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7 Key Factors Driving Online Commerce Growth

Online commerce expansion reflects growing participation, mobile and social channels, marketplaces, payment choice, delivery, and wider B2B and cross-border reach.
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Online commerce grows when more people can shop online and when the digital channels, payment options, and delivery systems make buying and selling practical. The evidence is market-specific, not a universal ranking of causes: Japan and Canada reported online-sales growth, while Philippine and EU data show changes in participation and shopping behavior.

1. More people are participating in online shopping

A larger pool of online buyers can expand commerce, though participation statistics do not by themselves show what caused the increase. In the Philippines, 36.7% of internet users aged 10 and older bought goods or services online in 2024, compared with 23.7% in 2019, according to the Philippine Statistics Authority’s 2024 National ICT Household Survey highlights.

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Age does not eliminate the opportunity: Eurostat’s 2025 edition of Digitalisation in Europe reports that 53% of EU residents aged 65 to 74 shopped online in 2024. That figure describes this age group in the EU, not all older adults or all markets.

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2. Online sales can outpace broader retail

Growth in online sales is visible in national market measures, but the figures use different definitions and should not be treated as a global estimate. Japan’s Ministry of Economy, Trade and Industry (METI) estimated that B2C ecommerce reached 26.1 trillion yen in 2024, up 5.1% year over year. Its ecommerce ratio was 9.8% of B2C merchandise sales. These figures are from METI’s 2025 release reporting its FY2024 ecommerce survey.

In Canada, retail ecommerce sales were $73.7 billion in 2024, up 9.0%, while total retail operating revenue rose 3.0%. Statistics Canada reports these figures using distinct measures, so the comparison offers context rather than a like-for-like share calculation. See Statistics Canada’s Annual retail trade, 2024.

3. Mobile access makes shopping more convenient

Smartphones give buyers a direct route to browse, compare, and place orders without a desktop computer. In the Philippines, 66.6% of online buyers used smartphones in 2024, according to the PSA survey highlights. That is evidence of mobile’s importance in that country; it is not a universal rate for online shoppers.

4. Social selling helps sellers reach buyers

Social media can function as a discovery and selling channel, particularly for merchants who do not rely exclusively on a standalone web store. In the Philippines, 94.4% of online goods sellers used social media sites to sell in 2024, the PSA reports. The statistic documents seller behavior; it does not establish how much social selling contributed to overall ecommerce growth.

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5. Marketplaces and ecommerce apps lower the access barrier

Marketplaces and shopping apps give merchants an existing digital venue to list goods and connect with buyers. The Philippine survey records use of ecommerce apps and websites, including regional observations in Cagayan Valley. These descriptive findings support marketplaces as one route to market, but do not show that a particular platform caused national growth or establish a head-to-head comparison of providers.

6. Payment choice can support buyer confidence

Checkout needs to suit buyers’ available payment methods and expectations. In the Philippines, cash on delivery remained widely used, and sellers also reported mobile or electronic wallets, according to the PSA’s 2024 survey highlights. Offering suitable options may make an online purchase more practical for different customers, but the survey does not quantify the effect of any one payment method on conversion.

7. Delivery and broader market reach extend the opportunity

Delivery is part of the online offer

Buying online is useful only if customers can receive what they order through a workable fulfillment option. In the Philippines, 69.4% of online buyers preferred delivery for receiving purchases in 2024, according to the PSA. This indicates the importance of delivery in that survey population; it does not measure delivery’s causal impact on sales.

Cross-border and B2B trade expand beyond consumer retail

Online commerce can grow through transactions between businesses and across national borders, not just through consumer purchases. METI reported Japanese B2B ecommerce of 514.4 trillion yen in 2024, up 10.6% year over year, with a B2B ecommerce ratio of 43.1%. Its survey also reports growth in cross-border purchases between Japan, the United States, and China. These B2B and cross-border measures are distinct from Japan’s B2C market figures and should not be conflated with consumer online retail.

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Keep the measures in perspective

Market size, ecommerce share, and the proportion of people who shop online answer different questions. For example, Japan’s ecommerce ratios describe the share of sales conducted through ecommerce, while the Philippine participation figure describes people who bought online. The Philippine digital economy offers broader context, not an ecommerce market-size estimate: the PSA valued it at PHP 2.25 trillion at current prices in 2024, equal to 8.5% of GDP, with 7.6% growth from 2023, in its 2025 digital-economy release.

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