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Understanding eCommerce Statistics: Key Metrics for a Successful Online Store
In recent years, eCommerce has become an increasingly important part of the world economy. More and more businesses are moving their operations online. However, with so many new online stores popping up, it is very difficult to stand out.
If you want to succeed in your niche, you should understand and track key metrics that identify improvement areas, your strengths and weaknesses, and best practices to optimize your online store. You can’t create a successful eCommerce growth strategy without understanding and regularly following the latest statistical data, best practices and trends.
In this article, we’ll take a closer look at some of the most important eCommerce statistics and metrics every online store owner should monitor to achieve success in the digital marketplace.
- eCommerce worldwide market statistics
- eCommerce return rate statistics
- eCommerce SEO statistics
- eCommerce shopping statistics
- eCommerce vs. retail statistics
- Personalization eCommerce statistics
- eCommerce shipping statistics
The Latest eCommerce Worldwide Market Statistics: Trends and Insights for Online Store Owners
A Report by eMarketer, projects the global eCommerce market size to reach $6.38 trillion in 2024, up from $4.28 trillion in 2020. This indicates a CAGR* of 10.5% from 2020 to 2025. The growth is expected to be driven by several factors, including
- the increasing number of internet users worldwide,
- the growing popularity of mobile commerce,
- significant improvements in customer experience eco-system,
- rising consumer confidence in online shopping,
- the expanding availability of fast and reliable delivery options.
According to eMarketer, mobile commerce is expected to account for 72.9% of total eCommerce sales by 2025. Check your mobile responsiveness TODAY. Your eCommerce website should look more beautiful on mobile (vertical) screens than on PCs and tablets.
Statista reports that mobile commerce sales will reach $3.56 trillion worldwide in 2025, up from $2.92 trillion in 2020.
A report by Grand View Research, shows the same-day delivery market is projected to grow at a CAGR of 20.7% from 2021 to 2028, with a market size of $26.67 billion in 2027.
According to a report by Statista, the number of digital buyers worldwide is projected to reach 2.72 billion in 2025, up from 2.14 billion in 2021. This indicates a CAGR of 4.6% from 2021 to 2025. Translated into everyday language: ⅓ of the world population will shop online in 2025, with a rising trend.
According to a report by eMarketer, the market share of online marketplaces (Amazon, Etsy, eBay, Alibaba, etc.) is projected to reach 58.9% of global eCommerce sales by 2025, up from 47.3% in 2020. A significant shift towards online marketplaces should be ALARMING for individual eCommerce website owners.
eMarketer also reports global B2B eCommerce market growth from $12.2 trillion in 2019 to $26.7 trillion in 2025. This is a 10.4% CAGR from 2019. to 2025. Recommendation: do not neglect B2B growth marketing and sales. Since you might lose the battle against eCommerce marketplaces, selling to other companies might be your saving rope. Another powerful tactic you can apply to stay ahead of web marketplaces (Amazon, Etsy, eBay, etc.) is optimizing the overall customer experience ecosystem you have for your buyers.
*CAGR-Compound Annual Growth Rate
eCommerce Return Rate Statistics: How to Reduce Returns and Increase Profitability
Ecommerce return rates vary depending on the industry, product category, current economic trend, buyer personas, post purchase marketing, etc. However, according to a report by eMarketer, the average return rate for eCommerce purchases is around 25%, which is significantly higher than the 8-10% return rate seen in brick-and-mortar stores.
Reducing return rates will increase profitability, deepen customer loyalty, and enhance the overall shopping experience.
