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Industry experts predict that eCommerce sales will increase to $4.3 trillion in 2021 from an estimated $2.8 trillion in 2018, with digital and mobile leading the way for growth.
While brick-and-mortar transactions still account for the bulk of consumer expenditure, data indicate that internet buying is rapidly increasing. Many brick-and-mortar businesses are fighting to remain afloat, owing to the extra impact of the COVID-19 epidemic on in-store purchasing. Meanwhile, buyers flock to a slew of new small companies, direct-to-consumer merchants, and online entrepreneurs.
How many people do their shopping online?
1. A third of all people in the United States (31%) are “nearly always” online.
More than a quarter of respondents in the United States say they are online “nearly continuously,” while 48 percent say they are online “several times a day.” Young people are more likely to be constantly connected, with 48 percent of 18 to 29-year-olds claiming to be “nearly always” online.
2. Surprisingly, just 7% of people in the United States utilize the internet.
In the year 2000, 48% of people in the United States did not use the internet. Thanks to the government and social assistance initiatives, that figure has dropped to 7% today. However, there are still 7% of the population that solely shop in brick-and-mortar establishments.
3. More than 255 million people in the United States purchase online.
According to Statista, over 256 million digital purchasers in the United States in 2020, accounting for roughly 88 percent of the adult population. This figure is likely to rise even more, to 263.01 million in 2021 and 278.3 million in 2024.
4. Only 14% of all retail expenditures are spent on the internet.
Even though more individuals are shopping online and with more regularity, most purchases are still made in stores. In 2020, 14 percent of all consumer spending in the United States will be done online, increasing barely 3% from 2019.
5. Retail eCommerce sales are estimated to reach about $5 trillion in the next several years.
In 2021, internet sales were expected to exceed $4.9 trillion globally. This is an increase from the $4.28 trillion forecasts for 2020. According to projections, the amount will be more than $6 trillion by 2024.
6. Most customers (63%) prefer the ease of purchasing online.
The simplicity of online checkout and returns attracts customers to internet purchasing. In fact, according to reports, 33% of online customers are lured to e-commerce because of easy returns, while 30% are drawn to the fast and straightforward online checkout procedure.
However, 53 percent of individuals say they buy online because of free delivery, indicating that this is a valuable service for online merchants to provide.
7. More than half of younger shoppers want to finance their online purchases.
Online shopping sales are boosted by solutions like Klarna, Affirm, Splitit, and Sezzle, which enable users to purchase now and pay later. About 70% of baby boomers said that having a financing option hasn’t influenced them to buy anything they wouldn’t have bought otherwise. Generation Z and millennial customers purchase more things or more costly items when consumer financing is offered.
The following are some key takeaways about the number of individuals that purchase online:
- It’s no longer enough to be a traditional brick-and-mortar store. An eCommerce component may be added in a variety of ways. This also helps you access a more extensive client base than you would be able to reach with only a regular retail business.
- Customers who don’t utilize the internet and those who do still need in-person encounters. To appeal to a wide range of people, look into events, marketplaces, pop-up stores, and other in-person retail activities.
- Your permanent retail location is still crucial. Focus on establishing an in-store experience that is consistent with and enhances the online experience, serving as a fulfillment hub for consumers who purchase online and pick up in-store.
Technology and Devices
8. Mobile shopping is predicted to account for over 73% of all eCommerce sales.
In 2021, mobile eCommerce was expected to account for 72.9 percent of worldwide eCommerce. In the United States, 53.9 percent of internet sales are predicted to be produced by mobile in 2021, a lower but still respectable figure.
In 2018, online purchasing through mobile devices accounted for around $207 billion in the United States. In 2020, sales directly via cellphones surpassed $338 billion.
9. The average order value on a desktop is 42% more than the average order value on a mobile device.
While many buyers are migrating to mobile shopping (also known as m-commerce), they still spend more on conventional platforms such as desktop PCs. The average value of a desktop sale was 42 percent more than the middle mobile phone order in the third quarter of 2020. There are various reasons for this, but 19.6% of buyers say it’s challenging to read product descriptions on a mobile device.
10. Nearly 65 percent of Amazon customers prefer to shop on their computers.
It also suggests that, for Amazon customers, in particular, desktop experiences are still significant. The desktop site is used by over 65 percent of Amazon consumers, while the mobile site and app are used by just 16.6 percent and 13.6 percent of users, respectively.
