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Leading online shopping platforms worldwide

Internet users can choose from various online platforms to browse, compare, and purchase the items or services they need. While some websites specifically target B2B (business-to-business) clients, individual consumers are also presented with a vast number of digital possibilities. As of 2020, online marketplaces account for the largest share of online purchases worldwide. Leading the global ranking of online retail websites in terms of traffic is Amazon. The Seattle-based e-commerce giant that offers e-retail, computing services, consumer electronics, and digital content registered over 5.2 billion unique visitors in June 2020. In terms of gross merchandise value (GMV), however, Amazon ranks third behind Chinese competitors Taobao and Tmall. Both platforms are operated by the Alibaba Group, the leading online commerce provider in Asia.

Mobile is boosting global e-commerce traffic

One of the most visible trends in the world of e-commerce is the unprecedented usage of mobile devices. In 2019, smartphones accounted for over 60 percent of all retail website visits worldwide. As the adoption of mobile devices is progressing at a rapid pace, especially in regions that lack other digital infrastructure, mobile integration will continue to shape the shopping experience of the future. M-commerce is particularly popular across Asia, with countries South Korea generating up to 65 percent of their total online transaction volume via mobile traffic.

Impact of COVID-19 on the online shopping industry

The coronavirus (COVID-19) pandemic continues to have a significant influence on e-commerce and online consumer behavior around the world. As millions of people stayed home in early 2020 to contain the spread of the virus, digital channels have become the most popular alternative to crowded stores and in-person shopping. In June 2020, global retail e-commerce traffic stood at a record 22 billion monthly visits, with demand being exceptionally high for every-day items such as groceries, clothing, but also retail tech items. How online usage, purchasing habits, and the overall future of the e-commerce market will look like in 2021 and beyond will largely depend on the progression of COVID-19.

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Internet users can choose from various online platforms to browse, compare, and purchase the items or services they need. While some websites specifically target B2B (business-to-business) clients, individual consumers are also presented with a vast number of digital possibilities. As of 2020, online marketplaces account for the largest share of online purchases worldwide.

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Co-Founder of Thread Experiment

9 min read

Opinions expressed by Entrepreneur contributors are their own.

With all the volatility and uncertainty surrounding the Chinese economy right now, some companies who manufacture their products in China are starting to worry how it may affect their business. So now's a good time to revisit the pros and cons of manufacturing your goods there.*

* Before you start writing "USA! USA!" in the comment section below, please read the entire article and realize this column is written from a pure business-decision perspective.

Pros

1. Lower costs

Yep. We all know this one.

And, yep, there are probably some instances where, when you factor in shipping and duties, the costs of manufacturing domestically are possbily competitive. But, generally speaking, it's cheaper to manufacture in China (and for a variety of reasons). Not much more needs to be said.

Before you dismiss the importance of manufacturing your product for less, I would recommend speaking to anyone who has ever worked a day in retail. He or she will undoubtedly tell you that lower cost almost ALWAYS results in better sales. (And please don't give me the "What about Burberry? What about Louis Vittuon?" because those companies have spent hundreds of millions of dollars in marketing to help boost the brand as a luxury product. And you won't.)

So, the point is, the lower cost of manufacturing in China is an enormous "pro" as to why you should manufacture there.

2. Better Service

Admittedly, I'm writing this column as the opinion of ONE person with experience. And, in MY experience, Chinese manufacturers are far more likely to give you better service from the outset as a small startup than domestic manufacturers.

In the two retail businesses I've started, I reached out to domestic manufacturers first. In both situations, I either never received a phone call back from the person I spoke with or I was simply told that I was too small of a business for them to work with. This was my experience with each of the five to seven American factories that I spoke with. Who knows? Maybe yours will be different.

On the other hand, I never had difficulty finding a Chinese factory that was willing to work with me as a smaller company ("smaller company" = I'm not Walmart). The only time a factory refused my business was because I couldn't meet their high minimum requirements (more on this later in the 'Cons' section.) But if I could meet their requirements, then they wanted to do business.

