The Ultimate List of Online Retail Statistics (2023)
The online retail game has changed. Covid-19 did not only change how we live and work but also changed business models and consumers’ online shopping behavior.
Moreover, these changes are likely to persist. Scroll down to find the current state of the ecommerce market, shifted online shopping behavior, increasing mobile shopping preferences, and how people shop online in the post-Covid-19 period.
This guide is a long one, one that is based on more than 50 different studies containing the latest ecommerce statistics.
The idea is to compile an ultimate list of online shopping statistics and issue a retrospective report so that retailers can quickly pivot to retail strategies that are working and changing online shopping behavior.
These online shopping statistics (with insightful charts and relevant images) will discuss the current ecommerce market and how many people shop online.
Plus, what they buy online (ecommerce categories), how internet users shop, mobile shopping, and mobile website conversion rates, holiday season online shopping behavior, reasons for cart abandonment, preferred payment methods of customers, and so on.
5 Insightful Retail Statistics To Rethink Your Ecommerce Game
- 67% of all global ecommerce sales come from online marketplaces, which translates to US$ 3.3 trillion of total retail sales in 2021.
- 80% of online shoppers say the look of the online store impacts their purchasing decision.
- 53% of online shoppers say images from customers are more important than professional photographs to purchase online.
- Use of AI by marketers surged by 186% in 2021, and the use of video-based customer support increased by 42%.
- Ecommerce CRM tools can help retailers increase their ecommerce sales by 29%.
- 41% of people shop online more than in-store, and 16% of consumers say all of their shopping is online.
The State of The Ecommerce Industry
1. There are between 10 million to 25 million ecommerce businesses globally.
MarkinBlog’s ecommerce statistics highlight that there are around 26 million ecommerce sites globally. However, the count is based on the Builtwith ecommerce market usage report, which designates all the websites having a cart as ecommerce sites.
- This means that the 26 million counts also include businesses having a cart on the website but do not necessarily qualify as an ecommerce store.
- PipeCandy’s methodology — tracks the nature of business via machine learning models — and estimates the active number of ecommerce stores to be around 12 million worldwide. The count excludes ecommerce stores in China.
PipeCandy’s definition of an ecommerce store is an “online business with a website where users can pay and receive products or services in return.” That loosely translates as a website having a shopping cart, a payment technology, and offering payment acceptance on its site.
- The 12 million count includes the brick-and-mortar stores selling online but excludes independent ecommerce marketplace sellers that sell via platforms like Amazon, eBay, etc.
- Of the 12 million ecommerce sites, the North American region (the US and Canada) accounts for over 4.6 million ecommerce sites.
However, the number of online retailers (or e-tailers) selling physical goods is about 722K. The rest of the ecommerce stores (around 3.9 million) are either B2B or businesses selling digital products.
2. 67% of all global online sales come from online marketplaces.
Not only this, the top 100 ecommerce marketplace accounts for more than 90% of all online purchases made via marketplaces.
- Statista’s online shopping statistics forecast that ecommerce sales will grow by 50% in the next four years, reaching about 7.4 trillion U.S dollars by 2025.
- Ecommerce sales accounted for 19% of total retail sales in 2021, amounting to approximately 4.9 trillion U.S dollars.
- However, the top three online marketplaces — Amazon, Taobao, and Tmall — accounted for 60% of all global online sales in 2021.
- At the same time, 67% of all global online sales come from online marketplaces.
- Equally important to note, of the 4.9 trillion U.S dollars spent on online purchases in 2021, online shoppers spent 3.3 trillion U.S dollars solely on the top 100 online marketplaces.
Of the top 100 ecommerce marketplaces, 53 have a GMV (gross merchandise volume) of more than 1 billion U.S dollars. Plus, gross merchandise sales in 2021 grew by 18% compared to 2021.
3. Consumer electronics (US$ 219 billion) and apparel and accessories (US$ 203 billion) will be the top-selling online shopping categories in 2022.
Consumer electronics will account for 22.1% of all online retail sales (an increase of 15%) in the US this year. In fact, 56.7% of all consumer electronics will be sold via online stores in 2022.
- Apparel and accessories will be the second-largest category in the US ecommerce market, accounting for roughly 20% of all online purchases.
- Auto and parts (30.1% YoY growth), food and beverages (20.7% YoY), apparel and accessories (15.1% growth), and health and personal care (15.1% YoY growth) will be the fastest-growing online shopping segments in the ecommerce market this year.
Unsurprisingly, Amazon will continue to dominate the ecommerce industry and will account for 39.5% of total online sales (up from 39.3% in 2021).
- Walmart will remain the second-largest online shopping company in the US and account for 7.0% of total retail sales.
- Apple will be the third-largest online shopping company (overtaking eBay) and will account for 4.2% of total retail sales in the US.
4. Philippines (25.9%), India (25.5%), and Indonesia (23.%) will exhibit the largest ecommerce growth in 2022.
China (50.2%), the US (19.2%), the UK (4.4%), and Japan (3.0%) will account for more than 70% of retail sales this year.
Plus, according to eMarketer’s online shopping statistics, mobile commerce will account for 65.7% of all retail sales this year. (Statista’s online shopping statistics indicate that mobile commerce already accounts for 72% of all retail sales as of 2021).
Moreover, eMarketer’s online shopping statistics state China will skew 83.4% of all mobile commerce sales in 2022.
Most Popular Ecommerce Platforms And Technologies
5. WooCommerce is the most popular ecommerce platform with a 23.39% market share, followed by Shopify with a 23.22% market share.
PipeCandy’s online shopping statistics highlight that more than 23% of ecommerce sites (around 2,634,999 merchants) globally utilize WooCommerce’s open-source, customizable platform to power their online shopping websites.
In the US, some 55% of retailers use WooCommerce. Plus, WooCommerce’s technology is popular in Australia, with over 25 million installed bases.
Shopify — the second-most popular ecommerce platform globally in terms of market share (23.22%) — has a whopping 79% installed base in the United States. (The US hosts some 60% of the ecommerce industry globally).
The same online shopping statistics reveal that Wix Stores (11.69%), Squarespace (8.48%), and Ecwid (6.12%) are other leading ecommerce platforms used to power online shopping sites.
At the same time, it is important to note that individuals looking to start an online store should not presume the most popular platform in the commerce industry is right for them.
Instead, comparing all leading ecommerce platforms — like BigCommerce vs. Shopify, Shopify vs. Squarespace, Wix vs. Weebly, Shopify vs. Wix — can help in deciding which is the right online store builder for them.
6. Retailers with full or some degree of unification saw 7x more ecommerce revenue than their non-unified counterparts.
Multichannel or omnichannel marketing systems increase conversion rates, reduce cart abandonment, and let ecommerce sites increase their revenue.
For context — by selling via two platforms (like social media platform and marketplace) at once, online retailers can increase their online shopping revenue by up to 190%.
However, neither multichannel nor omnichannel marketing systems are as fruitful as unified systems.
Kibo defines a unified system as a “practice of connecting your backend systems with your customer-facing channels via a single platform.”
