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The Ultimate Guide to eCommerce Growth Strategy that Work
Having the right eCommerce growth strategy makes the difference between success and stagnation.
In this 8-minute read, you’ll find insider tips and tricks to optimize your website for conversions, leverage social media marketing, and ultimately achieve sustainable growth. Unlock the secrets of eCommerce success and discover the path to prosperity.
What is eCommerce growth strategy
eCommerce growth statistics are numbers and data that provide insights into the performance of the eCommerce industry, such as sales trends, consumer behavior, and market share.
As an eCommerce business owner, the latest eCommerce statistics are crucial because they will help you:
- understand where your business stands compared to the competition,
- identify opportunities for growth,
- make informed decisions about your marketing and sales strategies,
- stay ahead of the competition,
- adjust your strategy quickly,
- position your online store for long-term success.
Whether you’re just starting out or already established, paying attention to eCommerce growth statistics should be your top priority.
Here are eCommerce growth statistics you should know:
- Global eCommerce sales are projected to reach $8 trillion by 2025, up from $3.5 trillion in 2019.
- Shopping via mobile phones instead of desktop computers is expected to account for over 75% of all eCommerce sales by 2025- be sure your website looks better on mobile vertical screens and all your content is scrollable.
- By 2025, there will be an estimated 4.27 billion eCommerce buyers worldwide, which is double the numbers in 2021.
- The online marketplace industry is projected to generate revenues of $7.7 trillion by 2024, up from $3.3 trillion in 2019.
- Artificial intelligence (AI) and machine learning (ML) are expected to become increasingly important for eCommerce businesses, with global spending on AI projected to reach $57.6 billion by 2025.
- Personalization will continue to be a key driver of eCommerce success, with businesses that invest in personalization expected to see revenue increases of up to 15% by 2025.
- The use of augmented reality (AR) and virtual reality (VR) in eCommerce is expected to grow significantly, with the AR/VR market projected to reach $30 billion by 2025.
eCommerce growth trends
Here are seven statistical numbers about eCommerce growth trends looking up to 2030:
- Global eCommerce sales are projected to reach $16.9 trillion by 2030, up from $4.28 trillion in 2020.
- Mobile commerce is expected to account for 80% of all eCommerce sales by 2030, up from 72.9% in 2023.
- The B2B eCommerce market is expected to be worth $20.9 trillion by 2030, up from $12.2 trillion in 2019. due to B2B growth marketing and changing habits.
- Globally, eCommerce is expected to account for 22% of all retail sales by 2023, up from 14.1% in 2019.
- More than 95% of shopping will be facilitated by eCommerce by 2040, according to projections.
- By 2030, the use of artificial intelligence (AI) and machine learning (ML) in eCommerce will have increased significantly, with AI-related investments predicted to reach $12 billion.
- The number of online grocery shoppers is expected to increase to 55% by 2025, up from 24% in 2018, representing a significant opportunity for growth in the sector.
eCommerce growth hacks
eCommerce growth hacks are tactics or strategies that you can use to quickly and efficiently drive growth and increase revenue. Growth hacks are often creative and unconventional, and they can involve anything from optimizing your website’s user experience to leveraging social media platforms in innovative ways.
Here are a few examples of eCommerce growth hacks:
- Offer free shipping to incentivize customers to make a purchase.
- Use retargeting ads to show products to customers who have already visited your website.
- Optimize your product pages for search engines to improve your website’s organic search ranking.
- Leverage social media influencers to promote your products to their followers.
- Implement a referral program to encourage existing customers to refer new customers to your online store.
- Use exit-intent pop-ups to offer discounts to customers who are about to abandon their cart.
- Streamline your checkout process to reduce cart abandonment rates.
Here are some statistical data that confirm the effectiveness of eCommerce growth hacks:
- Free shipping can increase conversion rates by up to 30%, according to a study by eMarketer.
- Retargeting ads have been shown to increase click-through rates by 10 times and conversion rates by 70%, according to a study by Retargeter.
- E-commerce sites optimized for search engines see an average of 14.6% conversion rates, compared to non-optimized sites with a 1.94% conversion rate, according to a study by BrightEdge.
