The Ultimate List of eCommerce Statistics
Table of Content
- How big is the eCommerce industry?
- What is the eCommerce industry worth?
- Pros and cons of eCommerce
- Unprecedented eCommerce growth amidst Covid-19
- Why has the eCommerce industry grown so quickly?
- What do we buy the most online?
- Wrap up
The amount of data you can track these days is incredible. Without any insights, you can expect a lot of guessing when it comes to making the right decision. Especially, in case you’re exploring the market for establishing the roots of your new online business. The eCommerce industry is ever-changing. Therefore everyone needs to thoroughly examine it before setting a solid foundation for its online store.
However, you shouldn’t get fooled by the data, too. Before you make a decision based on any type of data, check out the source first. There are a lot of outdated eCommerce statistics out there that can ruin your marketing efforts. It’s equally hard to implement this data, even if it’s accurate enough to complement your business strategies, simply because the market is changing in the blink of an eye. So, the solution is to act quickly.
Speaking of, this ultimate list of eCommerce statistics will help you understand the eCommerce industry with all of its characteristics. Furthermore, it will guide you in the right direction of deciding which eCommerce segment holds the biggest potential for business growth.
How big is the eCommerce industry?
Remember, this article is about one of the fastest-growing industries in the world right now. Some estimates about its growth will probably leave you stunned. There will be over 2.14 billion online buyers in 2021. This is the largest ever marketplace for anyone offering their products and services. Having nearly 8 billion people on the planet, it’s almost a quarter of the total world population. Keep in mind, this is just a rough estimate since the number could rise even higher.
Therefore, if you are thinking about opening a dropshipping store now would be the best time to do it. While we are talking about the size of the eCommerce industry, it’s wise to know a key fact. By the end of 2021, eCommerce sales will account for over 18% of the retail sales in the world. That being said, it’s never too late to start running your successful online store.
These eCommerce statistics just shows us the future. eCommerce is taking over the world, and the traditional markets seem to slowly decline. In other words, this industry doesn’t show signs of slowing down. Roughly, the estimations for the following decade are even bigger. This is due to multiple reasons, both positive and negative. However, this is an opportunity for every hustler out there, thinking about starting a risk-free business.
What is the eCommerce industry worth?
The latest reports show us that the global eCommerce (B2B) model market will end at around $6.5 trillion by the end of this year, with great potential to grow in the next couple of years. Its demand will just rise, and the industry will expand. In fact, in the U.S. alone, businesses will generate over $1.9 trillion in sales by the end of 2020.
Before we continue, let’s have a look at some of these amazing eCommerce statistics. By finding out the hidden details you’ll learn more about the eCommerce industry as a whole.
- 43% of the population (18-29 years) checks on a company’s social media page to ask for products or services. (Source: Status Labs)
- If you want to advertise your products on Instagram, the average cost per click (CPC) is valued at $0.70. It depends on the industry, of course, and it can be higher when targeting the more interactive (younger) audiences. (Source: Voy Media)
- Customer service is very, very important. Almost 90% of all online shoppers claim they’ve never returned to shop again in stores where the customer service was below satisfactory. (Source: Status Labs)
- For years now, live chat support is considered the most preferred communication channel among customers. In percentages, here are the top three customer service channels, ranked by level of satisfaction. (Source: EConsultancy)
- 73% – Live chat support
- 61% – Email
- 44% – Telephone
- Talk about ‘word of mouth’ marketing. Over 75% of the customers would recommend a company to their friends – only if they’ve had a positive experience with an employee. (Source: Temkin Group)
- In the past 5 years, the average online shopping cart abandonment rate moved to around 69%. Unless marketers invent new ways of decreasing it, it’s expected to stay the same, give or take a few percentage points. To conclude, expect a lot of your customers to abandon their shopping carts, so don’t be upset about it – it’s perfectly okay. (Source: Statista)
- Speaking of shopping cart abandonment rate, back in 2019, over 41% of all online shoppers chose not to check out, because of higher delivery costs than expected. In other words, it’s wise to be honest with your customers, from start to finish. (Source: Statista)
- Google is so powerful in the eCommerce industry, nearly 45% of all organic traffic on your site comes from the most famous search engine. So, pay attention to SEO and optimizing your site for Google. (Source: Wolfgang Digital)
- If you want to advertise on Google Ads, you better think twice. Apparently, 4 in 5 people using search engines to find a certain product or service – will simply ignore all suggested ads, and instead, click on the organic results. (Source: MarTech)
- Currently, local SEO plays a huge role in the eCommerce industry. For example, almost 30% of all searches made via mobile devices include locations in them. It’s good to be present on Google Maps right now, doesn’t it? (Source: The SEM Post)
Let’s get back to explaining more about it. The rise of eCommerce is not a coincidence. Every past segment of the digital era played its part and contributed to increasing the popularity of Internet commerce. It started with electronic devices first, such as smartphones, tablets, laptops, even desktop computers. Buying hardware and software over the Internet eased up the general process of buying online because billions of people have at least one smartphone or laptop at home.
