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A decade ago, only 5% of sales happened online as few people were aware of the concept of “online shopping”. Cut to 2020, this number has tripled by 18% and is expected to grow by another 10.4% in 2023. The frequency of people visiting physical stores has immensely reduced with the growing popularity of e-commerce platforms. These online touchpoints have not only introduced customers to the ease of shopping from the comfort of their homes but have also helped entrepreneurs take this business online and reach a wide audience.
This blog has all the important e-commerce statistics that showcase e-commerce growth over the years, how it is growing today, and what the future holds.
E-commerce Growth Statistics
Today when people think about buying something, they’ll check if it’s available on their favorite shopping app instead of going to a store nearby. That’s what E-commerce has done to the world in the past few years. It has completely changed the way people shop as compared to what it used to be.
The global e-commerce market is thriving today and is expected to only grow in the coming time. In 2023, the market was expected to reach $6.3 trillion which is 21.2% of the entire retail sales. As the popularity of e-commerce is only growing, 2024 is believed to be the largest annual e-commerce sales growth at the rate of 9.4%.
As per the recent e-commerce statistics, the e-commerce market size was valued at $9.09 trillion in 2019 and was expected to grow at a CAGR of 14.7% from 2020-2027. Last year, the market reached $16.6 trillion and is not now expected to reach 70.9 trillion by 2028 at a CAGR of 18.3%.
However, it is also expected that the growth rate will slightly decrease to 8.6% in 2025 and be stable in 2026 with annual sales of around $7.5 trillion. Also, 24% of the retail sales are expected to happen online by 2026. Furthermore, in the year 2027, global e-commerce sales are expected to reach 7.6% and annual sales growth will cross $8 trillion for the first time.
Furthermore, the ease of shopping from a smartphone has further eased the online shopping process, significantly contributing to e-commerce growth worldwide. Around 63% of online shopping happens via smartphones. Also, 74% of people visiting e-commerce websites are smartphone users. For instance, in the United States, 3 out of 4 people shop from their smartphones which means 44.2% of the total e-commerce sales happen through mobile e-commerce accounts.
Another of the most attractive aspects of online shopping is the added discounts and perks for the customers. Every big e-commerce website hosts sales and deals days such as Amazon Prime Day, Black Friday Sales, Cyber Monday, and Big Billion Sales which compel shoppers to go on a shopping spree. Perks like these enable customers to grab the best deal and benefit the e-commerce platform to generate more revenue in that period. Amazon’s Prime Day event generated $12.9 billion in global sales which was 6.7% as compared to 2022. Also, it is observed that on events like these, a fifth of households place more orders than usual to make the most of it.
E-commerce Market Statistics
The e-commerce market has never seen a downfall since it picked up speed in 2020. Though 2020 was a nightmare for many due to the pandemic, e-commerce websites observed a steep rise in their profits that showed five-year growth in a year. The e-commerce sales increased by 44% as people started buying things online.
The pandemic gave the world a chance to brainstorm business ideas and take them online as e-commerce was the only option available to reach the masses. Also, it was the vital factor that was responsible for channel switching and brand loyalty disruption. It resulted in 75% of online shoppers trying new shopping experiences where many gave preference to convenience and value.
Today, there are 12 million to 26.5 million e-commerce sites in the world and every day is a debut for many others.
|Country||Number of E-commerce sites|
|The United States||14 million|
|The United Kingdom||1.24 million|
|South Korea||0.20 million|
E-commerce around the world
China, home to e-commerce giant Alibaba, is leading the e-commerce market with more than 50% of all the global retail sales and over $3 trillion worth of sales in 2023. The United States secures the second position with $940.9 billion in sales, and the third place belongs to the UK with $169.02 billion in sales.
The online sales of the US, the birthplace of world-renowned e-commerce giants like Amazon, Walmart, and BestBuy, reached 1.14 trillion in 2023, a nearly 10% increase over the years. The second quarter of 2023 observed a 6.6% increase as compared to the first quarter and earned a revenue of $269.5 billion. This data shows that there has been a continuous rise in the e-commerce industry.
