Making a purchasing decision involves a choice between shopping with an online retailer or visiting a physical store. In making this decision, factors can include timeliness and where the most value lies, but convenience ultimately drives the decision. People now seek faster access to the services and products they desire, thanks to Amazon Prime. Our focus has shifted to online shopping due to this trend. This has a lot of benefits as well. You can stay in your bed and order something, get it delivered the next day, and have a more personalized shopping experience in general.
We all know online shopping and ecommerce are growing rapidly. Are you ever curious about how many people are making purchases online? Or what types of shopping behavior can you expect across different verticals? We’ll take a closer look at these statistics.
An Overview of Online Shopping Statistics
According to Statista, there are 230 million online shoppers in 2021 from 209 million in 2016. Technological advancements had already changed consumer shopping patterns, but the arrival of the pandemic in 2020 furthered this development.
A Stackla report discovered that, since the pandemic began, 67% of consumers reported an increase in online purchases – 27% said they increased considerably.
It’s no surprise that shoppers are buying more online with social media’s advanced shopping features. Discovering a brand on Instagram, browsing its products, and making a purchase without ever setting foot outside the app is fairly effortless. Consumers who shop exclusively online benefit from this frictionless shopping experience. Based on a survey by Jungle Scout, 46% of respondents only purchase holiday gifts online.
How does this affect brands? Brands focusing more on offline campaigns are now being forced to switch gears and re-orient towards online audiences. Data does not suggest that you should immediately switch to a web-first business model. Building a strong digital presence is, however, essential to staying relevant and competitive.
Shoppers’ Motivations for Buying Online
Online shoppers wonder what motivates them to click the “Buy” button, which is one of the biggest questions marketers have. A number of factors are affecting the answer, so there is no simple answer because it depends on the audience, industry, and product.
Despite this, some universal elements certainly influence consumers to consider purchasing. We’ll start with personalization. As reported by the Stackla report, 72% of people say that a brand’s personalized experiences encourage them to purchase products from it. Personally, We pay more attention to brand emails that include our name than those that do not. Why? Although we know it was most likely automated, the email feels more personal to us because of it.
User-generated content is another major driver. Our experience tells us that social proof can be an incredible way to generate buzz for a brand. 79% of people say UGC plays a strong role in their purchasing decisions, significantly more than brands and influencers. Is there an alternative to social proof? Reviews.
Customers have left 58% of ecommerce sites without making a purchase due to a lack of customer reviews or pictures.
In the case of a purchase, images can have a huge impact on a potential buyer. According to the Stackla report, more consumers are influenced by social media videos and images than they were before the Covid outbreak.
In the long run, building community drives purchases.
Building a community along with your audience makes them feel more connected to your brand, which in turn makes them more likely to buy from you and tell others about your brand.
The Five Most Essential Statistics about Online Shopping
Your business model strategy depends on knowing how internet users shop, regardless of whether you have an online store or want to launch a scalable small business.
The web is full of ecommerce statistics, but we’re here to share the five most important ones with you.
1. Cart abandonment is primarily caused by high shipping costs.
Despite fast shipping being in high demand, high shipping costs are not. The main reason for abandoning online shopping carts in the U.S. is high shipping costs, according to a study of U.S. shoppers over 18.
2. Mobile online shopping is dominated by Amazon.
The most widely used mobile shopping service by reach in September 2019 was Amazon, despite an increase in direct-to-consumer strategies. In developing an online selling strategy, the use of mobile apps, especially mobile commerce, is becoming increasingly important. Amazon and Walmart could also be included in retailers’ omnichannel strategies.
3. Social networks are the primary source of product research for 43% of global shoppers.
The industry has also seen growth in the power of social media to inform and influence consumers’ buying decisions with the introduction of more social commerce tools, such as Instagram checkout.
4. Online shopping for clothing is the leading sector.
59% of consumers in the U.S. bought clothing online between Q2 2018 and Q2 2019. Those are followed closely by books, films, music, and electronics.
5. SEO, email, and direct traffic are the best sources of traffic.
A successful online store requires more than a solid site – you need a steady stream of traffic. According to a recent Statista survey, direct traffic, emails, and search engine optimization drive the most traffic.
Growth in Ecommerce
The number of e-commerce sites is on the rise. The popularity of online businesses has been proven to increase retail sales since they allow customers to interact with their favorite brands and shops more conveniently.
We can now look at the ecommerce market in statistics.
1. By 2023, online sales will account for 22 percent of global retail sales.
By 2023, ecommerce will contribute 22% to global retail sales. The global retail sales were 14.1% driven by ecommerce purchases in 2019, giving context to this growth.
There is no doubt that the increasing number of e-commerce websites contributes to this overall figure. Furthermore, there are a number of other ecommerce trends that are driving this growth besides the ones listed above:
- E-commerce on mobile devices is on the rise.
- Multichannel strategies are increasingly being implemented
- Influencers and social channels have a profound impact on shopping trends.
2. Already in Q2 of 2019, there was a 4.2% growth over Q1.
According to quarterly data, U.S. ecommerce experiences exponential growth. Despite seasonal fluctuations, this statistic clearly shows the ecommerce market is growing consistently.
3. The revenue generated by ecommerce in the U.S. will be $740B by 2023!
In addition to increased ecommerce sales in the United States, we will see an increase in revenue too. More consumers want to make more buying decisions online as revenue grows over 70% from 2019 to 2020.
By increasing revenue, legacy products are able to make a statement online with increased average order values. A headless commerce approach is currently transforming the furniture industry, for instance, with the brand Burrow.
4. Over 11% of all U.S. retail sales are generated by e-commerce.
Considering the size of the ecommerce topic in recent years, 11% may appear to be insignificant at first glance. In a retail space where ecommerce sales continue to grow, this statistic is a good sign. The percentage of ecommerce sales will keep rising steadily.
5. The top three companies on the internet remain Amazon, Google, and Meta (not just for e-commerce).
The role of such companies in the online world comes as no surprise. The companies do not typically offer commerce solutions, but they’re innovating more in the sector. Leading internet companies are recognizing the potential to be business leaders as omnichannel strategies are becoming increasingly important for companies growing.
Conclusion
There has been a surge in online purchases worldwide. Understanding how your customers behave and how consumers around the world behave is vital when you’re building your online business. For marketers looking to boost businesses, these statistics will prove to be particularly useful.