Compared to fully mature unified online shopping sites, a large portion of non-unified companies reported revenue loss in 2020 (36% vs. 39%).
The difference may seem slim. However, most respondents indicated an online shopping revenue of more than US$ 1 billion — meaning a difference of a few hundred million dollars.
7. 31% of unified retailers say their online shopping platform design and performance proved critical to customer experience vs. 24% of non-matured e-tailers.
When asked how satisfied they are with business performance:
- 31% of fully-matured retailers responded they were very satisfied vs. 27% of non-mature and 23% of somewhat-matured sites.
- 62% of fully-matured unified retailers consider customer experience as valuable as an e-commerce platform vs. 54% of non-matured online stores.
Needless to say, from an ROI standpoint, non-unified retailers are more likely to see limited ROI because of the ecommerce store design (32%) and product recommendations (34%).
In contrast, a small number of unified retailers said e-commerce platforms (21%) and product recommendations (33%) were the top reasons affecting online shopping revenue.
8. The use of AI by marketers surged by 186% in 2021, use of video-based customer support increased by 42%.
Personalization isn’t a choice anymore in the ecommerce industry. It has become a necessity.
That is to say — internet users do not just want personalization; in fact online buyers demand it.
Be it online shopping or in-store shopping, the personalized experience was never this important.
Yet, only 15% of e-tailers say fully implemented personalization. Nevertheless, the increase of AI for deep personalizations shows that marketers are working on delivering a more personalized experience.
The same online shopping statistics from Salesforce indicate that personalization can increase revenue by 10-15%.
However, AI is not just useful in delivering personalized online shopping experiences. The use of AI can make the online shopping process efficient, provide seamless automation, and enhance customer support.
For context — some 1.94% of website visits lead to conversion. However, marketing CRM tools can help the online business retarget the consumers who left the online shopping site without shopping online.
Retargeting has many benefits; for one, it can reduce the ecommerce store cart abandonment rates by up to 6.5%. Moreover, CRM statistics highlight that any reliable CRM tool can be as valuable to small businesses as the large e-tailers.
In fact, many popular enterprise CRM vendors now have specific small business CRM tools that are affordable and simple to use. (It is crucial to note that the average ROI for CRM is expected to be US$ 30.41 for every dollar spent.)
9. Digital or mobile wallets (44.5%) and credit cards (22.8%) are the most popular ecommerce payment methods.
When it comes to consumers’ shopping behavior regarding paying online:
- Digital and mobile wallets are particularly peculiar in the APAC region, where 60% of all online shopping transactions were made via these payment methods in 2020.
- Credit cards are the second most popular online shopping payment method, with a 22.8% market share.
However, the online shopping statistics show that only 20.8% of ecommerce payments will be made via credit card by 2024, while the use of digital wallets for paying online will grow to 51.7%.
Needless to say, ecommerce statistics highlight that mobile shopping is on the rise, and most mobile users prefer mobile wallets over credit cards.
Customer Shopping Behavior Index
10. Search engines are the primary source for searching products, with over 40% using search engines as the starting point.
Statista’s online shopping statistics indicate that 38% of customers use Amazon as a starting point. However, an online shopping consumer survey from Inriver contradicts Statista’s online shopping statistics.
- Inriver’s online shopping statistics report that 44% of all product searches start on ecommerce marketplace like Amazon or eBay.
- In contrast to Statista’s online shopping statistics, Inriver points out that only 19% of online shoppers start their buying journey via search engines.
- This online shopping trend is more prevalent in the younger generation. Over half (52%) of Gen-Zers (aged 18-25) online shoppers use an ecommerce marketplace as a starting point.
- In comparison, only 18% use search engines to search for products.
Additionally, 33.6% of in-store buyers will review the online prices for price comparison. Some 26% directly check for the product on Amazon while standing in the brick-and-mortar store.
11. 22% of online shoppers will not look for the product anywhere else if they find a suitable product on Amazon.
(Inriver, Geekwire )
Some critical consumer behavior to note (why many people shop online compared to in-store):
- 51% of users who found the product of their choice on some other online store will look for the product on Amazon for price comparison, reviews, and alternative ideas.
- 22% of online shoppers will not look for the product anywhere else if they find a suitable product on Amazon.
- 86% of online buyers shop for a similar product (from a competitor) if they do not find their first choice on Amazon.
According to Inriver’s online shopping statistics: only 9% of internet users head to the brand’s website to find a product. This means online shopping brands can no longer rely on their name to attract customers; they must list their products on online marketplaces.
Another online shopping statistics from Geekwire also shows similar consumer behavior and suggests that Amazon is the primary source for searching for products among all age groups:
12. Customers say product description (39%), HD images (24%), customer reviews and ratings (19%), and video (12%) are the most important details when shopping online.
Inriver's online shopping consumer behavior statistics report:
- 87% of consumers shopping online say the product description is an essential or very important factor for shopping online.
- The same online shopping statistics also highlight that 69% of consumers have changed their decision to purchase the product because of its poor description.
- Additionally, more than half (58%) of online shopping customers say they will switch to a competitor's product if their first choice is out-of-stock.
- Equally important, 14% of loyal customers are also likely to shop online from a competitor's product if their first choice is unavailable.
These online shopping statistics clearly indicate that high-quality product descriptions and consistent product supply are important if you want online shoppers to purchase your products.
13. 53% of online buyers say images from customers are more important than professional photographs to purchase online.
Bazaarvoice's UG contents online shopping statistics reveal that negative reviews are just as critical as positive reviews to the customers. At least 63% of digital buyers say the negative reviews give them a genuine feel of the product.
- Over 53% of people who buy online say images from customers (reviewing the product) are more important than professional photographs to purchase online.
- At least 40% of online buyers say customer reviews in ads make them most likely to purchase the product.
- The good thing is most marketers realize this. In fact, online retailers say customer reviews (64%) and photos/videos (43%) from the customers are the most effective advertising effort.
14. 36% of in-store buyers want to see virtual displays of customer reviews and ratings at the physical stores.
At the same time, even in-store shoppers say customer reviews will allow them to make more confident decisions:
- 33% of in-store buyers would like to have the option to scan QR codes at the physical store and read customer reviews and ratings.
- 33% of in-store consumers want to see up-to-date customer reviews at the physical store.
That is to say — authenticity matters to the customers more than anything. Hanging fake reviews will not entice shoppers.
15. 78% of digital buyers say experience matters to them more than anything.
Bazaarvoice’s online shopping statistics report that 59% of customers are willing to pay more for a great customer experience.
- At least 49% of customers have stopped shopping online from an online store because of a single bad customer experience.
- As much as 86% of customers have stopped shopping online from an online store because of “two” bad customer experiences.
- At the same time, 49% of consumers’ online purchases are based on impulse because of personalized online shopping experiences.
16. 83% of people that buy online say they are ready to share personal information to receive a more personalized online shopping experience.
PWC’s online shopping report points out that 91% of customers are more likely to shop online from an online store that recognizes, remembers, and provides relevant recommendations and offers.
Additionally, over 46% of online shoppers have left an online store because the content was not personalized.
So much so that almost 83% of people that buy online say they are ready to share personal information to receive a more personalized online shopping experience.