Trust me, you can't take for granted that just because you're willing to pay for goods, someone is willing to make them for you.
Related: Your Brand Is Not Too Good For That
3. Higher Output/Quicker Time

I never experienced a factory in China that was unable to produce a large order for me. Most times, when a Chinese factory tells you they can produce your order in four weeks, they produce your order if four weeks.

Based on andecdotes from colleagues of mine (since I've never manufactured in the U.S.), I've heard this isn't necessarily the case in the U.S. On several occasions, I've heard the common complaint that domestic manufacturing capacity was limited in capacity or time or, at the very least, not nearly as robust as Chinese factories.

When I've worked with factories in China, I haven't run into this issue. In fact, their quick and aggressive turnaround times are impressive. I know some of you may claim unfair labor treatment as the reason for this, but if you have ever actually done business in China before, you know that many (but not all) of the factories indeed operate properly and pay their laborers a fair Chinese wage.

4. Duplication Capabilities

I'm not here advocating that you copy anyone. In fact, depending on what you're doing, you're more than likely going to find yourself in litigation if you do.

But for whatever it is that you're manufacturing, you don't always need to reinvent the wheel, at least for some of it. For example, if you're manufacturing shirts and you like the fit of Shirt Brand ABC, then buying Shirt Brand ABC and asking your Chinese factory to duplicate its dimensions and fit is an easy way to begin your product-building process.
Quite frankly, no one does that better than the Chinese.

Cons

1. Finding a Factory

The #1 reason why people don't manufacture overseas seems to be that it's just not easy to find a factory. But it's also not that hard. There are several ways to find a factory and I go into detail on how right here. Sorry. I'm too tired to type it all again.

2. Language/Communication

For years, I've told people I'm bilingual.

I speak English and I speak Chenglish.

Chenglish is that hybrid language that you'll have to learn to communicate with your factory. Don't get me wrong. My hat's off to the Chinese who have done an incredible job learning our language. But they certainly haven't yet mastered it, and, as a result, you'll have to try to deduce what they're talking about at times. But you will. Just remember to use the same words to refer to something as they do.

Communication goes beyond language. The Chinese are very precise. They are very literal. They will take very seriously every word you say. So be careful with the words you choose. Use photos to help illustrate your points. Use webcams for meetings when necessary. Make sure you approve each step along the manufacturing process to ensure they are making your products properly. Especially at first.

3. Stigma

Let's face it: consumers have a lower opinion of products made in China. Ironically, they are almost always willing to pay less for something even if it's manufactured in China. (Don't believe the surveys you read about from time to time. People shop with their wallets before they shop with their patriotism.)

So expect some negative comments and feedback from time to time about the fact that your products are made in China. And learn to ignore them.

4. Higher Minimums

Chinese factories work are far lower profit margins than those in the U.S. As a result, they are almost never able to accommodate one-offs and, generally speaking, their minimums are often higher than other countries. If the number is so high that you cannot sustain your business manufacturing in China, then you need to consider manufacturing elsewhere. It's that simple.
Related: Why the Second Time Isn't So Easy Either
5. Shipping (Expense and Time)

The cost of shipping from a remote city in China (where most factories are) versus the cost of shipping from somewhere in the U.S. will be drastically different. So you'll have to do the math on the "landed cost" (i.e., the final cost of your goods once they have arrived at your front door plus the duty cost you'll pay to the U.S. government) to determine the final price. Then compare it to the final costs (after paying shipping) of your domestic factory and you'll have an apples-to-apples analysis on how much money you're saving manufacturing in China.

Then there's the time difference. Shipping by sea takes at least 30 days. Naturally, shipping domestically can literally be one day. So depending on what you're selling, this may make a big deal. And consider the lost sales you'll have during that possible 29-day period when you don't have your goods in stock.

Depending on the size of your goods, you may opt to have them shipped by air from China. It's more expensive, but you can get your products at your front door in two to three days. And sometimes, the cost of shipping by air is still less than the lost sales you'd have if you waited the 30-day ocean shipment time.