With the growing use of mobile e-commerce in the U.S. year by year, the holiday season is the best time for the e-commerce industry to generate more profit. In the United States, people spent $211.7 billion on online shopping. This year too the e-commerce industry is expected to make more profit as compared to last year during the holiday season.
Talking about mobile e-commerce, it is worth noting that its sales reached $2.2 trillion this year and account for 60% of the total e-commerce global sales. By 2027, mobile e-commerce sales are expected to reach $3.4 trillion.
The U.S. accounts for 2.5 million online retailers in the world. Additionally, the number of e-commerce sites in the U.S. is continuously increasing and has grown from 3.6 million in 2019 to 14 million e-commerce sites in 2023 as per e-commerce statistics.
Besides the U.S. and China, the UK, Japan, Singapore, and South Korea are also some of the growing e-commerce hubs in the world. These countries hold a significant e-commerce market share of the global retail e-commerce sales of 4.8%, 3%, and 2.5% respectively.
Here are the top 10 countries with successful e-commerce businesses in the world.
|Country||Top E-commerce giants||Revenue in 2023|
|China||Alibaba, JD.com, Pindoudou||$3 trillion|
|The United States||Amazon, Walmart, eBay||$1.14 trillion|
|The United Kingdom||Amazon UK, eBay UK, % ASOS||$196 billion|
|Japan||Amazon, Rakuten, Mercari||$193.4 billion|
|South Korea||Gmarket, Coupang||$120 billion|
|India||Flipkart, Amazon India, Snapdeal||$118.9 billion|
|France||Cdiscount, Amazon France, Fnac||$93.2 billion|
|Canada||Amazon Canada, Walmart Canada, Best Buy Canada||$64.5 billion|
Furthermore, countries in the Asia-Pacific region and South America are observing fast growth in the e-commerce sector. This enormously speedy growth is a result of the large-scale adoption of new technology that caters to the population most influenced by online shopping.
With so many national and international platforms available for online shoppers, the shopping experience is bound to be a great one. Around 57% of online buyers indulge in shopping internationally which depicts that there are no geographical restrictions for e-commerce. This borderless nature of e-commerce encourages people from any part of the world.
E-commerce is for people of all ages, young and old people. With its user-friendly interface and easy steps to search for a product, add it to the cart, and buy actions, it has made online shopping convenient for everyone. Today over 80% of people shop online once a month which shows how deep this concept has penetrated into everyday life. Consumers resort to online shopping for various reasons such as lack of time, getting more options, or simply shopping at their convenience.
93% of online shoppers say e-commerce businesses have more scope to offer them a buying experience better than that of physical stores. Also, online shopping allows them to pay from their preferred payment methods. Almost 49% of online shoppers pay using digital wallets and say it is easy and maintains transparency.
Though online shopping is used by many, millennials (67%) and Gen Xers (56%) together form the largest share of online shoppers. Out of these two generations. Gen Xers are the most relevant target group for e-commerce businesses. They are regular buyers and alone spend nearly $70,000 on average.
It is observed that millennials and people who earn high incomes choose shopping online as compared to others. Also, millennials’ preferred option is Amazon and 59% of them choose Amazon first when shopping online. Furthermore, out of all the online shoppers in the world, men spend more on online shopping than women contrary to popular belief as they spend 28% more than women.
In the United States, most online shoppers are aged between 18-24 years and prefer using their mobile phones to make a purchase online. Also, 8 out of 10 online shoppers believe that customization can further enhance their online shopping experience, and 3/4th of them would like to receive deals and ads curated for them.
Coping up with consumer behavioral change
The e-commerce consumer base is keeping the industry on its toes. 75% of people’s search queries change every month. This behavioral change compels the e-commerce industry to keep introducing new products and categories that the user wants based on the season, occasion, and needs in general.
Talking about behavioral change, personalization of services is enticing a lot of online shoppers these days. Over the years it is observed that customized shopping experiences have increased conversation rates to 15 % and satisfaction rates to 20%. Additionally, transparency, pricing, and convenience are other important aspects that influence the buying decision.
Additionally, out of all the types of e-commerce available, direct-to-customer (DTC) brands are gaining popularity. These brands account for 13% of the entire e-commerce business in the U.S.
