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Have you been searching for guides on how to start an online business? Well, it would be unwise not to deal with the skyrocketing growth of the eCommerce industry. Recent years have shown plenty of shifts in consumer shopping.
While technology is primarily responsible, it is the COVID-19 pandemic that brought the global market to an eCommerce boom. The public’s need for automation, artificial intelligence, and virtual/augmented reality technologies fuels the paradigm shift to the “new normal.”
Consumer habits drastically changed, which forced many online businesses to turn to new ways of doing business. Big players in different industries, for example, use advanced technologies to run their business processes. As a result, a chain of new trends emerges regularly.
If you are going to engage in eCommerce, you must know about all the critical data that will help propel your sales. This list has gathered the essential online business statistics you must know in 2022.
General Online Business Statistics Eagerness alone on how to start a business online is not enough to launch your plan to succeed. You have to stay up to date on the latest online business trends and stats to understand the industry’s current conditions. So how to start an online business? Start with statistics. Let’s go!
1. 2.14 billion online shoppers in 2021.
The number of consumers online is getting bigger every year. The latest stats show that there are 2.14 billion shoppers now, a significant increase from the 1.66 billion in 2016.
The reason is that more business owners have recognized the potential of online shopping. Anything can be bought online, from groceries to medicine and even luxury items. The ease of shopping without actually going to the store is also convenient for most people. Marketplaces like Amazon, Etsy, and eBay remain to be the go-to marketplaces by many consumers. You can learn how to sell on Amazon FBA here.
Consider the numbers as the ultimate wake-up call to anyone who wants to tap into the attractive opportunities of online selling.
Global e-Commerce consumers will continue to grow. This only means a ready market is waiting for more goods to be available online.
2. 88% of online shoppers research before a purchase.
Before purchasing, people also compare products from different brands, like shopping in a physical store. They do so by performing an online search to know the pros and cons of their choices.
There are too many sellers online, and having plenty of options could mean that there may be a good deal somewhere. Whether a discount or a freebie, the consumers are always on the lookout for a sale that would give more value to their money.
This number suggests two things. First, there is a need to mind your search engine rankings. You have to be on top of the search results if you want to be noticed by the shoppers.
They always pick the links on the first page because those websites are either trustworthy or popular. During the research phase about how to start a business online, never skip out on learning about Search Engine optimization. It is one of the best ways to ensure gaining the favor of Google and topping the ranks.
The second thing to note is having promotions to entice the customers to choose your brand or products.
There’s nothing like saving from sales promotions that excites the customers more. Aside from discounts, think of different methods to keep their attention from transferring to the competition.
For example, create valuable content like tips and suggestions to get their money’s worth on your products. Anything that makes the customers feel that they are given importance is good publicity.
3. 64% of SMBs have a website.
Small to mid-sized businesses are quick to try innovative platforms. They know that a website or a blog is essential because customers look for it when researching a brand.
Creating a website does not demand a lot of resources. Being imaginative in eCommerce marketing is more important than having a huge budget. Many startups start by using simple but innovative tools, like photo editing apps to Remove bg and enhance images for their websites.
Consider putting a lot of effort into creating or improving your website because it dominates in the modern marketing world. It is a popular marketing channel that you can easily maintain. Aside from being a platform where customers can find your products, it also gives you plenty of space to promote so that they can learn about your brand.
eCommerce Business Statistics The remarkable performance of the eCommerce industry in 2021 is a result of the pandemic. With no signs of slowing down anytime soon, knowing how customers engage with brands and what makes them want to buy are extremely important to building a compelling online business.
4. 70% of SMBs invest in digital presence.
Aside from websites, SMBs also use other platforms to improve their digital presence. Social media and blogs are just two of the most popular ones that deliver favorable results.
Social media marketing is an excellent way to narrow the audience to deliver a more focused message to potential customers. This makes it effective in introducing your brand to demographics that matter. SMBs short on their marketing budget can use social media for PR opportunities that keep the audience updated and engaged.
Most of the activities involved in making this strategy work only require effort. You have to post engaging and valuable content consistently to stay relevant. Communicate with the audience through the comments and chat sections. It is quite a lot of work, but it gets your brand out there even on a limited budget.
5. 35% of SMBs actively promote digital payment methods.
Since people shop online because of convenience, it is only natural to offer digital payment methods to make the transactions seamless.
Gone are those days when only major credit cards are accepted. Digital and mobile wallets are becoming more preferred modes of payment simply because they are easier to manage and are widely accepted in online shops.
Another reason you have to encourage a digital payment system is that it will allow you to introduce your brand to a global audience. PayPal, Apple Pay, and Google Pay are used almost everywhere. Almost 45% of all e-commerce transactions in 2020 were completed through these digital wallets. Offering these payment options does not limit who can avail of your products.
6. The projected growth of global e-Commerce sales in 2022 is $5.4 trillion.
Aside from the number of consumers, the market share of the e-commerce industry is also growing steadily. From the current $5.4 trillion, it is projected to grow by up to 14.1% to 22% next year.
As a budding entrepreneur, you must never pass out on the opportunity to take a slice of this abundance. Make sure to optimize your eCommerce site for user experience. A better UX encourages potential customers to stay and browse through your products.