Again, it's all about the math.

6. Quality of Work (Sometimes)

China gets quite a bad rap for poor quality in manufacturing. In my experience, their manufacturing quality is not necessarily any worse (or better) than that in the U.S. But that all depends on the goods, too.

Again, from anecdotes and conversations, my understanding is that manufacturing more highly sophisticated goods (e.g., electronics) can be riskier than something simpler such as textiles (e.g., clothing). For the goods I've worked with (textiles), it's a big reason why China made sense for me.

Yet, with any factory -- overseas or domestic -- it will be important to stay on top of quality control because mistakes happen and shortcuts are made no matter where the factory is located. I used an agent when manufacturing in China who was reponsible for ensuring the quality and accuracy of the manufacturing of our goods along the process. You may want to do the same. The cost is minimal and the benefits are priceless.

7. Unpredictability (Economic and Political)

I remember reading a book 15 years ago about the risks of working with factories in China and they listed "Unpredictability." I thought to myself, "Oh come on. What are the odds?"

Well...the odds are that economic or political factors may indeed play a role. I remember through the years of the Great Recession, we got unexpected price hikes that were caused by anything from currency exchange to the cost of oil. In fact, one year, the Chinese government actually mandated that prices be raised by factories! I remember talking to colleagues and, yes, we all got unexepctedly nailed for these increases.

So expect some of the same if you decide to work with Chinese factories. And while many of the price hikes can be palatable, they'll still throw you off and you may feel blind-sided.

Pros vs. Cons

Remember that when balancing the pros and cons, it's not an equal-weighting system. Depending on your business and your products, some factors weigh more heavily than others.

But please do not EVER let the intimidation of working with a factory of China be the reason you don't do business there. That seems to be a barrier to entry for many and it should never be.
Related: Get Your Product Figured Out First

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The Pros and Cons of Manufacturing in China

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Co-Founder of Thread Experiment 9 min read Opinions expressed by Entrepreneur contributors are their own. With all the volatility and uncertainty surrounding the Chinese economy right now, some companies who manufacture their products in China are starting to worry how it may affect their business.

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Shoppers have shaken off their recession-era caution: They're ponying up for big-ticket appliances, taking a record number of summer airline trips and splurging on novelty items such as drones. Strong consumer spending is a bright spot in a recovering U.S. economy.

But you wouldn't know any of this based on the performance of some of the biggest names in women's clothing.

Anthropologie has posted four straight quarters of flat or declining "comparable sales," a measure of results on its website and in its stores open more than a year. J. Crew's comparable sales fell 10 percent last year and sank 8 percent in the first quarter of 2016. Banana Republic has seen a decline in comparable sales for the past 13 months, including a staggering 14 percent plunge in July. Gap's sales are weak, and Ann Taylor's have taken a gloomy turn recently, too.

This slate of mega-retailers has long been among the prime draws to the mall for middle-class women, offering apparel that they could easily mix and match into outfits for client meetings, kiddie birthday parties or date nights. But lately, they can't seem to design clothes that women want to buy. In other words, people think their clothes are ugly.

And the stores have acknowledged, to varying degrees, that their products need work. Ann Taylor officials say the clothing line is undergoing a process to "evolve the fit" to reflect a more "modern point of view." (Translation: The cut of its pants and other items is dated.) Art Peck, the chief executive of Gap, said recently that the chain's summer clearance racks are full of colorful T-shirts; it had stocked too many different versions of this basic item but failed to offer enough of the trendy off-the-shoulder tops and lace blouses that customers were more interested in. Most glaringly, Banana Republic has acknowledged that it struggled to sell a blazer last year because women couldn't fit their arms into the armholes. Yes, a venerable clothing brand that raked in $2.65 billion in 2015, manufactured a jacket that was physically unwearable.
[Why the off-the-shoulder top is suddenly everywhere]
While the rest of the retail world is focused on how to handle massive cultural shifts such as the rise of online shopping, these women's-apparel stalwarts are scrambling to dig out of holes of their own making. They're now trumpeting their turnaround plans, vowing to once again nail their fits, fabrics and styles. And some say those efforts are beginning to work. But if you're a woman who suddenly finds that the mall resembles a wardrobe wilderness, accept this consolation: It's not you. It's them.