11. More than half of customers (61%) favour stores with augmented reality capabilities.
By making it simpler to see product features, augmented and virtual reality can boost customer confidence. 40% of buyers said they would pay extra for a product they could inspect and personalize using augmented reality. Similarly, 71% of customers think they would purchase more if they could utilize augmented reality to try out things. This may lead to improved brand loyalty and higher-value sales in the long run.
Takeaways from online purchasing technology:
- It’s just as crucial to have a desktop site as it is to have a mobile one. It’s simple to build a responsive, mobile-optimized experience for online consumers when using a platform like BigCommerce or Shopify.
- Make use of technology to improve the eCommerce experience. Visual search makes it simple for customers to discover your goods, while AR/VR technology helps them have a more immersive product experience—an area where e-commerce falls short. You may also construct a virtual tour to persuade customers to visit your business.
Social Business
12. Almost half (48%) of internet users between the ages of 18 and 34 have purchased using social media.
By October 2020, 35% of adults in the United States will have purchased social media (an 8 percent increase from April 2020). Older customers are less enthusiastic about the site, with 60% of those aged 55 and over claiming no interest in purchasing on social media. On the other hand, social media is critical for reaching out to younger customers. According to reports, 48% of persons aged 18 to 34 have purchased using social media, and 11% do so regularly.
13. In the United States, more than a quarter of customers (31%) utilize social media to find new items.
According to Bazaarvoice’s 2021 Shopper Experience Index, more than a quarter of American shoppers use social media to discover new items. The ratio is significantly greater for younger customers, with 43% of 18 to 24-year-olds and 47% of shoppers 25 to 34 years old. Set up a Facebook Shop and use it to establish a shoppable Instagram page to reach these customers.
Social Media Business takeaways:
- Many tools are available on Facebook and Instagram for displaying items, producing adverts, and developing a “social shop” to promote sales through social media.
- Mix in some interaction and promotional pieces with your social media material. With too much marketing and promotion, you don’t want your audience to feel overwhelmed.
Fulfillment and shipping
14. In 2020, click and collect sales in the United States hit $58 billion.
Click and collect, often known as BOPIS (buy online, pick up in-store), is growing in popularity among customers, with more than nine out of ten finding it handy. This is because the model enables customers to browse and compare items from the comfort of their own homes and then pick up the item without having to wait for or pay for shipment. According to eMarketer, click and collect sales in the United States were $58.52 billion in 2020, and this figure is expected to rise to $74.24 billion by 2022.
Due to the popularity of BOPIS and click-and-collect, many POS systems now include these order fulfillment features and other omnichannel sales tools.
15. The majority of online customers choose two- to three-day delivery.
According to Shippo’s annual State of Shipping study, the most preferred delivery window for online buyers is two to three days—46.2 percent of consumers and 40.7 percent of businesses choose it. Furthermore, 15.1 percent of customers choose same-day or next-day delivery. Surprisingly, 34 percent of retailers said they don’t provide customers with a choice for delivery timeframes.
16. Only 19.4% of buyers are unconcerned about shipping costs.
40.5 percent of shoppers favour shops that provide free delivery, according to Shippo. 24.9 percent of those polled would only buy something online if it came with free delivery, while 15.2 percent would go to a different retailer with free shipping. Only 19.4 percent of those polled said they were unconcerned about delivery prices.
Even though many customers enjoy free delivery, just 33% of companies always provide it when you include those who give free delivery on occasion or more than half of the time, the total rises.
17. Free shipping on returns is essential to many online buyers (41.2 percent).
Consumers in the United States report they seldom (65%) or never (26%) return internet purchases. However, 41.2 percent of US internet buyers feel that free delivery is the most significant factor when it comes to producing a product. In contrast, 28.1 percent of customers are most concerned with the simplicity with which a refund may be processed, while 19.6 percent are unconcerned with returns at all.
Fulfillment and shipping takeaways:
- Consider employing it as a fulfillment or warehouse facility if foot traffic is minimal or your retail shop is closed. To promote additional sales, implement innovative procedures such as curbside pickup, local delivery, or BOPIS.
- Check out a few different carriers to see which one is the most cost-effective for you. Remember to strike a balance between your budget and its time to deliver your product. Allowing customers to pick from a variety of delivery alternatives is another possibility.