To avoid or at least decrease the return rate, you should implement some of these strategies:
- Provide detailed product descriptions and images
- Improve quality control to avoid faulty or damaged products and customer complaints
- Offer free returns or exchanges
- Implement a user-friendly return policy
- Improve the quality of product packaging
- Offer virtual try-on tools or augmented reality features
- Use online surveys to gather customer feedback to identify and address common issues
- Provide responsive customer service
- Use eCommerce big data analytics
- Offer incentives or loyalty programs to encourage repeat business
- Create a streamlined return process
- Consider all pros and cons of outsourcing customer service – leave it to professionals
Here are 10 statistical data points that show the full effect you’ll experience after you apply the listed strategies to reduce the return rate:
- Offering free shipping on returns can increase sales by 18% and customer loyalty by 61%. (MetaPack)
- 68% of consumers will purchase from an online store that offers hassle-free returns. (Narvar)
- Ecommerce stores that offer “click-and-collect” options have a 35% lower return rate than those that don’t. (MetaPack)
- Detailed product descriptions and images reduce return rates by up to 50%. (Shopify)
- A user-friendly return policy can increase customer retention by up to 80%. (Salesforce)
- Businesses that improve the quality of their packaging minimize damage during shipping and handling by up to 99%. (Packsize)
- Proactive communication and responsive customer service will decrease return rates by up to 40%. (Narvar)
- Virtual try-on tools or augmented reality features can reduce return rates by up to 35%. (Retail Dive)
- Implementing a loyalty program can downsize return rates by up to 20%. (Invesp)
- Streamlining the return process can diminish return rates by up to 25%. (ShippingEasy)
Maximizing Your Online Presence: eCommerce SEO Statistics and Best Practices
Follow eCommerce statistics to get valuable insights into industry trends, consumer behavior, and emerging technologies.
Without eCommerce statistics, you can’t make informed business decisions, optimize your website, omnichannel customer experience, and marketing strategies. Also, you wouldn’t be able to identify potential areas for improvement. You’ll stumble in the dark and ultimately lose the battle in the eCommerce market.
Accept eCommerce statistics as the benchmark for your business’s performance against industry standards and competitors. Utilize eCommerce competitive analysis to track competitors and compare your strategies to theirs. That is the only way you’ll set realistic goals, track progress over time, and stay ahead of the competition.
Here are some eCommerce SEO statistics you should be aware of:
- According to SEMrush, the top organic search result in Google gets 21% of all clicks, while the second and third positions get 10% and 7%, respectively.
- Over 50% of eCommerce traffic comes from organic search. (Search Engine Land) Organic search is a term used for the results when an internet user types in any keyword.
- Business websites with more than 40 landing pages get 12 times more leads than those with fewer than 5 landing pages. (HubSpot)
- The average conversion rate for eCommerce websites was 2.86% in 2020. (Smart Insights) The conversion rate for eCommerce websites has not been steady over the years. It varied significantly from 0,1%-30% depending on various factors such as:
- quality of the content on your website
- industry trends,
- marketing efforts,
- user experience,
- economic conditions,
- changes in consumer behavior,
- type of products or services offered,
- the target audience,
- the level of competition in the industry.
- 97% of consumers read product reviews before purchasing. (PowerReviews)
- Long-tail keywords account for 70% of all searches. (Moz)
- 75% of users never scroll past the first page of search results. (HubSpot)
- Site speed is a crucial factor for SEO and can significantly impact bounce and conversion rates.
How to Use Statistical Data to Increase eCommerce Website Traffic, Conversions and Sales
Based on the provided statistical data, we recommend taking next ten steps generated from eCommerce best practices:
- Conduct keyword research to identify relevant keywords to target.
- Optimize page titles, meta descriptions, and header tags using target keywords. To outrank big eCommerce businesses, focus on long-tail and low-difficulty keywords. Do not target high-volume keywords; you will never outrank large competitors.
- Include high-quality images and videos on product pages to improve engagement and the user experience. Investing in a professional to shoot images and videos might seem expensive, but the investment will pay off in several months.
- Utilize internal linking to guide users through your site and improve navigation. Additionally, search engines will rank your website higher if you help them navigate it.
- Publish high-quality, unique, engaging and informative content regularly to attract users. Do not be lazy and copy/paste the same text. Utilize AI writing tools. Talk to people; you know your audience. Do not brag. Let reviews advocate your brand.
