Online e-Commerce now talks in terms of millions, billions and trillions as facts of business growth in real terms. In fact, the conclusions you could draw from this trend is, “Almost any product, regardless of cost, size and complexity can be sold online.”
As a matter of fact, the closer you look the more you will notice the blurring of the distinction between B2C and B2B. Instead of being seen as two different worlds, the gap is closing, and closing fast.
This gap will vanish, sooner than expected. Transforming the world into one, massive heterogeneous market that will make globalisation truly seamless. According to one survey, 90% of all businesses will be driven by an online eCommerce platform by the year 2040.
e-Commerce market value exceeded $10 trillion in 2020: Market size in total value terms grew from $9.09 trillion in 2019 to reach $10.36 trillion in 2020. Projected to grow at a 14.7% CAGR between the years 2020 to 2027, with revenues projected to cross an astounding $ 27.15 trillion!
Source: (Grand View Research)
e-Retail leads with a total exceeding $4.2 trillion in 2020: Online shopping is today an everyday reality for the young. This is a growing trend with retail commerce amounting to $4.28 trillion in 2020. In contrast, retail sales globally fell by 3% nearing touching $24 trillion.
Source: (Statista, eMarketer)
Fashion became the largest driver of the B2C eCommerce activity: Estimated at $0.5 trillion in 2019, the fashion & apparel industry,(clothing, shoes, bags, and accessories), is likely to cross $1 trillion by 2025. While this sector looked shaky in 2020, it is projected to recover lost ground in the next few years.
Source: (CSA, Statista, UNCTAD)
Global sales across borders grew over 20% in 2020: 55% of online shoppers made at least one cross-border purchase in 2020. For most of them, this was a first time activity. This trend will continue once life returns to normal. The ease of purchase and out of stock positions caused sales to increase by 21% in 2020. This is a clear indication that brands and marketers will continue to develop more strategies to capture more new territories by including long-tail keywords.
70% of shoppers abandon their carts halfway: This is a growing concern as more and more studies place the average cart abandonment rate as being between 50% to over 80% in online shopping. Various factors indicate that the choice of the right e-commerce platform that helps create a smoother experience, can significantly reduce abandonment rates.
Primary reason for cart abandonment is extra costs: The 2020 report on the American Customer Satisfaction Index (ACSI) attributed abandonment of carts halfway happened when online shoppers discover hidden or extra fees. This was ranked first; followed by obligatory account creation; and slow delivery was ranked as the third factor.
Amazon increases its net profit by 84% in 2020: E-commerce stats show the company's revenue grew by 38%, reaching an unprecedented growth of $386 billion in just one year! That was, but before getting amazed by the numbers, we should consider the overall eCommerce growth. This kind of boost was expected to happen over several years and very gradually.
For the first time, eBay's annual net revenue exceeded $10 billion: 2020 was a spectacular year for eBay as it achieved several milestones -- one being a net revenue of $10.271 billion. Another big milestone reached by eBay was the $1 billion generated as the advertising segment revenue.
Source: (Statista, eBay)
85% growth in Shopify's 2020 revenue: This Canadian eCommerce giant’s products are available in 175 countries worldwide, and the company reported a 94% increase in Q4 2020 revenue compared to the previous year’s quarter. Shopify's revenue grew by 86% for the whole year.
Over 50% of online shoppers use smartphones for shopping: Mobile will shape the future of online shopping. Globally, 55.4% of the customers used their smartphones for shopping in 2020. The primary reason being Instagram’s in-app purchases, and marketers leveraging this trend to their advantage. Those aged between 16-64 years, use a shopping app at least once a month, as of January 2021.
Source: (Statista, Business Daily, Digital 2021: Global Overview Report)
More iOS users prefer shopping apps: When it comes to the number of downloaded apps, there is a significant difference in popularity between Android and iOS mobile users. Shopping apps rank 9th for Android users and 5th
for iOS users. However, These rankings tell us only about typical user behaviour as there are more Android users overall.
