eCommerce Growth Statistics to Help You Plan for 2023
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. In fact, at present, there are 2.14 billion online shoppers around the globe!
This type of commerce shows no sign of slowing down either, with eCommerce sales expected to grow to 10.4% this year.
With that being said, we’re going to give you a helping hand by looking at eCommerce growth statistics that will help you plan for 2023.
eCommerce Growth Statistics to Help You Plan for 2023
So, let’s delve into eCommerce statistics 2023 below:
1. Let’s start with a statistic that showcases global eCommerce growth projections: It’s anticipated that global retail eCommerce sales will grow at 8.9% this year, bringing in approximately $5.9 trillion in eCommerce sales worldwide.
2. With that in mind, let’s go closer to home: eCommerce in the UK is projected to grow by 8.43% between 2023 and 2027, manifesting in a market volume of $230.40 billion in 2027.
3. Delving deeper into some of the most popular eCommerce segments in the UK, the revenue for the fashion eCommerce segment in the UK is expected to increase by $21.3 billion between now and 2027. This represents an increase of 37.46 per cent.
4. Presenting similar growth is the electronics and physical media segment, which is an expected revenue forecast in 2025 of $14,316 million, in comparison to $13,513 million in 2022.
5. Likewise, the value of the UK homewares market was estimated at approximately £13.6 billion in 2018, and is expected to continue to £15.2 billion by the end of 2023.
6. Now let’s broaden our horizons again because, according to Business.com, the 10 largest eCommerce markets in the world are:
- China: $2.78 trillion —> 52% eCommerce share of total retail sales
- United States: $843 billion —> 19% eCommerce share of total retail sales
- United Kingdom: $169 billion —> 4.8% eCommerce share of total retail sales
- Japan: $144 billion —> 3% eCommerce share of total retail sales
- South Korea: $120 billion —> 2.5% eCommerce share of total retail sales
- Germany: £101.5 billion —> 2.1% eCommerce share of total retail sales
- France: $80 billion —> 1.6% eCommerce share of total retail sales
- India: $67.5 billion —> 1.4% eCommerce share of total retail sales
- Russia: $44 billion —> 1.3% eCommerce share of total retail sales
- Brazil: $37 billion —> 0.72% eCommerce share of total retail sales
7. Free delivery is the number one reason people shop online. This is followed by the ability to apply discounts and use coupons (38.1%), and reviews left by other customers (31%).
8. Speaking of global things, 57% of online shoppers have made an online purchase in the past six months from an overseas retailer.
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% 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 being 62.04% on desktop, 64.65% on tablet, and 77.08% on mobile.
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, McKinsey found that those who successfully handle personalisation can gain a 10 to 15% profit boost.
15. Switching lanes to something all eCommerce brands have to contend with, i.e. mobile vs. desktop. Smartphones have clearly overtaken desktops in terms of retail site visits. For example, during the last quarter of 2022, smartphones accounted for roughly 74% of retail website traffic worldwide.
16. The average value of an order placed on a mobile phone in the second quarter of 2022 was $112.
17. 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 go 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 higher and higher. They’re now demanding useful, engaging, and assistive experiences from all the brands they interact with.
eCommerce Marketing Trends 2023
Now that we’ve established some of the key eCommerce growth statistics, let’s take a look at ecommerce trends 2023 in terms of marketing:
Social media platforms like Instagram, Facebook, and Pinterest are increasingly offering integrated eCommerce features that allow users to browse and buy products without leaving the app. Brands can take make the most of these features by creating shoppable posts and ads.
Customers expect a personalised shopping experience, and brands are increasingly using data and technology to deliver customised product recommendations and marketing messages. This can include personalised email marketing, targeted social media ads, and personalised product pages.
Influencer marketing continues to be a popular strategy for eCommerce brands, with influencers acting as brand ambassadors and promoting products to their followers. Micro-influencers with smaller, more engaged audiences are becoming increasingly popular.
AR technology is being utilised to create immersive shopping experiences, enabling customers to virtually try on products and visualize how they will look in an environment, i.e. their home or office. Brands can use AR to enhance product pages, social media ads, and even in-store displays.
Customers are increasingly conscious of the environmental impact of their purchases, and eCommerce brands are responding by incorporating sustainability into their marketing and branding. This can include using eco-friendly packaging, highlighting sustainable production practices, and partnering with sustainable initiatives.
Voice assistants like Alexa and Google Assistant are increasingly being used for shopping, and brands are adapting their eCommerce strategies to accommodate this trend. This can include optimising product descriptions for voice search and creating voice-activated shopping experiences.
eCommerce growth projections and UK e-commerce market size
As consumers shift their spending to online outlets, eCommerce has grown in popularity considerably in recent years. In the UK, this is seen vividly by the fact that a 21.76% CAGR is anticipated between now and 2027.
Until 2026, annual eCommerce growth sales are expected to be around 4%. During the same period, physical sales are expected to experience a tough time due to economical pressures.
As we just saw, UK eCommerce growth in 2022 was significant.
For you, this means using what we covered today to tailor your eCommerce strategies for 2023.
For example, you now know that personalisation and multi-channel experiences both lead to increased sales, so two of your goals for 2023 should be to personalise your users’ experiences with you and increase how many channels you offer them.
This blog post is Last updated on May 23rd, 2023.
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