E-Commerce Statistics and Facts You Need to Know in 2023

Electronic Commerce, commonly known as E-Commerce, is defined as the buying and selling of goods or services on the Internet. The term embraces a wide variety of data, systems, and tools for online buyers and sellers which include mobile shopping as well as online payment encryption. In the year 2022, the global E-Commerce market size was USD 16.6 trillion which is expected to grow at a CAGR of 27.38% to reach a total size of USD 70.9 trillion by the year 2028.

What is today’s reality, was pioneered by entrepreneur Michael Aldrich in the United Kingdom in the year 1979. He successfully connected a modified domestic television to a real-time multi-user transaction processing computer through a telephone line. It was this system that was commercially marketed and sold as business-to-business systems in UK, Ireland, and Spain.

With the advent of the world wide web in the 90s, E-Commerce began to take shape and Book Stacks Unlimited, an online book store was created by Charles M. Stack in the year 1992. Then came the year 1995 and Amazon was officially launched, originally beginning its business operations as an online bookstore and the rest is history.

Ever since then, E-Commerce has grown and expanded exponentially and is, even now, consistently growing. This behemoth has substantially impacted seller and buyer behavior. This article is a look at some statistics and facts about E-Commerce.

E-Commerce Statistics & Facts
Overall Impact of the Pandemic on the E-Commerce Industry
Statistics Affecting E-Commerce Consumer Behaviour
Statistics Affecting Mobile E-Commerce
Statistics Affecting E-Commerce Marketing
Statistics Affecting Social Media for E-Commerce

E-Commerce Statistics & Facts

Business, by its very nature, is organic. It is ever-changing and ever-evolving. E-Commerce is no different. It is impacted by the purchase behavior of global internet users, mobile shopping, E-Commerce marketing, and social media’s relation to online purchases.

General E-Commerce facts to consider are –

• Online global retail sales are projected to surpass USD 7 trillion by the year 2025
• The cart abandonment average rate sits at 69.99%
• 89% of E-Commerce companies are investing in personalization
• Online sales through mobile commerce constitute more than 67.2% of all online sales
• 54% of all consumers who follow businesses online want more video content
• By the year 2025, sales from E-Commerce can reach 20.8% of all global retail sales to surpass USD 7 trillion
• The year 2022 saw the electronics industry leading the online sales market generating a revenue of USD 988.4 billion. Other thriving industries in the E-Commerce retail space included furniture, toys and hobbies, personal and household care
• China is the country that dominates the E-Commerce market share with over 80% of Chinese internet users buying from online stores

While E-Commerce had been registering consistent growth since its advent, it is an indisputable fact that galloped its way to the forefront, especially during the pandemic. Hence, it is only fair to begin listing E-Commerce facts and statistics from this period.

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Overall Impact of the Pandemic on the E-Commerce Industry

Contrary to the reality of the physical world where everything stood still for a long time as the globe grappled with the terrible virus, the E-Commerce industry thrived and recorded exponential growth. This was the only way for buyers and sellers to connect and it was utilized immensely.

• E-Commerce’s share of grocery retail grew from a mere 7% to 10% amidst the global lockdown
• The online drug industry registered a 16% growth in revenue during the containment and lockdown period
• All industries registered growth in their online business with food and personal care products recording the highest at more than 26%, toys, hobbies, and DIY at more than 21%, electronics, and media at more than 19%, furniture, and appliances at more an 17% and fashion at more than 14%
• Small and medium B2B companies also registered a growth in their E-Commerce business revenue share
• Overall, E-Commerce across the world registered an increase of approximately 19% in revenue in the pre and post-pandemic time during the year 2020

Statistics Affecting E-Commerce Consumer Behaviour

E-commerce strategies of various businesses are centered around online shopping trends and evolving consumer behavior. The aim is to improve customer experience, thereby increasing sales. Prevailing E-Commerce facts and statistics are –

• Approximately 70% of online shoppers abandon their carts midway and do not complete the process. This is related to the shopping experience – unexpected extra costs, account creation requirements, and/or a slow delivery process
• Digital wallets have emerged as the dominant payment mode of all the global E-Commerce payment options available. It eases checkout processes and positively influences purchase decisions
• More than 97% of online shoppers read and depend on online reviews before making the final purchase
• Sustainability and environmental impact have emerged to be the chief concerns affecting more than 52% of global E-Commerce shoppers with the world dealing with 6.3 billion tons of plastic waste
• Dominating global commerce sales, E-Commerce is the preferred shopping medium for almost 57% of customers due to its 24/7 availability, convenience, discount codes, health, safety, and speed
• Consumer engagement on E-Commerce sites like live chat encourages sales with 38% of customers purchasing and more than 51% of customers showing an inclination for repeat purchases

Statistics Affecting Mobile E-Commerce

E-Commerce has evolved to fit on individual mobile screens with different E-Commerce business websites also building apps for higher customer engagement and a more personalized customer reach. Mobile E-Commerce also offers many opportunities for businesses to increase their brand awareness and result in sales.

• Global mobile users are projected to reach 7.49 billion by 2025 accounting for 92% of the world population
• Mobile E-Commerce has grown at a faster rate than general E-Commerce recording a growth rate of 29% and currently accounts for 67.2% of all E-Commerce transactions
• The feature of voice shopping that is unique to mobile E-Commerce, contributes approximately USD 2 billion in consumer spending
• Mobile users are increasingly using the QR payment method and it is estimated that by the year 2025, 29% of all mobile users will make payments using the QR code

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Statistics Affecting E-Commerce Marketing

The world of E-Commerce is highly competitive and changing continuously. Businesses must keep creating on-point marketing campaigns to remain relevant in such a business scenario.

• A popular marketing strategy is loyalty programs that offer immediate rewards as it influences buying decisions
• Personalization in the digital space is now commonplace and E-Commerce employs it robustly as the chances of repurchasing from customers increase by 78%
• Video marketing is a highly influential tool in the marketing arsenal as 54% of consumers prefer to see video content from businesses of their choice
• More than 70% of small businesses have a web presence increasing consumer awareness as well as reach
• More than half of E-Commerce businesses (52%) are strong in providing a robust and seamless customer experience through omnichannel presence to increase brand visibility and increase customer loyalty

Statistics Affecting Social Media for E-Commerce

With the advent of the internet, social media grew and today forms an integral part of everyday lives. With the number of mobile users increasing every day, social media grows too and has now become one of the best online marketing channels. It is actively leveraged to increase sales.

• The potential of a younger demographic customer pool is wider on social media apps like TikTok and Instagram and these apps have added new and improved features for E-Commerce functionality. Social commerce is estimated to generate USD 30.73 billion in E-Commerce sales by the end of 2023
• 59% of the global population uses social media which is constantly growing with one report claiming that every second six new users join social media
• The wealth of data available on social media sites about potential customers is invaluable for marketers as it helps them to be more competitive
• Instagram has become the top social networking platform that keeps pace with the brands

Conclusion

Online shopping has grown to encompass the entire world within its grasp. Although a saturated space for E-Commerce businesses, this world is constantly evolving with the ever-changing consumer demographic. The statistics that hold true today for the E-Commerce world may also change. Hence, it is imperative for any business that is considering venturing into this space, to conduct due diligence as to the current trends that are steering E-Commerce.

FAQs

What is E-Commerce?

Electronic Commerce, commonly known as E-Commerce, is defined as the buying and selling of goods or services on the Internet. The term embraces a wide variety of data, systems, and tools for online buyers and sellers which include mobile shopping as well as online payment encryption.

How much are online global sales projected to grow by 2025?

Online global retail sales are projected to surpass USD 7 trillion by the year 2025.