For online purchases, we recommend offering these transaction methods: Providing an alternative payment scheme, such as BNPL, can give your business a competitive edge. In the highly competitive and fast-paced world of e-commerce, one thing is always certain: We're in for yet another year of change and disruption. At Morgan Stanley, we lead with exceptional ideas. Not only that, but 17% of Baymards respondents have stated theyve abandoned their shopping carts due to convoluted checkout processes. As eMarketers Worldwide eCommerce Forecast Update 2022 report stated, global eCommerce sales will only grow by 9.7% in 2022, a slight decline from the previous period. For instance, in revenue-based financing, funding is not repaid in fixed installments. Digital ad spending is projected to grow from $51.1 billion in 2016 to $77.9 billion by 2021, according to eMarketer.Digital ad spending can be used for a variety of purposes, including attracting . Consider local SEO and using long-tail keywords so that people searching by voice will be able to easily find your store. That will give it a 37.8% share of the US ecommerce market in 2022, a slight drop from the 38.0% it had last year. Interactive projections with 10k+ metrics on market trends, & consumer behavior. According to an estimate, the CRM market size will reach $128 billion by 2028 and grow at a rate of 12% annually. Try implementing some of the following best practices: mandatory signups, support of multiple digital payment methods, exit-intent popups. In fact, product recommendations could make up for 31% of your eCommerce stores revenue. Dont just focus on the positive metrics and think everything will stay rosy, the market will reach a stable plateau soon enough. Autonomous Technology & Robotics. These figures suggest this is the time to start an eCommerce business. Growth rates will not go negative, however, and some parts of the world will do just fine. In-depth analysis, benchmarks and shorter spotlights on digital trends. E-commerce platform users penetration will be 71.9% in 2022 and estimated to hit 83.9% by 2025. Video content is something that 54% of consumers want from the businesses they support, making it an important aspect for any business owner. Consumers can browse and purchase through the Internet of Things (IoT) devices such as smart speakers, fitness trackers, and home assistants. Numerous other eCommerce titans in China, including JD.com, TMall, and Taobao, play a significant role in the countrys online sales volume. After all, giving away equity is expensive. WHATS IN THIS REPORT? The best way to generate user-generated content (UGC) is by inviting consumers to join your online community. Insider Intelligence aims to be the worlds leading research service focused on digital transformation. It credited this largely to PayPals recent adoption of QR payments and partnership with CVS, which has tapped into Americans growing need for cashless options during the pandemic (11% more people have been using QR codes since the pandemic began). With physical stores forced to close, customers started buying everything they needed online. Reliable data in simple displays for presentations and quick decision making. years later, eMarketer data showed that the actual. The number of online sales and their values are increasing. You can do this by employing conversion rate optimization, or CRO. Many companies are now using chatbots as their initial form of customer service, due to the increasing demand for real-time assistance. Methodology KEY STAT: Health, personal care, and beauty ecommerce sales will grow 24.4% this year, while food and beverage sales will increase by 20.6%solidifying their status as Amazons fastest-growing ecommerce categories. Additionally, the population growth rate is quite higher in these countries than in Europe or North America. eCommerce Statistics For 2022: Growth and Trends To Watch. If you still have questions or need assistance developing an eCommerce business, please contact our experts for advanced consultancy services. However, live chat firms that dont provide good customer service will quickly see buyers begin to shop elsewhere. Jun 14, 2022 Here's Why E-Commerce Growth Can Stay Stronger for Longer Global e-commerce stocks surged during the early days of Covid-19 but have since slumped. The average daily time spent on social media is now 2 hours and 27 minutes, according to the Digital 2022 Global Overview Report. These days, many people love to shop online, and its no surprise given the pandemic has limited so many peoples movement. 