Ecommerce Statistics 2023: You Need to Know For Your Business Success

 1 Feb, 2024

ecommerce-statistics

Introduction

In the midst of the pandemic, online retail experienced a dramatic spike in business.  As individuals around the world began spending more time at home, buying online quickly became a popular habit; therefore,  e-commerce experienced unprecedented growth on all fronts.

However, there is a single issue on everyone's mind.

As we recover from the pandemic, will online shopping continue to expand?

The more you know about the eCommerce industry, the more you can keep an eye on your eCommerce website and make the necessary modifications if you're trying to sell things online. Here we present the most fascinating e-commerce statistics that will be important to know in 2023.

As Of 2022, How Many Online Shopping Sites Are There?

Worldwide, there are between 12 and 24 million online stores, and that number is growing rapidly. 

Don't be alarmed if these figures make you think competition is fierce. Only about 1 million of these sites generate annual revenue of $1,000 or more, so there is a huge amount of untapped potential.

And as it becomes simpler for anyone to build an eCommerce site, more and more people are turning to online retail as a means to supplement their income. Now that you have an understanding of the scope of the eCommerce market and the number of people making money from it, it's time to look into some key e-commerce stats.

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Increase In Online Purchases Around The World

While the United States certainly reaps the benefits and features of e-commerce websites; it isn't the only country to do so. Its consequences can be seen in other nations as well. There are areas that expect to increase their income significantly in the coming years.

Let's take a look at the numbers and trends of international online shopping.

India

  • With projected revenue growth of 25.5% in 2022, India's e-commerce market is among the world's top five fastest-growing markets.

United Kingdom

  • Growth in the United Kingdom is expected to sustainably add $85.7 billion (+42.88%) during the next few years.
  • By 2022, overall online sales will have topped $2.8 trillion, with China accounting for 46.3% of all retail eCommerce sales globally. It also boasts the largest number of online shoppers, with 842.1 million people, or 39.4% of the total.
  • The United Kingdom is the world's third-largest e-commerce market, accounting for 4.8% of retail e-commerce sales behind China and the United States respectively.
  • After the UK, Japan (at 3%) and South Korea (at 2.5%) fare the best.
  • By 2022, the online retail industry in the United States is expected to be worth more than $904.9 billion, or just slightly more than a third of China's market.
  • By 2040, online shopping will account for 95% of all online sales. It goes on to say that most of these purchases will be made with mobile phones. A whopping 42.3% of all UK sales occurred on mobile devices in January 2017. Moreover, this pattern is anticipated to persist.

Therefore, it is imperative that e-commerce enterprises get ready and increase their mobile sales efforts.

Australia

  • In 2021, online retail in Australia experienced a 13.4% increase. The result is that analysts predict that by 2025, Australian online merchants will generate more than $70 billion in sales.
  • Covid-19 contributed to a 16.8% increase in Australian e-commerce spending or $41.2 billion in 2020. Typical retail items like groceries and gadgets made up the bulk of the spending. 
  • Still, the benefits were not limited to just one industry. All sorts of things fall under this category, from food and drink to gambling, adult entertainment, health and beauty tips, and even digital material.
  • In a related vein, research into various forms of payment indicated that by 2020, 37.2% of all credit card purchases in Australia would have been made online.

South East Asia

  • The trend toward using digital payments to make online purchases in Southeast Asia is changing the industry there. On its current trajectory, it will undoubtedly become the dominant digital payment system worldwide.
  • The market for online purchases in the region is expected to grow by 162% to $179.8 billion by the year 2025. Of those purchases, 91% will be made using a digital payment method.
  • According to the same study, 75%  of people in six of the largest Southeast Asian countries had used Internet shopping at least once. Online shopping is very popular in Indonesia, Vietnam, and Thailand.

China

  • The Chinese are the most ardent consumers of goods purchased online. They reported buying something once a month at a rate of 83%. That this is true regardless of factors like age, gender, or socioeconomic status is even more remarkable.
  • Additionally, it has been found that six out of ten of the world's most successful digital commerce companies are based in Asia and the Pacific.
  • It is also worth noting that the digital marketplaces in the United Kingdom, Germany, and Poland are robust, with 75% or higher penetration rates.