PWC online shopping statistics reports:
- 65% of customers say a good customer experience will make them more likely to shop online from the online store again than advertising.
- 74% say they will “at least somewhat likely to purchase” from an online store again based on previous online shopping experiences alone.
And while 86% of marketers plan to compete based on CX, most companies fail to provide “simple” experiences to their potential consumers. As a result, companies face a loss of at least US$ 402 billion annually because of poor customer experience.
17. 54% of buyers prefer to browse for products online rather than in-store.
64% of consumers say it is “easier to discover products online than in-store.” In contrast, 32% say brick-and-mortar stores are the easy way to discover new products.
- 69% of consumers say the product’s price is the most important factor to consider a newly discovered product.
- 49% of internet users say sales and promos are important when considering a newly discovered product.
- Plus, 43% of internet users say consumer reviews and ratings are important to influence their purchasing decision.
18. Monday was the most popular day for ecommerce sales in 2021.
Previous SaleCycle’s online shopping statistics indicated Thursday was the most popular day for sales.
But aside from this, most patterns of ecommerce sales remained similar to previous years. According to SaleCycle’s online shopping statistics:
- Most people shop online at 11:00 AM and 08:00 PM (UTC) — not between — which has been a common trend for the past five years.
- Most digital buyers shop after the 25th of every month (volume peaks on the 26th).
- Ecommerce sales in the last week of every month remain high compared to the first three weeks.
19. The average open rate of emails sent after cart abandonment was 34.97% in 2021 (for retail sales).
And the average conversion rate was 28.04%, asserting the benefits of successful email marketing.
Another thing, the average value of online orders referred via email was US$ 103.14 in 2021. (More than the average order value of orders referred via social channels — US$ 81.05 in 2021).
These online shopping statistics from SaleCycle clearly underline the importance of using email marketing tools.
Plus, new ecommerce business owners should note that free yet reliable email marketing tools are also available on the internet. That is to say — ecommerce business vendors should not miss out on the opportunity of boosting conversions using ecommerce email marketing tactics.
- On a side note, email marketing has an ROI of US$ 44 for every dollar invested.
Indicating that even small businesses can invest in SMBs’ email marketing tools without worrying about the returns. (Of course, a positive return is possible only if you follow the right email marketing strategies).
Online Retail Statistics: Features & Priorities
20. 80% of online shoppers say the look of the online store impacts their purchasing decision.
Additionally, 59% of online shoppers say visuals are more important, vs. 41% consider the text as critical. (Average across all categories in the ecommerce industry).
When it comes to specific categories like home decor or clothing and accessories, visuals are more important for online shoppers than product descriptions.
- As much as 85% of online shoppers looking to purchase “home decor” or “clothing and accessories” say visuals are more important to them.
21. Upselling has the potential to increase revenue by 10% to 30%.
Upselling — recommending higher-end products to customers shopping online and looking for inexpensive options in the same category — is 20x more effective than cross-selling.
- Sumo’s online shopping statistics highlight that ecommerce businesses that upsell and recommend products make 70 to 95% of revenue from recurring sales and upselling.
- The same online shopping report also highlights that upselling is 68% more affordable than acquiring new customers.
- Moreover, do not forget to weigh in the fact that profitability derived from selling to an existing customer is about 60-70%. At the same time, the profitability from selling to a new customer is just 5-20%. Yet, Salesforce's online shopping statistics underline that as much as 37% of marketers are shy about upselling.
Online stores must optimize their platforms with upselling technology — it requires no extra work, increases revenue, and increases the customer lifetime value.
Even the free ecommerce platforms include third-party “upsell” apps. For instance, Shopify (free trial only) includes Bold Commerce, One Click Upsell, and so on.
22. 30% of total online sales are done through cross-selling.
Cross-selling — recommending complimentary items to potential customers — is another effective technique that increases revenue. Plus, it offers value to people shopping online.
Invespcro’s online shopping statistics state Amazon’s cross-selling and product recommendations technology is responsible for 35% of its revenue.
- Moreover, consumers also spend more when they click on product recommendations.
- The average order value from customers that clicked on product recommendations was 10% higher than customers that didn’t click on product recommendations.
- Not to mention, digital buyers that click on recommendations are 4.5x more likely to add the item to their cart and 4.5x more likely to complete the purchase.
- However, retain that although the likelihood of clicking on product recommendations is very low, it still drives sales. Salesforce reports only 7% of online shoppers engage with product recommendations.
Nevertheless, it is responsible for 24% of total online retail sales. That is to say — smart and relevant product recommendations are more important than simply recommending a product to the customers.
23. The CTR of personalized product recommendations is 2x more than non-personalized recommendations.
- Some 49% of digital shoppers say they have purchased a product they did not intend to shop online initially because of suggestions and personalized product recommendations.
- Not to mention, personalized product recommendations also reduce cart abandonment rates.
- Barilliance’s online shopping statistics state personalized product recommendations reduce the cart abandonment rate by up to 4.35%.
Barilliance suggests these tactics to use personalized recommendations:
- Positioning the personalized recommendations above the fold is 1.7x more effective than recommendations positioned down the fold.
- The highest performing product recommendations are from the “what customers ultimately buy online” category. (Barilliance tested 20+ online shopping categories).
- New customers tend to click on “best selling” type product recommendations.
Furthermore, email marketing statistics suggest that sending product recommendations via email is also effective. Retain that the average value of online orders referred via email was US$ 103.14.
24. 40% of ecommerce stores are offering buy now, pay later (BNPL) services.
(PayPal, C+R Research)
C+R Research’s online shopping statistics indicate some 55% of small online businesses offer BNPL services.
- The use of BNPL in-store is even less, with only 5% of in-store owners utilizing the service.
- In total, BNPL providers have lent around US$ 55 billion (up from US$ 3 billion in 2019) in 2021.
- Plus, the online shopping statistics suggest the lending value will increase to US$ 144 billion by 2024.
- Equally important to note, PayPal Credit is the most preferred buy now, pay later service for paying online, with over 57% of retailers using it.
- Afterpay (29%), Affirm (28%), Klarna (23%), and ZipPay (19%) are other popular BNPL services among ecommerce stores.
25. The average amount that customers spent on online purchases using BNPL is US$ 689.
(PayPal, C+R Research)
PayPal’s online shopping statistics indicate that the average amount that customers spent on online purchases using BNPL is US$ 689.
At the same time, nearly half (46%) of digital buyers have a debt of less than US$ 250 (the average debt owed is US$ 883). Now coming to the most important points about BNPL services for retailers:
- More than half (60%) of digital buyers say they have used BNPL in 2021.
- Nevertheless, 66% of online shoppers say BNPL is “financially risky.” Still, do not forget that many people shop online using BNPL to purchase an item that is out of their budget.
- Some 1/3rd of online shoppers use BNPL services at least once a month. Some 18% of people who shop online say they use BNPL at least once a week.
- Fashion and apparel is the fastest growing online shopping segment that is utilizing BNPL.
- As of now, most people buy online using BNPL to purchase consumer electronics.