Source: (Digital 2021: Global Overview Report)
Amazon shopping app was ranked No1: The global leader moved from third place in 2019, to being the most downloaded shopping app in 2020. It was downloaded 169 million times worldwide, with the US alone accounting for 41 million times!
3.4 billion e-commerce users worldwide: The pandemic turned 3.4 billion people into hyper e-commerce shoppers. While this might slow down post crisis, the number means that over 43% of consumers worldwide shopped online in 2020. Projections for 2021 point to additional 400 million e-commerce worldwide users by the end of the year.
Source: (CSA, Worldometer)
Adopt a multiple channel strategy or else… Switching to an omnichannel strategy is an absolute necessity, as shoppers' journey may not end with your website. They also tend to track your social media pages, compare prices on similar products or services... eCommerce sales stats show an incredible 73% of buyers reported using multiple channels during their shopping process. Brands that invested in e-commerce SEO services reported a 190% or higher increase in their revenue. Make your presence felt on social media platforms, sell on e-commerce giants such as Amazon or eBay, and promote your business on search engines.
50% of the e-commerce shoppers switched to online since the onset of the pandemic:
The UN carried out a survey to examine the impact of the pandemic on online shopping, across all the regions of the world. E-commerce industry stats state that 52% agreed that they shopped online since the onset of the pandemic. Additionally, 53% agreed that they will continue with this habit even after the pandemic ends.
Over 85% of the US millennials shop online: The stats point to Millennials being the most prolific group, with 86% of them shopping online in the US alone. Please note, e-commerce demographics tell us that 79.2% of the Gen X users do the same; and 62.1% of the Boomers do so as well.
60% of the digital natives use social media for shopping: Gen Z-ers, the new kids on the block aged 25 in 2021, don't know life without the internet and social media. Influencers target them in their campaigns as it works exceedingly well -- 58% of them reported shopping online, primarily Instagram. eCommerce stats indicate that 45% of millennials did the same.
Source: (Total Retail)
PayPal has 377 million active users as of 2021: PayPal is one of the most commonly used payment systems by eCommerce services as it allows easy transactions in many currencies. PayPal is the most popular payment gateway in Germany (72%) and Italy (71%) of consumers. In Switzerland, 51% of the consumers preferred it, and e-commerce stats for South Africa show that PayPal is favoured by 40% of online shoppers.
Source: (Statista, UNCTAD)
Home delivery is the most preferred option for online consumers: E-commerce facts show that 85% of global online customers favour home delivery when they shop online. 22% are OK to pick-up from a logistics provider, while 19% opted for delivery to their workplace.
Tourism, Hospitality & Airline suffered the most in 2020: Most countries closed their borders for a better part of 2020 and the first quarter of 2021. This led to a decline of 75% in tourism and travel spending across the globe. Once the pandemic ends, it will bounce back with vengeance. All that pent-up demand will unleash an unprecedented leisure for pleasure spree. Be prepared for it.
50% of consumers bought products they didn’t buy before: New product categories were included into “regular” shopping lists that were not there before. Some of the top categories to be included to online shopping lists were: Groceries; Household items; and Toys and sports equipment.
50% of consumers are willing to pay more for better online shopping experience: 53% of consumers also admitted that they wouldn't buy from the same seller after a bad experience. This clearly indicates that onboarding an expert e-commerce company that can ensure a top of the line shopping experience will ensure a bigger ROI in the long run.
South America ranked the highest in e-commerce growth in 2020: The fastest growth in online sales worldwide happened in Latin America -- the increase was 36.7%. North America ranked second with a year-on-year change
of 31.8%. Central & Eastern Europe saw a 29.1% increase. Overall, the average growth at the global level was reported at 27.6%.
The world leader in eCommerce is China: China will account for one-third of online buyers in 2021. Not only does it rank as the first in the number of people engaging in eCommerce, but it will become the first country where over half of all retail sales will happen online in 2021. China is also expected to produce $2.8 trillion in eCommerce sales, i.e. 56.8% of the global total.