Canada

  • The COVID-19 pandemic sparked a surge in online shopping in Canada. In 2020 alone, its growth was over 70%.
  • There was a sharp deceleration in growth to 14% in 2021. They forecast that this will be the average yearly growth rate through 2025.
  • As is evident, the pandemic profoundly affected Canada's online shopping scene. The sum of all money made through online shopping in Canada in 2019 was $25.4 billion. By 2025, it is expected to have surpassed $90 billion.
  • As a result, Canada will almost certainly keep its position as one of the world's leading e-commerce markets. Canada is now ranked 8th in the world. Canadians are motivated to shop online by the opportunity to save money and/or by the low prices of the products offered. Most Canadians weigh these two criteria heavily when deciding whether to make an online or in-store purchase.

Japan

  • Compared to other developed economies, Japan's yearly e-commerce growth rate of 6% is quite low.
  • In a country with a population of about 100 million, 74.1% of the population has already embraced online shopping. By 2025, experts anticipate the figure will have increased to over 89%.
  • Japanese society is getting older. Japanese seniors are slowly warming up to online shopping but still prefer to buy in person whenever possible. As a result, it's possible that e-commerce expansion could slow down in the years ahead.
  • In Japan, the travel industry is the largest consumer of online goods. This is a major departure as opposed to countries like China, the United States, and the United Kingdom.
  • When it comes to online purchases, the Japanese are just as hesitant to embrace digital payment methods. Credit and debit card payments are still widely used among Japanese online buyers.

Ecommerce Statistics You Should Know in 2023

With the data presented here, it is clear that the expansion of online shopping has been phenomenal and shows no signs of slowing down. You should use the information to inform decisions about your own business.

Hence, without further ado, let's have a look at some crucial e-commerce stats.

General Statistics On e Commerce

  • You can confidently predict from these numbers that the future is bright for people who sell items online.
  • In the United States, 61% of internet shoppers have followed a blog's advice and made a purchase as a result.
  • When it comes to online buying, 59% of Millennials say they always or usually go to Amazon first.
  • It is predicted that by 2040, online shopping will account for 95% of all consumer spending.
  • When displeased with a product or service, 55% of online customers will share their negative experiences with others they know.
  • Over 90% of all internet users have made online purchases.
  • Half of the consumers believe they would make a purchase recommended by a website chatbot.
  • When it comes to buying holiday gifts, the vast majority (76%) of consumers still prefer to visit a brick-and-mortar establishment.
  • WordPress sites with multi-step forms typically see an increase in conversions of 300%.

online payment options

  • In fact, 69% of B2B companies say they have no plans to print catalogs in the next five years.
  • Only 2.86% of people who check out an online store actually buy something.
  • One of the biggest draws of internet shopping is the convenience of browsing and making purchases anytime.
  • Ineffective eCommerce personalization cost businesses $756 billion in the previous year.

Self service online

  • In the world of online shopping, 57% of consumers make purchases from foreign vendors.

Email Statistics for ecommerce

The implementation of email marketing best practices for lead generation and client relationship management is highly recommended. Providing engaging content for each stage of the client journey is the primary reason why email campaigns in the B2B eCommerce sector are so effective.

  • Of those polled, 61% said email is their preferred method of communication with brands.
  • An ROI of $44 can be made from every $1 invested in email marketing.

Welcome emails

  • Profits are boosted by 76% when email subscribers are targeted with targeted campaigns.
  • For every dollar spent on a transactional email campaign, eight dollars are made.
  • 20% of all traffic that contributes to eCommerce sales is generated through email marketing.
  • 60% of those who get email marketing believe they have made a purchase directly from reading the letter.
  • E-mails sent to customers whose carts were abandoned typically have an open rate of 45%.

Social Media E-commerce Statistics

Including social media for eCommerce in your digital marketing plan can significantly impact your brand's bottom line. And it's one of the best methods to leverage the persuasive way to increase revenue and audience size in your online venture.

  • 25% of American consumers use social media to research gift ideas before making a purchase.
  • There is an average increase of 32% in revenue for online shops that participate in social media.
  • On average, e-commerce sites update their Facebook with 4.55 new weekly posts.
  • About 74% of consumers say they rely on friends and family for advice before making a major purchase.
  • Facebook accounts for 85% of all orders placed through social media.
  • Photo posts receive 104% more comments, 53% more likes, and 84% more clicks.
  • 75% of Instagram users have taken some kind of action, like clicking on a website, after seeing an ad.

Instagram average order value

  • 66% more people interact with 80 characters or fewer postings on social media.

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Mobile Statistics on e commerce Growth

The success of an online store depends on the site's ability to be accessed easily from mobile devices. If you're not investing in mobile marketing, you're not caring about the vast majority of your prospective clientele. Here are some e-commerce statistics worldwide that will shed some light on the topic.

