How Many People Shop Online: Informative Statistics
When it comes to making purchasing decisions, consumers are usually faced with two options, either to shop online or buy in-store. Factors that influence these decisions may be things like what option gives you the best value or how much time you have to spend on shopping. Usually, the deciding factor tends to be how convenient either of the two options would be for you.
A lot of consumers are now focused on how quickly they can get their products and services which can be quite easy with online shopping in addition to the following perks;
- There’s no need to leave the comfort of your home
- You can have your products delivered the next day
- The shopping experience is personalized
- There is unlimited access to product information
It’s widely known that the eCommerce industry has been growing in leaps and bounds over the last few years but do you find yourself wondering just how many people really shop online and what their shopping behaviors are?
We’ll first take a look at online sales to gain some understanding of how the statistics of online shopping stack up.
The increase in online purchases in the United States alone is influenced by factors like:
- More mobile shopping options and an increase in how smartphones are used
- The growth in the number of online marketplaces
- Social commerce and social media sales
- Transformative technology
- Generational attitudes to shopping
This and the perks we’ve already mentioned all contribute to the boost in online sales which is why staying in the loop on all eCommerce trends is important as it helps you develop strategies that ensure your own eCommerce store is successful for years to come.
Online shopping statistics worth noting
If you are interested in scaling your small business or you already have an online store, one of the things you need to understand is how online shoppers behave as it will greatly influence your marketing strategies. There are a lot of stats on eCommerce available online however, we have put together some of the most important ones every business owner should know.
Cart abandonment is mostly caused by high shipping costs
Although many online shoppers love to receive their items fast, the thought of spending a lot on it isn’t appealing. Studies show that high shipping costs were the main reason why shoppers over 18 in the US abandoned their carts without making a purchase.
Leading mobile online shopping app award goes to Amazon
Studies have shown that Amazon is the leading mobile shopping app for most people regardless of the growth in direct to customer strategies. What this means is that mobile apps are quite important for every business to take into consideration as they develop their selling strategies.
A major percentage of shoppers also use social networks for product research
The availability of more social commerce tools such as Instagram’s ‘checkout’ feature, gives shoppers more information to work with before making purchase decisions.
Clothes are the new leading vertical online
A large percentage of shoppers in the United States bought clothes online in the second quarter of both 2018 and 2019. Other products like music, movies, books, electronics, and shoes all came behind clothes.
SEO, email and direct to site have the best traffic sources
Having a beautiful website will not guarantee the success of your eCommerce site. For your site to make sales, you need to direct a good amount of traffic that way. Leading traffic drivers appear to be SEO, email, and direct to site sources.
Growth happens daily
Ecommerce sites continue to grow by the day and having an online sales business can greatly boost your sales because returning and potential customers will have a convenient way to interact with your business while shopping.
Here are some of the estimated numbers for eCommerce
22% of global retails sales in 2023 will be eCommerce sales. An astronomical jump from the 14.1% global retail sales recorded in 2019.
A major contributor to this increase is the number of eCommerce websites that pop up every day. There are also a number of trends in eCommerce that play a role in these growth levels such as:
- Growth in mobile commerce
- The changes in shopping trends such as social channels and influencers
- Increased use of Omnichannel strategies
4.2% increase between Q2 and Q1 of 2019
The growth in eCommerce is happening on granular levels too with exponential increases happening in each quarter. Although seasonal fluctuations should also be paid attention to, these numbers are proof that the eCommerce market grows consistently.
Ecommerce will have a revenue of $740B by the year 2023
Purchases are not the only area of eCommerce to witness high levels of growth in the United States as revenues are expected to go up as well. This is as a result of more consumers making buying decisions online and an increase in the average order value. This makes legacy products like furniture make more of a statement online.
11% of retail sales in the US are from eCommerce accounts.
It may seem like a small number but when you consider how vast eCommerce really is, then it becomes quite obvious how significant the number is. It shows that eCommerce sales have a healthy growth rate and the number will only keep going up in the coming years.
Facebook, Amazon, and Google are among the top online companies even outside eCommerce
It’s no surprise that companies like Google, Amazon, and Facebook remain center stage in the online community even though they were not created specifically for eCommerce purposes. However, these companies are innovative and focus on creating solutions in the eCommerce world. Omnichannel strategies have become an important part of company growth and the major internet companies use that as an opportunity to maintain their place at the top even with eCommerce.
Know the kind of people who shop online
Customers come in different shapes and sizes and learning their behavior can go a long way in helping your business create an amazing digital strategy.
75% of people shop online at least once in a month
More people are taking the convenience of online shopping seriously and shop online at least once a month. As you develop your online strategy for eCommerce, it’s helpful to have this statistic in mind and work on ways you can benefit from it.
Entertainment is a major online purchase
Millennials and Gen Z customers are keener on purchasing experiences rather than a product. Things like games, books, and movies have a higher level of preference for most young customers which is why the likes of Disney+, Netflix, and Spotify are so popular.
Most orders are done on Windows OS
Knowing the kind of technology your customers use when they visit your website is important because it enables you to provide a better user experience with store design and UX. Windows OS is the leading tech for most consumers so ensure your store design is optimized for this operating system.
Conversion rates are between 2.7-3.2%
The average conversion rates for B2C eCommerce were around 2.7-3.2% from the ending of 2018 through the beginning of 2019. Q4 saw a peak of 3.2% thanks to all the holiday shopping
Customer’s online payment methods
One of the most popular messaging services in China, WeChat, has a payment platform which is among the most widely used especially in Asia. Payments are made in Yen and then converted into a foreign currency.
45% of Americans use mobile payments compared to china’s 94%
WeChat is currently the world leader in payment platforms and has its primary market in China, therefore the fact that 94% of Chinese customers use it to make payments comes as no surprise. In comparison, only 45% of Americans use mobile payments however the number continues to grow every day.
PayPal is the number one choice for Americans
Online payment options in the US are dominated by PayPal at 98% as it makes the process of paying online much easier and convenient. There are also other options like easy to use apps, e.g Venmo as well as credit card options.
Preparing an eCommerce strategy without consideration for the holiday season would be foolhardy, to say the least. The end of the year is usually the time with the highest online and offline revenue for retailers. From thanksgiving to cyber Monday, average order value hovers around $140. Which is definitely something for eCommerce businesses to look forward to. Seasonal promotions and sales are a great way to take advantage of the higher purchasing spirit among consumers during the holiday.
Conversion rates are at 6.1% around cyber Monday and thanksgiving
Another major reason why the holiday season is a great time to up your sales is that conversion rates go up to as high as 6.1% with desktop sales while tablet purchases are at 5.5%, and smartphone purchases are at 3.2% percent.
The majority of the purchases during the holiday are made on tablets, mobile devices, and desktops. Although there is also a rise in the purchases made on mobile devices, desktop purchases are the highest during holiday periods. Many shoppers tend to do some research about a product online before making a purchase however most of them tend to complete their purchases online. Some holiday shoppers research online and buy in-store [23%] while 42% research and buy online.
Right now is the best time to start an eCommerce store
Right now the eCommerce industry is at its peak and the rate of purchases made online has increased exponentially. People are more interested in the convenience online purchases bring such as personalized user experience and fast shipping. If you are looking into starting to sell online, now is the best time to do it. once you find your business niche, build your client base, and start selling your services. You do not need to have knowledge of coding to start selling online as you can now easily build the website of your dreams with the help of tools made solely for that purpose.
There is also a ton of data available to help you make the perfect marketing strategy and its readily available for free online. All you need to have is internet access, you can use this data to find your customers and learn about them as more customers come online each day.