These online shopping statistics concerning BNPL clearly highlight the importance of incorporating BNPL services to increase the customer's likelihood of purchasing the product.
As a matter of fact, online shopping websites that offer BNPL see an increase in their conversion rates by 2.1%.
Mobile Retail Statistics
26. Mobile ecommerce accounts for 72.9% of total retail sales in 2021, translating to US$ 3.56 trillion dollars.
US mobile shopping sales accounted for US$ 360 billion in 2021. And the mobile shopping forecast predicts that mobile ecommerce will reach US$ 710 billion by 2025.
- eMarketer highlights desktop and laptop retail sales are forecast to decelerate year-on-year; in fact, the growth of these segments will lag by 2025.
- And internet users will increase their purchases via mobile devices.
- As of 2021, mobile shopping accounted for 4 of every 10 dollars spent on online shopping.
- Another interesting thing to note is time spent on mobile shopping apps rose 18% YoY.
- Plus, the total time spent on mobile shopping apps reached over 100 billion hours (up from 84 billion hours in 2020) globally.
And it doesn’t come as a surprise, but it is important to note that 85% of all mobile shopping is done via smartphones.
27. 49% of mobile users use their mobile to compare the pricing of products and services.
(Criteo, Canonicalized, OuterBox Designs)
Although the conversion rates of desktop and laptops (3.9%) are higher than mobile (3.5%), most online shoppers start their buying journey via mobile websites.
- Some 30% of users use their smartphones to know more about a product they are interested in, meaning retailers have to impress the shoppers via their mobile websites or apps.
- When it comes to mobile app vs. mobile site — 56% of users have purchased a product via a mobile shopping app in 2021.
- 46% of mobile commerce purchases were made via mobile shopping sites. This means, alongside the application, retailers should focus on improving their mobile website.
Canonicalized’s report on mobile-friendly sites indicates that some 24% of the top 1 million websites on the internet are not mobile-friendly.
- In fact, only 17% of the top 1 million websites scored 100 on its test. (The minimum score to pass the mobile-friendly test is 80). Some 25% of the websites scored 99.
- Businesses must understand that 40% of users never return to a mobile shopping website after a bad experience.
- PayPal’s mobile ecommerce statistics indicate that 33% of customers have abandoned purchases on their mobile because the site wasn’t mobile optimized.
- 57% of customers say they are annoyed by websites that aren’t mobile optimized.
OuterBox Designs online shopping statistics on customer experience indicate:
- 84% of online shoppers say they have experienced difficulty while completing a mobile transaction.
- 67% of online shoppers say that the links and page elements are too small to click. (On a side note, 31% of online shoppers are more likely to purchase if their smartphones have a larger screen).
- 36% say the product or service was “difficult to find” on mobile websites.
At the same time, 36% of mobile users say that interruptions like notifications were also a hindrance to not going through with online purchases.
The same mobile shopping statistics highlight that 42% of online shoppers say they are concerned about their payment and personal data while shopping via mobile devices.
And as much as 51% of mobile users (globally) prefer to shop via desktop or laptop because it is “easier than mobile shopping.”
28. 77% of smartphone window shoppers make an impulse purchase. 70% return to the page within an hour and make a purchase.
At least 67% of smartphone users claim they digital window shop for fun.
- Some 72% of smartphone users shop on their mobile devices. And as much as 86% of Millennials shop on mobile.
- Additionally, the younger generation spends more than the older generation. Some 61% of Millennials and Gen-Zers say they spend at least once per week vs. 48% of Gen-Xers and Boomers.
29. Consumers are more likely to purchase a product using Visual Search.
- Only a small number of retailers have adopted Visual Search (8%); in comparison, a large number of online consumers desire Visual Search (59%).
- In fact, 20% of customers have already used Visual Search to find information or online purchases.
- While 9% of retailers say they are developing Visual Search and 15% intend to develop it in the future, some 22% of retailers say they won’t adopt the technology.
- At the same time, some 46% of retailers are unaware of Visual Search.
- Retailers must understand that they cannot miss critical technology like Visual Search.
Visual Search benefits are not limited to online consumers’ convenience only; instead, it can benefit retailers too. In fact, PayPal mobile commerce statistics reveal that online consumers will shift to retailers that offer Visual Search:
- 44% of digital buyers say Visual Search allows them to find a product quickly.
- 43% of consumers say Visual Search allows them to choose from a range of similar products.
- 38% say the technology is helpful in comparing prices of products.
Online Retail Statistics: The Rise of Social Commerce
30. 1 out of every two internet users in Asian countries has purchased from social platforms in 2021. More than 3 out of 10 US internet users shop online via social media platforms.
(Insider Intelligence, Statista)
Statista’s online shopping statistics highlight that total estimated global social commerce sales were around US$ 732 billion in 2021. This suggests that 7% of all ecommerce sales were made via social media platforms in 2021.
- Moreover, its forecast suggests that social commerce will reach US$ 2.9 trillion by 2026.
- Insider Intelligence reports nearly half of the US internet users aged 18 to 34 made at least one purchase via social media in 2021.
- 68% of all social media users surveyed say they purchase at least one product on some social channel. China leads the way, accounting for 13.87% of all social commerce sales in 2021. Whereas — the US accounts for only 4.0%.
31. Online shopping via social media will grow 3x faster than traditional ecommerce, exhibiting a CAGR of 26% from 2022 to 2025.
Social shopping will account for 17% of total online sales by 2025. Additionally, clothing (18%), food and snacks (13%), electronics (13%), and home decor (7%) commodities will represent one-third of all ecommerce sales by 2025.
- Even more, social commerce will be dominant in developing countries like China and India, where consumers embrace quality and features and evaluate potential purchases.
- At the same time, consumers in the US and the UK care more about discounts and pricing.
- For context, nearly 8 out of 10 social media users in China purchased in 2021. In comparison, only 35.8% of US internet users have made a social purchase so far.
- Moreover, millennials will account for 33% of all social purchases by 2025. However, spending from Gen Z (29%) will grow the fastest (43% CAGR).
- In addition, Gen Z (28%) and Boomers (10%) will account for less than 40% of social commerce by 2025.
On a side note, the younger generation cares more about customer reviews. Whereas — the older generation like to purchase from familiar brands, indicating trust is more important to them.
32. Easy refunds and returns (41%) and clear product descriptions and images (29%) are the top two features of the social commerce experience.
Like digital commerce, social buyers identify easy refunds and returns as the most important aspect when purchasing via social media platforms.
- Alongside that, 30% of social buyers say AR capabilities are a must-have feature of shopping via social media.
- Most social media users (59%) say they are more likely to purchase products from SMEs.
- More importantly, 63% of social media users say they are more likely to purchase from the same vendor.
- In addition, 44% say they are more likely to purchase a product from a new vendor.
- In fact, only 9% of users say they search for a familiar product on social media to buy. The figure was highest among Gen-Zers — 15%.
Here are the top 10 must-have features to create a seamless social commerce experience:
33. High reach (44%), more engagement (32%), and more profits (30%) are the top reasons to invest in social commerce.
- Discovery and high intent (26%), influencer marketing (25%), low cost (24%), and testing (products, demographics, etc.) are the top reasons identified by marketers for investing in social media shopping.
