The e-commerce industry is evolving at breakneck speed. In fact, the pace is fast enough that it can be pretty hard to get a handle on where things are headed without help from retail design firms – even if you're right in the middle of it all.
How can your company make the most of e-commerce and get in on its expansion? Here's what to know about the current and future state of digital retail as a business owner.
The Value of a Statistics-Backed Approach to Retail
Why broaden your perspective on the numbers behind the e-commerce sector's expansive growth? In short, doing so might inform smarter business decisions.
Keeping up with how the industry is growing can help retailers identify high-ROI strategies and lucrative investment targets. If you're planning on expanding, then knowing what the competition is doing – and how consumers behave online – could also make it easier to learn from others' successes and mistakes without taking on all the risks yourself.
E-commerce Sales Statistics and Outlook
With almost $5 trillion in sales worldwide in 2021 and a projected $7.5 trillion by 2025, e-commerce is growing rapidly, and international borders pose minimal barriers. In India, for instance, total sales for 2021 were expected to be worth some $67-85 billion in revenue, which was a significant jump from the previous year. The Indian market was projected to attain a valuation of $200 billion by 2026, no doubt helped along by the national government's Digital India campaign.
The trend also seems to be going strong in other countries that invest in boosting their digital shopping sectors. For instance, Saudi Arabia's e-commerce market grew by 17 percent in 2021, and its counterpart in the United Arab Emirates expanded by an impressive 31 percent.
Much of this growth was attributable to the global COVID-19 pandemic. Still, it's hard to ignore the underlying sentiment that made e-commerce a viable alternative to brick-and-mortar in such troubled times: Consumers worldwide are getting more accustomed to the idea of moving their traditional shopping activities into the digital arena.
Learning From Amazon E-commerce Statistics
Big digital retailers in the U.S. may be bellwethers of what's to come for global online markets. For instance, Amazon is on track to account for almost 40 percent of the U.S. e-commerce market's sales in 2022. With the next 14 largest online retailers capturing about 30 percent of remaining sales, this means that everyone else, such as small businesses, will have to compete for the last 30 percent.
Looking once again to India, it seems that retail giants will continue to dominate – Amazon and Flipkart have captured the bulk of e-commerce revenue for years, and it's unlikely they'll be unseated anytime soon.
Does this spell certain doom for independent companies that want more of the pie for themselves? No, but it could require you to tweak your strategy. For instance, you might capitalize on the trend by finding retail business consultants that can help you leverage the fulfillment services provided by your larger competitors.
Exploring Consumer Behavior Statistics
It might seem like e-commerce is a surefire business proposition considering the fact that the number of online shoppers topped 2.14 billion in 2021. That's about 27 percent of the entire global population! Don't be fooled into thinking you have it easy, however: You'll still have to work hard to win people's favor.
Fighting Back Against Cart Abandonment
Digital shoppers are savvy enough to know when they see a good deal – and steer clear of those that don't quite hit the mark. As a result, almost 70 percent of all shopping carts get abandoned before people make purchases.
Some contributing factors behind this troubling statistic include the existence of unexpected costs: Nearly half of all shoppers will ditch their carts if they get hit with surprises like taxes and shipping, meaning that it's smartest to be upfront about these costs. Other common reasons that motivate users to abandon their shopping carts include needing to sign up for accounts to finalize purchases, deal with lengthy checkout processes, or wait for slow deliveries to receive their goods.
Understand Your Users' Preferences
A consumer's habitual shopping behaviors can play a big role in whether or not you make sales. People are more likely to abandon their carts when they're on mobile devices, which may have something to do with the distraction-heavy nature of such platforms.
One possible way to counter this trend might be to support more convenient payment methods that consumers already have on their phones. For instance, allowing your users to check out with ApplePay or one of the many other digital and mobile wallets responsible for almost half of all e-commerce transactions could influence them to make a purchase without worrying about your store's security practices.
What You're Selling – And How You Sell It – Matters
These variations also appear in different retail categories. For instance, shoppers are way more selective when considering certain types of purchases than they are with others.
You may be surprised to discover that digital consumers only look at about 14 pages before making financial services purchases. You might be even more astounded to know that number jumps to 32 page visits when consumers are in search of apparel or grocery items. While this seems counterintuitive, it makes sense when you consider that categories like fashion and groceries offer a far broader selection.
If you really want to cater to your shoppers, you need to do more than simply offer numerous options. It's equally vital to ensure your store provides the guidance they'll need to feel comfortable during their journey with your brand.
These are just some of the vital statistics you'll need to bear in mind to make headway in today's fast-paced e-commerce market. While these figures should definitely inform your strategy moving forward, it's important to remember that no two consumers are completely alike. Your digital outreach approach must offer a personalized adventure for each shopper, not just imitate what you see your competitors doing.
Ollen Group is one of the leading ecommerce, consumer goods and retail consulting firms in the Middle East & Africa region (MEA) offering consumer goods and retail consulting services with turnkey solutions from strategy to execution. our strategy consultancy services are up to date with consumer shifts, and the necessary steps needed to find success in the future. Our expert consultants will help your through your journey.
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