The Growth of Online Shopping: 9 Statistics to be Aware of in 2020
As we advance our technology and our day-to-day lives become busier than ever, we’ve started moving more and more things online, including shopping. While online shopping was once non-existent, it has now become a multibillion-dollar industry. Shopping online has become a common practice for millions of people all around the world (especially with the recent coronavirus outbreak). Now, more and more people are buying goods and services online than ever before.
One reason online shopping has grown exponentially over the years is because of the experience businesses are able to offer to their customers. Businesses are now able to add new features and services for their online shoppers, giving them the same support and comfort as they would receive during an in-store shopping experience.
If you have an online business already or are interested in bringing your business online, here are the top online shopping statistics you’ll want to know so you can continue growing in 2020.
1: 63% of Shopping Begins Online
Whether customers are finally making their purchase online or in-store, for the majority of them, the journey begins online. Most of the time, people start their searches on Google or Amazon and work their way from there. By improving customer experience from the start, businesses have a higher chance of getting potential customers to purchase products or services from their store.
In order to create a unique experience for your customers, you’ll need to understand how people search. No two customers are going to have the exact same path that leads to a purchase. Find ways you can customize the online journey for your customers.
2: Around 1.8 Billion People Shop Online
In 2018, it was estimated that around 1.8 billion people purchased products and services online, and in that same year, global e-commerce sales amounted to about $2.8 trillion. These numbers are only increasing! Projections show global e-commerce sales growing up to $4.8 trillion by 2021.
The growth of online shopping isn’t going to stop any time soon, which is good news for both online buyers and sellers. There are many reasons people choose to shop online, from being convenient to being able to easily compare prices.
And now, it’s easier than ever for businesses to match online shopping experiences with in-store ones with product images and detailed descriptions.
However, sometimes it can be hard for e-commerce stores to stand out amidst the sea of competition, which is why it’s crucial to choose your audience carefully and focus your efforts on your customers.
3: 62% of Online Buyers Shop At Least Once Per Month
We know that more and more people are shopping online, but how often? 62% of online buyers shop at least once per month, and 26% of online shoppers shop online once per week. 3% even claim to shop online once per day.
With so many consumers looking to buy products online, they often find themselves to be indecisive. Not only do these people admit to spending time researching and comparing products, but research shows that shoppers feel overwhelmed by the amount of options they come across when browsing.
Around 46% of online shoppers have failed to complete their purchase because there were too many options to choose from.
One way businesses can help customers with the decision-making process is by streamlining digital commerce experiences that provide customers the info they’re looking for. This can be done through a multistep e-commerce journey such as reaching out to customers via email, giving them information on your latest offers, or communicating with them through social media platforms. By assisting your customers, you can help them understand what they’re looking for and improve their e-commerce journey.
4: Almost Half of Consumers Shop More on Mobile
Nearly 50% of customers are shopping on their mobile devices rather than in-store. If you plan on running a successful e-commerce website, you’ll need to make sure your website is responsive for all devices, including desktops, laptops, tablets, and phones.
In the last quarter of 2018, it was estimated that desktop PCs accounted for about the same about of e-commerce orders as smartphones. However, in terms of retail website visits, more were done on smartphones, making it the number one device that people used to visit e-commerce sites.
More and more people are making purchases on their mobile devices, so you’ll want to make sure your business has a user-friendly app or mobile website that your customers can easily access. Even if these people don’t make their final purchase through their mobile device, you should try to provide the best experience possible.
5: eWallet is the Preferred Payment Method
Over 36% of shoppers worldwide use an eWallet as their payment method when shopping online. Credit cards take second place, and debit cards come in third for most popular payment methods.
eWallets, also known as digital wallets, are an online service or electronic device that makes electronic transactions possible, including online payments and in-store purchases. Some of the most popular eWallets include Apple Pay, Google Pay, PayPal, and Samsung Pay.
Whether you have an online store or are considering starting one, you need to consider your payment gateways. You’ll want to make sure your customers have both a smooth and secure checkout experience. You’ll also want to take a look at your target audience’s demographic, so you can ensure that the payments they are familiar with are made available.
6: 75% of Consumers Expect to See New Products Each Month
The needs of shoppers are forever growing, and they’re always in demand for new products. 75% of consumers’ search queries every month are brand new, which shows that when people are browsing online, they’re actively looking for new products.
69% of consumers also said it’s important for them to see new merchandise each time they visit a store or e-commerce website.
Because the e-commerce industry is more dynamic than ever, retailers have to evolve in order to remain competitive. Businesses can do this by customizing the shopping experience for their customers and giving them variety when shopping, so they’re less inclined to look elsewhere. Make sure you stay up-to-date on your product offers so you can stay ahead of your competition.
7: 63% of Consumers Abandon their Carts due to Extra Shipping Costs
There are many reasons why consumers abandon their carts, such as discount codes not working, long shipping times, having to re-enter payment or shipping information, or extra shipping costs. In fact, 63% of cart abandonments are due to additional shipping costs.
Free shipping is becoming more and more necessary in order to maintain an advantage. Adding hidden costs to the online shopping process, especially at the final steps, means that many buyers will leave without finalizing the purchase. These hidden costs are considered an annoyance for a lot of online shoppers, who may see it as a lack of transparency.
The best way to deal with this situation is to offer full disclosure to your customers. It’s better to state all costs from the beginning of the shopper’s journey or provide free shipping to customers who buy a certain amount. Transparency is essential to online shoppers, and it’s crucial to have if your business is to remain successful.
8: Because of COVID-19, 42% of the U.S. Population Bought Groceries Online
Due to the coronavirus outbreak, 42% of Americans bought their groceries online in March of 2020, which is nearly DOUBLE the 22% it was in 2018. Countries across the globe have been imposing strict quarantine measures in order to flatten the curve and limit the spread of the virus, resulting in more consumers shopping online, especially for groceries.
Most likely, this will be more than a temporary boost in online sales. In fact, more than 50% of online grocery shoppers said they’re more likely to continue shopping online even after the pandemic.
9: E-commerce Categories with Essential Products Grow Rapidly During COVID-19
As coronavirus spread around the world, it led to a lot of panic-buying in many countries, in both brick and mortar stores and e-commerce shops. Essential items and medical products saw the most significant rise in online sales, and a recent study done by Adobe revealed that sales for products such as gloves, masks, and hand sanitizers grew more than 800% over the first ten weeks of 2020.
Because gyms have been forced to shut down, the demand for at-home fitness equipment has also increased by 55% in the first two weeks of March alone. Sales of home furniture are also on the rise as people are spending more time at home and need to set up home offices.
Many small businesses have been negatively impacted by COVID-19, however. Here are some ways SaaS companies and Google are helping these businesses remain successful during the pandemic. Need more advice? Here are some tips on growing your business online during COVID-19.
Online shopping is becoming more and more popular, and it’ll only continue growing in the coming years. In order to remain competitive, businesses need to have a good online presence. Keep these online shopping statistics in mind when planning your business strategy for 2020! If you need help strengthening your online presence or setting up an e-commerce store for the first time, reach out to us at AnoLogix!
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