- By: Ricky Hayes November 11, 2020
10 Powerful E-Commerce Statistics You Must Know For Your Online Store
Online buying statistics are changing every time. Everything from demographics to sociographic, brand perceptions to payment preferences is changing and affecting the buying behavior of customers.
You might be busy dealing with your customers online during seasons and festivals. But, you can’t continue from not getting distracted from the emerging trends in the e-commerce industry.
Also, since the breakout of the pandemic, the retail market has evolved significantly, whereas the e-commerce market growth trajectory is moving to astounding heights and is expected to do even better in the coming years.
Meanwhile, you can’t afford to stay relaxed and continue to be on the same track. It’s time to get some new knowledge and take the leap to attract customers in an already saturated market. This is where you might want to look at the e-commerce statistics of 2020.
We have compiled the list of 10 most powerful e-commerce statistics for you to understand the buying patterns of customers and stay head-to-head with the competition.
These are the 10 most powerful e-commerce statistics to watch for in 2020:
1. Number Of Online Shoppers
If you want to be confident about the potential of an e-commerce business, you might want to look at the demographics of online shopping. These powerful e-commerce statistics tell amazing stories.
As per Statista, the e-commerce market had more than 1.8 billion shoppers in the year 2018. Almost 21% of the 7.7 billion population of the globe is shopping on the internet. A jaw-dropping fact, isn’t it?
The e-commerce market is a whole world of opportunity! Explore the market and find the most interested and profitable customers.
As opportunities are emerging, the market is getting saturated at a rapid pace. Hence, the competition is an equally tough, and unique value proposition and differentiation is the means to win customers.
2. Gender Stats
Reviewing demographic statistics also allows you to know your audience better and target them with a more personalized proposition, thus creating a lasting impression on their mind.
When we speak of the most profitable customers, you may need to look at some key demographics. You would be surprised to find out that Male shoppers spend 68% more than Women. This does not mean that women shoppers shop less than men.
Rather, it suggests that women buy skincare products, and cosmetics in comparison to men who buy durables, branded grooming kits, and consumer electronic items that are high in value.
With the fact that males buy high-value products online, these stats now make more sense.
Also, the gender statistics are also favorable to determine which target group is best for your tactics of recommending products and upsell and cross-sell. Since stats show that males are often involved in bulk buying, you could keep at an edge if you cross-sell to the male audience.
3. Consumer Generation Stats
The use of demographics does not end with gender and buying patterns. You might want to know which age-band is more profitable, or to put it in simpler terms, which generation of consumers should you be targeting?
The Millennials despite being the first generation to grow in the digital age are racing behind Gen X in online shopping. However, assuming that Millennials share in online shopping will eventually grow as they turn older and raise families is not an overestimation.
The fact that Gen X tops the age bands shopping online, also explains the reason why middle-aged men are buying high-value durables and electronics more than any other group.
Hence, keeping an eye on stats of consumer groups seems helpful as it highlights potential pools to grow income.
4. Cart Abandonment
This stat is a prime one on our list. The reason cart abandonment stats should be observed carefully is that it has a powerful impact on your business.
You may not know that more than 50% of customers abandon their carts and don’t check out. Often, they never return. Abandoning carts is common mainly because of hidden charges and additional shipping.
In a survey, around 24% of shoppers reported that are always willing to acquire a Free Shipping service by purchasing more. This stat provides useful insight as providing Free Shipping after reaching a certain amount, will also allow you to increase average order value.
Another key stat related to cart abandonment is Email marketing. As a brand, you may need to motivate a buyer to get back to the abandoned cart. You could do it with a couple of incentives. The open rate of emails is a healthy 45%, whereas a recovery rate is 5%.
These stats really help when you’re facing significant cart abandonment.
Besides, an SMS marketing campaign for cart abandonment seems feasible as well. The open rate is more than 90%. Plus, people usually check a text within 3 minutes. So, you’re better off dealing with SMS marketing to recover abandoned carts.
To ensure that you’re improving e-commerce conversions, you can strategize better by collecting stats on cart abandonment. Another obstacle in your way is a lack of trusted badges on site.
Around 61% of people who abandoned their carts last year give the reason for the site missing trust badges.
Isn’t it alarming? As a remedy, you would want to inquire about the best trust badges and include them in your products to elevate your brand image among consumers. This seems an effective remedy to improve your e-commerce conversions.
