Market Trends of Global Subscription E-Commerce Platform Industry
This section covers the major market trends shaping the Subscription E-Commerce Platform Market according to our research experts:
Rapid Increase In Online Shopping Boosts Subscription E-Commerce Market
- Shopping was perceived as going out, exploring various stores and shops across the town, shifting through myriad options, and finally settling down to purchase a product with complete satisfaction. Now that technology is skillfully trying to make a person think smartly without exerting much physical energy, we see that even shopping has been engulfed under the grip of changing lifestyles. With online shopping spreading its wings gradually, the experience of the 'touch and feel' concept is slowly fading among consumers that strive the demand for a subscription-based e-commerce market.
- The rapid growth of online shopping will contribute to the development of the subscription e-commerce market going forward. The benefits of online shopping over retail purchases are shifting consumer preferences towards online shopping, especially those who opt for a subscription with additional benefits. Customers prefer to shop online because it increases convenience, reduces reliance on store visits, lowers travel costs, expands market space, lowers overheads, lowers costs, provides detailed information about products and services, and enables price comparisons and availability in a wide range of products, customer satisfaction, and the absence of crowds.
- Consumer spending in stores continued to recover with 10 percent year-on-year growth in September, following stable 5 to 6 percent growth in March through August this year. Simultaneously, e-commerce sales also continued to experience strong growth, rising by about 35 percent year over year, and online penetration remains about 30 percent higher than pre-COVID-19 levels. According to research conducted by McKinsey & Company, 15% of online buyers have signed up for one or more subscription services. That's a big number considering the projected number of online shoppers as 2.14 billion by the end of 2022.
- Strategic partnerships and collaborations are key trends followed by the companies operating in the subscription e-commerce market, thereby increasing online penetration. Collaboration enables them to extend their market share and gain a competitive edge in the market. For instance, in April 2021, Adobe and FedEx collaborated to drive innovation in e-commerce with the integration of ShopRunner, an e-commerce platform, and a FedEx subsidiary with Adobe Commerce.
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North America to hold the largest Share
- The expanding e-commerce industry primarily drives the market. In addition, the growing influence of social media platforms and celebrity endorsements on consumer lifestyles represents another major growth-inducing factor. Besides this, social media startups are launching subscription services to create brand awareness, maintain consistent revenue, and promote built-in marketing.
- They also collaborate with social media bloggers, vloggers, and influencers to promote their products. Social media startups and the introduction of long-term subscription services by key market players to develop customer loyalty and cater to specific consumer tastes and preferences create a positive market outlook across the region.
- The North American region is dominating the global Subscription e-commerce market share owing to its characteristics. Cloud solutions have contributed significantly to the expansion of digital commerce in North America, mainly attributable to robust information and communications infrastructure, rapid digitization of businesses, and support for innovation in the region.
- The growing consumer inclination toward personalized shopping and curated items, the introduction of free product trials by luxury brands to encourage the adoption of subscription services, and the rising disposable incomes of consumers are some of the other factors expected to propel market growth in the coming years in this region.
- With the increased usage of smartphones and internet penetration, the demand for Subscription-based e-commerce has risen in the North American region considering the development of Mobile e-commerce (or m-commerce) software that helps companies sell online and provide better experiences to consumers who prefer to shop using their mobile devices. E-commerce companies such as Newegg Inc., Lowe's, Amazon, Walmart, Alibaba, eBay, Macy's, Wayfair, Best Buy, and Target, amongst several others, use this type of software to create custom mobile apps that are personalized based on their industry or the kinds of consumers they target.
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