Abandonment of Cart
18. Online shopping carts are abandoned in over 70% of cases.
To attract new clients to your website, tiny online businesses may need to spend a lot of money on advertising. Getting visitors to your site, on the other hand, is merely the first step in converting them into paying clients. They must add your items to their shopping cart and finish the checkout procedure. However, almost 69 percent of all online shopping carts are abandoned on average.
19. Emails to abandoned carts have an 18% conversion rate.
Abandoned cart emails are simple to set up and automate, and it can be an easy opportunity to seal the deal. According to one study conducted by Barilliance, the Abandonment of Cart emails earn an average 18.54% conversion rate. These emails also have an average 15.11% click-through rate for 2020, higher than the average 8.1% click-through rate of top-of-funnel emails.
Abandonment of Cart takeaways:
- Don’t forget to personalize the checkout process when creating an online business. Create as few steps as possible to make it as simple as feasible for customers to complete a transaction.
- Automated abandoned cart emails should be part of your plan. The email will be sent automatically after you’ve set it up, so you won’t have to start the follow-up campaign every time manually. This is one of the most discreet and straightforward techniques to boost internet sales.
- See our complete guide on shopping Abandonment of Cart statistics for more information on how to reduce your abandonment rate.
People’s Online Shopping Habits
20. Approximately half of younger internet shoppers make spontaneous purchases.
In 2018, out of the millions of Americans who bought online, 49% of those aged 18 to 24 made an impulsive buy. Younger shoppers make much more unexpected purchases than the typical shopper, with just 35% of those aged 65 and over admitting to creating an impulsive online buy.
21. In 2020, online apparel and footwear sales grew by 27.2 percent.
Clothing and shoes are well-known to be among the most popular goods to buy online. However, the surge in online clothes and footwear purchases in 2020 is even more spectacular. According to Coresight Research, an online clothing and footwear sales would climb by 27.2 percent in 2020, reaching $121.5 billion. The retailers that haven’t kept up with the internet purchasing trend are the ones who are having the most significant difficulty.
22. In 2020, drunk Americans spent more than $21 billion on the internet.
According to the Finder’s Drunk Shopping poll from September 2020, 21.4 percent of Americans admit shopping while drunk. After consuming alcohol, the typical American consumer spent $768.58 on internet purchases in 2020, and intoxicated Americans spend $30 billion online each year.
The following are some key takeaways about what consumers are purchasing on the internet:
- Always remember to personalize your online experience to your specific product or service. If you’re searching for a graphic T-shirt, you’ll probably need fewer product photographs and specifications than if you’re looking for a new mountain bike.
- When marketing your items online, keep the context in mind. What’s happening in your customer’s life and the world around them, and how does this affect their purchase preferences? It’s preferable if you can anticipate your clients’ wants. You may utilize predictive analytics reports to estimate opportunities and demand by integrating your POS system with your eCommerce site.
Purchasing Patterns on Amazon
23. Amazon is the starting point for over half of all online buyers (47 percent).
More online shoppers use Amazon than Google. 47% of people go straight to Amazon when wanting to buy anything online, whereas 24% start with a Google search. Around 14% of customers begin their search elsewhere, such as at a particular online retailer such as Target or Walmart.
24. Most customers (89 percent) choose to purchase from Amazon over other retailers.
Not only do half of Amazon customers purchase there at least once a week, but they are also incredibly devoted to the site. According to a 2019 poll, 89 percent of respondents said they were more inclined to purchase things from Amazon than from another eCommerce site. Furthermore, almost a quarter of customers make an Amazon buy every few weeks—and 5% make an Amazon purchase every day or practically every day.
25. Because of the speedy and free delivery, most internet users purchase on Amazon.
When it comes to making online purchases, customers cite various reasons for doing so at Amazon. 79.8% of internet users purchase on Amazon because of the speed; free delivery is quite impressive. Similarly, 68.9% chose Amazon because of its extensive assortment, and 65.7 percent chose Amazon because they are Prime members.
Takeaways from Amazon buying habits:
- Amazon is a valuable tool for driving online sales and brand/product exposure, even if it isn’t a significant element of your plan. Customers unfamiliar with your brand are more inclined to trust a purchase made via Amazon rather than directly from you since Amazon already has brand awareness and trust.
- Consider simply selling a few things on Amazon and keeping the rest of your inventory in your shop and on your website. Include incentives for direct purchases, such as referral coupons, customer awards, and discounts.
