PayPal: Report on important turning points in global e-commerce in 2021

PayPal released a new report, "A Major Turning Point in Global E-Commerce". Online retail sales increased from $3.35 trillion in 2019 to $4.28 trillion in 2020. Driven by $7.1 billion in e-commerce sales in China, global e-commerce will grow another 14.3% this year.

Changing online shopper behavior

A surge of new shoppers has emerged around the world, with online shopping penetration surging nearly 28% in 2020. In the United States, a decade of growth has now occurred in just 90 days. Countries with the lowest e-commerce penetration before the pandemic, led by Mexico, have also migrated rapidly to online shopping.

Improved comfort in cross-border shopping

This is another significant shift, with many markets reporting greater comfort with cross-border shopping, led by India, Brazil and Mexico. Despite national campaigns in many countries and widespread sentiment to support local retailers and domestic shopping, online shoppers who shop cross-border spend more overall than domestic shoppers.

New payment methods come into focus

As e-commerce penetration soars, shoppers are also willing to try a wider range of digital payment types, including buy now, pay later (BNPL) and digital wallets. BNPL is well-known in Australia and the UK and is becoming increasingly popular among younger consumers.

Online consumers worried about fraud

Despite greater acceptance of new payment types, we are also seeing increased vigilance around data privacy and online fraud, especially in cash-oriented markets like Japan and Mexico. In the U.S., concerns about identity theft are particularly high when shopping abroad.

Mobile shopping reaches tipping point

Smartphones are becoming the primary access point for shopping around the world, as it becomes easier to shop on a small screen and the selection continues to expand. Globally, mobile devices are expected to account for 67% of all online purchases in 2021.

This is a unique moment

Sellers looking to diversify and grow across industries may remember the old adage: With big change comes big opportunity.

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