Over the past few years, e-commerce has been an integral part of the global retail infrastructure. As with many other sectors, the retail landscape has experienced a profound shift since the birth of the Internet, and thanks to the continuing digitalization of modern life, customers in nearly every country now benefit from the advantages of online purchases.
As access to the internet increases and more people than ever across the world use it, the number of digital consumers worldwide continues to rise year on year. An estimated 1.92 billion people bought goods or services online in 2019.
In the same year, e-commerce revenues exceeded US$3.5 trillion worldwide and according to the latest projections, e-commerce growth will increase even more in the future. The video below explains more about the rise of e-commerce.
What is the main point to take away from this?
If you do not already have an e-commerce store, now is the time to get one. Without one, you are almost definitely going to lag behind your competitors.
Here, we are going to take a look at some of the key stats from e-commerce to help guide your marketing strategy for 2021.
Know your demographic and their habits
Younger people are more likely to shop online. A survey from Jungle Scout in May 2020 found the following interesting facts about the different generations and their shopping habits:
- Gen Z (18 – 24-year-olds): 11% shop in-store only, 89% shop online
- Millennials (25 – 39-year-olds): 9% shop in-store only, 91% shop online
- Gen X (40 – 55-year-olds): 10% shop in-store only, 90% shop online
- Baby Boomers (56 – 74-year-olds): 19% shop in-store only, 81% shop online
- Silent Generation (75 years and over): 24% shop in-store only, 24% shop online
It also looks like the older the person, the less time they are likely to spend shopping online (Big Commerce):
- Millennials and Gen X’ers spend six hours per week shopping online
- Baby Boomers spend four hours per week shopping online
- Seniors spend two and a half hours per week shopping online
Millennials are the biggest group of online shoppers, so e-commerce retailers should be looking closely at their behavior and how they engage with online shopping. CouponFollow found the following out about Millennial shopping behavior.
- Millennials make 36% of their purchases using a mobile device
- 64% of millennials make at least half of their online purchases on Amazon
- The reasons given for Amazon shopping being so popular include: availability of online reviews (43%) and the prices (41%)
- 65% of Millennials surveyed look online for coupons and discount vouchers before making an online purchase, compared to 35% who make in-store purchases.
- 9% of Millennials use online software or tools to automate coupon searches
- Millennial females are more likely to make in-store purchases as opposed to a male of the same age (42% of women and 38% of men)
Ideally, the conversion rate should not be the only metric that you look at when it comes to optimization and marketing strategy. The sector you are in will have wildly different conversion rates – business to business commerce is almost always going to have a higher conversion rate than standard consumer commerce.
However, when combined with other metrics, they are a pretty good indicator of how well your website is doing, especially in comparison to rival sites.
- Optimizing the checkout process through user testing and other means can increase conversion rates by 35%. (Baymard Institute)
- In 2018, it is estimated that online stores lost as much as $756 billion because of poor personalization (OptinMonster). However, don’t go overboard – 92% of internet users worry about how their data is used, so if a site is over-personalized, it can make people question how their data is being used.
- Slow page load speed times can increase your cart abandonment rate by three-quarters (Baymard Institute)
- Using videos on landing pages on average increases conversions by 86%. (Unbounce)
- For every $92 spent on acquiring a customer, just $1 is then spent on trying to convert them. (Econsultancy)
Want to know how to calculate your conversion rate? This video from Spreadsheet Clinic shows you how to use Excel to work it out.
Social media and e-commerce
In 2020, over 3.6 billion people were using social media worldwide. If your business is not active on at least one of the main social media channels, you are potentially missing out on a huge amount of sales.
In 2019, 30% of shoppers were open to buying products from social media platforms like Twitter, Facebook, or Instagram. (Disruptive Advertising)
The average conversion rate of an ad on Facebook is 9.21%. (Wordstream)
86% of women look at social media before making a purchase (Alist Daily)
39% of Facebook users like brand pages because they want to research different products. (Status Lab)
E-commerce is something that is growing and evolving rapidly, and the ongoing COVID-19 pandemic has meant more people turning to online shopping than ever before. To ensure that your business capitalizes on this, you need to ensure that your website is optimized and that you are looking closely at your target demographic and how they behave online.