Commerce is evolving right before our eyes. In less than 30 years, we have gone from a society that utilizes destination stores and discount outlets to meet our needs to shopping online for groceries and utilizing same-day delivery services. Huge companies like Walmart and Amazon are expanding into non-traditional retail sectors, like pharmaceuticals to beekeeping, which is creating significant challenges for smaller providers to stay engaged with their customer base.
Customers are also embracing the idea of voice-activated interactions with their preferred e-commerce industry providers. More investments in technologies like the Amazon Echo are helping households create an integrated lifestyle that works with hands-free devices and digital assistants.
The line between the retail industry and every other one is blurring. Those who are able to transform their experiences for customers into an all-encompassing, integrated lifestyle component are the ones who will see the most consistent revenues in the future. 72% of people under the age of 36 have a connected home device that goes beyond a tablet or a smartphone. 90% of people between the ages of 18-25 have this device.
That’s why the future of the e-commerce industry can also be found in its statistics.
Important E-Commerce Industry Statistics
#1. 83% of consumers in the past six months have made at least once purchase on Amazon. There are between 95 to 100 million Amazon Prime members currently active on the platform. (Statista)
#2. Amazon is also the leading e-commerce retailer in the world today, posting net revenues of $232.88 billion in 2018. That far exceeds the $6.92 billion the company earned in 2004. (Statista)
#3. Over 40% of Americans receive at least one package from Amazon per week because of their shopping habits. If you separate the 18-25 age demographic, then half of them receive 1-2 packages per week. 57% of Amazon customers between the ages of 26-35 receive at least one order as well. (Walker Sands Communications)
#4. The average amount of time between an Amazon product search and an actual purchase is 20 days. If an e-commerce customer stays on Google for their shopping needs, then the average time to a conversion rises to 26 days. (Jumpshot)
#5. 35% of the product searches that occur on Google turn into a conversion for e-commerce platforms in five days or less. (Jumpshot)
#6. When e-commerce companies utilize cross-device targeting as part of their outreach efforts, then it produces 16% more conversions from American households. Shopping ads on Google have a higher click-through rate than the sponsored products or brand advertising that takes place on Amazon. (Google)
#7. 79% of customers say that when an e-commerce company offers free shipping with their products, then they are more likely to shop online for the items that they want. (Walker Sands Communications)
#8. Over half (54%) of consumers under the age of 25 say that having access to same-day shipping is their top driver for completing a transaction. (Walker Sands Communications)
#9. 83% of American consumers say that they expect their e-commerce platform to provide regular communication and updates about their orders. (Narvar)
#10. Over half (53%) of online shoppers in the United States say that they will not use an e-commerce platform if they do not know when their product will arrive. (Narvar)
#11. 30% of the shoppers who use Amazon as their primary e-commerce platform say that there are “always” options that meet their speed-of-delivery expectations. Only 15% of consumers who use other online stores say the same thing. (Walker Sands Communications)
#12. Consumers are using voice-controlled devices for their e-commerce needs more than ever day. 64% of people who own these devices will use it at least once per week, and half of them made at least one purchase using voice commands. (Walker Sands Communications)
#13. 44% of customers say that they have used a same-day delivery service in the past year, which is changing the perspective that e-commerce platforms are a slow option that still requires 7-10 business days for a successful order. (Walker Sands Communications)
#14. Over 40% of shoppers in the United States have returned at least once item that they purchased online in the last six months. (Narvar)
#15. 63% of consumer say that they will not use an e-commerce platform for their purchasing needs if they are unable to find the return policy for that company. (Narvar)
#16. Almost 70% of American shoppers described their last e-commerce return as being either “very easy” or “easy,” with only 4% of them saying that they wouldn’t purchase something from that company again because of their experience. (Narvar)
#17. About 60% of e-commerce shoppers in the United States say that they expect to receive notifications about the status of a refund or a credit over the course of their return. (Narvar)
#18. 2 out of every 5 online shoppers in the U.S. purchase multiple versions of the same item, and then return the options that don’t fit or work for their needs. (Narvar)
#19. Almost 60% of American customers decided to abandon their online shopping cart in the last 90 days because they were not ready to make the purchase. The top three reasons given for not completing a purchase are high extra costs that are not communicated well (55%), the requirement to have an account (34%), or a complex checkout process (26%). (Baymard Institute)
#20. The global cart abandonment rate for the e-commerce industry in 2018 was above 75%. (Sale Cycle)
#21. The average revenue earned for an email notifying a customer of an abandoned cart is up to $27 for some marketing platforms. (SmartrMail)
#22. The average open rate for an abandoned cart email, when included with other marketing efforts, is over 15%. (SmartrMail)
#23. Additional reasons why e-commerce purchases are abandoned include not trusting a website with credit or debit card information (17%), errors on the website (17%), slow delivery (16%), and an unsatisfactory returns policy (11%). (Baymard Institute)
#24. 3 out of 5 American e-commerce customers say that they have messaged a business at least once in the past 90 days. (Facebook)
#25. 70% of consumers who message businesses about a problem, question, or concern expect to receive a faster response than if they’d used the traditional methods of communication for troubleshooting. (Facebook)
#26. 69% of customers say that having the option to message a company helps them to feel more confident about their e-commerce transaction. (Facebook)
#27. Only 29% of American e-commerce customers say that they plan to use or already take advantage of what chatbots offer when they are shopping online. (Narvar)
