When you think about e-commerce, you probably picture a store online that is constantly promoting new deals, products, services and so forth.
eCommerce involves a lot more strategy from a marketer’s point of view.
Even though some marketers are looking towards other markets for big gains, the e-commerce market has tons of potential.
Internet businesses are easy to start and still booming according to these facts and statistics.
While it’s still a relatively new technology and form of sales, e-commerce can provide you with a steady amount of income, and if you are a small or major retailer with a physical location, you can improve your sales growth just by adding this online element to your sales funnel.
The following 15 facts will make you not only want to improve your e-commerce store but also provide inspiration for a variety of other outlets for online income.
Most consumers prefer to shop online for a variety of reasons.
Some of these include:
- Time saving
- Less taxes
- Easy to compare prices
- No crowds
- More variety
In addition, many shoppers prefer to research products online first and get an idea of the price before they go to a physical location.
If fast and free shipping is offered, many shoppers would rather purchase online than go in store for items that don’t require you to see the merchandise firsthand.
However, shoppers are less likely to jump on deals for items online that require more research in-person.
For example, shoppers may go in-store to look at shoes, but they may still buy online if they find a better deal while browsing their phones in-store.
A Note on Mobile E-Commerce
As the following statistics will show you, mobile e-commerce is very important to retailers who decide to provide online stores.
If you don’t have a store that is accessible through a phone or that is optimized for a mobile device, you will have a much harder time getting people to purchase items from your store especially if it is an item that they can find from another retailer.
Mobile-optimized online stores feature quick and easy checkouts, one tap navigator, bigger images and intuitive interfaces that respond to touch scrolling.
By creating an online store that can be accessed from a tablet or smartphone, you likely reach thousands of new customers each month.
Let’s Start with the Basics
1. E-commerce actually started in 1979. Michael Aldrich connected a domestic television set with a phone line to create online shopping back, which boomed in the 1980s and 1990s before the Internet took off.
2. Amazon launched in 1995. However, Amazon didn’t start turning a profit until 2003. The average order value as of 2012 for Amazon is $47.31, and of course, Amazon is known as one of the largest online retailers.
3. Netflix was not the first online DVD subscription retailer. Blockbuster created Blockbuster.com in 2004, but it’s not clear when the service began that was like Netflix. Ultimately, Redbox and Netflix led to the downfall of what used to the biggest name in home video entertainment.
4. As of the third quarter in 2012, $4,423 in transactions occurred through Paypal per second. Paypal has expanded in recent years becoming the most well-known way to pay online without having to give up your credit card information.
5. Groupon turned down a deal from Google for $6 billion in 2010. The online deal broker became an IPO the next year.
How Social Media Affects E-Commerce
6. Zappo makes money off of referrals from social media. The online retailer takes $0.75 from Pinterest, $2.08 from Facebook and $33.66 from Twitter.
7. 46 percent of online shoppers count social media when deciding whether to buy something online.
8. 47 percent of shoppers say that Facebook has the greatest impact on what they buy.
9. 54 percent of Facebook members use their phones to browse. There’s no doubt that mobile e-commerce has grown rapidly and continues to bring in billions of dollars for retailers who have mobile-accessible online stores.
10. Polyvore has the largest average order value maintaining $66.75 per order.
Facts on E-Commerce Growth
11. More than 80 percent of the online population has used the Internet to purchase goods and services.
12. 50 percent of the population online has shopped at Internet retailers more than one time.
13. E-commerce sales grow more than 19 percent a year and will reach almost $1.4 trillion by 2015.
14. The highest growing country for e-commerce is India followed by Saudi Arabia, Indonesia, Australia and the Philippines. The least growth for online shopping includes Latvia, Ukraine, and France.
15. According to eMarketer estimates, retail e-commerce sales reached $2.3 trillion in 2017, a 23.2 percent increase over the previous year.
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