E-Commerce world market has entered the honeymoon period.

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Nowadays more and more customers have been losing interest in shopping at traditional stores (or market) due to many reasons such as: distance, cash payment, parking fee, etc. andthat’s why e-commerce market has been taking this opportunity to step into the market and been developing rapidly.

According to a report in 2016, there are 1.61 billion people across the globe prefer online purchasing. It is expected that online retail sales worldwide will increase from $ 1.9 billion in 2016 to $ 4.060 billion by 2020.

1. From growing up rapidly:

Recent studies show that consumers around the world are changing their shopping habits by spending more time and money on online shopping. According to the Consumer Conditions Scoreboard, the online shopping rate in the European Union (EU) has doubled in the past 10 years and increased from 29.7% in 2007 to 55% in 2017. Online sales now account for more than 9% of total retail sales in Europe and in the first months of 2016, 18 million Internet users in the Nordic region prefer buying online.

According to a ranking of online shopping nations provided by Regiodata,the Swiss are second market in Europe, just right behind only the UK, with an average spend of 1,033 euros (US $ 1,202) per year on online shopping.The UK holds the top spot with nearly 1,118 euros for online shopping. 3rdplace in the ranking is the Norwegian, with an average expenditure of more than 920 euros per year.

Meanwhile, according to the latest figures released by the Berlin-based Trade and Order Confederation (BEVH), Internet trading in Germany has hit a high record in the 2ndquarter of2017. BEVH’s report said that online sales in Germany reached 13.97 billion euros (about 15.93 billion US dollars) in April-June, an increase of 12 % over the same period of 2016.

In the US, the Commerce Department reported that online retail sales in the 2ndquarter of 2017 increased 4.8% over the 1stquarter 2017 to $ 111.5 billion and contributed 8.9% of the total retail sales of the country.

In the Asia-Pacific region, e-commerce revenues from the region contributed 40% of total global e-commerce sales in the first quarter of 2017, mostly from China, Japan, Australia, South Korea and India. Marc Woo, an expert analyzerfrom Google, predicts that Southeast Asia will become a booming e-commerce market, thanks to the rise of the middle class as well as the popularity of the Internet.

2. To unavoidable Flaws:

In 2017, around 55% of Europeans shopped online and receivedtheir order right at their doorsteps, but these transactions are not under the control of the authorities. This leads to some of these products may even be dangerous or unsuitable for EU product safety regulations, such as children’s toys containing certain banned substances.

Recently, the European Commission (EC) has issued guidelines to have better control the products sold online. The EC directive states that any product sold online in the EU market must comply with the legislation of the EU, even if the manufacturer is based outside the EU.

According to EC commissionerElzbieta Bienkowska(who is responsible for for domestic market, industry, enterprises and small and medium enterprises, together with the increase of online sales) the market surveillance authorities of countries have identified the struggle to control the traceability of online goods as it is getting more and more complex.

From the data of Consumer Conditions Scoreboard, many retailers are still hesitatingin expanding their online purchases, some of them still worrying about opening online sales option for EU consumers. These concerns base on the fear of the risk of trade fraud and non-payment of cross-border trade in goods, different countries have different laws and regulations.

Another problem is that governments are in control of taxes on e-commerce. The UK’s National Audit Office (NAO) says it is losing $ 1bn (£ 1.28bn) worth of VAT each year due to fraudulent practices. According to the NAO report, violent sellers are usually based in China, while the US giants Amazon and eBay have not eliminated sellers violating VAT regulations even when they already are being informed.

Meanwhile, online customers may face the risk of hackers who try to steal their personal information. In April of 2017, the Interstate Telecommunications and International Finance Association (SWIFT) issued a warning message that customers should be careful when selecting a company or facility that accesses the SWIFT system. According to SWIFT, clients should pay special attention to confidential and prudent information when choosing a service company as well as dealing with a third party.

Summary/ Verdict:

Many people are moving from physical stores to buy goods and services on the Internet. Today, 60% of shoppers in developed countries go to the Internet to buy goods and services. This method of shopping is trending now because of its conveniences. People can shop from the comfort of their houses.

Unlike traditional stores/ sellers, an Ecommerce store stays up and running 24/7. Customers can get online and buy products at any time of the day.

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