- Influencer marketing campaigns can generate up to $18 in earned media value for every $1 spent, according to a study by Influencer Marketing Hub.
- Referral programs can increase customer acquisition rates by 86%, according to a study by ReferralCandy.
- Exit-intent pop-ups can recover up to 35% of abandoned carts, according to a study by OptinMonster.
- Simplifying the checkout process can increase conversion rates by up to 35%, according to a study by Baymard Institute.
eCommerce growth chart
A growth chart is a visual representation of the performance of an eCommerce business over time.
The most significant value of ecommerce growth charts is the time savings they provide. Instead of daily calculation, you can see the current state, trends, and possibilities at a glance. It typically displays key performance metrics such as:
- website traffic,
- conversion rates,
- customer acquisition rates.
eCommerce growth charts are useful for tracking various metrics and identifying trends over time, allowing you to make informed strategic and investment data-based decisions.
eCommerce growth charts can take many forms, from line graphs to bar charts, and can be customized to display different types of data depending on your needs.
Here are some examples of eCommerce growth charts to track performance over time:
- Monthly revenue chart: Displays monthly revenue over months or years, to track changes and identify trends. It can be displayed as the multibar chart to show different revenue sources.
- Conversion rate chart: Displays the percentage of website visitors who purchase, sign up for a newsletter, or take other desired action. The chart shows you how successful your website is in converting traffic into sales or leads.
- Customer acquisition chart: Displays the number of new customers acquired over a given period. It quickly shows you how successful you are in attracting and retaining customers.
- Traffic source chart: Displays the sources of website traffic, such as search engines, social media, or email marketing. With it, you’ll understand which channels are most effective at driving traffic and adjust your marketing strategy accordingly.
- Average order value chart: Displays the average amount spent per purchase over time. One of the most important metrics is easily visualized. At a glance, you’ll see how much customers spend on average and if there are opportunities to increase sales by encouraging larger purchases.
- Inventory turnover chart: Displays the rate at which inventory is sold and replaced over a given period. The inventory is the pain point of all of us. Inventory turnover charts replace extensive calculations necessary to effectively manage inventory levels and avoid stock-outs or excesses.
- Return on investment (ROI) chart: Displays the return on investment for various marketing channels or campaigns. Sometimes called The Master Chart, it is irreplaceable for allocating resources more effectively and optimizing your marketing spend. It tells you how much you earn from each dollar spent.
eCommerce growth ideas
Here are eight eCommerce growth ideas (that work) you should consider when you decide to expand your online reach:
- Optimize your website for SEO: Ensure that your website is optimized for search engines by using relevant keywords, meta descriptions, and title tags.
- Leverage social media: Promote your products on social media platforms like Facebook, Instagram, Twitter, and LinkedIn. Make sure to engage with your audience and respond to their comments.
- Run targeted ads: Use paid advertising platforms like Google Ads, Facebook Ads, and Instagram Ads to reach your target audience.
- Offer discounts and promotions: Encourage customers to make purchases by offering discounts and running promotions. You can also provide free shipping or gifts with purchases over a certain amount.
- Implement email marketing: Build an email list and send newsletters, promotional emails, and abandoned cart emails to keep customers engaged and encourage them to return to your website.
- Collaborate with influencers: Partner with influencers who have a large following in your niche to promote your products and reach a wider audience.
- Provide exceptional customer service: Ensure your customer service team is responsive and helpful. Encourage customers to leave reviews and respond to feedback to improve customer satisfaction.
- Expand your product line: Consider expanding your product line to attract new customers and increase sales. Conduct market research to identify popular products in your niche.
- Important: do not try to implement all at once. Each of the listed ideas will require significant time, energy, investments, and unstoppable dedication. Choose one. After you fully integrate it into your business, return to our list.
eCommerce industry growth rate
Here are the five most important eCommerce industry growth rates in the post-pandemic era (2021.-2025.):
- Online grocery sales: The COVID-19 pandemic has accelerated the growth of online grocery sales, with sales projected to reach $250 billion by 2025, up from $38 billion in 2018, representing a CAGR (Compound Annual Growth Rate) of over 30%.