The Effects of the COVID-19 Pandemic on Ecommerce
In 2020, global eCommerce sales were expected to increase by 10%.
Global eCommerce sales increased by 10% in 2020 due to the COVID-19 pandemic’s influence on in-store shopping. In 2021, this remarkable rise was predicted to continue, with worldwide eCommerce sales expected to exceed $2.7 trillion.
27. During the COVID-19 outbreak, online food purchases surged.
Peapod pioneered online grocery ordering 30 years ago, yet just 3.4 percent of total supermarket transactions were made online in 2019. However, in reaction to the COVID-19 outbreak, this number skyrocketed. With consumers becoming increasingly wary about in-person grocery store visits, the proportion of food transactions made online climbed to 10.2% in 2020. The balance is likely to rise further in the following years, reaching over 21% in 2025.
28. Due to the COVID-19 epidemic, half of the customers (52 percent) said they avoided shopping in retailers.
Because of the coronavirus epidemic, more than half of customers have made efforts to avoid going to brick-and-mortar establishments. More than a third of buyers said they planned to boycott shopping until a vaccine was created.
29. Almost every buyer (91%) indicated they’d return to the business if a vaccination became available.
In early 2021, 23% of customers in the United States said they would not shop in an indoor mall unless they had gotten the COVID-19 vaccination. Going to a mall from the outside (13 percent stated they’d wait), going to a stand-alone retail business (4 percent), and going to the grocery store all had lower perceived risk (4 percent ). According to another survey, 91 percent of respondents said they felt secure buying in stores after getting vaccinated.
Takeaways for the influence of the COVID-19 epidemic on internet shopping:
- The coronavirus epidemic has caused havoc on the retail business, but it has also opened up new chances for brick-and-mortar and eCommerce companies.
- Small businesses have the edge over big-box stores because they are more agile. You’ll be able to respond to changing trends, standards, limits, and client behaviours more swiftly.
- In-store shopping may become more popular now that a COVID-19 vaccination is available—at least in the near term.
Online Shopping in the Future
30. Social media purchases are getting increasingly popular.
Younger generations are already using social media to make online purchases, and it seems that this tendency will continue. According to a 2020 eMarketer analysis, the number of social purchasers in the United States is predicted to rise from 53.3 million in 2018 to 94.3 million in 2022, representing a 75 percent growth in only a few years.
31. By 2025, online retail sales will have surpassed $550 billion.
Retail eCommerce sales in the United States grew from about $286 billion to just over $360 billion between 2017 and 2019. And, despite a significant increase to $431.6 billion in 2020, mainly owing to the COVID-19 pandemic, these figures will continue to climb until 2025. In 2022, online retail revenue is predicted to exceed $500 billion, and by 2025, it will have surpassed $560 billion.
In 2021, over 26 million US customers were predicted to shop via intelligent speakers.
Around 28% of US homes have at least one smart speaker as of 2018. In the same year, 15.9 million internet users said they had made a transaction via a smart speaker. The number of customers using smart speakers to make purchases is estimated to reach 26 million by 2021.
Businesses are investing in voice marketing to reach this group. In 2019, 35% of small businesses in the United States increased their marketing budget to engage in voice marketing.
33. Shop local tendencies continue, with 70% of shoppers visiting small business websites.
According to a poll of 1,500 customers conducted by Intuit, 70% of consumers support local businesses by solely purchasing online or combining online and in-store. Many customers (57 percent) purchase locally to retain money in their communities, while others (38 percent) choose to support local artists and NGOs (19 percent ). Some customers shop from small firms because they get superior customer service (28 percent ).
Takeaways on Online Shopping in the Future:
- If you don’t have a solid social media presence yet, now is the time—mainly if your company caters to millennials and Gen Z.
- The COVID-19 epidemic may have caused an increase in online buying, but it isn’t going away.
Conclusion
According to online buying statistics, having a digital presence is crucial for retailers. Consumers utilize retail websites and social media to find items, read reviews and compare prices before buying online or offline, so it’s more than simply a platform to sell your stuff.
Frequently Asked Questions
How many online shoppers are there in 2021?
A: There are over 2.5 billion internet shoppers globally, with $1 trillion worth of sales annually.
How many online businesses are there in 2021?
A: There are currently more than 10 million online businesses worldwide.
What percent of shopping is done online?
A: In the United States, approximately 68% of all shopping is done online.