- Only 15% of social commerce marketers say they are doing it because a “competitor is doing it.”
- The problem is only 30% of ecommerce companies (in America and Europe) were selling on social media channels as of 2021. Up to 33% are still evaluating, whereas 20% do not plan to sell on social channels.
- Globally, 54% of marketers plan to create a social shopping strategy, whereas 24% do not think social commerce is important in 2022. Yet, 8% say they are uninterested in social shopping experiences.
- Online retailers that are not interested in social commerce are planning to invest in traditional commerce (55%), analytics (59%), strategy and planning (57%), affiliate marketing (24%), and SEO (35%) in 2022.
34. 11% of customers purchased immediately after discovering a product on social media, and 44% bought later.
- In addition, the average order value of orders referred via social media channels was US$ 81.05 in 2021.
- As well as, 58% of Millennials and 54% of Gen-Zers think social media is better for finding a new product than searches.
- Furthermore, GWI’s online shopping statistics reveal that 27% of all internet users rely on social media to discover a product. 19% of US users turn to social media to find product information.
Here are some other key findings:
- All age groups prefer short videos (less than 4 minutes); Millennials and Gen-Zers are more likely to watch even long videos (over 20 minutes).
- Customers say the #1 reason to use Pinterest is for product discovery. In fact, users who access Pinterest once a week are 7x more likely to say it is the most influential social media platform compared to others.
- Users say the #2 reason to use Instagram and LinkedIn is product discovery.
- Users say the #3 reason to use Twitter and Reddit is to find a product.
As has been mentioned, AR turns scrollers into buyers. GWI’s technology and contents online shopping statistics highlight that 56% of TikTok users, 49% of Snapchat users, and 43% of Instagram users say that Augmented Reality makes shopping online easier.
Moreover, 1 in 4 social media users watches at least once a month video made by a brand. In fact, YouTube statistics highlight that 90% of YouTube users have discovered a brand on the platform.
So, small businesses and even individual businesses should focus on video marketing. Understand that making a brand video does not require thousands of dollars — a decent camera and reliable video editing software can engage customers.
Another interesting stat for marketers — users pay more attention to advertisements that incorporate AR:
35. 71% of US small businesses are planning to sell via social media by 2023.
- 56% of US SMEs have already sold via social channels.
- Nearly 80% of US executives are planning to sell online on social media in the next three years.
- 90% of US companies use social channels to promote their brands.
- Statista’s online shopping statistics forecast advertisers will spend over US$ 56 billion on promoting their brand through social channels in 2022.
- Nevertheless, more than 80% of the expenditure will be spent on Facebook, followed by LinkedIn (4%) and Pinterest (2%). Moreover, 78% of social media users say they have discovered a product on Facebook.
- Insider Intelligence online shopping statistics report that some 56.1 million US social shoppers have made online purchases through Facebook in 2021.
Importance of Free and Fast Shipping
36. 83% of customers prefer free shipping vs. 17% who say fast shipping is the priority.
- GoShippo’s online shopping statistics highlight that most respondents prefer free shipping over fast shipping (83% vs. 17%). In fact, some 20% of consumers say they would swap retail websites for free shipping.
- Yet, as much as 31% of retail websites (up from 16% in 2020) do not offer free shipping. At the same time, 30% of retail websites (up from 23% in 2020) only offer free shipping occasionally.
In fact, only 22% of ecommerce stores always offer free shipping in 2021 vs. 33% in 2020.
- Retail websites must understand that free shipping is a strong label. In fact, the “free shipping” tag increases conversion rates by 50% and sales by 10%.
- As much as 80% of consumers are more likely to purchase a product when offered free shipping. Plus, some 80% of customers expect the ecommerce stores to offer free shipping when ordering above a certain dollar amount only.
That is to say, even if it is not possible to offer free shipping all the time — or for low-cost items — retail websites must offer free shipping for orders above a certain value.
37. 44% of online shoppers say “expected delivery” information is most important on the product page.
- Some 21% say return and exchange policy information is important on the product page.
- And some 3% say the carrier information is important. 32% of online shoppers expect to see the “shipping cost” information on the product page.
- Moreover, when it comes to paid shipping, GoShippo’s online shopping statistics also highlight that nearly half (48%) of consumers expect the ecommerce stores to deliver the item within 2-3 days.
- And 18% expect same-day or next-day delivery.
These online shopping statistics indicate that customers do not mind paid shipping. However, it is crucial that an online store highlights all the information about shipping services upfront, including — expected delivery time, shipping cost, and return policy.
In the matter of return policy and exchanges:
- 67% of new consumers say they check the return policy and exchange information on the product page before making a purchase.
- Consumers returned some US$ 428 billion worth of merchandise to the retailers in 2020 (around 10% of total retail sales in the US).
- 92% of online shoppers purchase from a vendor again if the previous return experience was easy.
- 50% of consumers expect free returns.
Moreover, 31% of online shoppers expect an easy return experience when shopping online. Yet, some 26% of ecommerce stores do not accept returns at all.
These online shopping statistics on returns and exchanges clearly highlight that merchants are losing customers by not offering returns on online purchases.
38. 58% of online retail stores identified the “cost of shipping” as their biggest challenge.
Only 31% of the retailers say they spend as much as 6-10% of their total order value on covering the cost of shipping.
- The rest of the 79% of businesses that sell online spend more than 10% of their total order value on shipping (some as much as 30%).
- The cost associated with shipping remains one of the biggest challenges for online businesses.
- Equally important to note, some 9% of retailers also say “current software workflow” is the biggest challenge of shipping.
- Be that as it may, 72% of ecommerce services online say they are “somewhat confident” or “very confident” about their shipping strategy this year. Moreover, as much as 74% of retailers work with 2-4 shipping carriers.
- Given the cost of shipping is a significant challenge for most online shopping businesses, businesses should negotiate a contract with their shipping carriers to lower the shipping cost.
- Yet, only 40% of retailers say they have negotiated such deals with their shipping carriers.
- Plus, when it comes to software and logistics, it is best to replace legacy or dated software with modern ERP software or order fulfillment services to switch between carriers easily and manage everything from a single screen.
Cart Abandonment Statistics You Must Know
39. The average cart abandonment rate in 2021 is slightly lower than 2020’s average (80.68% vs. 81.08% in 2020).
(SaleCycle, Baymard Institute)
The cart abandonment rates across different categories in the ecommerce industry vary widely.
- Some categories like travel (90%) have a much higher cart abandonment rate than cosmetics (70%) and groceries (50%).
- Unsurprisingly, like in previous years, the holiday season had the lowest cart abandonment rates. Whereas the average rates across the ecommerce industry have remained the same throughout the year.
- Inexplicably, August had the second-lowest cart abandonment rate in 2021.
- By month, the average cart abandonment rates were slightly higher in the first and last week of the month (however, not a significant difference).
Moreover, by days of the week:
- Wednesday has the lowest cart abandonment rate.
- And Sunday has the highest cart abandonment rate.