#28. 42% of consumers say that the top reason why they shop across channels is because they’re making a purchase at a store. 29% start shopping online with the e-commerce industry because they want to browse. (Walker Sands Communications)
#29. 65% of consumers said that the behaviors of the Trump Administration had impacted their shopping behavior in 2018, which was up from 40% during the previous year. (Walker Sands Communications)
#30. 1 out of 3 consumers who identify with the e-commerce industry say that a repeal of net neutrality rules or regulations will impact their freedom online in adverse ways. (Walker Sands Communications)
#31. 34% of customers say that they believe a brand or business should take a stand on political issues if their stance relates back to their products in some way. (Sprout Social)
#32. 66% of customers will spend more for products on an e-commerce platform if they know that their money is going toward a sustainable brand. (Nielsen)
#33. 83% of consumers say that having access to Instagram helps them to discover new products or services which might be useful. Another 81% say that it helps with e-commerce research needs, and 80% report that it can help them to decide if a purchase is necessary. (Facebook)
#34. Engagement is 10 times higher between brands and users on Instagram when compared to Facebook. It’s also 54 times greater than it is on Pinterest, and 84 times higher than what Twitter offers. (Forrester)
#35. 96% of fashion-related brands say that they use Instagram in the United States to reach their potential customers. (eMarketer)
#36. 44% of active Instagram influencers say that social media is useful for conducting brand research, which is one of the highest rates in the world for networks in this category. Users are 70% more likely to make a purchase with their mobile device as well. (Global Web Index)
#37. Sales through the e-commerce industry represented 14.3% of all total retail sales in 2018, with Amazon accounting for 40% of that figure. (Digital Commerce 360)
#38. Customers spent over $517 billion online with U.S.-based merchants in 2018, which is up 15% from the amount spend the year before. Although this figure represents incredible growth, it’s also a 0.6% slowdown from what the industry achieved in the year before. (Digital Commerce 360)
#39. Total retail sales, excluding items not usually purchased or available online, reached $3.62 trillion in 2018. That figure was up 3.9% from the year before. (Digital Commerce 360)
#40. 80% of American consumers describe themselves as e-commerce shoppers. Over half of them also make purchases while using a mobile device. (Pew Research)
#41. 62% of people who have a poor mobile experience with an e-commerce platform are less likely to become a paying customer in the future because of that issue. (Google)
#42. 59% of consumers with a smartphone say that they prefer working with companies that have apps or mobile sites that improve the ease and speed of their intended transaction. (Google)
#43. Almost 70% of smartphone owners say that they are more likely to purchase something from an e-commerce provider if there is an app or mobile website that can answer whatever questions might arise during the shopping process. (Google)
#44. Google Shopping offers a conversion rate of about 1.9%, while Bing provides e-commerce platforms with a rate of 1.74%. (WordStream)
#45. The average CPA for Google Shopping is $38.87, but the average Bing Shopping CPA is just $23.05. (WordStream)
#46. 41% of consumers say that they would trust a third party to deliver packages that ordered from an e-commerce industry business selling books, making it the most popular option. 38% say that they would have this trust for office supplies, while 35% mention clothing and apparel. (Walker Sands Communications)
#47. Only 12% of consumers say that they would trust third-party vendors to deliver packages containing luxury goods. (Walker Sands Communications)
#48. 27% of customers say that they purchased a product online in the past year, but then picked it up at a local store. (Walker Sands Communications)
#49. 15% of e-commerce consumers say that they purchased a product online that could be delivered with a one-day shipping option. (Walker Sands Communications)
#50. Only 4% of customers report that they have used an option that offered a two-hour shipping choice for their preferred product. Just 3% say that they bought something that they could pick up at a local Amazon locker. (Walker Sands Communications)
#51. 21% of people who own a voice-controlled device say that they would pay more than $50 for a first-time order on Amazon using only vocal commands without seeing the item first. (Walker Sands Communications)
#52. 45% of consumers say that they are worried about security when using voice e-commerce for their needs, and then 42% say that privacy is one of their top concerns. (Walker Sands Communications)
#53. 18% of households that own a voice-controlled device say that they use the item at least three times per day. Top locations include the living room (55%), kitchen (33%), and bedroom (27%).
#54. 14% of consumers who own a voice-controlled device other than a tablet or smartphone place the item in their bathroom. (Walker Sands Communications)
#55. Only 10% of consumers say that they have invested in a cryptocurrency, and just 7% say that they would use it to complete a transaction with the e-commerce industry. (Walker Sands Communications)
E-Commerce Industry Trends and Analysis
When a retailer, brand, or other e-commerce business wants to stay on the cutting edge of this industry, then these statistics provide three specific takeaways to consider.
Instead of getting rid of your physical presence, it can be helpful to change it instead. Even Amazon is working their way into storefronts more often through Whole Foods and their Go convenience stores. Having no lines or a checkout to worry about is helpful, but customers do spend less when there is more convenience in person.
That is why the companies who want to keep growing must recognize that connectivity isn’t just about the technological options that are available. Commerce is more than an intentional act. It is a daily activity that happens for people at all times throughout the day. Those who will succeed the most in the next 5-10 years will recognize that there is more than an exchange of currency happening.
Then there must be a way to stay present in a customer’s life that goes beyond the retail experience. The companies who provide help in various ways will stay at the top of the mind more often, encourage repetitive buys, and drive consumer adoption.
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