It is a grow-or-die situation in the E-commerce industry. In most niches, competition is growing faster than the market is expanding. So if you’re considering taking your business online, making the right business decisions is crucial to success.
We have compiled the latest E-commerce statistics to help you make data-driven business decisions about where to focus your efforts to boost sales and ROI. As you work on building a top ecommerce business, here are some important stats to know.
What is E-commerce?
E-commerce, a short form of electronic commerce, is a way of buying and selling goods and services online.
Starting an e-commerce business involves a comprehensive approach that encompasses various elements, from website creation to providing excellent customer service. Here’s an expanded list of what’s required to launch and run a successful e-commerce venture:
- Research and Planning:
- Market Research: Understand your target audience, their preferences, and the demand for the product/service you intend to sell.
- Competitor Analysis: Evaluate what your competitors are doing, identify gaps in the market, and carve out your niche.
- Business Plan: Outline your business strategy, financial projections, and marketing approach.
- Choosing a Business Model:
- Dropshipping: Selling products without holding inventory.
- Warehouse/Inventory Model: Stocking products and handling fulfillment.
- Subscription Model: Regular deliveries of products or services.
- White Labeling: Selling products made by another company under your brand.
- Creating User-friendly Websites:
- Platform Selection: Choose an e-commerce platform that aligns with your needs (e.g., Shopify, WooCommerce, Magento).
- Website Design: Ensure the design is visually appealing and mobile-responsive.
- SEO Optimization: Incorporate relevant keywords and meta tags to improve organic search ranking.
- Listing Products/Services:
- Product Photography: High-quality images that represent your products accurately.
- Detailed Descriptions: Provide comprehensive details about each product, including specifications, benefits, and usage.
- Price Setting: Decide on a pricing strategy that takes into account costs, competitors, and profit margins.
- Accepting Orders:
- Shopping Cart: Incorporate an easy-to-use cart system for customers.
- Order Management System: Track orders efficiently from placement to delivery.
- Receiving Payments:
- Payment Gateways: Integrate secure gateways like PayPal, Stripe, or credit card processing systems.
- Currency and Tax Considerations: Ensure compatibility with multiple currencies if selling internationally and include appropriate tax calculations.
- Delivering Products/Services:
- Fulfillment Centers: Consider using them if you have large volumes of orders.
- Shipping Partners: Collaborate with reliable shipping companies.
- Tracking System: Provide customers with tracking numbers and delivery updates.
- Offering a Stellar Customer Experience:
- Customer Support: Offer multiple channels of support (e.g., email, chat, phone).
- Returns and Refunds: Develop a clear policy and make it visible to customers.
- Feedback Mechanism: Collect and act upon customer feedback to continually improve.
- Marketing and Branding:
- Social Media: Utilize platforms like Instagram, Facebook, and Twitter for promotion.
- Email Marketing: Send newsletters, promotions, and updates to your subscribers.
- Paid Advertising: Consider PPC, display ads, and social media ads to drive traffic.
- Legal and Compliance:
- Business Registration: Register your e-commerce business with relevant authorities.
- Licenses and Permits: Ensure you have the necessary licenses, especially if selling specialized products.
- Privacy and Security: Comply with regulations like GDPR and implement SSL certificates for website security.
In summary, starting an e-commerce business requires meticulous planning, continuous effort, and adaptation to market trends and consumer feedback. Regularly revisiting and updating your strategy based on performance metrics will ensure sustained growth and success.
Since the first E-commerce company was established in 1982, named Boston Computer Exchange, E-commerce has evolved rapidly.
Now, businesses don’t even have to create websites to offer products/services online. They can sell products/services directly on social media platforms.
E-commerce Growth Statistics
With shoppers increasingly turning to the Internet to buy products/services, more and more businesses will start selling online.
So the E-commerce industry is poised to proliferate. The following E-commerce growth stats prove the point.
Global E-commerce Sales Trends
Thanks to the rapid adoption of smartphones globally, easy and affordable access to technology, and social media integrations, more and more shoppers are purchasing products/services online, fueling worldwide E-commerce sales.
According to Statista report, retail E-commerce sales are expected to touch $6.3 trillion worldwide by the end of 2023.
Growth of E-commerce in Different Regions
According to a report from eMarketer, retail E-commerce sales contribute to 47% of total retail sales in China. But, in the US, retail E-commerce sales make up only about 16% of total retail sales.
Here are the top five countries ranked by retail E-commerce as a share of total retail sales:
- The UK—31%
- South Korea—30%
- The US—16%
Are you curious about the growth rates of E-commerce sales in different regions of the world?
Here is the list:
- Southeast Asia—19%
- Middle East and Africa—16%
- Latin America—13%
- Central and Eastern Europe—10%
- North America—10%
- Asia Pacific—9%
- Western Europe—5%
And here are the top five countries ranked by retail E-commerce sales growth:
In the US, retail E-commerce sales growth is expected to touch approximately 11% during 2023.