Equally important to note, different online shopping statistics on the internet state varied averages when it comes to cart abandonment — some as lower as 56%.
- SaleCycle’s online shopping statistics — one of the most reputed behavioral research services linked with the ecommerce industry — puts the number at 80%.
- However, Baymard Institute has followed 41 different studies on the internet and states the average cart abandonment rate in 2021 was just under 70%.
40. 7 out of 10 customers do not go through with their online purchase.
As mentioned, Baymard Institute has researched around 41 different studies and came up with the average cart abandonment rate of the ecommerce industry — 69.57%. (Many ecommerce store vendors find this one to be the most accurate average).
- Yet, the most crucial online shopping stat for e-tailers to retain is that most people abandon the purchase because of the complicated checkout process.
- In fact, Baymard Institute's online shopping statistics highlight that by streamlining the complicated checkout process — online shopping sites could increase their conversion rates by as much as 35.26%.
- To illustrate, the same online shopping statistics reveal that at least 18% of consumers have abandoned a purchase because of the complicated checkout process.
- However, the same ecommerce statistics also state that achieving a 35.26% increase in conversion rates is not easy.
- Baynard found that even the Fortune 500 companies did not have a streamlined checkout process. So much so that an average ecommerce store has 39 potential improvement areas related to the optimized checkout process.
Nevertheless, online retail stores can significantly increase their conversion rates by improving the ecommerce website design, adding trust signals, following the right marketing strategies, and checkout flow.
41. 55% of online shoppers say they abandoned checkout because of extra costs.
Extra costs — like shipping costs, service fees, take, and others — are the leading cause of cart abandonment, especially if it is unexpected (like customers see it on the checkout page).
That is to say — inform the consumers about extra costs from the outset and not at the point of sale.
- As indicated earlier, many people do not mind shipping fees (or extra costs) — but hate last-minute surprises.
- Some 34% of consumers say they did not go through with the purchase because “account creation” was a requirement.
- This means that retailers must figure out a way to make the customers create an account before they go to the checkout page.
- As underlined before, a complicated checkout process is another top reason for cart abandonment. At the same time, checkout time being too long is another prominent reason for not going through with the purchase.
Baymard’s online shopping statistics highlight that 50% of customers leave the site if checkout takes more than 30 seconds. This includes the waiting period for verifying the credit card. Some 18% say they didn’t trust the site with their credit card information.
- Only 1 in 3 consumers say they abandon shopping online from the same website if their credit card declined in the first attempt.
- So, retailers must also utilize the best credit card processing solutions and even mobile payment processing solutions to expedite card transactions.
- Equally important to note, 1/5th of customers point out that they abandoned the purchase because the “expected delivery duration” was too slow.
- As mentioned earlier, customers are willing to wait for more — 3 to 5 days — if they return the package for free.
However, when it comes to paid delivery, customers expect the delivery to be completed within 2 to 3 days. Additionally, a few emphasize same-day or next-day delivery. Here are the other top reasons for abandonments during checkout:
42. 70% of consumers say page speed impacts their decision to buy from an e-tailer. Sites loading in a second see 5x more conversions than sites that load in 10 seconds.
Ecommerce websites with a page load time of fewer than 5 seconds see higher conversion rates than websites having a page load time of more than 5 seconds. In fact, ecommerce websites having less than 2 seconds of page load time see the highest conversion of all.
- In general, up to 4 seconds of page load time for an online shopping site is considered good.
- Moreover, if the online shopping site’s page load time exceeds 5 seconds, conversion rates drop by 4.62% with each additional second of load time.
- Some interesting online shopping statistics from Deloitte highlight that 0.1 seconds improvement in site speed leads to an 8.4% increase in conversion.
- Even the average order value increases by 9.2%.
- However, what’s mind-boggling is that the average load time for mobile websites is 15.3 seconds (Google Research, 2018) due to the presence of too many elements.
- And while we are on the subject, at least 50% of online shoppers are willing to give up animation and video for faster page load time.
- Customers say page speed matters over animations (56.6%), videos (52.8%), and even photos (24.1%).
Online Retail Statistics: Amazon Retailers and Impacts of Covid-19 on Ecommerce
43. There are over 2 million third-party and SMBs on Amazon; 76% of sellers say they are profitable.
JungleScout’s online shopping statistics state some 3700 retailers join Amazon every day. And as much as 86% use Fulfillment by Amazon service.
- 28% of Amazon sellers also sell on eBay, Shopify (15%), and Etsy (13%).
- Some 18% of Amazon sellers also sell via a physical store, and some 28% are considering selling via a physical store.
- Unsurprisingly, nearly half (47%) of Amazon sellers are from the US, followed by Canada (9%), the UK (6%), and India (4%). Some 22% of Amazon sellers — SMBs — make more than US$ 10000 monthly.
- The good thing is that as much as 65% say their profit margin is more than 10%. The majority (69%) of Amazon sellers spend less than US$ 5000 to start selling on Amazon.
- Plus, some 32% say they spent less than US$ 1000 to start selling on Amazon. (This includes the product cost, storage and sellers fees, and advertising).
Be it via Amazon or an online store, starting an (online) business was never this simple and affordable. Additionally, numerous online business tools make it possible for even individual business owners to grow their company and make it profitable.
In fact, internet statistics highlight small businesses that sell online grow 2x faster than those that do not have internet access. This is because small businesses have access to advanced business tools to manage their daily operation and global presence. Retain that retail ecommerce sales are forecast to account for 95% of global sales by 2040.
44. 67% of shoppers say they shop online differently now due to Covid-19.
Brand loyalty matters less to the consumers shopping online than before. The trend is more common among Gen-Zers and Millennials than older generations.
In all, 80% of online shoppers say they have purchased an item from a different brand than usual. (The main reason for shopping online from a different brand was lower prices (65%) and out-of-stock messages (51%).
Moreover, 44% of consumers who shop online from a different brand say they are more likely to shop online from the new brand than return to the original online retailers. Only 36% of internet users say they will shop online from the original brand.
This indicates the need to retain customers. In fact, retaining customers is 5-25x less cheap than acquiring customers.
Nielsen IQ’s online shopping statistics state businesses should follow the right customer retention strategies and consider using customer service tools like contact management software.
Online Retail Statistics: Sales and The Holiday Season
45. 1 in 3 purchases is made on impulse, including in-store purchases, during the holiday season.
(ThinkWithGoogle, NPD, Adobe)
- Most consumers like to shop online during the holiday season.
- As a matter of fact, only 26% of the consumers said they are looking forward to shopping in-store. (Retain to count on the pandemic factor).
- NPD’s online shopping statistics indicate that some 65% of consumers shopping online plan to spend the same amount or more during the holiday season in 2022. (Ensure to read on to find how this is an opportunity for online retailers).
Some interesting statistics about shopping behavior in the holiday season to retain are:
- 49% of consumers shopping online expect the online stores to offer discounts and sales based on past purchases.
- 85% of online shoppers say they decide on the retailer or brand based on pictures and product information.
- 59% of holiday shoppers say being able to shop online via mobile devices is the most crucial factor in deciding the brand or retailer. (Indicating the importance of mobile optimization).
