When was the last time you went shopping?
Did you do it in an actual brick-and-mortar store or online?
It’s probably the latter, right? Well, you’re not alone. According to Statista’s predictions, online retail is expected to hit the $6 trillion mark by the year 2023.
Just to give you an idea, those numbers are currently, in 2020, in the $4 trillion range.
What’s in it for you?
The simplicity of it all! It’s easier to choose the item you want, put it in a basket, pay for it, and eagerly wait for the mailman to bring you what you purchased online.
What’s in it for the retailers?
Boost in traffic and conversion rates to help online businesses better serve their customers and finally increase their revenue.
Below are some online shopping and eCommerce statistics, trends, and even some fun facts you might not have known.
Online Shopping in Current Numbers
$4 trillion doesn’t sound much, but when you see what the data about global eCommerce and online shopping looks like, it all becomes more serious. We pulled out some of the most fascinating global online shopping statistics for you to check out to consider implementing an eCommerce site or update your existing online store.
- 2.05 billion people shop online, according to Statista¹.
- Online retail sales account for 16.1% of all global retail shares, according to Statista².
- Chinese eCommerce companies accounted for most sales in 2019, with 1.9 trillion or 54.7% of all eCommerce market share, according to Oberlo³.
- Currently, there are between 12 and 24 million eCommerce sites in the world, according to digitalcommerce360⁴.
- The main reason people shop online is due to the fact that they can do it at any time of the day, according to KPMG’s report⁶.
Online or Brick-and-Mortar?
Some people still prefer to shop in the shops. Even though physical stores are still popular within the older generations, online shopping is rapidly dominating the retail market.
- In the 2019 holiday season, Brick-and-mortar sales grew by 1.4%, while eCommerce grew by a staggering 8.1%, according to Pymnts¹.
- The fashion industry is the leader in physical store retail, with 70% of purchases are made offline, according to Retail Customer Experience².
- 55% of online shoppers would rather buy from companies that have a physical store presence instead of only being online, according to the Score report³.
- 65% of consumers will compare prices on their smartphones before purchasing in a brick and mortar store, according to KPMG’s report⁴.
About eCommerce Stores
Global statistics are fine as long as you get the bigger picture and read from verified sources. But what about the details related to eCommerce businesses? Let’s see how eCommerce stores make money and what impact it has on their business.
- eCommerce businesses have an average conversion rate of 2%, according to Oberlo¹.
- Retailers invest an average of $0.35 to acquire a new online consumer, according to Buffer².
- The most effective method to generate traffic to an eCommerce store is PPC, according to Builderfly³.
- 50% of people who come to an eCommerce site from paid ads are more likely to buy than those who came from an organic link, according to Unbounce⁴.
- By 2040, 95% of all global purchases will be done online, according to NASDAQ⁵.
- 68% of small businesses lack a structured conversion rate optimization (CRO) strategy, according to the State of Conversion Optimization Report⁶.
- Businesses have lost $756 billion because of poor eCommerce personalization in 2019, according to Optinmonster⁷.
What Factors Influence Online Purchases?
A common question among online stores is what compels shoppers to make their online purchases. These influencing factors often push the shopper to complete the purchase instead of abandoning their cart. See below to find out what is most likely to influence and motivate the online shopping community.
- 83% of online shoppers are influenced by discount offers, according to B2C¹.
- Times of crisis: the Coronavirus caused a spike in medical product purchases, which grew more than 800%, according to Adobe Digital Economy Index².
- 49% of shoppers hate the fact that they can’t touch, feel, or try a product, according to BigCommerce³.
What and How Are People Buying Online?
You can buy virtually anything online. The only difference between physical stores and online shopping is that you cannot touch or smell the item you’re buying. Nonetheless, people are buying all sorts of things on eCommerce and from all sorts of devices.
- People mostly buy electronics and digital media, such as video games, music downloads, e-books, computers, and phones, according to NASDAQ¹.
- Men usually shop for heavy-duty items such as furniture and computers, according to Optinmonster².
- Women usually shop for groceries and clothing, according to Optinmonster³.
- 75% of consumers search for brand new queries each month, according to Salesforce⁴.
Mobile devices are a part of most consumers’ everyday lives, and with the ever-increasing technology of these devices, we can do a number of functions from communication, finding information, navigating, and even online shopping.
As the mobile influence continues to grow in both the U.S. and the U.K., online shopping outlets and eCommerce sites will benefit from giving their websites a mobile-friendly makeover.
- 79% of smartphone users finalized a purchase online using their mobile device in the last 6 months, according to Outer Box¹.
- Almost 37% of smartphone users make an in-store mobile payment every 6 months, according to eMarketer².
- Mobile is likely to account for 54% of online sales by 2021, or $659 billion, according to BigCommerce³.
- By 2022, the global mobile payments market will grow by 33%, according to Growcode⁴.
- Mobile payment apps will make up for $14 trillion of yearly transactions by 2022, according to Payments Industry Intelligence⁵.
Online Customer Reviews
Online customer reviews can play an essential role in an online shopper’s decision to make a purchase.