Predicted E-commerce Growth
In the US, E-commerce revenue is expected to reach $1,403,700.3 million by 2027, at a CAGR of 11.3% from 2023 to 2027.
This growth stat proves that the future is bright for E-commerce. So it is the right time to open your E-store and start selling your products/services online.
Online Shopping Statistics
The deep penetration of smartphones and easy access to 4G and 5G networks have made online shopping a delightful experience. As a result, the number of online shoppers is increasing. However, the amount of shoppers can still vary widely. So understanding the stats and trends can help you survive demand volatility.
The following are key online shopping statistics.
Number of Online Shoppers
As it stands in 2023, there are around 2.64 billion digital buyers worldwide. And the number is expected to reach 2.77 billion by 2025.
The number of online shoppers in the US is forecasted to reach 289.91 million by 2027.
Online Shopping Frequency
According to Rakuten Insights, 31% of digital buyers around the world do online shopping monthly, 38% do it weekly, and 9% do almost every day.
The following is online shopping frequency data for digital buyers in the US:
- Almost every day—7%
Popular Online Shopping Categories
To grow your E-store fast, you should start selling products people want.
According to Statista, here are the ten popular categories for online shopping in the US:
- Food beverages (excluding restaurant delivery)—26%
- Bag and accessories—25%
- Cosmetic & body care—23%
- Pet products—22%
- Books, movies, music, and games (excluding downloads)—21%
- Consumer electronics—18%
- Drugstore & health products—18%
|Food and beverages (excluding restaurant delivery)||26%|
|Bag and accessories||25%|
|Cosmetic & body care||23%|
|Books, movies, music, and games (excluding downloads)||21%|
|Drugstore & health||18%|
Understanding The Global E-commerce Market
The following are key stats to understand how the global E-commerce market is moving.
The Top Online Stores Globally
Which is the largest E-commerce company worldwide? With a $867.580 billion market cap, Amazon is the largest E-commerce company worldwide.
Here are other leading E-commerce companies (according to market cap) worldwide:
- Walmart ($387.720 billion)
- Home Depot ($324.850 billion)
- Alibaba Group Holding Limited ($226.760 billion)
- Reliance Industries ($206.310 billion)
Global Retail E-commerce Sales
Globally, the E-commerce market will touch $21,168.6 billion by 2030, at a CAGR of 16.9% from 2023 to 2030.
Retail consumer goods E-commerce is expected to achieve around 22% share of total global retail sales by 2024.
Growth of Small and Medium E-commerce Businesses
Small and medium enterprises (SMEs) are increasingly adopting E-commerce to grow.
In fact, 6 in 10 small and midsize businesses in the US prioritize E-commerce and digital services.
So there is no surprise that 41% of US small businesses intend to invest in their online presence, e-commerce sales channel, and website.
The Impact of Mobile Shopping on E-commerce
The following mobile E-commerce stats prove that the deep penetration of smartphones and easy access to 4G and 5G networks have revolutionized the E-commerce industry.
Mobile E-commerce Stats
According to Insider Intelligence, m-commerce in the US is expected to hit $534.18 billion in 2024, amounting to around 40% of total E-commerce sales.
Here are key findings from Zippia research to help you understand the m-commerce landscape:
- 57% of US shoppers research a commodity using a mobile retail app.
- An average US consumer spends roughly $100 per m-commerce purchase.
- M-commerce contributes to around 54% of the total annual retail E-commerce sales in the US.
- About 61% of the US population are mobile buyers.
- 55% of buyers make a purchase on their smartphone after seeing a product on social media.
- 40% of Cyber Monday sales come from mobile devices.
Are you curious to know about mobile E-commerce traffic? Around 65% of all E-commerce traffic comes from mobile devices.
The Zippia research notes that 21% of online shoppers use a mobile retail app multiple times a day.
Here is the frequency of mobile app usage:
- Multiple times a week—35%
- Once a week—19%
- Once a day—22%
These stats prove that businesses cannot ignore m-commerce if they want to delight their customers. So follow E-commerce best practices and make an aggressive mobile marketing plan to grow your E-store.
Future Trends in Mobile E-commerce
The number of smartphone users is growing rapidly. As a result, mobile E-commerce sales are increasing. The following stats from Zippia research predict that Mobile E-commerce will thrive in the coming years:
- In the US, the number of mobile shoppers is expected to touch 187 million by 2024
- m-Commerce will amount to around 10% of total retail sales in the US by 2025
- The US m-commerce is expected to experience a CAGR of 35% between 2020–2026.
If you want to ace your mobile marketing, these mobile commerce tips can help you move in the right direction.
Social Media E-commerce Statistics
Now, social media platforms play a crucial role in increasing E-commerce sales. In fact, Globally, social commerce (the process of selling products/services directly through social media) sales are forecasted to touch $2.9 trillion by 2026.