- Some 74% of holiday shoppers look for products and items for themselves.
- More than 50% of holiday shoppers say they are open to shopping online from new online stores and retailers.
- Some 76% of holiday shoppers say they’ve changed their minds about purchasing online from a retailer after searching on Google. (A good digital image is a must).
- Even the in-store shoppers (64%) search for ideas on mobile devices before going to the physical stores.
Google’s online shopping statistics highlight that searches for “best gifts” are 2x more than “cheap” or “inexpensive gifts.” (Indicating most consumers shopping online look for the best items, not the cheapest).
- Of the people who search for an item on their mobile devices during the holiday season, 76% visit a related local business within a day.
- Some 28% of mobile searches about a product result in a purchase (either online or in-store).
- And probably the most significant holiday season stat — 70% of consumers say the most crucial factor in deciding a retailer is the option to buy from anywhere (i.e., pick up the product from the physical store or online).
- Adobe’s 2021 holiday season report indicates curbside pickup accounted for 40% of all online orders days before Christmas.
These online shopping statistics matter because some 25% of online purchases made during the holiday season are impulse-driven. This means that retailers and online stores should act according to consumers’ shopping behavior.
46. 1 in 6 online shoppers only shop online when the products are on sale.
- 68% of online shoppers say they always look for a sale and discount before online purchases.
- Moreover, younger generations are more likely to purchase online during sales than older generations.
- Some 73% of Millennials and 77% of Gen-Zers say they are always looking for a sale to shop online.
- Another interesting statistic is that affluent shoppers (annual income more than US$ 150K) prefer sales over off-sale seasons to purchase online.
- Some 74% of affluent online shoppers (all generations) say they are more likely to purchase online when an item is on sale.
Boxing Day is the most famous sales period for consumers and retailers participation, with over 44% of online shoppers and 30% of retailers participating during the period.
- 44% of online shoppers and 26% of online stores participate in EOFY (end of the fiscal year) sales.
- 33% of online shoppers and 25% of online stores participate in Black Friday sales.
- 17% of online shoppers and 16% of retailers participate in Cyber Monday sales.
As can be seen, consumer participation (73%) in sales periods is higher than retailers’ (59%).In fact, only 19% of retailers run at least one sale throughout the year. In comparison, 68% of customers always look for discounts and sales.
That is to say — retailers can increase their retail sales by leveraging sales, if not always, at least during highly-marketed times.
47. 18% of online shoppers feel they lose money if they miss out on a sale.
- Some 16% of younger online shoppers say they are addicted to sales when shopping online.
- Over half of online shoppers say they have waited for an item to go on sale before purchasing it.
- Not only this, but sales also drive shoppers to make impulse-driven online purchases.
- PayPal’s online shopping statistics highlight that more than half (58%) of Australian online shoppers have made impulse-driven online purchases during sales.
- The same online shopping states that the average order value of impulse-driven purchases is around US$ 108.
- Millennials are the biggest unplanned spenders, with the average order value of impulse spending being around US$ 145.
- Moreover, over half (57%) of Australian consumers say they prefer to shop the sales online rather than in-store.
- Younger generations (Millennials — 65%, Gen-Z’s — 63%) are more likely to shop online than the Baby Boomers (35%).
Younger generations are also more likely to shop the sales online via mobile devices than older age groups.
- Some 33% of Gen-Z’s say they purchase online via mobile devices during a sale. In comparison, only 29% shop the sale online via laptops or desktops.
- Millennials also prefer mobile devices compared to desktops to purchase online during ecommerce sales (29% vs. 28%).
Gen-Xers (29% vs. 20%), Boomers (26% vs. 13%), and older age groups (34% vs. 8%) are more likely to shop online via desktop than mobile devices.
48. 53% of online store owners say they were able to attract new customers because of sales.
Nearly 2 in 5 Australian online shoppers say they want the online retail stores to offer sales and discounts outside the traditional sales period. Nearly half of the Gen-Z (44%) and Millennials (46%) expect offers and discounts regularly.
However, only 23% of online store owners say they offer sales and discounts outside the traditional sales windows.
Moreover, some online business owners do not offer sales and discounts even during the traditional sales periods.
49. 31% of ecommerce store owners say sales only attract potential customers interested in discounts.
Online business owners state the following reasons for not offering sales even during traditional periods:
- 31% of ecommerce store owners say sales only attract potential customers interested in discounts.
- 1/4th of online store owners say it is difficult to persuade potential customers to pay the full price during off-sales periods.
Be that as it may, the benefits of online sales and discounts outweigh the negatives. For context, here are the benefits realized by online store owners that offer sales at least during the traditional sales periods:
- 40% say it helped them grow their online business.
- At least 39% of the online store owners say they were able to increase revenue because of online sales.
- 34% say the customer basket sizes (products purchased) are bigger than usual. 34% of online store owners say online sales build brand awareness.
- 1 in 3 online store owners says online sales help them build customer loyalty.
- Many people shop online during sales than usual. Plus, 1 in 4 say customers spend more than usual during ecommerce sales.
Online sales — at least during the traditional sales period — is a good way to connect with new customers. This increases one-time revenue and gives access to the new customer's data, allowing the retailers to nurture the leads for repeat business.
50. Cart abandonment rate on Black Friday (76.63%) and Cyber Monday (77.31%) is lower than the yearly average of 81.0%.
Some 55% of digital buyers already plan the purchase a week before Black Friday.
- The trend is more common among the Millennials, with over 70% saying they plan the purchase a week ahead.
- Adobe’s online shopping statistics highlight that online shoppers spent US$ 8.9 billion (down 1.3% YoY) on Black Friday in 2021. Consumers’ spending on Cyber Monday was even higher, accounting for US$ 10.7 billion (1.4% down YoY) in 2021.
- During the entire holiday season — November 1 to November 29 — holiday shoppers spent around US$ 109.8 billion in 2021.
- Of which, 1/3rd of the spending — US$ 33.3 billion (down 1.4% YoY) — was spent during Cyber Week (Thanksgiving to Cyber Monday).
- Although Cyber Monday and Black Friday spending dipped in 2021 compared to 2020, the total spending during the holiday season grew by 11.9% YoY.
Some other interesting statistics for retailers to remember are:
- The cart size (amount spent) was the highest on Cyber Monday. (13.9% higher than the average size of the entire holiday season); this means that high-ticket items sell on Cyber Monday.
- Usage of Buy now, pay later (BNPL) on Cyber Monday saw an uptick with revenue up by 21% YoY and orders up by 1% YoY.
- Most of the online purchases made on Cyber Monday were from laptops and desktops. In fact, only 39.7% of online purchases were made via mobile devices in the US.
Be that as it may, Adobe’s online shopping statistics reveal that the out-of-stock messages were also high on Cyber Monday (8% up from a week before).
In general, the out-of-stock messages throughout November’s holiday season in 2021 were more prevalent than in 2020 (up by 161% YoY).
Businesses, especially small and mid-size businesses, either manage the inventory manually or do not manage it all. In fact, inventory management statistics highlight that only 43% of businesses track and manage their inventory.