The problems have been building for some time. In early 2015, J. Crew chief executive Mickey Drexler offered investors a frank assessment of what had led to "a tough year " at his company. Mall traffic was sluggish, and pressure was high to offer "30 percent off your purchase"-type promotions. But, he said, J. Crew also messed up its clothing designs: The aesthetic of some classic pieces was off, the color palette was a snooze and some garments didn't fit right. That meant women didn't get what they expected from the brand. "An iPhone looks like an iPhone. And I don't think J. Crew women's looked like J. Crew women's as much as it could have," Drexler said.

That was before J. Crew whiffed with the Tilly sweater, a wool top with a shrunken, cropped fit that sold so poorly, Drexler called it "a big mistake." The sweater has become a notorious symbol for a J. Crew's wider problems.

Soon, Anthropologie was admitting that it had struggled to merchandize for its customers' lifestyle: The bastion of bohemian-chic suffered last year when it didn't offer enough casual dresses, apparently failing to understand that shoppers' calendars were heavier on weekend barbecues than cocktail soirees. It also acknowledged that it didn't deliver some of the silhouettes and fabrics women were looking for.

Dress sales at Anthropologie shot back up in the most recent quarter, but clothing sales were still down overall, suggesting that the flawed design sensibility simply reared its head in other categories. Executives admitted this month that the brand is still not hitting its fashion mark - and that it probably won't see meaningful improvement until after the holiday season.

These brands have misread their customers in other ways, too. Ann Taylor has been slow to adapt to loosened office dress codes and a moment when women want versatile pieces that go from work to weekend. Banana Republic faltered when it tried to push a trendier vibe on its audience of cubicle warriors and soccer moms. In February, Peck - the chief executive of Gap, Banana Republic's parent company - said, "We took Banana to a place where we were trying to lead on fashion and trend, and she does not want Banana to be that." Executives are working on a return to the classics, but sagging sales show that it hasn't resonated yet with customers.

Gap's fashion misfires have been brewing even longer, with the brand initially caught flat-footed by the arrival of fast-fashion chains such as H&M and Forever 21. Gap has pivoted to more cheery colors and more ladylike silhouettes after customers balked at the minimalist, somewhat androgynous designs unleashed by former creative director Rebekka Bay. Around the time Bay left the company, Peck reportedly said to employees: "It's a sign of the times, unfortunately, that when there was an Ugly Christmas Sweater Party at the company, some of the sweaters there were from our current assortment."

The chain had promised we'd see green shoots of a turnaround this past spring, and Peck says Gap has made strides in getting its fit and styling right. But comparable sales have been flat or negative every month this year.

Fit and styling mistakes are not the only reason mid-priced women's apparel retailers are struggling. Mall traffic was down 5.8 percent in the past year, creating headwinds for all kinds of traditional brick-and-mortar stores. Many shoppers are choosing to spend their dollars on experiences - such as travel or dining out - rather than goods. And off-price players such as Ross, T.J. Maxx and Marshalls have been winning over new shoppers with their treasure-hunt atmosphere, adding to the strain created by the likes of Target and H&M, which are offering stylish pieces at low prices.

Other mid-priced apparel retailers point to further problems: Macy's believes that its sales have been hampered by unusual weather patterns and crimped spending by foreign tourists. Ralph Lauren is slashing $220 million in annualized costs and cutting about 1,000 jobs to streamline what had become an unwieldy organization.