US retail social commerce sales are expected to touch $79.6 billion by 2025.
Here are additional social media E-commerce statistics:
- Facebook is the most trustworthy social media platform for social selling.
- US social commerce buyers are expected to reach 101.1 million by the end of 2023.
- Facebook is the most used social media platform to research and buy products. Then, comes YouTube and Instagram.
- 51% of Facebook and Instagram users buy products while scrolling.
If you want to leverage social media for your E-store’s growth, the following strategies can help:
- Identify the target audience.
- Create engaging content.
- Utilize paid ads and influencers.
- Encourage user-generated content.
- Provide a seamless shopping experience.
Consumer Behavior in the E-commerce Industry
Understanding what customers want can help you tweak your online marketing strategies to maximize sales and boost ROI.
The following are key E-commerce stats on consumer behavior.
Consumer Preferences in Online Shopping
Think with Google reports that,
- Being able to shop on mobile is important for 59% of shoppers when deciding which brand or retailer to choose to buy from.
- Having a physical location to serve customers can sway their minds into buying from you. This is because 61% of shoppers would rather buy from a brand with a physical shop than the ones with only online stores.
- 85% of shoppers state that product information and product images are essential when deciding which brand or retailer to pick to make purchases.
Are you wondering about the best payment method to integrate with your E-commerce? The answer is Digital/mobile wallets.
According to The Global Payment Report, 49% of online shoppers use digital/mobile wallets to make payments for their purchases.
Winning over your E-commerce customers’ loyalty is vital to growing, and offering free and next-day delivery can help you do so. What’s more, faster delivery options can improve your online sales.
As per a Statista report, 37% of global customers are likely to buy a product if an online store offers next-day delivery. And around 68% of customers are more likely to make purchases if a store offers free delivery.
For US customer preferences, the Statista report finds:
- About 65% of consumers are likely to buy a product online if free delivery is offered.
- Around 36% of online buyers are likely to make a purchase if a store offers next-day delivery.
- About 38% of online shoppers are likely to purchase a product/service if a store provides easy online checkout.
How many days should an order take to reach customers in the free delivery mode? According to a survey, 62% of customers expect their free shipping order to come to them within three days.
Impact of Reviews and Ratings on Online Shoppers
Positive reviews and ratings work as social proof to help customers feel confident about their choices and decisions.
According to BrightLocal research,
- 69% of consumers feel positive about using a business with reviews describing positive experiences.
- 87% of consumers don’t consider using a business with an average rating below three stars.
- 38% of consumers expect a business to have a minimum average of 4 stars before they would consider using it.
- 46% of consumers feel that online business reviews are as trustworthy as personal recommendations from friends or family.
Negative reviews can send customers to your competitors. 92% of shoppers say negative reviews make them less likely to buy from a business.
That said, it becomes imperative to know how to earn positive reviews for your business. Check these business review websites where customers can rate you and start managing fake, negative reviews for your products or services.
FAQs: E-commerce Statistics
What is the growth rate of E-commerce globally?
E-commerce globally is expected to grow at a compound annual growth rate (CAGR) of 14.7% from 2020 to 2027.
Increasing penetration of smartphones and easy access to the Internet is fueling the growth of the E-commerce industry worldwide.
To grow your E-commerce store, you should:
- Optimize your website for user experience and mobile-friendliness.
- Implement effective SEO strategies to increase organic traffic.
- Utilize social media and email marketing for customer engagement.
- Offer promotions and discounts to attract new customers.
- Provide stellar service to build ecommerce customers loyalty.
What is the Biggest Online Store in the World?
With $133,460.0 million in global revenue, Amazon is the biggest online marketplace in the world.
How many people shop online?
About 2.64 billion people shop online globally, amounting to about 33% of the world’s population. So creating an online business or taking your existing brick-and-mortar store online is an excellent way to make money. These online business ideas can help you get started.
Who are the top online retailers worldwide?
The top online retailers worldwide (according to market cap) are Amazon, Walmart, Home Depot, Alibaba Group Holding Limited, and Reliance Industries.
How does mobile usage impact E-commerce?
According to Zippia research, around 61% of US people are mobile buyers, and about 65% of all E-commerce traffic generates from mobile devices. And m-commerce is expected to touch $534.18 billion in 2024, amounting to around 40% of total US E-commerce sales. So mobile devices play a huge role in the growth of E-commerce sales.
How does social media influence E-commerce?
36% of buyers discover products via social media, and 87% of online shoppers believe that social media help them make a purchasing decision. So social media has a significant influence on the success of ecommerce suppliers and stores. In fact, 38% of US online shoppers make purchases on social media.
What is the E-commerce Market Share?
According to the latest US Census data, US E-commerce sales amount to around 15% of total retail sales. Globally, E-commerce is expected to have a 22% market share of global retail sales by 2024.
Image: Envato Elements
More in: Ecommerce, Small Business Statistics