Online shoppers will look at customer reviews to gain insight into a product that they do not have the opportunity to feel or touch before making a purchasing decision.
- 71% of online shoppers will recommend a brand they’ve bought from on social media if they had a good experience doing so, according to ReadyCloud¹.
- 88% of shoppers will incorporate reviews into their purchasing decision, according to Testimonial Engine².
- 40% of consumers will form an opinion about your company with just 1 to 3 reviews, according to BrightLocal³.
- Customers will spend 31% more for a business that has excellent reviews, according to Invesp⁴.
- 92% of B2B buyers are more likely to purchase after reading a trusted review, according to G2⁵.
Customer Satisfaction and Retention
Customer satisfaction is a crucial part of online shopping. If customers are satisfied, they are more likely to leave a positive review, recommend your product or company to others, and become a repeat customer.
Statistics show that unhappy customers can tarnish the reputation of businesses and that most customers find the customer experience one of the most important aspects of doing business with a company.
- Customer-centric companies experience 60% more profit than those that don’t focus on customers, according to SuperOffice¹.
- 84% of companies that constantly improve their customer experience experience an increase in their revenue, according to PR Newswire².
- 68% of customers say that the key to a positive service experience is the service representative, according to American Express³.
- 89% of consumers have switched to purchasing from a competitor following a poor customer experience, according to Harris Interactive’s report⁴.
When a shopper abandons a cart, it accounts for a significant amount of lost revenue. Some shoppers may fill their carts as it is an easy way to browse or may simply abandon them after due to shipping times, costs, or uncertainty.
- Over 69% of shoppers will abandon their shopping carts, according to Baymard Institute¹.
- The abandonment rate for shopping carts is higher on mobile devices than on laptops with 85.65%, according to Sleeknote².
- 55% of shoppers will leave their cart if there are too high extra costs involved, according to Baymard Institute³.
- The same study shows that the second reason for cart abandonment is being forced to create an account.
- The biggest shopping cart abandonment rate in 2020 is seen in the automotive industry, according to Statista⁴.
- 77.8% is the biggest shopping cart abandonment rate per device and it happens on mobile, according to Optinmonster⁵.
Social Media Linking And Influence
Social media and social commerce continue to grow, providing retailers with the unique opportunity to connect with their target audience through social media linking and advertising allowing them to reach a larger audience through sharing. The statistics of social media influences speak for themselves.
- The same study shows that 51% of millennials say they would be likely to buy through a social network.
- Worldwide ad spending on Facebook and Instagram combined will reach nearly $95 billion annually in 2021, according to eMarketer¹.
- Online stores that have a social media presence have an average of 32% more sales than those who don’t, according to BigCommerce².
- 48% of U.S. internet users aged 18 to 34 years are interested to purchase through social media, according to Statista³.
Online Shopping Trends By Gender And Generation
Trends in online shopping vary greatly whether you are looking at gender and generation parameters. Here are some of the stats that might surprise you.
- According to the same study, Millennials and Gen Xers spend 6 hours per week shopping online, Baby Boomers spend 4 per week shopping online, while Seniors spend 2.5 hours per week shopping online.
- Men reported spending 28% more online than women during the past year, according to Sailthru¹.
- According to the same study, 52% of men have shopped on marketplaces, 75% at large retailer sites, 39% on web stores or independent boutiques, and 31% at category-specific online stores.
- According to the same study, 56% of women have shopped on marketplaces, 74% at large retailer sites, 48% on web stores or independent boutiques, and 40% at category-specific online stores.
References: 1. Sailthru
Location Trends For Online Buying
While those who live in cities, suburbia, or even in rural areas all participate in online shopping, their shopping habits vary from area to area.
- In suburban areas, 60% of Americans have shopped on marketplaces, 73% at large retailer sites, 44% on web stores or independent boutiques, and 42% at category-specific online stores.
- In rural areas, 58% of Americans have shopped on marketplaces, 71% at large retailer sites, 39% on web stores or independent boutiques, and 40% at category-specific online stores, according to Sailthru¹.
References: 1. Sailthru
Fun Facts About Online Shopping
With online shopping on the rise in both the United States and the United Kingdom, there are many interesting facts and stats that you might like to learn about online shopping and eCommerce.
- eCommerce business as a sector is the least corrupt of all other business sectors today, according to Ice Cube Digital¹.
- Pizza Hut was one of the first businesses to offer online orders in 1994, according to Medialounge².
- Email marketing accounts for 20% of traffic driving ecommerce sales, according to Wolfgang Digital³.
- Returning merchandise remains a key demand for online shoppers. 73% of surveyed consumers responded that the returns experience affected whether they would continue shopping with a retailer, according to UPS⁴.
- 80% of people make online purchases at least once a month; 30% make a purchase at least once a week, according to BigCommerce⁵.
Online shopping and eCommerce business will continue to grow as shoppers use their mobile devices to research and make purchases.
eCommerce is becoming the go-to place for shopping, so businesses should start mobilizing their website and focus on increasing their goals such as boosting the conversion and satisfaction rates, bringing positive customer experience and offering the best service possible.