The world of e-commerce has experienced rapid growth in recent years, and this trend is set to continue into 2023. With the advent of new technologies, changing consumer behaviors, and the ever-expanding digital landscape, e-commerce is poised to reshape the way we shop, sell, and interact online. In this article, we will explore the latest trends, challenges, and opportunities in the e-commerce industry for the year 2023.
Latest Trends and Statistics
Market Size & Capital
- U.S. retail e-commerce sales for the fourth quarter of 2022 were $262.0 billion.
- 93.5% of global internet users have purchased products online.
- 2.14 billion+ internet users are expected to make at least one purchase online this year.
- In June of 2022, Amazon’s sales accounted for 37.8% of all U.S. e-commerce sales, making Amazon the leading e-commerce retailer in the US.
- Alibaba is the largest e-commerce retailer worldwide, with online sales valued at over 700 billion U.S. dollars in 2022.
- Consumer electronics generated over $988.4 billion in 2022, making it the largest category in global business-to-consumer (B2C) e-commerce.
- 85% of global consumers shop online.
- 70% of Americans shop online.
- Global e-commerce accounted for 21% of global retail sales in 2022.
- The global e-commerce market was valued at US $16.6 trillion in 2022.
- U.S. retail e-commerce sales for the fourth quarter of 2022, adjusted for seasonal variation, were valued at $262.0 billion.
- 21% of global retail sales are made online as of 2022.
- Over one-third of global online orders come from online marketplaces such as eBay and Alibaba.
- There are 32.7 million e-commerce stores globally:
- 39% in the U.S.
- 4% in the U.K.
Future Trends and Projected Growth
- Worldwide, e-commerce sales are expected to reach $7 Trillion by 2025.
- E-commerce forecasts project the e-commerce market to grow to a 22% share of total global retail sales by 2024.
- 89% of e-commerce companies are investing in personalization.
- Estimates indicate U.S. e-commerce sales will reach $1.7 trillion by 2027, up from $905 billion in 2022.
- The global e-commerce market forecast projects a CAGR (Compound Annual Growth Rate) of 10.92% from 2023-2028.
- By 2025, 50% of China’s retail sales will come from e-commerce.
- 52% of businesses plan to sell through social networks in 2023.
- The average revenue per user (ARPU) will amount to US $3.34k by 2027.
- Green commerce and recommerce are becoming more important as Gen Z users move to the forefront of the e-commerce market.
- They’re frugal shoppers who have no hesitation about buying second-hand.
- In addition, they realize the benefits to the environment of using second-hand products.
- Global e-commerce is predicted to grow to 27% of all sales by 2027.
Mobile E-commerce Statistics
- Mobile shopping hit $359.32 billion in 2021; estimates indicate it will double by 2025.
- By 2025, estimates indicate more than ten percent of all retail sales in the United States will come via mobile commerce.
- Projections estimate the global market for mobile wallets will be worth $350 billion by 2026.
- 51.42% of all web traffic comes through mobile phones.
- Mobile devices currently account for 72.9% of e-commerce sales.
- 79% of consumers have used their mobile phones for shopping.
- Spending on mobile apps is expected to exceed $350 billion by 2026.
- 82% of United States internet users have shopped online using a mobile device.
- Worldwide, there are 5.44 billion unique mobile phone users., which represents 64.4% of the world population.
E-Commerce Shopping Behavior Statistics
- 61% of online consumers in the United States have purchased based on blog recommendations.
- 74% of consumers rely on their social networks to make purchasing decisions.
- 40% of shoppers are Gen Z.
- 84% of online shoppers research products online before buying.
- Credit cards and digital payment systems are the most popular online purchase methods.
- 37% of buyers trust influencers before brands.
- 23% of shoppers will leave a site if it requires account creation at checkout.
- 76% of consumers want companies to understand their needs, including speed of site loading and types of payment options offered.
- 75% want to be able to get help within five minutes.
- 73% want to be able to handle product or service issues on their own.
- 6 out of 10 American shoppers use self-service tools for their concerns.
- 24% use websites,
- 14% use mobile apps, and
- 12% use online live chat.
- 40% of internet users worldwide prefer interacting with chatbots to virtual agents.
- 54% of consumers cite rising grocery prices as having the greatest impact on online shopping.
- 48% want special treatment for being a good customer.
- 54% of shoppers say they’re open to sharing shopping preferences and personal information to get personalized offers.
- 80% of consumers use mobile phones to check prices and compare products while shopping in a brick-and-mortar store.
- 58% of shoppers added more items to their order at checkout to qualify for free shipping.
- 87% of shoppers now begin product searches online.
- 62% of millennials and Gen Z want to use visual search, used only by 8% brands
- 62% of customers say environmentally friendly options are important.
- Members of Gen Z are more willing to buy second hand. They are aware of how consumption affects the environment.
- Second-hand resale is becoming a global phenomenon projected to grow 127% by 2026.
- Over 268 million Americans shopped online in 2022, and estimates indicate that shoppers will reach 291.2 million by 2025.
- Buy Now Pay Later (BNPL) will account for over US$1.3 trillion in transaction value across e-commerce and POS by 2025.
- 75% of BNPL shoppers are Gen Z or Millennials.
- Shoppers today expect a smooth and seamless experience regardless of where they come in contact with your brand.
- 60% of Gen Z said that a company’s reputation as an employer influences their buying decision
- Most online retailers have a customer retention rate of less than 30%.
- Estimates indicate that 75% of an e-commerce store’s customers are one-time buyers.
- Shopping carts have a 69.99% abandon rate.
- 18% of consumers abandon sites with checkout pages that are too complicated.
- Consumers expect a personalized shopping experience.
- 57% of customers will abandon your site if they wait 3 seconds or longer for a page to load.
- 60% of customers will leave your site if they can’t find what they were looking for in the first place.
- Only 2.86% of e-commerce website visits convert into a purchase.
- Omnichannel availability is essential in today’s e-commerce market and is one of the best ways to reach consumers where they shop.
- As the most technologically advanced generations, Gen Z and Generation Alpha expect to reach businesses in multiple ways.
- Consumers expect to be able to reach businesses through multiple channels:
- Social media
- Email marketing
- Brick-and-mortar stores
- In-app purchases
- 29% of American small businesses still don’t have a website.
- 32.4% of all cybercrime attacks are directed at e-commerce sites.
- 80-90% of e-commerce businesses fail within the first 120 days.
- Only 2.3 % of visits to e-commerce websites in the United States converted to purchases in the third quarter of 2022.
- 38% of online businesses struggle with personalization.
- China has the largest e-commerce percentage of online sales at 52%. The United States comes in a distant second at 19%, followed by the United Kingdom at 4.8%.
As we enter 2023, the e-commerce industry continues to evolve, driven by technological advancements, changing consumer behaviors, and global trends. Businesses must adapt to these shifts and embrace the latest e-commerce trends to stay competitive. From mobile commerce and personalization to emerging technologies like AR, VR, and AI, the future of e-commerce is exciting and full of possibilities.