Source: UNCTAD, based on national statistics offices.
Mixed fortunes for some firms
The COVID-19 pandemic has also resulted in mixed fortunes for leading B2C e-commerce companies, according to the UNCTAD report.
Data for the top 13 e-commerce firms, 11 of which are from China and the United States, shows a notable reversal of fortunes for platform companies offering services such as ride-hailing and travel (Table 2).
All of them experienced sharp declines in gross merchandize value (GMV) and corresponding drops in ranks.
For instance, Expedia fell from 5th place in 2019 to 11th in 2020, Booking Holdings from 6th to 12th and Airbnb, which launched its initial public offering in 2020, from 11th to 13th.
Despite the reduction in services companies’ GMV, total GMV for the top 13 B2C e-commerce companies rose by 20.5% in 2020, higher than in 2019 (17.9%). There were particularly large gains for Shopify (up 95.6%) and Walmart (72.4%). Overall, B2C GMV for the top 13 companies stood at $2.9 trillion in 2020.
Table 2: Top B2C e-commerce companies by GMV, 2020
|
Rank by GMV |
Company |
HQ |
Industry |
GMV ($ billions) |
GMV change (%) |
||||
|
2020 |
2019 |
2018 |
2019 |
2020 |
2018-19 |
2019-20 |
|||
|
1 |
1 |
Alibaba |
China |
E-commerce |
866 |
954 |
1,145 |
10.2 |
20.1 |
|
2 |
2 |
Amazon |
USA |
E-commerce |
344 |
417 |
575 |
21.0 |
38.0 |
|
3 |
3 |
JD.com |
China |
E-commerce |
253 |
302 |
379 |
19.1 |
25.4 |
|
4 |
4 |
Pinduoduo |
China |
E-commerce |
71 |
146 |
242 |
104.4 |
65.9 |
|
5 |
9 |
Shopify |
Canada |
Internet Media & Services |
41 |
61 |
120 |
48.7 |
95.6 |
|
6 |
7 |
eBay |
USA |
E-commerce |
90 |
86 |
100 |
-4.8 |
17.0 |
|
7 |
10 |
Meituan |
China |
E-commerce |
43 |
57 |
71 |
33.0 |
24.6 |
|
8 |
12 |
Walmart |
USA |
Consumer goods retail |
25 |
37 |
64 |
47.0 |
72.4 |
|
9 |
8 |
Uber |
USA |
Internet Media & Services |
50 |
65 |
58 |
30.5 |
-10.9 |
|
10 |
13 |
Rakuten |
Japan |
E-commerce |
30 |
34 |
42 |
13.6 |
24.2 |
|
11 |
5 |
Expedia |
USA |
Internet Media & Services |
100 |
108 |
37 |
8.2 |
-65.9 |
|
12 |
6 |
Booking Holdings |
USA |
Internet Media & Services |
93 |
96 |
35 |
4.0 |
-63.3 |
|
13 |
11 |
Airbnb |
USA |
Internet Media & Services |
29 |
38 |
24 |
29.3 |
-37.1 |
|
Companies above |
2,035 |
2,399 |
2,890 |
17.9 |
20.5 |
||||
Source: UNCTAD based on company reports.
Note: Alibaba year beginning 1 April, Walmart year beginning 1 February. Figures in italics are estimates. GMV = Gross Merchandize Value (as well as Booking Value).
Business-to-business sales dominate e-commerce
The report estimates the value of global B2B e-commerce in 2019 at $21.8 trillion, representing 82% of all e-commerce, including both sales over online market platforms and electronic data interchange (EDI) transactions.
The United States continued to dominate the overall e-commerce market, ahead of Japan and China (Table 3).
B2C e-commerce sales were estimated at $4.9 trillion in 2019, up 11% over 2018. The top three countries by B2C e-commerce sales remained China, the United States and the United Kingdom.
Cross-border B2C e-commerce amounted to some $440 billion in 2019, an increase of 9% over 2018. The UNCTAD report also notes that the share of online shoppers making cross-border purchases rose from 20% in 2017 to 25% in 2019.
Table 3: E-commerce sales: Top 10 countries, 2019
|
Rank |
Economy |
Total e-commerce sales ($ billions) |
Share of total e-commerce sales in GDP (%) |
B2B e-commerce sales ($ billions) |
Share of B2B e-commerce sales in total e-commerce (%) |
B2C e-commerce sales ($ billions) |
|
1 |
United States |
9,580 |
45 |
8,319 |
87 |
1,261 |
|
2 |
Japan |
3,416 |
67 |
3,238 |
95 |
178 |
|
3 |
China |
2,604 |
18 |
1,065 |
41 |
1,539 |
|
4 |
Korea (Rep.) |
1,302 |
79 |
1,187 |
91 |
115 |
|
5 |
United Kingdom |
885 |
31 |
633 |
72 |
251 |
|
6 |
France |
785 |
29 |
669 |
85 |
116 |
|
7 |
Germany |
524 |
14 |
413 |
79 |
111 |
|
8 |
Italy |
431 |
22 |
396 |
92 |
35 |
|
9 |
Australia |
347 |
25 |
325 |
94 |
21 |
|
10 |
Spain |
344 |
25 |
280 |
81 |
64 |
|
10 above |
20,218 |
36 |
16,526 |
82 |
3,691 |
|
|
World |
26,673 |
30 |
21,803 |
4,870 |
Source: UNCTAD, based on national sources.
Note: Figures in italics are UNCTAD estimates.
E-commerce firms perform poorly in digital inclusion
Despite e-commerce firms’ sizeable fortunes, an index released by the World Benchmarking Alliance in December last year rated them poorly on digital inclusion.
The index ranked 100 digital companies, including 14 e-commerce firms, based on how they contribute to access to digital technologies, building digital skills, enhancing trust and fostering innovation.
E-commerce enterprises underperformed compared to companies in other digital industries such as hardware or telecommunication services.
For instance, the highest-ranked e-commerce company was eBay at 49th place. Overall, e-commerce companies obtained a score of just 20 out of a possible 100.
According to the UNCTAD report, a main factor for the poor performance is that e-commerce companies are relatively young, typically founded only in the last two decades.
“These firms have been more focused on shareholders rather than engaging with a wide group of stakeholders and compiling metrics on their environmental, social and governance performance,” the report says.
Nonetheless, there are some bright spots. For instance, several e-commerce companies provide free training to entrepreneurs on how to sell online including in some cases, specifically targeted at vulnerable groups such as people with disabilities or ethnic minorities.