- BOPIS (Buy Online Pickup In-Store): BOPIS has become increasingly popular during the pandemic, with sales projected to reach $35 billion by 2023, up from $7.3 billion in 2019, representing a CAGR of over 30%.
- D2C eCommerce sales: Direct-to-consumer (D2C) eCommerce sales have grown significantly during the pandemic, with sales projected to reach $17.75 billion by 2023, up from $14.28 billion in 2020, representing a CAGR of over 7%.
- Social commerce: Social media platforms have become the second most profitable channel for eCommerce sales, with social commerce sales projected to reach $84 billion by 2024, up from $36 billion in 2019, representing a CAGR of over 18%.
- Sustainable eCommerce: Sustainability is becoming increasingly important to consumers, and eCommerce companies are responding by offering sustainable products and packaging. Sustainable eCommerce is projected to drive $150 billion in sales by 2025, up from $25 billion in 2020, representing a CAGR of over 43%.
All the eCommerce statistics we listed above are gained from big data collection and analysis.
As you can see, big data has become an indispensable tool for eCommerce growth and success. By collecting and analyzing vast amounts of data, eCommerce businesses gain valuable insights into consumer behavior, preferences, and trends. Thus gathered data are used for the improvement of marketing strategies, customer service, and product offerings.
Without big data, eCommerce growth would be hindered significantly. Companies would have limited insights into customer behavior and preferences, making it difficult to personalize marketing efforts and optimize the online shopping experience. This would lead to:
- lower conversion rates,
- decreased customer satisfaction,
- reduced sales,
- struggle to keep up with changing consumer trends and preferences,
- difficulties in staying competitive in a crowded marketplace.
The customer experience ecosystem is a crucial part of any eCommerce growth strategy. It encompasses all touchpoints where customers interact with a brand, including the website, social media, customer service, product packaging and delivery, and more.
A positive customer experience ecosystem will increase brand loyalty, retention rates, sales, and profit. Prioritize the customer experience, and differentiate from competitors.
To create an effective customer experience ecosystem, you must understand the needs and preferences of your potential buyers. We recommend researching and collecting data to gain insights into customer behavior and preferences. Based on data and information, tailor the online shopping experience ecosystem to meet each customer’s unique needs.
Customer experience and satisfaction cannot be overstated in the eCommerce industry. Customers today have higher expectations than ever. If you fail to anticipate, meet and exceed expectations you will undoubtedly damage your reputation and lose customers, sales, and profit.
A positive customer experience is essential for building trust and loyalty with customers. When customers have a good experience shopping online, they are more likely to return to the same store and even recommend it to others.
Customer satisfaction is an intricate part of overall experience. Happy customers are more likely to make repeat purchases, leave positive reviews, and share their experiences with others. You want that, don’t you?
To ensure a positive customer experience and satisfaction, you must prioritize customer service, website usability, product quality, and timely shipping and delivery. Regularly seeking customer feedback and making improvements based on them will optimize the online shopping experience. The ultimate result will be the constant growth of satisfied customers.
eCommerce competitive analysis is a priceless tool for making informed decisions and gaining a competitive edge in the industry. By analyzing the strategies and tactics of competitors, you will identify areas for improvement, create successful growth strategies and grow your online business.
Competitive analysis provides valuable insights into competitors’ pricing, product offerings, marketing strategies, and customer service. Use this information to optimize your eCommerce growth strategy and improve your general value proposition.
Finally, a competitive analysis will identify gaps in the market or unmet customer needs that you can capitalize on. This will lead to new products or services, address these needs and differentiate your business from competitors. Remember, in today’s fast-paced eCommerce world, being the first is a game changer.
Post-purchase experience is an integral part of any eCommerce growth strategy. It refers to the period after a customer has bought your product.
Post-purchase activities are:
- order tracking,
- product quality,
- customer support,
- feedback, reviews, and shares.
A positive post-purchase experience will lead to increased customer loyalty and repeat sales.