Still, the depth and persistence of today's trouble is baffling, considering the relative strength of these specialty apparel stores compared with other corners of the retail industry. For one, fashion is a rare shopping category where e-commerce giant Amazon.com is playing catch-up. The enormous pressure that Amazon has put on booksellers, toy stores and others has not been fully brought to bear in apparel. (Jeffrey P. Bezos, chief executive of Amazon, owns The Washington Post.) And apparel is hardly facing the kind of sweeping cultural change that has shaken brands like McDonald's, which is dealing with a long-term move toward healthy eating. People still have to get dressed. And many of them care as deeply as ever about style.
[Are women tired of buying skinny jeans?]
The errors could be related to these retailers' race to adapt to the breakneck speed at which style trends now move. H&M, Zara and other fast-fashion brands have dramatically accelerated how quickly an idea can get from the design studio to the store, compressing that process from several months to a matter of weeks. And shoppers have much more access to what's hot, thanks to live-streamed runway shows and a steady diet of Instagram photos. As a result, retailers are rethinking all aspects of the business, from supply chains to design calendars to marketing tactics. Amid those dizzying attempts at transformation, it's been hard to get the basics right.

"They can't do everything at one time. As they try to retool their supply chains, something's gotta give," said Carol Spieckerman, a retail industry consultant. "And in some cases, that's quality, consistency and offering compelling fashion."

Meanwhile, the vicious cycle of promotions - those "30 percent off your purchase"-type offers - drew in retailers desperate to maintain sales through the recession and its immediate aftermath. But now many customers simply expect this rhythm and won't pay full price, knowing another promotion is always around the corner.

When retailers have to bake in these discounts, "That's going to change the quality of the production, it's going to change the quality of the materials," said Randy Allen, a former Kmart executive and a senior lecturer at Cornell University who studies retailing.

Did Banana Republic think women wouldn't notice that some of its dress pants cost $98, but are unlined and made of synthetic fabric? Did Anthropologie think shoppers would blindly plunk down $88 for a shapeless T-shirt dress made of spandex and jersey? Women will gladly pay up for items they think are worth the price: One need only look at the strength of prestige beauty-product sales, such as contouring makeup and CC creams, which were up 7 percent in 2015, for evidence of this. But women want price tags that they believe are commensurate with quality, and these apparel retailers are not consistently delivering on that.
[It's about to get harder to get a discounted Coach bag]
There's hope, though: Women's fashion is reaching a tipping point, where the skinny jeans and flowy tops of the past decade are about to give way to a new aesthetic. Wide-leg pants are storming the runways and popping up on store shelves. Choker necklaces and block heels are suddenly inescapable, after being neglected by the masses for years. Analysts say such a big change in style could give women fresh motivation to spend money on clothes. If stores wow them with their takes on the latest trends, shoppers might forget how badly they dropped the ball at the end of the skinny-jeans era.

Plus, fast-fashion and off-price concepts have left some openings for the specialty stores to claw back. Fast-fashion items are known to fall apart after a few wears; some women don't want to replace their clothes frequently. And while the hidden-gem atmosphere of T.J. Maxx has appeal for many shoppers, wouldn't some time-starved moms and professionals rather get in and out quickly at a smaller, tightly edited store? The explosive growth of Madewell, a sister brand of J. Crew, and the market-share dominance of Victoria's Secret show that women will still shop specialty stores, so long as they're offering the good stuff.

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Why are sales suffering at so many women's stores? They made bad clothes.

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Shoppers have shaken off their recession-era caution: They're ponying up for big-ticket appliances, taking a record number of summer airline trips and splurging on novelty items such as drones. Strong consumer spending is a bright spot in a recovering U.S. economy.

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Online fashion retailer Oh Polly brought in record revenues of £15.6 million in 2018 after benefiting from strong demand for its bodycon range of clothing.
Founded by Mike Branney and Claire Henderson in 2015, the business is now on track to achieve more than £21 million in turnover in the current financial year. In addition, EBITDA is expected to rise to over £3 million from a £1.47 miillion in the previous year.

After doubling its number of UK employees in 2018, Oh Polly is planning to increase its headcount to in excess of 140 staff at its Glasgow and Liverpool offices by the end of 2019.

It is also looking to grow its US revenues over the next 12 to 15 months as it continues to invest in its production facilities, new staff and digital infrastructure in the country.