  • 93% of millennials say they have compared prices online while on the go.
  • Mobile devices account for 40% of all internet sales during the holiday season.
  • 65% of shoppers use their smartphones to research the best prices while they are really shopping.
  • One study found that 32% of consumers who researched products on their mobile phones while in a store ultimately decided not to buy them.

Mobile purchase

  • The conversion rates of mobile apps are three times higher than those of mobile websites.
  • An overwhelming majority (73%) of shoppers will abandon a mobile site if the experience is unsatisfactory compared to one that simplifies their decision to buy.
  • More than half (53%) of mobile shoppers use retailer apps.
  • A 62% drop in sales is expected from customers with a bad experience with your mobile business.
  • Apps account for 90% of the spending time on mobile devices.
  • It's possible that a 45% increase in clicks simply by using call-to-action buttons.
  • A 32% rise in mobile site bounce rates is seen when page load times increase from 1 to 3 seconds.

Shopping Cart ecommerce Statistics

All your customers' transactions will take place in the online shopping cart.

  • Free shipping is found to boost profitability for 45.5% of small and medium-sized companies.
  • The percentage of shoppers who don't finish a purchase increases by 23% if they're asked to create an account while checking out.
  • Across all markets, the average cart abandonment rate is 69.89%.
  • When used properly, exit intent pop-ups have been found to bring back 53% of previously lost site visitors.
  • Sites with slow loading times have a 75% higher desertion rate.

abandonment rate

  • An improved checkout layout can boost conversion rates by as much as 35% on an online store.
  • In the United States alone, eCommerce companies may be losing over $3 billion annually due to a high abandonment rate of around 70%.
  • The abandonment rate for shopping carts is 78% across all devices, with tablets coming in second at 70% and desktops/laptops coming in third at 67%.

Ecommerce Platforms Statistics

It's no secret that major marketplaces and platforms control the vast majority of the online retail industry.

The top two providers in each field are detailed below.

1. WooCommerce

The WordPress plugin WooCommerce facilitates online sales. It has the potential to transform your WordPress site into a powerful and feature-rich e-commerce facility.

How common is it?

  • WooCommerce is a plugin for the content management system WordPress that powers over 3.8 million active online shops.
  • Over 93% of WordPress site administrators who offer e-commerce solutions choose WooCommerce.
  • This plugin has been installed over 123.1 million times since WooCommerce's inception. It's the largest online marketplace in existence.

2. Shopify

Almost everyone has heard about Shopify by now.

  • In 2021, Shopify saw growth of 56%, to the tune of $4.6 billion in sales. Many people hopped on the bandwagon during the outbreak to try to cash in.
  • Shopify has 1.75 million sellers who offer mostly tangible goods. There will be more than 44 million Shopify customers in 2020.

As an established e-commerce platform, Shopify has experience dealing with massive amounts of traffic. Shopify's success can be attributed in part to the platform's simplicity when it comes to making professional-looking online shops.

  • Shopify has one of the finest mobile experiences of any eCommerce platform, with 79% of their traffic coming from mobile devices.
  • The Shopify app marketplace is extensive. There are around 3,200 apps accessible, created by programmers in over 175 different nations.

The popularity of the Shopify platform can be attributed in part to its many useful apps.

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Ecommerce vs Traditional Retail Statistics and Trends

How do brick-and-mortar stores fare in comparison to their virtual counterparts? There is no doubt that online shopping is dominating the market. However, some still prefer to shop in-store, particularly for certain categories of goods.

People's shopping habits shifted after the outbreak. Users today typically choose to shop online from the convenience of their own homes.

The convenience of shopping online proved superior to traditional methods.

Looking at retail expansion in 2020, the majority of sales are expected to come from online shopping. In that time frame, e-commerce accounted for 74.6 percent of total sales growth.

In contrast, physical store sales will only contribute 2.1% that year. That's roughly the same growth rate that shops saw in the year prior to the outbreak.

Many consumers will continue to favor brick-and-mortar stores even as online shopping grows in popularity. However, it is obvious that more and more consumers are opting to shop online. Consequently, it is necessary for you to design a plan that emphasizes the use of the Internet for retail needs.

When it comes to building eCommerce websites, some people might think it is a simple task. However, building an eCommerce site is a complex and difficult project, and it is advisable to take the help of an eCommerce website design agency to do so. 

Only around a quarter of shoppers would rather not buy anything online.

About one-quarter of shoppers have admitted they would rather buy something in a store than online. The argument advanced for this practice is that it makes them feel closer to the businesses they support. Even more so for buyers in the age group of 18–25.