Provide plenty of details because customers like it when they are well-informed about their choices. It is also crucial to enhance the website design. An ugly website does not entice customers to buy.
To earn your keep in eCommerce, you also need to invest primarily in your marketing efforts. Looking into social commerce, for example, is wise if you want to grow your brand’s prominence. Use different social media platforms for marketing your products.
This will increase awareness and brand recognition, bringing more traffic to your website. Many successful entrepreneurs use this method because it is effective. If you want your share of the rising global eCommerce sales, it will be worth investing in.
You can earn more with your eCommerce store, especially since the market is getting bigger. Make it a priority to improve your website for the best shopping experience. Find ways to better promote your brand and products to reach your target audience. Do not be afraid to take risks and invest in proven marketing methods because they will help you reap the benefits later.
7. In-stock availability and fast delivery are what customers value the most.
Being a reliable online seller is essential to succeed in the eCommerce industry. The competition is intense as there are probably hundreds or thousands of other sellers of the same products. You need to establish yourself as the best source of customers’ needs.
Having the desired items of online shoppers creates a pleasant shopping experience. It makes them want to visit your site frequently since they no longer have to look elsewhere.
Should there be a shortage in your stocks, it would help to inform the customers by sending out notifications or emails. It makes them feel valued while telling them when the items will be back in stock.
Another attribute that makes for enjoyable shopping is fast delivery. Make it a point to offer a free, fast delivery option as an incentive for reaching a certain amount of orders.
You may also use it as a strategy to make the customers come back and order more by having a point system. They get to enjoy free express shipping once they have enough points.
Ensuring that you can provide products fast will make customers happy, thus helping increase the number of orders from your store.
Internet Business Statistics in the Future Obviously, the eCommerce industry will fare well in the future. It would be great to be guided with relevant eCommerce statistics to improve the business, widen your reach, and make more sales.
8. 73% of customers use multiple shopping channels to shop.
The online retail industry continues to expand aggressively. It successfully shifted the shoppers’ attention from traditional retailers to online shopping portals.
However, with the growing number of online shops, it is natural for the customers to browse several sites before choosing where to purchase products. This makes the competition more challenging than ever for online entrepreneurs.
Considering the hostile conditions, online retailers need to have a competitive edge. An omnichannel strategy can be one of the methods to do this. With omnichannel retailing, you offer a seamless shopping experience by providing a variety of channels to purchase your products.
They can use the mobile app to check out products and promotions. If you have a physical store, provide digital tools to encourage online shopping. Have an interactive catalog or a tablet to show different ways to use your products.
It makes the customers feel more valued when you can combine modern and traditional methods of covering retailer touchpoints. They begin to realize how cool your brand is with your everyday gadgets, so they tend to spend more. It also helps them be reminded of the option to shop online conveniently, so you do not depend on in-store purchases alone to increase your revenues.
9. Mobile eCommerce is the norm attaining 61% of online retail traffic.
Most customers use mobile devices to shop. This is why more than 61% of online retail traffic is from mobile sites. Most online shop owners fail to recognize that many customers still use their desktops to complete their purchases.
Smartphones as the preferred shopping tool should tell you to improve your website and make it mobile-responsive. It is not enough to make it attractive to encourage browsing. You also need to ensure that the checkout process, or the final point of contact, is also seamless.
According to data, seven out of ten online shoppers leave their carts without completing the sales process. One of the reasons for this is a confusing checkout method on mobile apps and websites.
Cutting the time between browsing, carting, and checkout will lessen cart abandonment. By optimizing mobile checkout, you will be able to achieve higher conversions. People who use their phones to check out products no longer have to wait until they are on a desktop to make a purchase. It means plenty of potential revenue whenever customers check out your site from mobile devices.
10. AR in online shopping increases tendencies to shop by 35%.
Technology is part of the internet, and experts constantly find new ways to make it worthwhile. Both Artificial Intelligence and Augmented Reality technologies are changing the game in the online industry.
There is a rise in the demand for AR solutions in retail and eCommerce because shoppers look for ways to try on products, albeit virtually, before purchasing.
The immersive experience that AR provides helps bridge the gap that is felt by the customer when it comes to comparing shopping between physical and online stores. This gap became more expansive with the restrictions imposed during the COVID-19 pandemic.
Augmented reality gives detailed information about the product and brings it to life through real-time interactions.
Virtual try-on, product demos, and 3D visualizations are some examples of AR solutions. It helps increase engagement and allows the building of lasting and trusting relationships with customers.
AR technology made customers adapt to modern shopping methods. They start to trust and rely on eCommerce to purchase anything from clothing to furniture.
By utilizing AR solutions to enhance the customer buying journey, you can increase conversion rates and revenues.
It is impressive how technology never fails to innovate and continuously evolve for the better. Brands that engage in online businesses are fortunate to have plenty of modern tools. There are now hundreds of ways to provide customers with a better online shopping experience compared to the past.
The trends continuously change, but what is apparent is that evolution is the only way to survive in any online business. You have to learn to adapt to customer behavior trends and new technology.
The bottom line here is that you have to always keep an eye on emerging trends and niches to promote your brand effectively. Be guided with relevant statistics in developing an efficient marketing strategy for your online business.