81% percent of customers say that positive support encourages them to come back and buy again. Most of these stores use Woocommerce or Shopify as their platform. Which countries and regions will produce notable e-commerce growth figureseither positive or negativefor this year and through 2025? However, total new spending will still be huge: Chinas digital buyers will shell out $240.13 billion more than in 2021. Fortunately, there are tools like Google Analytics that can help you do just that by monitoring various website statistics. However, global brands cannot avoid feeling the pressures of inflation. According to Tidio, on average, global shoppers spent $1,060 on online purchases in 2015. 2022 was a landmark year for H.B. If youre just starting out, it will be trickier to launch your online store with WooCommerce rather than Shopify. As customer acquisition costs continue to rise, maximizing customer lifetime value helps maintain profitable margins for your business. As well as speed, business owners should also be aware of the tendency for free or affordable shipping. eCommerce activity has seen a huge jump over the past two years, with the pandemic forcing more of us to find alternative means to browse and buy, due to lockdowns, store closures and other restrictions. However, many consumers prefer the one-stop convenience of buying everything they need in one place. Following Apple's privacy updates in iOS 14.5, cross-app data sharing is prohibited unless users choose to opt in. Lets dive deeper into these two eCommerce markets. Also, 31% of users are worried about their privacy when using these tools, and 27% fear the safety of their financial information. $39.57. Despite slowing growth, total spending will surge past $7 trillion by 2025. Multicultural and women entrepreneurs are the cutting-edge leaders of businesses that power markets. Additionally, optimize the queuing system to reduce wait times. For perspective, in 2020 it was only around $240 billion. This encourages 60% of consumers to make a purchase from the company. Additionally, this growth is expected to continue steadily into the future. AI can learn and adapt according to customer behavior, giving companies the opportunity to improve their customers experience. According to a Trustpilot study from 2020, 89% of consumers globally take the time to read reviews before making a product purchase. Even though global e-commerce amounted to $3.4 trillion in 2019, this figure is estimated to reach $6.5 trillion by 2024 as the growth in e-commerce will outpace growth in physical retail. As of October 2022, approximately 163.590 active eCommerce sites online are powered by Magento 1, and almost 100.000 are powered by Magento 2, which accounts for close to 0.9% of all online stores worldwide. According to Litmus, for every $1 that marketers spend on email marketing, they receive 36$ back in return. If you want to get the most out of reviews, dont just depend on third-party platforms; put them prominently on your website and product pages as well. The goal of this activity is to improve customer experience. In-depth analysis, benchmarks and shorter spotlights on digital trends. View a slide-show representation of this reports key insights, where carefully vetted data is combined with industry trend analysis, included at no extra cost. Last year, they reported that 64% of all traffic was from mobile. By understanding your consumers, what they need, and why they need it, youll be able to influence their purchasing decisions more easily. He sees e-commerce reaching 27% of retail sales by 2026. . The second most amounts of Magento website users come from the United Kingdom, where 12.247 websites are active there on Magento 1 and 8.339 on Magento 2. Everything we do at Morgan Stanley is guided by our five core values: Do the right thing, put clients first, lead with exceptional ideas, commit to diversity and inclusion, and give back. Free shipping is particularly effective in reducing online shopping cart abandonment on mobile and desktop devices. Its no wonder Amazon is so successful when 61% of its customers say it provides a more streamlined checkout than its competitors. According to Buildfires statistics, 63% of consumers claim they find mobile apps more convenient than mobile websites. In the future, both shipping speed and price will continue to be important in eCommerce. For more Morgan Stanley Research on the outlook for global e-commerce, ask your Morgan Stanley representative orFinancial Advisorfor the full report, Stronger for Longer in Global E-Commerce (April, 2022). A quote from The Art of War, China's monumental treatise on warfare goes like this: "Know the enemy and know yourself; in a hundred battles you will never be in peril.". Since market research can be quite time-consuming, we have decided to do the work for you and provide eCommerce statistics that will help your business get the preparations for 2023. 