Consumers love convenience. This fact and today’s ease of access, thanks to the internet, has made ecommerce a go-to for shoppers worldwide. From retail giants to small businesses, a presence in ecommerce has become indispensable, as, according to internet statistics, there are 4.54 billion active internet users.
But where is ecommerce heading? What’s the market like now? Check out the stats below for a comprehensive view of the current state of affairs in ecommerce and gain insight into its future.
Important Ecommerce Statistics & Facts
- Consumers spend 36% of their budget shopping online.
- The largest ecommerce market is China with a $740 billion market share.
- Credit cards are the most popular means of payment worldwide.
- The average consumer spends over 5 hours daily on their smartphone.
- More than half of consumers have already participated in voice shopping.
- The total ecommerce retail sales will reach $4.8 trillion by 2021.
- Ecommerce statistics for 2020 predict 72.9% of global ecommerce sales will be mobile commerce by next year.
- Gen Z-ers, the up-and-comers of the e-shopping world, have $29 billion in buying power.
- More than half of online shoppers in the UK now buy their everyday goods online.
- An omnichannel presence is a must for brands since shoppers have higher standards for shopping convenience.
General Ecommerce Stats
1. Experts have determined that roughly a quarter of the world’s 7.7 billion population will be shopping online this 2020.
This is the equivalent of roughly 2.05 billion e-shoppers. But wait, there’s more! This figure is expected to grow to 2.14 billion consumers by 2021. E-retail sales, too, will mirror the same rising trend, projected to account for 15.5% of all retail sales globally this year and reaching up to a 17.5% share in 2021.
2. What percentage of sales are online? Globally, ecommerce held a 14.1% share of all retail sales according to the most recent data.
This was based on 2019 figures, with the top players worldwide being JD.com, Amazon, and Apple. In the American retail market, ecommerce should grow to 16.1% in 2020 based on trends in ecommerce statistics. This is impressive, but still no match for the staggering growth expected to take place in China where e-retail sales are set to capture a third of the nation’s market.
3. On average, consumers spend 36% of their budget on the internet.
In a report by KPMG International, ecommerce stats revealed that Gen X-ers shop the most online. In 2016, they spent 20% more than Millennials, but this trend is set to change since Millennials will soon occupy the high-earning job positions that Gen X-ers now enjoy. Across genders, the top spenders are women in the Gen X demographic, while men tend to spend more among the Baby Boomer and Millennial generations.
4. Conversion rates for the top 1,000 ecommerce companies averaged out to 2.6% in 2019.
(Digital Commerce 360)
The 2019 Internet Retailer Top 1,000 report studying ecommerce statistics among North America’s e-retail companies also notes that 17% of these companies offer free shipping. The industry practice, however, seems to be requiring a $50 minimum order before a customer can qualify. Nevertheless, free shipping alone can increase conversions by up to 54%!
5. In the United States, the most that consumers are willing to spend on a single purchase is $922.
As far as spending habits go, KPMG’s Global Online Consumer Report found that men spent more than women. Surprised? We were too. But the ecommerce stats don’t lie. Men spent an average of $220 per transaction, whereas women spent an average of $151. The report goes to explain why: despite shopping frequency being pretty much the same for men and women, men more often bought luxury goods like electronics, while women typically went for cheaper purchases like makeup or food.
A word of caution though. When shopping online, watch out for ecommerce frauds, such as pagejacking, and identity theft that makes 71% of all ecommerce frauds.
6. According to online shopping statistics, Amazon’s traffic in 2018 exceeded 2.4 billion website visits.
In the US alone, its market share of internet users was at 82% by 2016. This, among other reasons, is why Amazon’s status as a powerhouse in ecommerce is so solid. So much so that in the span of a decade—from 2008 to 2018—the retail giant’s revenue went from $4 billion to $51 billion. That’s well over a 1,000% increase!
7. China dominates as the largest ecommerce market this 2019 with a $740 billion market share.
Global e-commerce statistics from 2018 forecast that the country’s ecommerce market will continue its growth, surging to an estimated $1.086 trillion by 2023. China’s astounding 5-year growth of 70.7% is driven by government and private initiatives and the growth of the middle class.
How does the US stack up? The American ecommerce market is expected to grow, though not quite as much as China. E-commerce growth statistics lead experts to believe that the US market will reach a worth of $735.4 million by 2023, a growth of 45.7% within a period of 5 years.
8. The international B2B ecommerce market is worth over 5 times more than the global B2C market.
In 2019, global B2B had a $10.6 trillion valuation. The APAC (Asia Pacific) region leads off with an 80% market share. Currently, the two key players in the B2B arena are Amazon Business and Alibaba. Despite having only an 8% share of retail sales, B2B ecommerce in the United States accounted for $5.8 trillion.
Ecommerce Consumer Trends
9. What age group shops the most? Gen X-ers and Millennials, it turns out, spend the most time shopping online.
Specifically, they spend 6 hours total on a weekly basis.That’s 2 hours more than Baby Boomers, and 3.5 hours more than seniors overall. What do they buy? Well, perhaps the better question is what don’t they buy. Well, few people realize that the sales of music and other entertainment media have been seeing a downward trend due to the availability of streamed content.
