If you're running an ecommerce business, the statistics below are the ones you need to know.
Whether you're an ecommerce manager or marketing executive for a fashion brand, beauty business or home decor retailer, these numbers tell you where the industry is and where it's heading next.
1. The global ecommerce industry is on track for $4.8 trillion+
The global ecommerce industry is now valued at $4.8 trillion+ and continues to grow rapidly. Competition is increasing in parallel, which means ecommerce brands must differentiate themselves with unique features, exceptional digital experiences and second-to-none customer service to remain viable.
2. 70% of consumers expect personalised experiences
Consumers are increasingly craving personalised experiences, with 70% expecting them. Buyers expect brands to know their buying habits, preferred products, style preferences and personalised search results within ecommerce sites. Make sure smart search, dynamic products and AI-powered features are part of your toolkit.
3. Social commerce is set to reach $13 trillion by 2033
Social commerce is set to grow to an unbelievable $13 trillion by 2033. Right now, social commerce sits at over $1.2 trillion, highlighting just how important social commerce is to ecommerce brands. The introduction of TikTok Shop and the success of Instagram Shopping should be reason enough to push your brand into taking the plunge.
4. Mobile commerce will account for 62% of retail sales by 2027
Mobile commerce is the leading ecommerce avenue and it is predicted to account for 62% of all retail sales by 2027. Ecommerce websites must be optimised for mobile devices with advanced, responsive design that ensures every site visitor encounters superior performance and lightning-fast loading times. Brands should also seriously investigate how an ecommerce app could grow their business.
5. The resale market is set to reach $218 billion by 2026
The resale market is set to reach a staggering $218 billion by 2026, highlighting a huge shift in consumer behaviour towards second-hand, vintage and used goods. The driver is increased prioritisation of sustainability and eco-consciousness in the mainstream. Brands such as ASOS and Zara have launched a second-hand market within their brand ecosystem, allowing them to have control over how their products are perceived in the resale market while still showing dedication to sustainability. It's important for brands, particularly within the fashion and homeware spaces, to consider if this is a viable option.
6. Fashion remains the largest ecommerce sector in the UK
Fashion remains the largest ecommerce sector in the UK, accounting for 28.7% of the total ecommerce industry. This is great news if you're a fashion brand as the industry is only growing. With growth comes increasing competition, so you'll have to get creative and innovate with new ideas to surprise and delight your audience.
7. The UK's ecommerce market is the third biggest in the world
The UK is home to the third largest ecommerce market in the entire world. If you're an ecommerce brand based in the UK, you're in the perfect position to drive growth and expand your online business. So what are you waiting for? Get grafting and start building your ecommerce business today.
8. 80% of brands predict that wholesale revenue will increase
Another interesting statistic is that 80% of brands predict that wholesale revenue will increase. Perhaps this is an avenue that your ecommerce brand hasn't explored or at least, hasn't prioritised in recent years. If so, reaching out to wholesale buyers could be a great, untapped revenue stream for your business.
9. 70% of Gen Z is willing to purchase goods directly on TikTok
TikTok Shop has fast become Gen-Z's preferred way to shop online. Over 70% of the generation are willing (and have already) purchased goods directly from TikTok. If you haven't set up TikTok Shop, it might be worth looking into. Hosting TikTok live streams where you display your products is another great way to reach the Gen-Z audience and direct them to your ecommerce site.
10. Online returns are becoming the most pressing issue for ecommerce brands
Online returns are amongst the top concerns for ecommerce brands. Returns policies should be reviewed regularly to ensure they are financially viable for your business model and take sustainable practices into account. Striking the perfect balance between pleasing your customers and securing your business against a build up of online returns that are harming cash flow is crucial to maintaining a robust ecommerce brand.
11. 91% of consumers make online purchases using their smartphone
M-commerce is now the first port of call for users wanting to buy something online. Considering that 91% of consumers have made an online purchase using their smartphone, it's clear that optimising your site for mobile users with features such as thumb-friendly navigation, optimised imagery and responsive design is paramount to success.
12. Shopify powers a major share of top sites worldwide
Shopify has become one of the most popular ecommerce platforms across the globe, powering a major share of the top one million websites. If you haven't taken Shopify seriously before, it's time to start doing so.
13. The average conversion rate for home decor sites is 1.9%
The home decor industry is still thriving and is seeing an average conversion rate of 1.9%. This is a good indication that the home decor market has tons of opportunities for online growth and should give interior and homeware brands the confidence they need to succeed.
14. The number of ecommerce users is expected to hit 3.7 billion by 2028
By 2028, the number of global ecommerce users is expected to hit a staggering 3.7 billion, highlighting the increasing ubiquity of ecommerce across the globe. There's plenty of opportunity for growth, but also increasing competition. Conduct extensive competitor analysis to get your brand ahead.
15. At least 43% of all ecommerce traffic comes from Google's organic search
This statistic is music to the ears of ecommerce SEO professionals across the globe. With many murmurs regarding Google's relevance in search as AI-powered search becomes increasingly popular, the knowledge that 43% of all ecommerce traffic still comes from Google organic highlights that SEO remains a powerful tool for driving ecommerce success, even in an AI-first search era.
16. The average cart abandonment rate for fashion sites is 70.19%
The average cart abandonment rate for fashion ecommerce is surprisingly high, sitting at over 70%. While this may sound alarming, perhaps it brings some comfort to those independent fashion brands with high abandonment rates. It seems that this is more of a consumer behaviour tactic that most fashion lovers use while on a quest to find their perfect fits.
17. Ecommerce email marketing has an average conversion rate of 10.3%
Email marketing is a fantastic way to nurture customers and drive sales for your brand. So much so that the average conversion rate for ecommerce emails is 10.3%. Compared to the above conversion rate statistics, it's apparent that ecommerce newsletter should be considered a top priority by marketing managers and those running ecommerce brands.
18. Mobile wallets are the leading payment method for ecommerce
Mobile wallets such as Apple Pay are now the leading online payment method for ecommerce brands. If you haven't already added this payment option to your ecommerce site, we highly recommend that you do, ASAP.
19. AI adoption is now mainstream across retail
AI has become increasingly intertwined with ecommerce, with the majority of retailers now using or actively investing in AI-powered tools to improve operations, personalisation and customer service. Reports from The Social Shepherd and other industry trackers consistently show AI adoption in retail above 80%. If you haven't already experimented with AI, take this as your hint to do so.
20. Ecommerce will continue to grow
Overall, it's clear to see that the ecommerce industry will continue to flourish over the coming years. Audit your existing ecommerce website to ensure that UX is optimised for conversions, AI is being used where relevant, and you're utilising the commerce outlets available to you such as social and mobile commerce. If you need a helping hand, don't hesitate to get in touch.
Alternatively, check out our FREE UX Audit or Replatforming Audit to help you identify missed opportunities.