3 KEY QUESTIONS THIS REPORT WILL ANSWER Current State of The Ecommerce Industry: Size, Demands, and Channels. It now sits at an estimated 22% of sales. After a two-year e-commerce boom driven by unpredictable circumstances and unusual growth patterns, it seems online spending is expected to stabilize in 2022. Reliable data in simple displays for presentations and quick decision making. While the rise of e-commerce during the first year of Covid-19 in 2020 is easily explained, the fact that growth persisted in 2021 is evidence of a real behavioral shift to shopping online, says Nowak. Data is weighted based on methodology and soundness. According to Invesp, by 2020, 50% of searches will be voice searches, and Voice Shopping is expected to reach $40 Billion in the US by 2022. Follow eMarketer on Flipboard, to explore their latest magazines and flipped articles. The data indicates that the majority of people are more likely to purchase a product or use a service after watching a brand video, rather than reading an article about it. In an interview with Glossy, Olaplex CEO JuE Wong explained how the company is affected by global inflation, macroeconomics, and geopolitical situations. Cross-border supply chains could be tricky to manage, too. Like Shopifys top two markets, its third and fourth most popular countries are both English-speaking nations: Australia takes third place with 123.850 Shopify stores while Shopifys home country of Canada comes in fourth place with 100.132 stores. Interactive projections with 10k+ metrics on market trends, & consumer behavior. Latest Ecommerce Sales data and analysis from Insider Intelligence including reports, charts, and articles. In fact, growth forecasts estimate that by 2022, in the United States alone . Electric Vehicles: During 2022 in the US, as auto sales dropped 8% on a year-over-year basis, Tesla's sales increased ~49%. In contrast, the United States is already a fully developed market for eCommerce in many years. The growth of the retail market largely relies on population expansion and, to a lesser degree, changes in consumer behavior. Elite Order Management System Deployment Service OMS Service, Best Search Engine Optimization Services (SEO) by Magenest, The Growth of Online Stores and Leading Products Categories Purchased, The Domination of Amazon in The Global eCommerce Market, Shopify Is The Second Most Popular eCommerce Platform, Average Online Shopping Cart Abandonment Rate, Online Shoppers Consult Reviews Online Before Making a Purchase, More Than a Half of Online Shoppers Consider Sustainable Packaging, Retail mCommerce sales hit $359.32 billion in 2021, Under half of all mobile users use their smartphones to compare product or service prices, Voice Shopping is estimated to reach $40 Billion in the US by 2022, QR Code Payment users to reach 2.2 billion globally by 2025, Potential customers want to purchase from online stores that offer live chat support, 83% of online customers said belonging to a loyalty program influences their decision to buy again from a brand, 89% of Digital Businesses are investing in personalization, Email is still an effective marketing tool, Video Marketing plays an important role in businesses marketing strategies, Social commerce sales are expected to reach $992 billion globally by 2022, More than a third of the time that internet users aged 16 to 64 spend online is spent on social media, The number of US social buyers to increase by more than 35%, Social Commerce is really popular among young people, Most marketers agree that social data gives them an advantage over the competition, Consumers see authenticity as a key factor in choosing which brands to support, A Challenging Global Supply Chain: Always Readily Have at Least 2-3 Suppliers, Increasing Customer Support Service Quality, Apply Artificial Intelligence to Personalization, 10+ Best eCommerce Website Builder for Small Business to Check Out, How much does an eCommerce Website Cost? How many new buyers will come online this year, and where can retailers find them. Insider Intelligence has increased its projections for total US retail spending in 2022. and each category can be broken out by country, region or by company. With the impact of e-commerce, traditional business continues to decline. Squarespace is initially known as a website-building tool for beginners. The US eCommerce market is forecasted to reach more than $904.9 billion in 2022, a little over a third of Chinas. Industry benchmarks for the most important KPIs in digital marketing, advertising, retail and ecommerce. If you dont have social media accounts for your business yet, these eCommerce statistics showing the benefits of social media should convince you to create some. Rather, RBF platforms will share a fixed percentage of your company's revenue until the sum is fully repaid. growth rate of ecommerce in 2020 was 25.7% 45%. However, this isnt