ComCap Perspectives on marketplaces
Growth in the online markets, which was already impressive prior to COVID, has indeed taken off, and that trend is expected to continue. A recent estimate for the growth of digital marketplaces was pegged at a CAGR of 20% with total market value expected to reach a staggering $8.8tn by 2025. In the B2C space, online marketplaces continue to dominate, holding 53% of the total online B2C market (and are expected to hold 61% by 2025). Total online B2C sales on marketplaces are expected to be $4.7tn by 2025 (vs. $2.4tn in 2020).
2022 looks promising for the ecosystem, as Marketplaces set their eyes and capital on investments in technology or expanded services as they look to grow revenue and optimize the customer experience. Digital shoppers can expect a richer and more streamlined shopping experience on the mobile platform. Mobile commerce will contribute 50% of sales in 2022, driving the demand for higher quality service and engagement. Marketplaces will leverage tech to address this need with expanded use and investment in AI for improving customer experience via chatbots. Chatbots are tireless force multipliers, providing round the clock customer service, instant response, and the ability to rapidly resolve customer complaints. With the growing demand for rapid delivery services, expect to see increasing adoption of the Quick Commerce model as major players seek entrance into the fragmented and rapidly growing market. With the growing adoption and acceptance of cryptocurrency and blockchain, marketplaces will provide consumers with expanded payment options for products such as digital wallets and cryptocurrencies.
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Author: Eli Bertram, Senior Analyst at ComCap
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