In this blog post, we have gathered some of the most significant online shopping statistics, categorised into key areas: market growth, consumer behaviour, mobile commerce, and social media influence.
1. Market Growth
The global e-commerce market has experienced significant expansion over the past five years. While the most substantial increase coincided with the 2020 pandemic-related measures, as indicated in the aforementioned IBM report, growth continues to persist at a more moderate yet consistent pace. Here are some regional statistics from the largest online economies that illustrate this growth.
According to the Census Bureau of the Department of Commerce, USA retail e-commerce sales for the second quarter of 2024, were estimated at $291.6 billion—an increase of 1.3% from the first quarter of 2024. Total retail sales for the same period were estimated at $1,826.9 billion, up 0.5% from the previous quarter. Compared to the second quarter of 2023, e-commerce sales rose by 6.7%, while total retail sales grew by 2.1%. E-commerce sales in the second quarter of 2024 accounted for 16.0% of total sales [iii].
South Korea's National Statistical Office reported that online shopping transactions in the country reached ₩17,919.2 billion (about $13.8 billion USD) in January 2023. This represents a 6.3% increase—or ₩1,063.4 billion (about $82 million USD)—compared to January 2022 [iv].
The Indian e-commerce sector has demonstrated substantial growth in the past decade. Between fiscal years 2014 and 2021, the market expanded from USD 14 billion to USD 84 billion, exhibiting an impressive Compound Annual Growth Rate (CAGR) of 29.2% [v].
Speaking of the global e-commerce, here are some key statistics:
Global E-commerce Sales: In 2023, global online shopping revenue totalled $5.82 trillion, with projections indicating that sales will reach $10.1 trillion by 2030. This growth is driven by increasing internet penetration and the convenience of online shopping.
Retail E-commerce Sales: Retail e-commerce sales are expected to exceed $6.3 trillion in 2024, up from $5.8 trillion in 2023. By 2027, 23% of retail purchases are expected to take place online.
Annual Growth Rate: Between 2020 and 2021, digital retail sales increased by 17.1%, largely due to the COVID-19 pandemic. Growth slowed to 9.7% in 2022, but online retail sales are expected to record a 9.26% compound annual growth rate (CAGR) between now and 2026 [vi].
Total retail e-commerce sales worldwide continue to increase, though growth has slowed in most countries except China. However, 2024 has seen a slight decline compared to the same period in 2023. Worldwide e-commerce sales are expected to grow by 8.4% in 2024, which will add nearly $500 billion to the total sales amount [vii].
2. Consumer Behaviour
Understanding consumer behaviour is crucial for businesses aiming to thrive in the e-commerce space. Companies that grasp it best have already maximized the benefits of tools such as social media advertising, bundled offers, and top reviews.
These tools help attract customers and create irresistible value propositions, as new research from China demonstrates. Interestingly, customers often value impulsive purchases just as much as—if not more than—carefully planned, prudent shopping [viii].
How can we measure the changes in behaviour of consumers online? Here are some insights:
Number of Digital Shoppers: Over the past five years, the number of digital shoppers has increased by 40%. In 2022 alone, over 2.3 billion consumers made at least one purchase from an online retailer[ix].
Average Spending: In 2015, the average customer spent about $1,060 on online purchases globally. By 2021, this figure had increased to $2,310[x].
Shopping Preferences: A significant shift has been observed in shopping preferences, with more consumers opting for online shopping due to its convenience and the ability to compare prices easily.
3. Mobile Commerce
Mobile commerce, or m-commerce, has become a significant part of the e-commerce ecosystem. As an example, in South Korea, mobile shopping reached KRW 13,492.7 billion (about $10.4 billion USD) in January 2023. This represents a 5.6% increase—KRW 713.5 billion (roughly $55 million USD)—from January 2022[xi].
To achieve such growth, mobile distribution channels have incorporated advanced information technologies, streamlined shopping processes, convenient searches, and accessible payment systems. Here are some key statistics related to this process:
Mobile Shopping Growth: Mobile commerce is set to dominate e-commerce, projected to reach 72.9% of total sales by the end of 2024 [xii]. This growth is fuelled by the increasing use of smartphones and the development of mobile-friendly shopping platforms. This growth is driven by smartphone adoption and improved mobile shopping platforms, offering seamless experiences for mobile users. The trend is further supported by projections of $160 billion in global consumer spending on mobile apps in the nearest future[xiii]. Customer satisfaction on mobile is generally high[xiv].
Consumer Behaviour: A recent study revealed that 79% of smartphone users have made an online purchase using their mobile device within the past six months[xv]. This trend underscores the critical need for businesses to optimise their online stores for mobile users. In the meantime spending trends on mobile are slowly normalising after after a two-years boost in app usage and engagement, according to Statista[xvi], which indicates new challenges for companies aiming to maintain or increase profits on mobile.
4. Social Media Influence
Social media platforms have become powerful tools for driving e-commerce sales. Here are some statistics that illustrate their impact:
Social Media Shopping: Recent data shows that 43% of global internet users made purchases directly through social media platforms in 2023, and social media commerce is projected to reach $8.5 trillion by 2030 [xvii]. This significant trend is likely to continue growing as these platforms further develop their e-commerce capabilities.
Influencer Marketing: Influencer marketing has become one of the cornerstones of e-commerce, with 49% of consumers relying on influencer recommendations for their purchase decisions[xviii]. This underscores the importance of leveraging social media personalities on platforms like YouTube, Instagram, and TikTok to expand a brand's potential customer base.
