1. E-Commerce Growth Globally
Global Number of Digital Buyers
It's become common for people to purchase goods and services online. Some make purchases online because they find it convenient, while others might be attracted to the competitive prices of certain e-commerce platforms.
➤ According to Oberlo's statistics, as of 2023, there are 2.64 billion individuals who engage in online purchasing, which accounts for approximately one-third (33.3%) of the global population.
➤ The same study suggests that the quantity of individuals in the United States who shop online has been on the rise each year. Analysts project that in 2023, there will be 218.8 million online shoppers, indicating a yearly increase of 1.9% from the preceding year.
➤ It is also stated that the trend of online shopping growth in the United States is expected to persist, with projections indicating that the number of digital buyers will reach 230.6 million by 2026.
Global Retail E-Commerce Sales 2018-2027
Online shopping is growing at an incredible rate. The convenience of online shopping makes it easy to purchase goods whenever you please without having to deal with traffic or long lines.
As more and more people continue to use online shopping, this means that the competition will increase as well.
➤ Back in 2018, e-commerce sales were below 3K, 2.982 trillion U.S. dollars globally. In 2020, the number increased to 4.206, and in 2021 it was 4.927 trillion U.S. dollars.
➤ It is anticipated that retail ecommerce sales will experience a significant increase of 56% in the coming years, ultimately reaching approximately 8.1 trillion dollars by 2026. (Source: Statista's worldwide retail ecommerce sales statistics)
➤ The same study also states Alibaba, the Chinese retail conglomerate, currently holds the title of the largest e-commerce retailer globally, with online sales surpassing 700 billion U.S. dollars in 2022.
➤ Predictions suggest that Amazon, the Seattle-based e-commerce company, will overtake Alibaba in estimated sales by 2027, with projected online sales exceeding 1.2 trillion U.S. dollars.
You can easily see a steady growth in terms of e-commerce sales by just looking at the projection.
2. Do Consumers Prefer Shopping Online or Offline?
Reasons Why Global Consumers Chose to Shop Online
As technology continues to advance, the way consumers purchase goods and services is changing. The shopping experience is changing as more and more consumers turn to e-commerce.
➤ In a survey, almost half of the respondents stated that they would not mind if they never shopped in a physical store again. (Source: Jungle Scout's blog post)
The top 3 reasons why they choose to shop online are:
1. Free Shipping
2. Lower Prices
3. Convenience
Customers like to shop online because it's easy. In a few minutes, you can order a product, confirm payment, and see its shipping status from the comfort of your home or in the palm of your hand.
Many online shoppers are fond of the idea of getting their packages delivered right to their doorstep without there being any shipping costs. A lot of customers will choose a package deal for this reason alone.
➤ According to Oberlo's statistics about why people shop online in 2023, 37.9% of consumers report that the availability of coupons and discounts that can be applied to their online purchases motivates them to shop online, while 24.6% do so to accumulate loyalty points.
➤ 18.1% of consumers appreciate the ability to spread out their payments with no added interest.
Consumer Trends in 2024
Online shopping has been around since the early 2000s, but with the arrival of the pandemic, it has become even more popular.
The decision to buy online does not depend on the product type but on what the customer wants and needs at that time.
➤ According to Jungle Scout's consumer trends report, in 2023, consumers have shifted their focus towards financial security. Family, physical health, and mental health continue to be significant priorities.
➤ Also, last year, consumers place more emphasis on their careers and financial stability.
➤ In 2023, 77% of consumers plan to review and potentially modify their spending habits, marking an increase of 8% compared to the previous year.
➤ If they have a positive experience on social media, 78% of consumers indicate that they are more inclined to purchase from a particular brand. (Source: Shopify's top ecommerce trends report)
Offline Shipping Is Still Trending
Online shopping has become a major part of a consumer's shopping experience. However, offline shopping is still an extremely common way for people to acquire products.
Many consumers still prefer shopping in person. According to Raydiant, 46% of respondents said that given a choice, they prefer to shop in person rather than online.
But Why?
➤ Mostly because they have the ability to view, touch, and interact with the product. (33%)
➤ Then the second reason is the overall experience physical stores provide. (26%)
A physical experience can deliver a sense of community in ways that online experiences cannot.
With the pandemic, we had to stay away from people and communities for a long time. People are social animals, and we seek communication and interaction.