- Use schema markup to provide search engines with additional information about your products and services. Hire a professional if you don’t know how to apply schema markup strategy.
- Improve site speed by optimizing images, reducing HTTP requests, and leveraging browser caching. Never upload images larger than 250 Kb. If using a mobile phone, reduce the image size before uploading it. Check YouTube videos to learn how to make great visuals like a Pro.
- Implement a mobile-friendly design and optimize for mobile users. Remember, over 60% of all traffic will come to your eCommerce website via mobile phones.
- Encourage user reviews and ratings to increase social proof and improve search rankings. The new Google and Bing algorithms rank products by reviews. Also, people trust other buyers. Thirdly, you can’t say that you are a great business. But you can cite your customers to do that for you.
- Focus on building high-quality backlinks from authoritative sources to improve domain authority and search visibility. Do not buy backlinks or use any black-hat strategy. Search engines will punish you severely. Good content brings backlinks. You can also reach out to similar websites and offer a link exchange. The conversion rate of that tactic is over 30%. Backlinks are the internet currency. Everybody needs them.
eCommerce Shopping Statistics: The Importance of Great Product Descriptions and Visuals
Here are some statistical data showing the importance of great product descriptions, both short and detailed:
- According to a survey by Nielsen Norman Group, users only read about 20-28% of the content on a web page. You should have concise and informative product descriptions to capture users’ attention and provide the information you believe they’ll need to make a purchase decision.
- A study by Salsify found that 87% of shoppers rate product content as extremely or very important when deciding to buy it. This includes both short and detailed product descriptions.
- According to research by Content Analytics, products with detailed descriptions have a 30% higher sales rate than those with less thorough descriptions.
- A study by Econsultancy found that 20% of online purchases are abandoned due to insufficient or unclear product information.
- In a survey by Baymard Institute, 50% of users reported that they would be more likely to purchase if a website provided detailed product descriptions. Do not generate product descriptions to reach the word count. Consider what your buyers need to know. Make descriptions enticing. The elevator-pitch style works great – try it.
- Another study by Salsify found that 85% of consumers will return a product if it does not meet their expectations based on the provided product information. NEVER LIE or hide information. Be transparent.
eCommerce vs Retail Statistics: Understanding the Future of Shopping
During the COVID pandemic crisis, eCommerce sales skyrocketed. The trend is slowing down, but still has a constant growth rate of 10-15% each year. While retail still holds an important place in customer shopping satisfaction and experience, eCommerce is likely to continue to grow and evolve to meet the needs of consumers in the coming years.
Here are some important data about eCommerce vs. Retail Statistics:
- Forbes announced that 20.8% of retail purchases would occur online in 2023. That is a huge chunk of profit taken from the brick-and-mortar stores in favor of the eCommerce industry.
- According to a report by McKinsey & Company, the COVID-19 pandemic has accelerated the growth of eCommerce by 5 years, with online sales growing by 20% YoY in 2020.
- A report by eMarketer projected that eCommerce sales will account for 24% of total retail sales in 2026, up from 14.5% in 2020.
- According to a report by Digital Commerce 360, eCommerce sales in the US grew by 44% YoY in Q2 2020, while physical store sales declined by 30%.
- A survey by Shopify found that 84% of all worldwide consumers have made at least one online purchase in the past year.
- Mobile commerce sales are expected to account for 6% of all retail sales in 2023.
- 40% of buyers purchased because of social media influence.
- 79% of shoppers shop online at least once a month.
- The most common reason online shoppers abandon their cart is because of additional costs like shipping, taxes, and fees (48%).
What do these numbers tell you?
Selling online is an excellent way to make huge profits. Keep in mind that as an eCommerce business owner, you have much fewer expenses than retail owners. You don’t have to pay for the expensive space, retail sellers, maintenance of the physical objects, bills for electricity, etc. You are in a constantly growing industry, and the projections will favor you.
