The internet has changed people’s lives in numerous ways. From the way we look for information to the way we buy things. Nothing can stop the fast development of this immersion into the new technologies that we have now reached the point where we can no longer even imagine our lives without the internet.
In such a reality, people are trying to adapt their lives and to get the best out of it. They want to improve their lives and become more efficient. Why would they go to the restaurant for dinner if they can order food in? Why would they spend time shopping when they can order everything they need in less than ten minutes? There is a constant trend to use the internet, not only to find out information but to get things done.
Buyers and sellers
On the one hand, we have buyers, people who try to make their lives easier and better by buying online. Regardless if we talk about making a grocery shopping quick and easy, or ordering an item from abroad. The internet enables fulfilling those needs and the ability to obtain something you could not even imagine two decades ago. Besides convenience, online shopping also provides a great selection of products and services, as well as competitive prices. This is something that provides an incredible advantage over any local retail.
Due to the growing expansion of the internet and the fact that new generations are growing up with the internet experience being part of their lives from the early days, the number of digital buyers is constantly on the rise. From 1.32 billion digital buyers in 2014, this number is expected to grow to more than 2 billion by 2020.
The estimated number of digital buyers worldwide
On the other hand, we have people who create or simply resell the products through the usage of the internet. These sellers are turning to the internet as a tool to run their business and ultimately earn their living. Some are choosing the existing platforms specialized in the sale of goods, such as eBay, while others decide to create their online stores. Either way, the goal is to reach consumers and encourage them to buy. As a seller, your goal is first to reach the digital buyers,and then persuade them to buy from you, using a series of promotional activities, online interaction, etc.
Buyers and sellers together make up e-commerce, short for electronic commerce. E-commerce is the transaction between a buyer and a seller, which is done through online technologies. It is the process of using the internet to buy or sell online.
Despite the fact that e-commerce is something available to anyone and in spite of how easy it might be to start selling products and services online, there are many struggles to make this business viable and actually capitalize your efforts in the digital world. As the market gets saturated, day by day, it becomes even more difficult to place your products on that market.
A modern consumer is overwhelmed with numerous advertising messages each day. He is also mobile, which means easy access to the information and ability to buy on the go. A modern consumer is also doubtful and equivocal. Faced with plenty of choices and alternatives, a modern consumer needs to make decisions on a daily basis. All of this shapes the approach of modern businesses whose goal is to reach that modern consumer and persuade him that theirs is the product they should buy. It is not an easy task, but with the right strategy and tools, you should be able to introduce and position your company on the e-commerce market.
Getting started with e-commerce is a process that requires learning about different aspects that influence setting up and running an e-commerce website. It is also helpful to have in mind the e-commerce statistics that provide a glimpse into the importance of this industry and the trends that are tremendously shaping the way strategy is implemented.
- Millennials and Gen Xers are similar in their likelihood to buy online—more than 90% of internet users in both age groups have made a digital purchase in the past year. But millennials are more likely to research products or make a purchase via their smartphone. (eMarketer)
- In 2015, the global population amounted to around 7.3 billion people, of which 1.4 billion people purchased goods and/or services online at least once. In total, they spent $2,272.7bn online, which results in an average spending per e-shopper of $1,582. (EcommerceWiki)
- Worldwide retail sales—including in-store and internet purchases—will surpass $22 trillion in 2015, up 5.6% from 2014. Retail ecommerce sales, those purchased over the internet, will make up 7.4% of the total retail market worldwide, or $1.671 trillion. By 2019, that share will jump to $3.578 trillion, yet retail ecommerce will account for just 12.8% of retail purchases. (eMarketer)
- About 71% of consumers are shopping online to find the best price. (IBM)
- 53% of global internet users have made an online purchase in 2016. (SocialMediaToday)
- Primary reason for digital shoppers in the United States to abandon their carts is the cost of shipping. (Statista)
- Nine out of 10 of the survey participants said free shipping was the No. 1 incentive when asked what would make them shop online more often. (MarketingLand)
- Average e-commerce conversion rate vary from 3% to 4%. (SocialMediaToday)
- 42 percent of online shoppers worldwide stated that they preferred to pay via credit card, while 39% preferred PayPal. (Statista)
- In 2017, global B2C e-commerce sales are expected to reach 2,143 billion U.S. dollars. (Statista)
- Customer satisfaction is the number one success metric for marketers today. (Salesforce)
- 39% of people will stop engaging with a website if it takes too long to load. (SocialMediaToday)
- Eighty-eight percent of shoppers characterize detailed product content as being extremely important. (Forbes)
- Over 90% of people buying on Amazon wouldn’t purchase an item with less than three stars. (Forbes)
- One-click checkouts and e-wallets will become a game-changer in 2017. (HuffingtonPost)
- 75% of people participate in webrooming to find the lowest price, while 72% do it to compare the products. (RetailPerceptions)
- The main reasons why customers webroom over showroom is because they don’t want to pay for shipping (47%) and because they like to go to a store and touch and feel the product before they buy it. (Shopify)
- Social commerce accounted for 5% of ecommerce. But predictions are healthy and show a 25% growth rate over the next five years. Mobile ads are the backbone of this growth. (HuffingtonPost)
- Mobile remains a powerful upward force for ecommerce. US retail mcommerce will climb 43.2% in 2016, paced by a 78.3% jump in sales via smartphones. (eMarketer)
- In 2015, mobile commerce accounted for 30 percent of all U.S. e-commerce in 2015, and U.S. retail e-commerce dollars are projected to grow to almost 482 billion in 2018. (PointSource)
- 56% of smartphone or tablet users intend to utilize their devices to search for and/or buy gifts this holiday season. (Invesp)
With the analysis of the data from numerous researches on the state of e-commerce, the following can be concluded:
- E-commerce market is expanding each year
- Mobile commerce is increasing its share in the overall e-commerce
- It is important to understand the profile of digital buyers
- Digital buyers want quick and easy way to buy online
- They also want the best price and free shipping
- Webrooming is slowly taking over showrooming