USA, the second-largest online market in the world: The US accounts for a 7.5% share of the total global retail sales and $340 billion in annual sales. Stats however indicate that China has almost double the percentage (15.9%) and $672 in online annual sales!
Germany & the UK offer the largest e-commerce markets in Europe: Online sales stats show shoppers spent €62.8 billion in Germany and €52.4 billion in the UK in 2020. France, Spain, and Italy complete the top 5 list with over €30 billion spent in each country.
Source: (PostNord, Pattern)
50 million consumers shop online in the UK: The UK has a population of just over 68 million people. With 48.6 million consumers shopping online, the country ranks as the third-largest eCommerce market, only after China and the US. The e-commerce statistics for the UK indicate that a whopping 95% of UK consumers aged between 15-79 shop online!
Source: (PostNord, Worldodometer)
70% e-commerce growth in Canada in 2020: e-Commerce accounts once accounted for a tiny portion of Canada's total retail sales. The latest eCommerce stats for Canada however, show that throughout 2020, the growth was at a stunning 72.7%, which is quite a jump from the 22.1% growth in 2019.
Source: (Media in Canada)
Malaysia has 13 million online shoppers: 88.3% of internet users in Malaysia use shopping apps on their mobile or tablet devices. While some of them seem to be just browsing online stores, 82.9% report actually shopping online. Many shoppers visit brick and mortar stores to compare prices and shop online. The latest e-commerce statistics for Malaysia reveal 13.10 million people preferring to shop online.
Source:(Digital 2021: Malaysia)
Curbside pickup options for top retailers increased almost 40%: As health and safety issues became top of mind in shopping, companies had to swiftly adapt to meet their customers' expectations. In 2019, only 6.9% of the top 500 retailers in the US and Canada gave the option of curbside pickup. In 2020, that percentage rose to 43.7%!
Source: (Digital Commerce 360, SDC Executive)
E-commerce penetration is close to 80% in Singapore: The latest e-commerce stats indicates online shoppers add up to 79.7% of total internet users aged between 16-64. 89.4% say they've visited online shops. 65.9% of eCommerce shoppers in the country use mobile devices to shop online.
Source: (Digital 2021: Singapore)
E-commerce is most popular for the 35-44 age group in the Philippines: Over 80% of internet users in the Philippines shop online. Close to 70% report doing so using their mobile devices. Stats indicate online shopping is most popular for those aged 35-44. 86.9% of internet users within this age group shop online. The total value of the Philippines' B2C eCommerce market was reported at $3.55 billion.
Source:(Digital 2021: The Philippines)
Food & Personal Care products are the biggest drivers of e-commerce in Australia: The percentage of internet users aged between 16-64 who shop online in Australia is 74.9% as of Q3 2020. Less than half reported shopping via mobile devices. e-Commerce stats for Australia indicate food and personal care products as seeing the highest year-on-year growth of 30.4%. This is followed by digital music with a 25.9% increase.
Source: (Digital 2021: Australia)
India’s eCommerce sales is poised to top $200 billion by 2026: Rapid urbanization and the rising internet and smartphone penetration rates, is making the ‘Digital India’ program a success. With a whopping 97% of connections being wireless, the two drivers combine to mirror India's eCommerce market growth, which was valued at only $38.5 billion in 2017. This is projected to rise to a stunning $200 billion by 2026.
Source: IBEF (International Business Exchange Forum)
All the latest e-commerce stats tell a lot about the changes that have already happened in consumers' perception of online shopping. When combined with the availability of affordable devices and improved infrastructure, the forecast that most of the world's commerce will move online in the near future is a foregone conclusion.
Needless to say, the single most important point to note is, if businesses are not online with a viable and intelligent e-commerce strategy, they will miss the boat completely.
About Web Synergies
We see that there is a growing need in the market for solutions that put control back in the hands of businesses & brands so that enterprises can finally bring their digital commerce vision to life. Web Synergies’ Customizable Commerce-as-a-Service offering addresses this need by empowering brands to build best of breed digital commerce experiences that equip them to keep up with customer needs, outpace the competition, and hit their ambitious growth targets.