019 to 21% in 2021. And it’s still gaining steam.

Sure, consumers have begun shopping at brick-and-mortar stores again, which has forced investors started to ask: Was the Covid-bump an anomaly, or could the growth of the eCommerce automation business continue?

According to the experts such as Morgan Stanley:
“We believe that the Covid-driven bump will not flatten future eCommerce growth,” says Brian Nowak, an equity analyst covering the U.S. internet industry. He sees eCommerce reaching 27% of retail sales by 2026. “Across the world, we have yet to see a ceiling for e-commerce penetration.”

The pandemic changed the entire way people behave when they shop, which forced people and businesses to adapt, including logistics, mobile device ownership, and marketplace expansion. For the smart money, this means the eCommerce expansion will likely continue, opening the door for opportunities across multiple businesses, regions, and verticals—even when recent stock valuations haven’t reflected that same growth.

The Adoption of eCommerce Automation Business Continues
The growth of the digital marketplace represents a permanent change in how people shop. Most industry experts suggest that eCommerce will continue to gain traction, even in countries where online shopping is already popular.

In Asia, thanks to early adopters of payments and logistics infrastructure, online sales already account for 37% of all retail sales. But the increases in market share there aren’t done yet. Ecommerce in South Korea alone could increase to 45% in the next five years, driven by food delivery and same-day options.

Similarly, in the U.S., eCommerce could reach 31% of sales by 2026, up from 23% now, as storefronts close and consumers prioritize convenience.

That’s good news for Amazon automation and Walmart automation business owners.

Take a look at this graph to see what’s ahead:

 

Here are the Markets and Segments to Keep an Eye On

Early-stage eCommerce regions and new segments are also poised for significant growth. In parts of Latin America, for example, eCommerce could grow 20% over the next five years and compound annually.

As far as segments, electronics—which leads all the categories of eCommerce activity—is expected to increase from 38% of retail sales to 45% of global retail sales. Online sales are also growing across newer verticals, including beauty, apparel, and grocery.

Better Technology Fueling the Surge
As eCommerce automation businesses mature, improvements in everything from digital payments to supply chain and fulfillment capabilities have improved the customer experience—further influencing consumer behavior.

According to Morgan Stanley: “One of the top differentiating factors for eCommerce platforms could be supply chain and fulfillment capabilities, which could empower better customer servicing,” says Gary Yu, who covers telecom and internet stocks in China, where grocery delivery is growing faster than China eCommerce overall.

The omnipresence of internet use and the ubiquitous connectivity are also significant drivers, especially in emerging markets, where populations trend younger and consumers spend more time online than their counterparts in developed markets. Shoppers in Colombia and Brazil, for example, spend on average more than five hours online each day, which creates a significant opportunity for online retailers such as Amazon automation and Walmart automation store owners.

While other investment opportunities look bleak, the e-commerce space has only just started heating up.

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