E-commerce platform: A One-stop-shop
There are a plethora of things available for purchase on e-commerce websites. Not everyone buys everything online. Many people prefer online shopping to buy a particular type of item. While some trust these platforms to buy electronic items, others prefer it to buy clothing and footwear. Here is a list of the most commonly purchased items from e-commerce websites.
|Items||US buyers-based statistics (2023)|
|Clothing and Footwear||51%|
|Electronics and computers||53%|
|TV, music systems, and video games||70%|
|Furniture, decor, and home appliances||44%|
Earlier, the categories on each e-commerce platform were the same. Today as many e-commerce websites have introduced new categories such as over-the-counter medicines, groceries, daily household essentials, and personal hygiene products, it is believed that the number of online shoppers will increase by another 35% in the coming time.
E-commerce for Businesses
E-commerce is not only a place for buyers but also for sellers seeking a wider customer reach for small businesses. The advent of e-commerce platforms has simplified starting small businesses by reducing the time, effort, and money that goes into opening a physical store. Also, e-commerce platforms have helped entrepreneurs in areas such as customer acquisitions, visitor tracking, and statistics, driving traffic and sales, and social recommendation to name a few.
As entrepreneurs have realized the potential of e-commerce websites, there has been a significant increase in the number of small businesses in the past few years. 6 out of 10 small and medium businesses in the U.S. are actively investing and prioritizing e-commerce and similar digital services to match the pace with modern times and greater customer acquisition. Also, 26% of small business owners have already set up their website for online visibility and simplify their customer to leverage their services online.
54% of customers have states that have discovered many exciting and unique new e-commerce businesses through social media. This indicates that social media is playing an important role in helping small businesses get great visibility across all platforms.
Owing to social recommendations and people’s collective efforts to support small businesses have tremendously contributed to the U.S. economy as e-commerce sales grew by 13.8% in 2023. Additionally, it also showed a whooping rise from 9% to 23% across various sectors.
While e-commerce is a great place for small businesses to get the visibility they need to grow, it is also important for them to strategize and invest in SEO, website optimization, and customer engagement to nurture, entice, and retain their target group from time to time.
Though there are many e-commerce giants in the world offering a wide range of services to their customer base, not all of them are available in every country. However, Amazon is the only player that has its roots spread across the world and has its services available to most countries. Hence, it is the world’s largest e-commerce platform accounting for 37.8% of e-commerce sales. From books to electronics, Amazon has everything under one platform and is the most preferred e-commerce site for online buyers.
eBay is a C2C marketplace that allows people to buy and sell products online. This e-commerce website has all sorts of products available for buying and selling. It is also the second-most visited e-commerce website with 138 million active users in the world.
Walmart is another e-commerce giant in the U.S. that offers a variety of products to shop for from groceries to clothing and electronics at affordable prices. Currently, it has stores in 20 countries and receives weekly traffic of 240 million customers at both online and physical touchpoints.
AliExpress, an e-commerce giant in China is one of the most-popular e-commerce websites in the world. It is a D2C platform that offers products of all kinds at affordable prices making it a great place for people looking for budget-friendly products. It receives a daily traffic of 20 million users which is expected to increase its cross-border customer base to 30 million.
Another popular name in the e-commerce realm is Rakuten, a Japanese e-commerce player with 40.2 million active users. This e-commerce website offers a wide range of products from electronics to clothing and home essentials and is famous for its cashback and referral programs.
Revenue generated by top e-commerce platforms in 2023
|Platform||Revenue generated in 2023|
A few years ago people wished shops were open all the time so that they could buy anything they wanted at any time. Today, people are living this shopping fantasy. E-commerce platforms are available 24/7 for their consumers offering them the best of services, products, and experiences. The e-commerce industry is expected to generate a revenue of $ 6 trillion by 2024 and produce 22% of all retail sales. Not just this but by 2040, 95% of all the shopping will be through e-commerce platforms. Now is the time for businesses to step up if they haven’t already taken a plunge into the e-commerce realm, embrace online sales, and assess the potential it has to grow a business.