5. Industry-Specific Trends
Various online retail sectors have shown distinct growth patterns and consumer behaviours. While some brands have shifted their sales almost entirely online, other industries lag in e-commerce development. Here are some notable statistics that may help refine a marketing strategy for a specific market:
Fashion and Apparel: The online fashion industry is projected to reach $1 trillion by 2025. This sector has seen significant growth due to the rise of fast fashion and the convenience of online shopping.
Electronics: Online sales of electronics have surged, with the market expected to grow at a CAGR of 7.3% from 2021 to 2026. The demand for gadgets, home appliances, and personal electronics has driven this growth.
Health and Beauty: The online health and beauty market is expected to reach $358.4 billion by 2026. The increasing popularity of wellness products and the convenience of online shopping have contributed to this trend.
Food and Grocery: Online grocery sales have seen a significant uptick, especially during the COVID-19 pandemic. The market is projected to grow at a CAGR of 24.8% from 2021 to 2026. According to some market analysis projections, e-grocery sales are anticipated to constitute approximately 20% of total grocery sales by 2026 [xix]. However, the picture is different for different countries and cultures: for instance, in Norway, e-grocery shopping accounts for a small percentage with only 2% in 2023[xx], despite the almost total digitalisation of households among its citizens.
6. Gender Differences
Understanding online shopper demographics is vital for businesses looking to refine their marketing strategies and enhance customer experiences. Let's explore key insights into online shopping demographics from the last five years:
Shopping Preferences: Men are slightly more likely to browse retail items online than women. 53% of male shoppers and 44% of female shoppers prefer to browse retail items online rather than in-store [xxi].
Usage of Buy Now, Pay Later (BNPL) Services: 57% of men and 45% of women shopping online have used BNPL services. This shows a significant adoption of flexible payment options among both genders[xxii].
7. Age Groups
Young Adults (18-24 years): This age group is highly active in online shopping, with 50.9% of mobile clothes shoppers falling within this range. Additionally, 42% of shoppers aged 18 to 24 years have used BNPL at least once[xxiii].
Millennials (25-34 years): Millennials are 19% more likely than the average consumer to do most of their shopping online. They are also the only generation to prefer online shopping to in-store shopping by a margin of 5.56%[xxiv].
Generation X (35-54 years): Consumers in this age group are most likely to shop online on a daily or weekly basis. They are 9.52% more likely than the average American to shop online at least weekly[xxv].
Baby Boomers (55+ years): While less likely to shop online frequently, Baby Boomers are still significant contributors to online sales. They are 8.43% more likely than other generations to shop online at least once over the course of a year[xxvi].
8. Income Levels
High-Income Households: Shoppers in high-income households (earning $100K or more annually) are 18.2% more likely to shop online compared to those in high-middle income households ($50K to $99K)[xxvii]. This suggests that higher disposable income correlates with a greater propensity for online shopping.
9. Geographic Distribution
Global Reach: In 2023, 2.64 billion people worldwide shopped online, representing a significant portion of the global population [xxviii]. This widespread adoption highlights the universal appeal and accessibility of online shopping.
Conclusion
The online shopping landscape has evolved significantly over the past five years, driven by technological advancements, changing consumer behaviours, and the increasing influence of mobile devices and social media. Businesses that adapt to these trends and leverage the power of e-commerce will be well-positioned to thrive in the digital age.
By understanding and utilizing these key statistics, businesses can make informed decisions to enhance their online presence, improve customer experiences, and ultimately drive sales growth.
Sources:
[i] . https://capitaloneshopping.com/research/online-shopping-statistics
[ii] https://www.businessinsider.com/amazon-earnings-report-q2-jeff-bezos-2020-7
[iii] https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf
[iv] https://eiec.kdi.re.kr/policy/materialView.do?num=236046
[v] https://www.researchgate.net/profile/Sunita-Kharate/publication/382068035_Analysis_of_Online_Shopping_Behavior_of_Millennials_in_the_Indian_Market_Context/links/668ba483714e0b03154bfff7/Analysis-of-Online-Shopping-Behavior-of-Millennials-in-the-Indian-Market-Context.pdf
[vi] https://explodingtopics.com/blog/online-shopping-stats
[vii] https://www.emarketer.com/content/worldwide-retail-ecommerce-forecast-2024-midyear-update
[viii] https://www.emerald.com/insight/content/doi/10.1108/APJML-08-2019-0495/full/html
[ix] https://www.tidio.com/blog/online-shopping-statistics/
[x] https://capitaloneshopping.com/research/online-shopping-statistics
[xi] https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf
[xii] https://www.forbes.com/advisor/business/ecommerce-statistics/
[xiii] https://www.statista.com/statistics/870642/global-mobile-app-spend-consumer/
[xiv] https://koreascience.kr/article/JAKO202423643854244.page
[xv] . https://capitaloneshopping.com/research/online-shopping-statistics
[xvi] https://www.statista.com/statistics/870642/global-mobile-app-spend-consumer/
[xvii] https://www.forbes.com/advisor/business/ecommerce-statistics/
[xviii] . https://capitaloneshopping.com/research/online-shopping-statistics
[xix] https://info.mercatus.com/online-grocery-shopper-consumer-behavior
[xx] https://www.dagligvarehandelen.no/files/2024/05/09/Dagligvarefasiten%202023print3.pdf
[xxi] https://capitaloneshopping.com/research/online-shopping-statistics
[xxii] . https://capitaloneshopping.com/research/online-shopping-statistics
[xxiii] . https://capitaloneshopping.com/research/online-shopping-statistics
[xxiv] . https://capitaloneshopping.com/research/online-shopping-statistics
[xxv] . https://capitaloneshopping.com/research/online-shopping-statistics
[xxvi] . https://capitaloneshopping.com/research/online-shopping-statistics
[xxvii] . https://capitaloneshopping.com/research/online-shopping-statistics
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