The above-mentioned eCommerce statistics indicate that advances in technology simply boosted the eCommerce market’s overall growth. Why? Because it showed us how dependable we are on technology. The market forecast is very optimistic, and it will grow rapidly in the next couple of years. It hasn’t reached its peak, yet. In the next decade (2020-2030), will generally be busier than usual and we will have much less time to spend with activities like going to shop in malls. The eCommerce industry seems to help us, particularly regarding that aspect. Online shopping can save us valuable time and thus costs – which is one of the reasons for its growth.
Pros and cons of eCommerce
eCommerce has its advantages and disadvantages. The advantages are playing a bigger role here. When you browse on the Internet, you can find whatever product you desire. In fact, you can find dozens of that product. Comparing them and calculating their costs is the biggest advantage of eCommerce. There are reviews, too. You can explore customers’ experiences to see what a certain product could offer before you even buy it. The lack of marketing and other crucial activities in the retail sector made the growth of eCommerce even bigger and faster. Today, the industry is very stable, and competitive at the same time. Hence many online business owners will continue fighting for their ‘place in the Sun’.
The main players in the business-to-customer eCommerce market model are Amazon, eBay, Flipkart, and PayPal. Those four are the direct companies that grew this industry, and they are deserving of every award. Each of them offers innovative solutions, as well as great customer service.
Unprecedented eCommerce growth amidst Covid-19
The ongoing Covid-19 pandemic is yet another important factor that, undoubtedly, has a major impact on the eCommerce industry. On one hand, the world’s lockdown stopped some of the most crucial processes for this industry. On the other hand, because of it many are yet reaping the benefits of online shopping. The eCommerce statistics demonstrate that numerous countries in the world have seen major growth in online sales because of lockdowns.
All in all, the eCommerce industry is very stable, if not, emerging at an unprecedented rate, and it will continue to grow for a long time to come. You can see the proof of this growth in the latest statistics. Particularly, eCommerce websites have reached a traffic peak in June 2020, at almost 22 billion visits. The major cause for this peak was the rise of the Covid-19 pandemic which forced us to stay at home and avoid crowded places, including malls and stores.
Why has the eCommerce industry grown so quickly?
Did you know that by the end of the year, more than 50% of the total searches will be conducted via voice search? It’s no coincidence that the eCommerce industry keeps expanding and growing every year, but contributes to this? People’s lifestyle that keeps on getting busier, their addiction to smartphones, or their newly-created habits? Each of these aspects impacted the rise of eCommerce but let’s dive deeper into the reasons that encouraged the considerable growth of this industry.
When you visit an online store or physical store – you want to have more options to compare, right? Well, eCommerce users enjoy this privilege. The market is big enough for any buyer. The filter menu that stores offer is enormous. You have the stock level availability and size measurements.