3. What Are The Most Popular Online Payment Methods?
People are still using their credit or debit cards to make purchases more than cash or other digital payment methods. (67% customers)
➤ According to Emarketer, the following payment options are among the most widely used mobile wallet:
- PayPal
- Apple Pay
- Google Pay
- Samsung Pay
➤ As Alibaba states in a blog post, most popular online payment methods are:
- Credit/debit card,
- PayPal
- Apple Pay
- Google Pay
- Amazon Pay
- Boleto
- Stripe
- Western Union
- Online transfer
- Wire transfer
4. Where Consumers Shop For Products Online
The online shopping landscape is a crowded one, which means it takes more work to stand out from the crowd.
You can find practically anything you want on the Internet, from your favorite shampoo to a romantic getaway.
➤ Amazon is the largest online retailer in the world. It had 3,161.64 million monthly visitors in 2022. (Source: Statista's data about online retail)
Amazon has grown into one of the most popular websites on the internet, and it is expected to continue growing throughout 2024 and beyond.
➤ Amazon was and is the leader of online shopping retailers worldwide. eBay follows Amazon with an average of 589 million monthly visitors globally.
5. COVID-19 Effects On Online Shopping Behavior
Online shopping was already globally popular. Yet, with the rise of the coronavirus, consumers' shopping habits changed drastically.
Accordingly, retailers had to adapt to the digital world similar to the customers. The coronavirus outbreak forced consumers to think about the safety of in-store shopping.
➤ A survey revealed that 84.5% of online grocery shoppers are at least somewhat concerned about contracting coronavirus during in-store shopping.
Let's see the questions held by another research by AgilityPR about Covid-19 impact:
- Does the coronavirus spread impact your shopping decisions? 44% said yes.
- Does coronavirus impact what products you are purchasing online? 37% said yes.
- Are you shopping less frequently in-store? 30% answered yes.
It's fair to say that Covid-19 affected what we buy, how we buy, and when and where we buy products and services.
6. Why Do Online Shoppers Abandon Their Carts?
What Percentage of Online Shoppers Abandon Their Cart?
➤ The average cart abandonment rate is 72.09 percent across all industries! (Source: XP2’s cart abandonment research)
If you're in retail or e-commerce, you know how big of a deal it can be to have people complete their purchases; 80 percent of those abandoners will never return. Sad but true.
➤ According to XP2's same research, mobile devices have the highest percentage of customers abandoning their shopping carts during checkout when compared to other devices in 2023.
➤ The abandonment rates for each device are as follows: 77.24% for mobile, 65.05% for tablet, and 61.69% for desktop.
Why Do Customers Abandon Shopping Carts?
There are many, many reasons why customers leave without purchasing.
Excluding the ones that are just browsing, we have a pretty good amount of abandoners who left the site due to several reasons.
The most important reasons for cart abandonment are:
➤High Extra Costs: According to Baymard, 48% of shoppers leave their cart if there are high extra costs like tax, fees, and shipping.
➤ Complicated Checkout Process: The process of checking out is the "last mile" for most shoppers. A long and complicated checkout process is the reason for abandoning shopping carts 17 percent of people, as Baymard states in the same study.
➤ Slow Page Load: The average consumer has an attention span of 8 seconds when it comes to internet content before they get frustrated and leave your website.
Page-load time is a critical factor to measure, as it can make or break the user experience. You have to make sure that your website is loading fast. Period.
You have to make sure that you take all the necessary steps to improve your website.
You can use Popupsmart's FREE Conversion Rate Optimization & Performance Checker tool in order to check your website's current performance.
Summing Up …
Now you have some valuable insight into some of the most important online shopping statistics.
By staying up-to-date with online shopping statistics, businesses can meet consumer needs and adapt to changing trends. As the online shopping landscape evolves, understanding these statistics will be critical for businesses and consumers alike.
We hope that you found this information useful and will be able to apply it to your online marketing efforts. If you're an online retailer, statistics can help you make better decisions and understand your customers.
If you would like to learn more about our suite of tools or have any questions, feel free to contact us anytime!
FAQ
What is The Most Popular Product Category for Online Shopping?
The most popular product categories for online purchasing, per online shopping data, are apparel, electronics, and home products. Yet, patterns might change based on the area and the characteristics of the consumer.
How Do Payment Methods Impact Online Shopping Behavior?
According to data on online shopping, payment options have a big impact on consumer behavior. Many customers prefer to use secure payment methods like PayPal and credit cards and may avoid websites that don't accept these.
Also, some customers might be reluctant to make significant transactions online because they worry about fraud and security.
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