Personalization eCommerce Statistics: The Power of Customization
Personalization has become increasingly important for eCommerce businesses in recent years due to a number of factors. Here are five reasons why:
- Increased Competition: With more and more eCommerce businesses entering the market, competition is becoming increasingly fierce. Offer each customer a unique, customized experience. Differentiate your eCommerce store from competitors.
- Changing Consumer Expectations: Consumers today expect a personalized shopping experience catering to their preferences and needs. Create several buyer personas to understand your audience and predict their needs.
- Improved Customer Engagement: Apply an omnichannel personalized approach to increase customer loyalty, build stronger customer relationships, and drive repeat purchases.
- Enhanced Data Capabilities: Utilize all the advances in data analytics and machine learning to collect and analyze customer data, thus effectively personalizing the shopping experience.
- Better ROI: Case studies and statistical data confirm that personalization improves ROI and increases conversion rates. Pamper your buyers with personalized recommendations and offers, and you will significantly increase the probability of a purchase and generate more revenue per customer.
Personalization has become an inevitable reality for successful eCommerce companies. Here are eight statistical data points to prove the claim:
- A survey by Epsilon showed that 80% of consumers are more likely to purchase when brands offer personalized experiences.
- According to a survey by Evergage, 98% of marketers believe that personalization positively impacts customer relationships.
- Twilio Segment, a customer data platform, found that 44% of consumers will become repeat buyers after a personalized shopping experience.
- Monetate, a developer platform for eCommerce personalization, found that websites with personalization technology see a 19% increase in average order value.
- According to a report by McKinsey & Company, one of the largest consulting companies worldwide, personalization increases eCommerce sales by up to 15%.
- A report by Segment found that 71% of consumers feel frustrated when their shopping experience is impersonal.
- A study by Instapage, a cloud-based landing page platform, shows that personalized landing pages have a conversion rate of 20%, compared to a 2.35% conversion rate for non-personalized pages.
- A report by SmarterHQ, a cross-channel marketing platform, found that personalized emails have an open rate 29% higher than non-personalized emails.
The Latest eCommerce Shipping Statistics: Trends and Insights
Shipping is one of the most important strategies affecting your eCommerce business’s overall success. Today’s customers expect fast and reliable shipping options when shopping online. Consider offering free or discounted shipping as a competitive advantage. Use shipping statistical data to improve your post purchase strategy and methods. Optimize your shipping strategy to meet customer expectations and drive more sales.
Shipping has a large impact on the following:
- post purchase behavior
- brand awareness,
- conversion rates,
- repeat purchases,
- cart abandonment,
- potential for expansion, and
- total profit.
The next set of statistical data shows the importance of the shipping strategy. Review your outbound logistics and the delivery options you provide, analyze cart abandonment, and find areas for improvement.
- 52% of consumers will make repeat purchases from a retailer that delivers packages in premium packaging, highlighting the importance of packaging and shipping in building brand awareness and loyalty.
- Cart Abandonment: High shipping costs are the leading cause of cart abandonment, with 60% of shoppers citing shipping costs as the reason for abandoning their purchase.
- Repeat Purchases: An analysis by McKinsey & Company shows that delivering a positive shipping experience increases repeat purchases by up to 95%.
- Average Order Value: A study by Temando found that offering free shipping can increase the average order value by up to 30%.
If you run a successful eCommerce store, you don’t need data to know how demanding and fast-paced your business becomes. Staying on top or even surviving is impossible without the newest technologies and automation. Let’s summarize all that’s said above.
Customers are more demanding each day. They will not buy or repeat purchases if you do not provide a personalized experience, branded and high-quality packaging, fast delivery, and order tracking notifications.
Due to the newest revolutionary changes Google and Bing have announced, you will not rank without reviews. Social media influences over 40% of all eCommerce sales. Knowing all that, you must introduce automatic feedback, surveys, up-sells, and post-purchase omnichannel communication.
To stay in the game, and continue to grow, follow all available sources to know eCommerce statistical data and highly-probable trends.