No matter what happens in the world, it seems that we’re always going to have commerce. After all, we’ve long passed the days of the barter system; today, it’s all about buying and selling.
Living in the digital world, this means eCommerce.
And seeing as how we started out this year with a post covering eCommerce statistics UK strategies needed for 2018, it seems appropriate to end it with a post covering eCommerce growth statistics that will help you plan for 2019.
eCommerce Growth Statistics to Help You Plan for 2019
1. Let’s start with a statistic that showcases global eCommerce growth projections: It’s anticipated that global retail eCommerce sales will grow from $1.3 trillion in 2014 to $4.9 trillion in 2021, representing a nearly threefold growth.
2. With that in mind, let’s go closer to home: eCommerce has grown steadily in the UK, reaching £137.38 billion in 2017, up from £118.82 billion in 2016.
3. Delving deeper into some of the most popular eCommerce segments in the UK, the revenue for the fashion eCommerce segment in the UK was expected to grow almost 10% in 2018.
4. Presenting similar growth is the electronics and physical media segment, which is expected to grow from about £18 billion in 2017 to roughly £22 billion in 2022.
5. Likewise, the value of the UK homewares market was estimated at approximately £13.6 billion in 2018—representing an increase of approximately £200 million on the previous year—and is expected to continue to grow over the next two years, reaching a forecasted value of £14.1 billion in 2020.
6. Now let’s broaden our horizons again because, according to Business.com, the 10 largest eCommerce markets in the world are:
- China: £526 billion —> 15.9% eCommerce share of total retail sales
- United States: £266 billion —> 7.5% eCommerce share of total retail sales
- United Kingdom: £77 billion —> 14.5% eCommerce share of total retail sales
- Japan: £61 billion —> 5.4% eCommerce share of total retail sales
- Germany: £57 billion —> 8.4% eCommerce share of total retail sales
- France: £33 billion —> 5.1% eCommerce share of total retail sales
- South Korea: £28 billion —> 9.8% eCommerce share of total retail sales
- Canada: £23 billion —> 5.7% eCommerce share of total retail sales
- Russia: £15 billion —> 2% eCommerce share of total retail sales
- Brazil: £14 billion —> 2.8% eCommerce share of total retail sales
7. As you can see, the UK comes third among global eCommerce markets—a ranking that is mirrored in online shopping penetration for 2017, of which the UK was also third with 82%, behind China and South Korea.
8. Speaking of global things, 57% of online shoppers have made an online purchase in the past six months from an overseas retailers.
9. Despite this, many shoppers are hesitant and won’t purchase from a site that’s not in their language or currency, with 75% preferring buying products in their native language, 67% preferring navigating and reading content in their native language, and 33% being likely to drop a cart if pricing is only in US dollars.
10. Along similar lines, 77% of shoppers abandoned their cart because shipping and other fees were too high, 60% because they had to create an account, 53% because of payment security concerns, and 30% because their preferred payment method was unavailable.
11. Additionally, cart abandonment rates have been steadily increasing year-on-year, with the average in 2018 being at around 69%, up 10% since 2006.
12. And now let’s switch lanes and talk about why some consumers shop with certain brands or not —> 43% of consumers prefer companies that personalise their experiences, and 41% switched companies over poor personalisation.
13. As you can see, people like personalised experiences. For instance, 48% of consumers actually spend more when their experiences are personalised, and 74% of people HATE being shown irrelevant content.
14. Exemplifying this, Gartner found that those who successfully handle personalisation can gain a 15% profit boost by 2020 (talk about eCommerce sales growth).
15. Switching lanes to something all eCommerce brands have to contend with, i.e. mobile vs. desktop, smartphones may have overtaken desktops in terms of retail site visits, but still lag behind in terms of revenue. For example, during the second quarter of 2018, smartphones accounted for 62% of retail website visits worldwide, but only generated 42% of eCommerce revenues.
16. You can see this trend again on the global stage, as the average order value of global online shopping orders as of the second quarter of 2018, by device, was:
- Traditional – £119.99
- Tablet – £92.37
- Smartphone – £85.30
- Other – £78.44
17. Maybe this is because mobile shoppers expect different experiences than their desktop counterparts and are likely to leave a mobile website when something goes awry; a sentiment that is mirrored in the fact that, as page load times goes from:
- 1s to 3s the probability of a bounce increases by 32%
- 1s to 5s the probability of a bounce increases by 90%
- 1s to 6s the probability of a bounce increases by 106%
- 1s to 10s the probability of a bounce increases by 123%
18. Switching lanes one final time to talk about what you can do to improve your conversion rate, an HBR study involving 46,000 shoppers found that 73% of them used multiple channels to do their shopping.
19. Considering that businesses using four or more digital channels will outperform those using single or dual channels by 300%, not only does this makes perfect sense, but it’s also something you should consider ASAP.
20. Unfortunately, Google’s research found that only an average of 52% of online stores have omnichannel capabilities. Again, don’t be like them; go for multiple channels. As Martijn Bertisen, Country Sales Director at Google UK, says:
The consumer has fundamentally changed. Their engagement with new technologies and digital services has driven their expectations up higher and higher. They’re now demanding useful, engaging, and assistive experiences from all the brands they interact with.
As we just saw, UK eCommerce growth in 2018 was significant.
For you, this means using what we covered today to tailor your eCommerce strategies for 2019.
For example, you now know that personalisation and multi-channel experiences both lead to increased sales, so two of your goals for 2019 should be to personalise your users’ experiences with you and increase how many channels you offer them.