In terms of clothing and apparel, 59% of millennial consumers prefer to shop in physical stores.

Implement These Strategies for Global Online Sales

While developing a global, multichannel e-commerce strategy may seem daunting, focusing on a few key areas will increase the likelihood of your success.

Here are some key points of emphasis:

Strategies for Global Online Sales

Pricing

Currency conversion and managing discounts are two challenges faced by online stores that sell internationally. As for the former, you should consider how people in your target country feel about prices. When running sales, companies should consider more than just pricing alone to gauge customer response.  Three to five percentage points can be added to total revenue and profile views by linking pricing and promotions efficiently and productively.

Payments

You should have a credit/debit card processor like Stripe, mobile wallet choices like Apple Pay and Google Pay, and a buy now, pay later (BNPL) option, at the very least, for international e-commerce. 

Helping Customers

Providing excellent service to customers is crucial in every market. About half of all online shoppers value good customer support. Phone, email, and live chat are typical customer service communication channels in most nations.

Logistics and Shipping

Consideration of the means through which your customers will receive their purchases is crucial, as these methods are likely to be quite pricey. Therefore, it is important to consider how friction might be reduced in international transportation. This may entail investigating potential discounts with shipping companies, providing estimated delivery times, gathering information on applicable taxes, or even deciding not to sell particular items in certain nations.

Most Important Trends In The World Of Online Shopping

1. Increasing prices all throughout the world

While consumers remain willing to spend, inflation is putting pressure on even the most well-known international businesses. Thus, when engaging in cross-border e-commerce, it is important to take into account the influence of inflation in various nations.

As a result of this worry, it could be beneficial to look into the inflation rates of the nations you plan to sell to and possibly adjust your price strategy based on what you find.

2. Mobile commerce is expected to grow

The COVID-19 epidemic significantly impacted global e-commerce trends. The sudden closure of traditional retail outlets resulted in a stampede of consumers to the internet to make their purchases. Some estimates put the pandemic's impact on the rise of online shopping at a five-year acceleration.

  • That's why it's no surprise that mobile devices are being used to complete purchases online. Over 90% of the population regularly uses their mobile device to complete online purchases. And companies are promoting the use of e-commerce by creating engaging mobile apps.
  • Apps for doing online shopping are rather common, coming in at #9 on Android and #5 on iOS. Among retail apps in the year 2020, Amazon was by far the most popular.

In-app purchase

  • About 232 million of the more than 294 million smartphone users in the United States alone do so on a regular basis to make purchases online.

Online purchases from mobile devices, such as smartphones or tablets, are known as m-commerce.  Over the next five years, m-commerce will explode. Mobile shopping has been simplified by developments such as branded shopping apps, 5G connectivity, and social shopping.

  • More than 90% of customers say they would like to see improvements made to mobile eCommerce. The vast majority of consumers who shop online have strong opinions on the potential for growth in mobile eCommerce.

Exactly what are their major worries?

  • Links and buttons being too small to click, along with a lack of trust in online purchases, are the two most common complaints from mobile shoppers.
  • Online shoppers require confidence that their personal information is safe in order to enjoy the convenience of shopping from home.

3. Reorganization of promotional methods

Exciting developments have taken place in various aspects of advertising in recent years, including the availability of new marketing channels.

With the advent of shopping tools on social media platforms like Facebook and Instagram and, more recently, TikTok, social commerce has been gaining attention for the past five years.

Live shopping

The rapid growth of China's online marketplace can be attributed to a few key factors:

  • Improved online speeds
  • Massive uptake of mobile devices containing internet access
  • Trust in internet retailers among consumers
  • More reliable online marketplaces

Live commerce is just starting to gain traction as a marketing strategy in other nations. Twenty percent of American online buyers have experienced live commerce, while another 34 percent have either not experienced it themselves but are familiar with it from hearing about it.

4. Global supply chains are in trouble

As a result of COVID-19's disruption of supply chains around the world, many businesses have prioritized either strengthening their supply chain to withstand disruptions better or developing strategies to prevent disruptions and swiftly restore services when they do occur. The experts agree that we won't see a return to normal until at least 2023. When they do, the global logistical network will be more susceptible to political unrest, natural calamities, and regulatory shifts than it was before the pandemic.

5. Making content in people's native languages

PayPal found that 57% of respondents were already making international purchases. Almost half of those surveyed had recently made an international purchase.

Over two-thirds of English-speaking consumers in a survey reported they would not purchase from a site that was not translated into English. This figure increased to 41% and 36% in the Japanese and South Korean markets, where international trade was the least common.