Claire Henderson, chief executive of Oh Polly, said: "Oh Polly has gone from strength to strength over the past year, growing our market share both in the UK and overseas. With around 20% of our revenue now coming from the US, we've got a huge opportunity to expand our sales within this lucrative market. With that success will come new jobs and investment, both within our UK operations and throughout our supply chain."

With an Instagram-focused sales strategy, the business has amassed nearly two million followers on the platform and continues to grow its follower base by an average of 80,000 users per month.

Henderson added: "The strength of our business is based on the quality of our product. We remain wholly focused on making beautiful clothes, designed by girls, for girls. Our loyal community of repeat customers is testament to the quality, creativity and relevance of our clothing lines."

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Oh Polly reports strong year-on-year growth

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Online fashion retailer Oh Polly brought in record revenues of £15.6 million in 2018 after benefiting from strong demand for its bodycon range of clothing. Founded by Mike Branney and Claire Henderson in 2015, the business is now on track to achieve more than £21 million in turnover in the current financial year.

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Storenvy Store Owner Resources & Inspiration

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What do Kanye West, One Direction, and Mumford & Sons all have in common? They have all opened pop-up shops to sell their merch, swag, and albums.

Thousands of other brands, artists, designers and makers opened pop-up stores, showrooms and galleries in 2013.
Why?
There are myriad reasons why short-term physical retail stores are effective. Here are five.

*Sell more. A retail presence gives you access to attentive shoppers.
*Low cost.Booths and spaces can start at $50/day
*Test locations.Try out different spaces in different neighborhoods or cities.
*Events and holidays.From Christmas to Fashion Week, you can target relevant city foot traffic.
*Build Awareness. Create a unique experience and connect with customers.

So, that's fine and dandy, but how do you actually do it? Below are five easy steps to guide you down the right path of pop-up execution.
5 Steps To Open a Pop-Up Shop
1. Design your experience. Are you going to create a beautiful booth, immersive store, host nightly events, or bring in musical acts? Overall, make sure you do more than just selling products.
2. Find the right space. Start by searching thestorefront.com for your desired city. Then consider the size of the space and neighborhood you want to be in.
3. Plan the logistics. How will you accept payment, get your products to the space, and setup and run the store?
4. Promote your pop-up. Reach out to local bloggers and reporters. Flyer the streets. Find creative ways to get your name out.
5. Open your store. Celebrate. Throw a opening party. Offer exclusive sales. Create other engaging experiences to consistently bring in new foot traffic throughout the life of the store.

Want to learn more? Get your free copy of The Ultimate Guide to Opening a Pop-Up Shop. It's over 30 pages of beautiful design that dives deeper into each step of the pop-up process.
Tristan Pollock is the co-founder of Storefront, an online marketplace that helps brands, designers and artists find and rent retail space.

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How to Open a Pop-Up Shop in 5 Easy Steps - Storenvy Store Owner Resources & Inspiration

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What do Kanye West, One Direction, and Mumford & Sons all have in common? They have all opened pop-up shops to sell their merch, swag, and albums...

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This will mark the third year running that turnover is up. It increased by 148% to £5.2m in 2016/17, and it was up 69% in 2017/18 to £8.8m.

It expects EBITDA to grow by 104% to £3m this year, up from £1.47m in 2017/18.

Attributing its Instagram-focused sales strategy for its growth, Oh Polly said it is now focusing on building its UK workforce and growing US revenues, by investing in its production facilities, talent acquisition and digital infrastructure there.

CEO and co-founder Claire Henderson (pictured above) said: "With around 20% of our revenue now coming from the US, we have an opportunity to expand our sales within this market, which will come with new jobs and investment both within our UK operations and throughout our supply chain."

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This will mark the third year running that turnover is up. It increased by 148% to £5.2m in 2016/17, and it was up 69% in 2017/18 to £8.8m. It expects EBITDA to grow by 104% to £3m this year, up from £1.47m in 2017/18.