10. Cross-boundary online shopping is on the rise with a current worldwide average of 57%.
The ecommerce facts illustrate that in Europe, cross-border ecommerce is at 63.4% market penetration. It’s followed closely by the APAC region at 57.9%, while Africa and Latin America trail behind with 55.5% and 54.6% market shares.
For online businesses, this burgeoning trend requires some adjustments. Over 90% of shoppers have expressed a preference for their own local currency, and as much as a third have disclosed a readiness to abandon transactions when prices are listed in USD exclusively.
11. Poor customer experience is cited by 80% of consumers as a reason to stop doing business with a brand.
In American Express’s 2017 Customer Service Barometer, US e-commerce statistics showed that half of consumers have copped to abandoning a transaction because of bad service. This particular business aspect is so important to them that 75% are willing to spend more for great service. And it seems they’re not that forgiving, either, since a third stated that they’d actually switch to the competition after only one bad experience. In contrast, live chat statistics show that businesses that invest in user experience can increase customer retention by 42%. They are also likely to increase up-selling in cross-selling by 32%.
12. Retail shopping statistics show that almost 70% of shopping carts get abandoned.
Data from SaleCycle reveals the top three industries for cart abandonment: Travel has the highest cart abandonment rate at 80.8%. Retail comes in next at 76.1%, and Fashion takes third runner up at 74.8%. Retail shoppers often abandon their carts because they weren’t ready to make a purchase and were just doing research or because of a shipping-related issue. As a matter of fact, the latest shopping cart abandonment stats show that 25% of customers leave a site because of shipping costs.
Another reason for cart abandonment may be one of the six traps entrepreneurs fall into when starting an online business off the ground – focusing too much on administrative tasks, and putting customers second.
13. On the upside, though, follow-up emails for abandoned carts have a 46.1% open rate on average.
The latest email marketing stats reveal that 46.1% of people will open a cart abandonment email. In fact, the ecommerce facts verify that three abandoned cart emails generate 69% more purchase orders than one normal email, according to Omnisend. This is largely due to the fact that these customers already have high buying intent. It just takes that timely little push to get them back on track, and amazingly, doing so generates even higher profits than the customer’s original shopping session.
14. A third of shoppers have professed that they would abandon their shopping carts if the listing isn’t in their native currency.
And a whopping 92.2% prefer to transact in their own currency. In a world of customization, it’s clear consumers have become accustomed to a certain level of convenience. And this brings us to our next key statistic.
15. Purchase experience drives 53% of customer loyalty according to online shopping statistics.
It takes much more to provide a good experience for today’s consumers, especially now that the majority is shifting to omnichannel shopping. From mobile devices, to desktop, to brick-and-mortar stores, it’s up to brands to make their presence felt across different platforms while still offering customers the range of options they’re used to.
16. A global survey revealed that 53% of consumers prefer to pay with their credit card.
Meanwhile, retail shopping statistics for both Chinese and Western European consumers show that digital payment systems are their preferred way to pay. Chinese users’ payment staples are AliPay and WeChat Pay. Interestingly enough, these aren’t just the systems they use for online shopping. “Cash or credit?” at the register is pretty much a nonexistent phrase in China—consumers can now readily make payments with their phones using these two systems’ mobile apps.
17. Demographics of online shoppers show that younger consumers are less inclined to make purchases using their credit cards.
Worldwide, credit card payments are the most common overall, followed closely by Paypal. But there are many other options out there. In Asia, the preferred payment systems are WeChat and AliPay. Interestingly, in India, shoppers lean toward cash on delivery (COD) payments instead. Meanwhile in the Netherlands, no self-respecting e-shopper buys from an online merchant that doesn’t offer the payment system iDeal.
Mind-Boggling Mcommerce Statistics
18. Mobile commerce made up 67.2% of sales in digital in 2019.
As per latest m-commerce statistics, the worldwide m-commerce share in e-commerce is expected to reach 72.9% globally by 2021. This increase demonstrates how quickly mobile has penetrated the market worldwide. According to Pew Research Center, smartphone ownership is still on the rise, so mobile commerce’s share of the digital sales pie is certain to grow even further.
Taking this into account, is it any wonder that, according to the most recent mobile marketing statistics, 71% of sellers consider mobile marketing a fundamental strategy for a company to grow?
19. What percentage of e-commerce is mobile? In the United States, 40% of all retail sales are m-commerce transactions.
This percentage excludes purchases through apps and is based on data from 2018. While this is an impressive 5% increase from the previous year, it turns out that other countries already hold shares of at least 50% or higher. Sweden is the most notable when it comes to mobile commerce shares, with a 60% chunk of the retail market sales according to global e-commerce statistics in 2018.
20. On average, consumers spend over five hours per day on their mobile phones.
Marketers and advertisers have certainly taken notice—they’ve begun to set aside 51% of their budget for mobile ads. However, there’s a downside. It turns out 70% of smartphone users dislike these ads.
21. Mobile users who’ve had a negative experience with a mobile site are 62% less likely to transact with the brand in the future.
