New Delhi, Feb 14 (IANS): The global e-commerce market is on track for significant growth and is expected to reach $11 trillion by 2028, a report said on Friday.

The expansion is being fuelled by rapid technological advancements, improved delivery services, and rising internet penetration worldwide.

The report by GlobalData, a leading data and analytics firm, predicts that e-commerce transactions will grow at a compound annual growth rate (CAGR) of 11.1 per cent between 2023 and 2028.

The US continues to dominate the sector, while companies worldwide are focusing on innovation, data-driven strategies, and environmental, social, and governance (ESG) compliance to stay competitive in the evolving market.

“Consumers are also concerned with the social and governance factors of ESG,” Aisha U-K Umaru, Strategic Intelligence Analyst at GlobalData said.

Umaru added that it remains high on the agenda for ecommerce companies, both to comply with relevant regulations and to meet consumer demands.

Companies must now ensure compliance with environmental regulations to avoid legal risks, the report said.

Terms like “carbon neutral” and “environmentally friendly” are being closely monitored, making it crucial for e-commerce firms to align with global sustainability guidelines.

Subscription-based services have emerged as a major trend in the e-commerce landscape, the report added.

As the ecommerce sector expands, regulatory scrutiny on sustainability claims is also increasing.

“Initiatives like the Fifteen Per cent Pledge, which urges US retailers to allocate at least 15per cent of their shelf space to Black-owned businesses, highlight the increasing emphasis on social equity within the ecommerce sector,” Umaru noted.

Additionally, issues such as supply chain transparency and diversity remain critical, as brands strive to align with the evolving ESG priorities of Gen Z and Millennial consumers.