the only reason. Some products are more appropriate to buy in person, while some are better buys through a website or app, it all makes perfect sense. By touches we mean every interaction between the customer and the company, here are some ideas to get you started: CouponFollows survey results show that approximately 47% of shoppers have used voice commands to make an online purchase, with 58% satisfaction rates. Globally, total retail is chugging along, but the big stories will be around ecommerce growth in emerging economies. Some stores are already aware of this fact, but which ones? The Jungle Scout Consumer Trends report reveals that 72% of US online shoppers seek products with the lowest shipping prices. Statistas Leading online marketplaces worldwide as of July 2020, based on the number of monthly visits chart reports that Amazon is also the most visited an online retail store in the world. Just one year later, this number increased by almost 40%. Marketplace Sales, 2019-2023 (millions and % of total Amazon retail ecommerce sales) These are some aspects to consider before choosing a financing solution for your company. As a result, the company will be investing in technology (such as eCommerce solutions) to help advance growth. A report found that the majority of Chinas cross-border online shoppers plan to spend more money online in 2022. amounting to an eye-popping 4.21 trillion US dollars.1 47%. From our startup lab to our cutting-edge research, we broaden access to capital for diverse entrepreneurs and spotlight their success. How many new digital buyers will come online this year, and where can they be found. Research suggests that 63% of all shopping journeys now start on the internet. Amazon's . And it's forecast to grow over 50% within the next four years . Invest in a knowledgeable support team that can provide personalized expert assistance and avoids giving scripted responses that make your companys consumer interactions impersonal. Unifying all shopping experiences, increasing flexibility, and opening up sales possibilities are only a few of the many benefits of headless eCommerce. Food and beverage. In contrast, eCommerce sales have an annual growth rate of 13%. That number is expected to grow in the next few years and reach 20.8% by 2023, a 3 percentage point increase. All rights reserved. But thats not all. Large numbers of e-commerce businesses emerge as the times require. Reliable data in simple displays for presentations and quick decision making. Macroeconomic Trends Affecting Retail Sales in 2022, Ecommerce Sales Growth Will Decline to Single Digits, Livestreaming and Groceries Will Be Silver Linings, Macroeconomic Conditions Weigh on Chinas Big Three Ecommerce Platforms. Additionally, this eCommerce platform is a great solution if youre looking for an SEO-friendly platform that is also highly customizable and scalable. US Retail Ecommerce Sales Growth, by Category, 2022-2026 (% change), US Total Retail Sales, 2020-2026 (trillions and % change), US Retail Sales Growth, by Segment, 2020-2026 (% change), US Retail Ecommerce Sales, 2020-2026 (billions, % change, and % total retail sales), US Mcommerce Sales, 2020-2026 (billions, % change, and % of total US retail ecommerce sales), US Top 15 Retail Ecommerce Sales, by Company, US Retail Ecommerce Sales, by Category, 2022 (billions and % of total retail ecommerce sales), US Total Retail Sales, by Category, 2022 (billions and % of total retail sales), US Retail Ecommerce Sales Penetration, by Product Category, 2020-2026 (% of category retail sales), US Auto and Parts Retail Ecommerce Sales, 2020-2026 (billions, % change, and % of category retail sales), US Carvana Retail Ecommerce Sales, 2018-2022 (millions and % change), US Food and Beverage Retail Ecommerce Sales, 2020-2026 (billions, % change, and % of category retail sales), US Jewelry Retail Ecommerce Sales, 2020-2026 (billions, % change, and % of category retail sales), US Fragrance Retail Ecommerce Sales, 2020-2026 (billions, % change, and % of category retail sales), China faces reckoning after sputtering economic growth, The economy, Web3, and social media highlight our analysts takeaways from the NRF 2023 Big Show, Apple looking to ramp up in-house component design and production, Amazons struggles give Walmart an opening, US consumer tech spend to decline for second year in a row, Amazon Fashion teams up with Rent the Runway on resale, Spiking holiday returns could lead retailers to adjust their policies, Microsofts $10B investment in OpenAI could help fuel AI funding trend, PepsiCo and Coca-Cola face FTC scrutiny over potential price discrimination, Big Techs layoffs reveal flaws in the industry, Marketers keep trying to make the metaverse happen and other CES observations, Deals ruled the 2022 holiday shopping season.