Beyond Google Translate, using a local language for your website can make or break international sales. The effect is positive from the initial contact with the company till the customer pays. 

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6. Digital Payments

The use of digital payment systems is becoming increasingly common.

As a result, many people have taken advantage of the option to make purchases online without actually pulling out their credit cards. The use of digital payment methods is becoming increasingly popular because of the increased safety they provide for online transactions.

There are two primary methods of making digital transactions, and they are

  • App-based digital payment systems, sometimes known as digital wallets
  • The use of a mobile device in conjunction with a credit or debit card to make a purchase.

Using a mobile device in conjunction with a credit or debit card to make a purchase.

A global average of 49% of consumers routinely use digital payments for online shopping and purchasing.

Common online payment options include:

Common online payment

Customers and businesses in the United States are increasingly using mobile payment services like Apple Pay and Google Pay to transact business online. Online merchants accept a variety of payment options, but Visa, MasterCard, and PayPal remain the most popular. In reality, Visa and Mastercard are accepted by practically every online store there is. The vast majority, 72%, are PayPal-friendly.

7. Consumer Behavior

What time of day do most individuals make their internet purchases?

Most people visualize someone sitting at their kitchen table with a computer, surfing the web. We get slightly different outcomes:

  • Almost half of the online shoppers (43%) admit to doing so on a regular basis while lying in bed.
  • In-office shopping was reported by 23% of respondents.
  • 20% off your purchase in the restroom or while driving

Unless shipping is free, most individuals will not make an online buy. Since online shopping is rapidly becoming the standard, consumers now anticipate that all purchases will be shipped at no cost to them. Yet, there are a plethora of additional benefits to doing so. Pay attention to the following e-commerce statistics if you own an online store and are trying to boost sales.

In today's world, there are several advantages to shopping online, the most popular of which are:

advantages to shopping online

Interestingly, the lack of free shipping is the primary reason why customers don't complete their online purchases. However, the availability of free shipping is the top incentive for consumers to shop online.

Consider implementing free shipping as an incentive for customers to shop at your online store if you haven't already. More than a third of shoppers will check the lowest available online pricing while physically present in a store.

What’s more?

More than 25% more money may be made and over 40% more money can be made from customers spending more than they had anticipated thanks to personalized content.

8. Marketing with Social Media and Influencers

The use of influencers in advertising has become common practice for online retailers and brands worldwide. Why?

Simply put, it accomplishes its intended purpose.

Just one in eight people will spend more on a product just because an influencer or celebrity is endorsing it. This rises to 22% for buyers between the ages of 26 and 35.

When a popular person endorses a product, young people are more likely to buy it. There's more, though. By 2022, the influencer marketing market is predicted to be worth more than $16.4 billion. This year, 17% of e-commerce businesses will invest more than 50% of their marketing budget in influencer marketing initiatives.

When people in the United States try to decide between two options, they often turn to social media to read user reviews. The reviews of others are important to them because they want to know what to expect from a product before they buy it.

Despite the growth of social media as a channel for online purchases, most consumers (57%) still favor visiting the store's website. Only 18.7% of customers made a purchase via social networking apps. Over the next three years, these figures are likely to shift dramatically.

FAQs

1. What is the size of the international online retail industry?

Online retail sales are expected to reach $20 billion by 2028, up from $7 billion in 2022, as reported in The Global and United States E-commerce Market Report and Forecast.

2. How can I launch an international online store?

First, identify the overseas markets that will be most beneficial to your company's expansion.

Two, learn about the preferences of your intended market in terms of things like how they like to make purchases.

Third, Formulate an entry strategy for the market.

3. What role does online shopping play in a business?

E-commerce has the potential to boost international trade, simplify commercial transactions, and inform companies about consumer preferences.

Conclusion

Finally, we have compiled all the most recent data about e-commerce that you should consider. Use these numbers to foresee the future of e-commerce and adjust accordingly. All the foregoing e-commerce industry statistics, studies, and developments point to the fact that international online trade is no longer a luxury but a fundamental requirement. Your company's future success or failure hinges on it. 

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K

Kameron Rogers

I had never imagined this market would be so big and significant.

A

Andre Reed

I cannot image that in the next 50 years, these numbers will come to 100% of shopping happening online.

G

Gunner Cook

Very insightful blog. All the details are very helpful.

J

Jake Morgan

Amazing stats on ecommerce.

P

Prince Bailey

I enjoyed reading it. Thank you for writing this piece.

B

Bodhi Rivera

Look at this! What an immensely useful guide of ecommerce stats. Thanks for sharing.