Growth percentages have dropped in the e-commerce market since businesses reopened after the pandemic; however, the market size is still increasing.
- Despite the economic slowdown, the e-commerce market continues to grow
- Consumers today expect a personalized experience
- E-Commerce is projected to reach 27% of global commerce by 2027
- Social Commerce sales are projected to reach $2.9 trillion by 2027
- Gen Z and Millennial shoppers are more than twice as likely as Gen X and Baby Boomers to buy social media-inspired gifts
- Green commerce environmentally sustainable options are important to over half of consumers, especially members of Gen Z
Market Size & Worth
- 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.
E-Commerce Markets Worldwide
- 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%.
|Country||Online Sales||Percentage of Global E-Commerce sales|
|United States||$843 billion||19%|
|United Kingdom||$169 billion||4.80%|
|South Korea||$120 billion||2.50%|
Future Trends & Projected Growth
Despite slowing growth caused by the current economic downturn, the e-commerce market will continue to grow. Projections indicate that Social commerce alone will reach $2.9 trillion by 2026, feeding consumers to e-commerce sites.
Consumers now expect businesses to create a personalized experience and reach out to them across multiple channels.
- 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 StatisticsMobile e-commerce, or m-commerce, consists of all transactions that use cell phones to shop online. All mobile commerce, m-commerce, is e-commerce and is growing daily. An estimated six billion people worldwide currently have cell phones.
- 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.
- This represents 64.4 percent of the world population.
E-Commerce Shopping Behavior Statistics
Online consumers demand a personalized experience in physical stores or online. They also expect a personalized experience to address their concerns.
Security, ease of returns, and responsive customer service are among the issues shoppers consider most important. In addition, consumers expect online functionality to meet their needs.
- 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 their 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.
- Only 8% of brands offer this type of search.
Green CommerceEnvironmentally sustainable options are important to over half of consumers, especially members of Gen Z.
- 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
- 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.
While the e-commerce market is growing at 23% per year, online businesses can still face challenges to growth. Consumers today expect a personalized experience, and businesses can increase their conversion rate by meeting personalization needs.
These needs include speed and responsiveness of the website, ease of returns, ease of reaching the business, and personalized recommendations.
- 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:
- 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.
Frequently Asked Questions
- 57% of customers will abandon a site if it takes more than three minutes to load.
- An estimated 6 billion people worldwide have cell phones.
- 82% of internet users in the U.S. have shopped on a mobile phone.
- 71% of small businesses have a website.
- China has the largest e-commerce market at $2.78 trillion.
- 70% of e-commerce shoppers have shopped on overseas sites.
- 80% of shoppers rate sustainability as a top factor in deciding whether to purchase.
- 75% of those using BNPL are Gen Z and Millennials.
- 2.86% is the average conversion rate.
- Over 56% of internet users in the U.S. prefer to shop online.
Despite the economic slowdown and fears of a recession, E-commerce is still growing. Growth has slowed since the end of the pandemic lockdowns. However, due to the lockdowns, all generations of shoppers are now comfortable shopping online.
Gen Z and Generation Alpha, in particular, grew up with the technology that makes e-commerce possible and therefore expects more from their shopping experiences. Whether they order online for pick up in-store or have items shipped, consumers have embraced e-Commerce which is projected to reach 27% of global commerce by 2027.
In addition to our own research, data from Morgan Stanley, BigCommerce, Global Payments Inc., Kinsta, Shopify, Zippia, Census.Gov, Trade.Gov also helped us to bring these findings to you.