Not so long ago, e-commerce was just a vision that business folks at Amazon and eBay tried to explore as they searched for a new way to do things. And it worked, as that became a turning point, which made online shopping the next big thing after the World Wide Web.
Today, e-commerce is a key driver for brands all over the world. Offering your goods or services online is the bare minimum for retailers operating in the modern age. With the ever-evolving needs and expectations of digital consumers, you need to keep your e-commerce strategies up to date or risk getting left behind.
That said, here are the latest e-commerce statistics and trends to give you an idea of what’s going on in the industry today.
Ecommerce Statistics Every Retailer Should Know
- By 2021, the estimated number of online shoppers will reach 2.14 billion, up from 1.66 billion people who bought goods and services online in 2016. (Statista)
Online shopping continues to grow at a steady rate, opening up more and more business opportunities for entrepreneurs. If you have a new business idea that you want to explore, make sure to incorporate e-commerce channels into your business plan. Not doing so will mean ignoring a potentially large portion of your target market.
- In 2018, e-commerce sales made up about 12% of total retail sales. By 2021, e-commerce’s share of retail sales is expected to reach 17.5%. (Statista)
As more tech-savvy generations come to age, a noticeable increase in people choosing to shop online is evident. Despite already being a formidable market, e-commerce is still growing faster than any other major channels, indicating high levels of sustainability for future business.
- The average rate of cart abandonment among e-commerce customers ranges between 67.4% to 83.7%. (Moosend)
There’s a lot of data about customer preferences and the buyer’s journey that can be mined from cart abandonment rates. If you continue tracking them, you’ll have a better way of knowing how to improve the online shopping experience of people using your website.
- E-commerce stores in the United States and the European Union could recover a staggering $260 billion worth of lost orders from abandoned carts by just optimizing their checkout process. (Baymard Institute)
A high cart abandonment rate can be detrimental to your online retail sales. To address this challenge, you need to evaluate if your checkout process is too long or complicated or has many restrictions for guest users. These issues can be uncovered with a simple conversion rate optimization audit.
- The level of engagement between users and brands happens on Instagram is 10 times to 84 times greater than Facebook, Pinterest, and Twitter. (WordStream)
Instagram can be a powerful platform for your e-commerce business, as it can help you achieve a variety of marketing goals, such as building brand awareness and interest, targeting and engaging audiences, and promoting your products and services.
- 25% of shoppers won’t buy something if there’s no option for them to return the item to a physical store. (Narvar)
Having flexible options for product returns can build customer loyalty for your brand. Aside from in-store returns, make sure to include options like mailing back the items to you without charging the customer for shipping, scheduled pick-up of return items, or exchanging the items online.
- The average rate of online purchases from overseas retailers is 57%. (Shopify)
E-commerce removes geographical borders. Even if you’re an SME, you can establish a global presence for your brand through proper geotargeting techniques by country or language. This also means that localization efforts such as local SEO and voice search are expected to increase.
- In the B2B space, the market value of e-commerce is estimated at $12.2 trillion, which is over 6 times than that of B2C e-commerce. The leading player is Asia Pacific (APAC), which has a market share of 80%. (Statista)
When many people think about e-commerce, they imagine consumer retail, like eBay and Amazon. This may lead some B2B businesses to believe that it’s not the right channel for their customers. Don’t make the same mistake because with big name B2B brands like Alibaba prospering today, the proof is clearly in the pudding.
- Americans are spending approximately $270.4 billion on mobile commerce. (eMarketer)
Smartphone users are actively shopping straight from their mobile devices. As you invest in either a mobile site or mobile app, or both, make sure that you cover all the bases to provide a mobile-friendly buying experience to customers. The trick is in making the browsing, ordering, and checkout processes as simple, intuitive, and convenient as possible.
- Research from 2018 showed the percentage of consumers who have contacted a business via messaging apps at some point in time: 85% in Brazil, 74% in India, and 61% for both the United Kingdom and the United States. (Facebook Business)
Messaging apps can be maximized to help in key aspects of your business, including automating your customer service, personalizing your marketing, and even driving sales. This is a great way for e-commerce brands of all shapes and sizes to scale up sustainably.
*Bonus e-commerce trends and statistics (courtesy of Jobs in Marketing)
What’s Next for E-commerce?
It used to be baffling how buying and paying for things online worked, but over time, the system has grown in ways no one could have imagined back when it all started. As online shopping becomes more and more mainstream, it’s important to always keep an eye out as to where e-commerce is headed next.
Being successful in online retail can be difficult for brands with limited marketing knowledge and resources, but you can always call on the e-commerce experts at Spiralytics. Our marketing team can help you conquer the e-commerce landscape and keep your business attuned to the times!