Whenever you buy online, you have recommendations about your product – and most importantly past user experiences. Each one of these options is the reason for the development of this industry. If you could choose between waiting to re-stock and getting the product right now, what would you choose?
Personalization – special experiences
Millennials took their share in the market today. And, they are not satisfied with some recommendations, they want a story behind the product – and they want to find themselves into it. They read things, make their research before they buy some product – and it doesn’t matter if it is a mobile device, some t-shirt, or even some furniture. This changed the marketing strategy to be more customer-oriented. If you want to raise your sales, you must adapt to the new rules.
Social media and its role in the customer journey
People are addicted to their phones. They are updating their statuses, following businesses, making their own stories on social media. Most of the eCommerce platforms are collaborating with social media channels to satisfy their customer experience.
While SEO still leads the race for eCommerce conversions, social media is still a strong factor for building your brand and your social presence. In the buying process, the buyer usually checks the profiles on social media before he searches on Google for some particular product. People share what they like, so keep your content on social media engaging, and shareable. You could enjoy their comments and recommendations, and if you are searching for a particular product, you can see if the customers are satisfied with the product.
Brands use social media for sharing their promotions, connecting with customers, and allowing them to be a part of the brand.
One of the reasons that boosted eCommerce statistics towards success is the user-friendly applications that keep on getting better. You can order any product very easily. In fact, you even don’t have to walk 30 minutes down to your store to get your products – you can order them online. There is no reason to fight with the traffic in the city, and the tickets can be avoided.
The second aspect of the user-friendly approach is the voice search. The voice search will take over the classic written search in 2021, according to multiple reports.
No time restrictions – available anytime
Online stores don’t have working times. Ordering online is available for buyers whenever they have the need and desire to buy things. As funny as it sounds, online store owners pray for bad weather, because people will stay at home – and shop online. The fact that in online shopping time restrictions don’t exist, creates more opportunities for online businesses. They remain available for everyone out there who is searching on the Internet. No more racing with the time, you can buy it whenever you want.
What do we buy the most online?
This ultimate list of eCommerce statistics can’t be concluded without covering the topic of what online buyers shop for the most. If you want to create a successful online store, you must track the latest trends in this industry. If you want to make sales, there must be a demand for the products you sell. No one likes to sell products and earn zero profits. We are here to guide you through this process, and present you with the most trendy niches in the eCommerce industry.
There’s no doubt why this category is first on this list. There was a demand for fashionable items in the past, there is now, and there will be in the future. In particular, the largest segment in eCommerce is fashion with a market volume of US$664,474m.
You can’t go wrong with selling fashion items online. Except if you decide to sell cheap pieces of clothing with low quality. Instead, our recommendation is to choose a supplier of high-quality luxury clothing and accessories and explore the benefits it can bring you.
Hobby, toys & DIY
The category for Hobby, Toys & DIY products includes selling baby toys and clothing, outdoor and garden items, and entertainment products. At the moment, it holds the second position of the most popular eCommerce segments with market revenue of US$518,184m.
Electronics & media
The niche for Electronics and Media is third on this list with a market volume of US$493,256m. It is a segment that has great potential for online sales. If you have a great guarantee model, then you are set for success. Build your trust with the customers who are looking for some tech products. And don’t forget to always have a reliable supplier with quality products nearby, customers always appreciate quality.
To sum up, these are some of the most important eCommerce statistics to help you understand the dynamics of the industry and decide where to put your focus. The gathered data and statistics speak about the speed at which the eCommerce industry will emerge in the upcoming 2021.
When it comes to the niches mentioned, it’s apparent that their demand is ever-present, and you could become successful if you choose the most profitable on the list. Lastly, one of the core elements you shouldn’t ignore is the high competition. Develop a comprehensive business plan and choose your supplier carefully. Then you’ll have the opportunity to skyrocket your new online business.