Add to that pages that need more than 3 seconds to load, and 53% of mobile users will leave your website, the most recent user experience stats show. The highly competitive market and customers’ higher standards for convenience mean that prompt service, highly relevant engagement, and positive interactions are pretty much expected across all platforms.
22. US e-commerce statistics show that 55% of consumers have used voice shopping to purchase goods online.
(Search Engine Journal)
Just like mobile devices, voice assistants cater to consumer convenience, though its adoption rate is slower. But among those already using the technology to shop, everyday items (also known as consumer packaged goods) are their go-to purchases. The experts believe that concerns over security and the fact that shopping is usually a more visual experience are slowing the adoption process.
Still, the latest voice search statistics shouldn’t be overlooked. According to these stats, 43% of voice-enabled device owners use it to shop, and 51% use it to research products. Taking that into account, voice shopping might catch up sooner than we think.
23. Based on online shopping statistics by year, the mobile payments market will grow to $4.5 trillion by 2023.
(Allied Market Research)
This 33.8% compound annual growth from 2017 to 2023 is attributed to the convenience of smartphones. It’s also due to the public becoming more aware of mobile wallets and mobile money. While many often use the two terms interchangeably, mobile money works differently from mobile wallets in that the user’s mobile account is directly charged.
Ecommerce Growth Projections
24. In the UK, the trend of shopping online for everyday goods is set to increase.
(Periscope by McKinsey)
Non-food purchases in particular seem to draw these shoppers. In fact, items in beauty and personal care comprise 45.8% of their purchases, followed by coffee and tea purchases at 43.2%.
25. Shoppers will be shifting to buying consumer packaged goods like food, makeup, and household products online even more.
(Periscope by McKinsey)
UK ecommerce statistics reveal that 51% of consumers in the country turn to the internet for consumer packaged goods replenishment.
26. As voice technology develops, an increase in consumer voice shopping is a given.
Voice is being integrated into more than just smart home devices and smartphones. Even some kitchen appliances like refrigerators have this upgrade. Smart refrigerators, like the ones by LG, allow consumers to resupply on everyday goods right through the LCD panel of their fridge using the power of Alexa.
27. Consumers born after 1995, Gen Z-ers, are the up-and-comers in ecommerce, with a buying power of $29 billion to $143 billion.
Among the different age demographics of online shoppers, this generation has the highest activity on social media. They’re profiled as conscientious and valuing authenticity, with a preference for brands that support social causes and businesses that provide steady engagement across all channels. These consumers regularly turn to print media, digital video, and websites for information, making them quite the well-informed shoppers. In 2020, Gen Z should make up a 40% chunk of the population with a massive $4 billion influence in discretionary spending.
28. Ecommerce retail sales are forecast to reach $4.8 trillion by 2021.
Shopify statistics from 2018 reveal that China leads in ecommerce at an 83% market penetration, currently tied with South Korea. As far as ecommerce growth goes, India shows the most promise. It leads with a compound annual growth rate of 19.9%, followed by Indonesia at 17.7%. The revenue per user is at $1,952 in the US, two times higher than China’s $634 per user. While these seem like ripe markets for e-retailers looking to go international, based on ease of business, New Zealand, Singapore, and Denmark may be better choices.
29. Ecommerce growth trends indicate that revenues will surpass $638 billion in the United States by 2022.
And with 40% of consumers in the United States stating that online shopping has become essential to their lives, that forecast isn’t at all surprising. The industries projected to have the most growth are in the toy, hobby, and DIY categories. It’s interesting to note that despite these forecasts for online shopping growth, it’s anticipated that online sales will be on par with the sales revenue generated by physical stores.
When it comes to the most popular ecommerce platforms in the US, most online stores use Shopify, while the most useful Shopify apps come from the inventory management category. According to WooCommerce stats, Shopify has a 22% market distribution worldwide, while WooCommerce has a somewhat smaller piece of the pie at 15%.
30. Adopting an omnichannel approach to marketing is a must for e-retailers this year and in future years.
A look at online shopping vs in-store shopping statistics reveals that choosing shopping channels is all about convenience for consumers. When trying out a product first-hand mattered more, 56% of consumers prefer a physical shopping experience. Meanwhile, 58% preferred online shopping because they could shop without the limitation of store hours. This convenience-first mindset is even truer for Millennials. They’re less likely to wait for delivery. They’re also the most likely to check products on their smartphones while they browse in-store and are the most likely to shop online. In other words, this is a generation of savvy shoppers, constantly weighing their options.
With big companies like Amazon and Shopify dominating the ecommerce market, it’s easy to assume that the competition is far too fierce for newer and smaller players to thrive. As you’ve seen in the ecommerce statistics above, however, this is completely false. A huge worldwide market with consumers who are increasingly reliant on the convenience of online shopping speaks of vast opportunities. With even more mobile users in developing countries discovering the joys of ecommerce and cross-border shopping, success is simply a matter of seizing the chance and making your own mark on the digital economy.
List of Sources:
- Digital Commerce 360
- Business Insider
- Search Engine Journal
- Allied Market Research
- Periscope by McKinsey
- Walker Sands
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