As an e-commerce store, this is where you’ll always have to shed light. Reviews are your golden eggs.
If you don’t produce good reviews recommending your brand, you’re certainly not as effective as you should be. Plus, sooner or later, you will end up being outplayed by the competitors. Therefore, it is imperative that you collect data on your reviews and constantly monitor them.
There is no shortcut to customer satisfaction and happy customers reflect your potential to explode sales and elevate growth.
More than 81% of customers have reported that they would buy a product after recommendations from family and friends.
Reviews and customer experiences spread word-of-mouth regarding the brand. Word-of-mouth still remains the most powerful influencer of a brand perception to date.
The next statistic is essential if you’re a new e-commerce store. Around 35% of customers online have posted a review of their purchase. This statistic shows the importance of delivering up to your promises.
6. Customer Service and Tech Stats
Around 60% of consumers report that 24/7 support is the reason they buy online. These statistics show you can’t go marketing your products without developing a 24/7 support strategy.
Customer service statistics are also key to monitor since more than 65% of customers compare prices with physical stores before they buy consumer electronics.
Hence, you could do this better with a robust customer support team that assures your customer of the best price at your site.
Besides, you need to be wary of the fact that technology plays an imminent role in e-commerce business. More than 20% of customers have bought an item by using voice assistants.
This shows that your e-commerce brand can only keep abreast of the competition if it has a technology strategy. Facilitating voice assistants in your search engine may also do wonders for elevating your brand image.
7. Mobile Payments
A stat that needs the attention of marketers and businesses in 2020 is related to online payments.
It is expected that by 2026 more than 50% of payments will be done by mobile platforms. Besides, the flow of payments has never been this fast. Around 39% of online shoppers prefer using Paypal for payments. Plus, there are more than 305 million active accounts on Paypal.
These statistics require attention as your e-commerce business can now thrive by facilitating online payments to your shoppers.
It is also worth knowing that since Paypal is dominating e-commerce, it has a strict policy for freezing payments from 3 to 21 days. Paypal does so to save the customers shopping online from getting scammed and avoiding products and brands that do not deliver as promised.
Therefore, you need to embrace the fact that Paypal traffic is growing, and providing the option to your customers to pay from Paypal will help you grow your e-commerce store.
8. The Proportion of Online Shopping in Retail
When looking at e-commerce Statistics in 2020, this is truly an eye-opener. Last year, more than 14 percent of all retail was made through e-commerce sites.
The numbers could skyrocket in the coming years. Plus, the e-commerce industry has never taken such a huge leap in growth as it has in the current year. It is suspected that exponential growth will be reported at the end of the year.
Besides, keeping an eye on this statistic helps you to plan better. The ever-growing e-commerce market is expected to reach 4.13 billion USD in 2020. So, you’re better off including more and more products on your site.
If you want to grow your store, these statistics on online retail may also help you to point out profitable areas to strike.
9. Smartphone Use
If you’re planning to grow your e-commerce store, you can’t afford to avoid mobile statistics. In fact, providing mobile-friendly design and apps specifically for mobile platforms is your gateway to growth in the future.
According to Statista, more than 65% of site visits in 2019 were made using a smartphone. The numbers are ever-growing.
The demand for mobile shopping is also growing as evident from the substantial increase in the pool of customers of online payment services like Paypal.
Most of your future customers will reach you through mobile, so you ought to have a mobile-friendly site or an App to welcome them. Your future growth depends upon the mobile-friendly interface of your site.
10. Shopping Behavior
Unfortunately, this year, the pandemic has brought new norms of social distancing. However, online shoppers have switched to online grocery shopping and are highly satisfied with the convenience of service.
50% of people are more likely to continue buying groceries online. Since the pandemic is still here, more and more businesses will adapt to the e-business model ahead of the growing demand for online products.
Besides, you should be delighted to know that more than 30% of customers prefer buying from a site from which they have made a purchase in the past.
This is good news if your customers are satisfied with the quality of the products and your service.
However, instead of expecting too much from their side, you ought to reach out to them. Attract them through loyalty programs and discounts. This, in turn, will help you a great deal in improving your e-commerce conversions. In conclusion, you cannot afford to overlook these powerful e-commerce statistics. Rather, you must collect more data for the suggested statistics and strategize adequately to elevate your service, brand reputation, and also enhance efficiency in operations.