Utilize automation and modern technologies to further improve customers’ post purchase experience. It will be the best investment of your time, energy, and efforts.
Great post purchase experience should definitely be included in your eCommerce growth strategy.
Most of your competitors neglect one of the most profitable sides of eCommerce – post purchase. Create your eCommerce growth strategy on the principles of multiple sales to the same buyer. Remember, statistics show that acquiring a new customer is three to five times more expensive than selling to an existing one.
A successful eCommerce growth strategy incorporates omnichannel customer experience.
Omnichannel customer experience is a seamless and integrated approach to customer engagement across all channels and devices, including:
- online (via your eCommerce website)
- social media
An omnichannel strategy gives your customers various choices to interact with your brand. They’ll appreciate the personalized touch and become more loyal. Incorporate omnichannel customer experience into your growth strategy to multiply repeat sales.
But it’s not just about practicality – omnichannel also presents a huge opportunity to personalize the shopping experience for each customer. You can tailor your messaging and product recommendations based on their preferences and behavior. Make them feel valued and appreciated.
Responding to customer complaints is not just a responsibility, it’s an opportunity to showcase your commitment to customer satisfaction. In fact, responding promptly and effectively can be your secret weapon for success.
When customers complain, they provide valuable feedback that helps you improve your products or services. Addressing their concerns respectfully and empathetically will turn a negative experience into a positive one, creating brand loyalty and increasing the chances of repeat business.
Additionally, responding to complaints publicly on social media platforms or review sites will demonstrate your willingness to take ownership of any issues and provide solutions. You will earn the respect of potential customers. People trust people. Never forget that. No matter how much you brag about your business, one negative review might destroy a 10-year spotless reputation.
In conclusion, responding to customer complaints isn’t just about resolving a problem; it’s about building trust and loyalty with your customers. Embracing complaints and addressing them head-on- you will create a competitive advantage that sets apart your eCommerce business from your rivals and helps you succeed in today’s crowded marketplace.
Customer experience is a huge part of any growth strategy. However, many companies need help managing this aspect of their operations. If that is the case, you should consider outsourcing customer experience efforts.
Advantages of outsourcing customer experience efforts:
- Outsourcing customer experience will be beneficial for several reasons. Firstly, it can free up time and resources that could be better spent on growing your business. Remember: if you work IN your business, you can’t work ON it (you simply don’t have time).
- Secondly, outsourcing to a specialized team can bring in new perspectives and ideas lacking in-house.
- Finally, outsourcing can provide access to the latest technologies and tools, which can improve the overall customer experience.
However, outsourcing customer experience also has its drawbacks. For example, it is costly and may not always align with your company’s culture and values. Furthermore, it increases the risk of miscommunication or lack of control over the customer experience.
Evaluate the pros and cons carefully before making a decision. Do not rush, and never forget: your time is the most precious resource.
What you should know about inbound and outbound logistics if you want to grow your business
Inbound and outbound logistics have a significant role in business success. Understanding and incorporating these concepts into your eCommerce growth strategy will optimize your operations and increase profitability.
Inbound logistics refers to the processes involved in receiving and storing raw materials or products from suppliers. The timely and efficient inbound logistics management ensures you have the inventory you need to meet customer demands, reduce lead times, and avoid stockouts.
On the other hand, outbound logistics involves processes required to get your products to customers, including order processing, packaging, and shipping.
By solidly understanding inbound and outbound logistics, you will identify areas for improvement in your supply chain, such as reducing transportation costs or improving delivery times. This will help streamline operations, increase efficiency, and drive eCommerce growth.
5-Sentence Summary about eCommerce Growth Strategy
When developing your eCommerce growth strategy, you have a wealth of resources -by analyzing your business and gathering statistical data, you can gain valuable insight into what’s working and what’s not.
Be sure to consider different approaches and methods and learn from the successes and failures of others.
With the help of modern tools and techniques, you can identify the best path forward and choose a growth strategy that works for your unique business.
With the right approach and an effective custom-made eCommerce growth strategy, you will achieve steady sales and satisfactory profits, reaching your desired destination with minimum effort and obstacles.