51. Holiday shoppers spent a total of US$ 204 billion in 2021’s holiday season, an 8.6% increase from 2020 and a 44% increase from 2019.
- The average discounts (-9%) offered were less in 2021’s holiday season compared to 2020’s average discounts (-14%).
- On average, online shoppers saved US$ 9 per US$ 100 in 2021 compared to US$ 14 per US$ 100 in 2020.
- Yet, consumers’ spending in 2021’s holiday season was at a record high compared to previous years.
- Consumers spent more than US$ 3 billion on 33 days (up from 25 days) in 2021’s holiday season (Thanksgiving to New Year’s Eve).
- Moreover, Buy now, pay later (BNPL) usage grew by 500% compared to 2019’s holiday season.
- As indicated earlier, BNPL favors both the merchants as well as the consumers shopping online.
That is to say — online stores that still haven’t adopted BNPL should consider the service before this year’s holiday season.
Online Retail Statistics: The Rise of C2C Online Sales and Direct-to-Consumer
52. eBay is currently the biggest C2C online store, with over 724 million active buyers.
- C2C (consumer-to-consumer) ecommerce refers to the exchange of goods between two end-users via online shopping marketplaces.
According to Statista’s online shopping statistics,
- Online shopping marketplaces like eBay, Etsy, and Taobao are some of the leading C2C platforms; however, auction sites like Craigslist also qualify as C2C marketplaces.
- McKinsey’s C2C ecommerce statistics report that C2C ecommerce is growing just as quickly as other online services online among digital buyers. For instance, the USA’s Vestiaire Collective, UK’s Gumtree, and France’s Leboncoin have seen a growth of more than 50% since 2020.
- Craigslist was the fastest-growing C2C platform in the US. Vestiaire Collective was the second-fastest-growing C2C platform, with a growth rate of over 530%. (Based on a YoY basis).
- Additionally, the C2C visits in the US peaked during the 3rd quarter of 2020. The leading C2C platforms in the US saw an audience of 28 million.
Not only this — but there has also been an increase in C2C platform listings.
53. Gen-Zers account for 43% of C2C online sales and are expected to account for 47% of C2C online sales by 2025.
- Some 30% of respondents claim to have purchased more than before via C2C online shopping platforms during the pandemic. (Survey included 3000 consumers that purchase via C2C ecommerce marketplace).
- When it comes to the reason for purchasing second-hand products, 38% of online buyers shop for second-hand produce because they want to create less waste. Some 66% said they want to save money. Over 26% said C2C online shopping platforms offered a wider selection of products.
- Fashion and family items (toys) were the leading products exchanged via C2C online shopping platforms in Germany, France, and the UK.
Furthermore, here are the responses from the customers (country-wise) when asked about what incentives will drive them to buy more from the C2C online marketplace.
54. 71% of DTC ecommerce businesses in the US have a gross merchandise value between US$ 1 million to US$ 5 million.
- 23% of DTC businesses in the US have a GMV between US$ 5 million to US$ 50 million. In comparison, 95% of US online shopping businesses have a GMV of less than US$ 1 million.
- DTC ecommerce businesses account for 13% of all online shopping businesses in the US. (120K DTC businesses vs. 800K ecommerce businesses).
- Also important to note, 75% of the US Direct-to-Consumer businesses belong to only three categories.
- Fashion and apparel (59.3%), home and garden (7.6%), food and beverages (7.4%), and arts and entertainment (4.1%) make up about 78% of the DTC businesses in the US.
55. 80% of the DTC businesses spend less than US$ 5000 monthly on Google Ads.
(State of DTC, Pipecandy)
Some 60% of DTC businesses in the US haven’t spent a single dollar in the last 12 months on Google ads. Yet, most of them can profit because they spend more on social ads.
Needless to say, almost 76% of DTC businesses receive fewer than 500K visitors per month.
There is also a link between a number of retail website visitors and physical stores sales. Pipecandy’s online shopping statistics highlight that DTC businesses with a physical presence receive 2x more visitors than ones without brick-and-mortar stores.
Coming to the social media presence, 61% of DTC businesses in the US are present on three or four social platforms. And some 14% are on at least five different social platforms.
Among the DTC businesses, Facebook and Instagram are the most popular social platforms, with over 90% of US Direct-to-Consumer businesses on both platforms.
However, Instagram is the most popular platform among the DTC businesses that are on only one social account, with over 63% choosing the social platform over any other.
56. Click-through rate for DTC brands is 3x higher on mobile than on desktop.
Even the DTC business’s conversion rates (click-through resulting in retail sales) are 50% higher on mobile than desktop.
- Moreover, women click twice as much as men when it comes to DTC advertisements. Additionally, ads related to fashion and accessories receive 2.5x more engagement than average engagement rates.
- At the same time, ads related to “alcohol” and “e-learning” have the lowest engagement rate of all (10x less than the average).
- LiveIntent’s online shopping statistics indicate that DTC businesses focused on mobile have a 2.5x lower cost per acquisition than businesses focusing on desktop.
57. 25% of all DTC companies offer next-day or two-day deliveries. FedEx, UPS, and USPS are the major carriers among DTC companies.
- 41% of small DTC brands (up from 26% in 2019) offer next-day or two-day deliveries.
- In comparison, only 30% of mid-size DTC companies offer next-day or two-day deliveries in the US.
- Almost 70% of the small and mid-size DTC companies (annual revenue less than US$ 5 million) rely on USPS (United States Postal Service) for deliveries.
- FedEx and UPS are used by the larger DTC companies(annual revenue of more than US$ 5 million).
58. 57% of all US DTC businesses and 23% of all US ecommerce companies are powered by Shopify.
- WooCommerce is the second-most popular ecommerce technology among DTC retailers, with over 9% choosing the platform to power their websites.
- Shopify Plus (7%), BigCommerce (4.7%), and Magneto (4.3%) are other popular platforms used by DTC brands.
- Also important to note, 96% of the DTC online shopping brands using Shopify have an Instagram account vs. 86% non-Shopify DTC brands.
Retailers Must Meet Consumer’s Expectations
As stated in the beginning, this online shopping statistics guide highlights the current state of online shopping. But amid the ecommerce industry statistics, this list includes the online shopping trends, customer demands (they are not needed anymore), and how e-tailers can meet the needs.
- Consumers’ online shopping behavior has changed since the pandemic. Brand loyalty has become less important. Instead, consumers want value for their money (the top reason to change brand is lower prices by a competitor).
- Moreover, consumers, especially the younger generation, expect a personalized experience when shopping online. In fact, McKinsey states personalization is as important as the “hygiene factor” during a pandemic.
- And if e-tailers cannot personalize the experience — online shoppers do not hesitate to depart for a competitor.
Still, all is not lost. E-tailers should start working on an ecommerce personalization operating model and create a fully personalized experience for the consumers. If not, then all will be lost.
In all, remember that a personalized experience is an opportunity for retailers. Leaving this opportunity, you create a pathway for others — and they will be able to move ahead of you, even with friction.
- Statista — Global Payment
- Business Wire
- Baymard Institute
- 3Q Digital
- CR Research
- PipeCandy's DTC