10 Unbelievable Ecommerce Statistics Why You Must Start Selling Online

MyWifeQuitHerJob Ecommerce Channel
24 Aug 202111:12
EducationalLearning
32 Likes 10 Comments

TLDRThis video presents compelling statistics on the rise of e-commerce, emphasizing its significant growth due to the pandemic and the untapped potential for small businesses. With online sales already accounting for over 18% of global retail sales and a growing trend, the video highlights that one in four people worldwide shop online, especially in the U.S. where nearly two out of three people are online shoppers. It points out that many small businesses lack a website or a documented conversion optimization strategy, presenting an opportunity for those willing to invest in e-commerce. The video also covers the preference for 24/7 online shopping, the common practice of showrooming, and the importance of online research for consumers. It concludes by stressing the low cost of starting an online store and the current favorable market conditions, making it an ideal time to enter the e-commerce space.

Takeaways
  • 📈 E-commerce is a booming industry, with online sales accounting for over 18% of all retail sales worldwide, a figure that continues to grow rapidly.
  • 🔥 The COVID-19 pandemic has accelerated the shift to online shopping, increasing market share for e-commerce at the expense of traditional retail.
  • 🌐 Statistic 1: One-fourth of the world's population, approximately 2.1 billion people, are expected to buy goods and services online.
  • 🇺🇸 In the U.S., nearly two out of every three people shop online, highlighting the prevalence of e-commerce in first-world countries.
  • 💹 E-commerce sales are projected to grow exponentially, potentially exceeding 22% of all retail sales by 2024 and reaching 95% by 2040.
  • 💡 Despite the growth, many small businesses (37%) in the U.S. do not have a website, indicating a significant opportunity for those entering the e-commerce space.
  • 📉 A lack of documented conversion optimization strategy is common among small businesses, with 55% not having one, presenting an opportunity for those who invest in understanding customer conversion.
  • 🛍️ Repeat purchases are increasingly made online, with 75% of them happening through digital channels, offering businesses more ways to retain customers.
  • ⏰ Online shopping is preferred for its convenience and accessibility, with consumers able to shop 24/7 at their leisure.
  • 📱 Many shoppers use mobile devices to compare prices while in physical stores, a practice known as showrooming, which online stores can capitalize on with competitive pricing and advertising.
  • 📊 Consumers often conduct online research while in physical stores, with 43% looking up product information on their phones, suggesting the importance of detailed product information online.
  • 💰 Starting an online store is extremely cost-effective compared to a physical store, with varying costs based on the business model but significantly lower overhead.
  • 🚀 The time to start an e-commerce business is now, as the pandemic has pushed online shopping into the mainstream and while the market is still adapting to the digital shift.
Q & A

  • What is the current percentage of online sales in global retail sales?

    -Online sales currently account for over 18 percent of all retail sales worldwide.

  • How has the pandemic affected the growth of online shopping?

    -Due to the pandemic, online shopping is quickly gaining market share over traditional brick and mortar retail.

  • What was the percentage of the world population shopping online as of 2021?

    -Over 2.1 billion people, which is 27 percent of the world's population, were expected to buy goods and services online as of 2021.

  • What is the projected growth of e-commerce sales as a percentage of retail sales by 2024?

    -If the current trend continues, e-commerce sales are projected to exceed 22 percent of retail sales by 2024.

  • What percentage of small businesses in the U.S. do not have a website?

    -According to a survey by Visual Objects, 37 percent of small businesses in the U.S. do not have a website.

  • Why do many small businesses struggle with their online presence?

    -Many small businesses struggle with the time and expertise required to build and maintain their websites, often prioritizing other business aspects over their online presence.

  • What is the percentage of small businesses without a documented conversion optimization strategy?

    -According to CXL, 55 percent of small businesses surveyed do not have a documented conversion rate optimization strategy.

  • How many of repeat purchases are made online according to Statista?

    -Statista reports that nearly three-quarters (75 percent) of repeat purchases are made online.

  • What is the main reason consumers prefer to shop online?

    -Consumers prefer to shop online because they can shop 24/7, fitting their shopping around their own schedules and demands.

  • What is the term for when shoppers compare prices on their mobile phones while in a physical store?

    -This practice is called 'showrooming', where consumers check prices online to find lower prices for products they viewed in physical stores.

  • What percentage of millennials in the U.S. are estimated to shop online?

    -86 percent of millennials in the U.S. are estimated to shop online.

  • How much did the cost to start an online store vary depending on the business model?

    -The cost to start an online store can vary from as low as $2.99 for a print-on-demand store to around $3,000 to $5,500 for a private label brand, including manufacturing and shipping costs.

Outlines
00:00
📈 E-Commerce Growth and Opportunities

This paragraph introduces the video's focus on e-commerce statistics and their significance for potential online sellers. It emphasizes the rapid growth of online retail sales, which now account for over 18% of global retail sales and are expected to continue growing. The impact of the pandemic on accelerating online shopping's market share is highlighted, along with the opportunities it presents for small businesses and entrepreneurs. Statistic number 10 is teased as a surprising fact. The importance of e-commerce trends for 2021-2022 is discussed, and the video invites viewers to subscribe for updates.

05:02
🛒 Online Shopping Trends and Consumer Behavior

The paragraph delves into specific e-commerce statistics, starting with the fact that a quarter of the world's population shops online, with a significant portion of the U.S. population also engaging in online shopping. It discusses the expected growth of e-commerce as a percentage of retail sales, both globally and within the U.S. The success of platforms like Amazon, eBay, and Shopify during the pandemic is highlighted as an indicator of e-commerce's potential. The paragraph also addresses common challenges faced by small businesses, such as the lack of a website or a documented conversion optimization strategy, and suggests that there is a huge opportunity for those willing to invest in understanding these areas. The convenience of online shopping for repeat purchases and the various digital marketing strategies available to e-commerce businesses are also covered.

10:03
📱 Mobile Shopping and Online Research

This section highlights the preference for online shopping due to its convenience and accessibility, with consumers favoring the ability to shop 24/7. The shift in consumer behavior due to the pandemic is noted, with more people preferring online shopping even during peak shopping times. The practice of showrooming, where shoppers compare prices on mobile devices while in physical stores, is discussed. The benefits of online research and the ability to create detailed product descriptions and comparisons are emphasized. The paragraph also covers the high percentage of millennials who shop online and the low costs associated with starting an e-commerce business, making it an attractive option for entrepreneurs. The video concludes by encouraging viewers to start an e-commerce business and offers a free mini-course for further education on the topic.

Mindmap
Keywords
💡E-commerce
E-commerce refers to the buying and selling of goods or services using the internet, and it is the central theme of the video. The video discusses the growth and importance of e-commerce in the current retail landscape, emphasizing its rapid expansion due to the pandemic and the opportunities it presents for small businesses. For instance, it mentions that online sales account for over 18 percent of all retail sales worldwide, highlighting the significance of e-commerce in today's economy.
💡Online Sales
Online sales are transactions conducted over the internet, which the video emphasizes as a growing segment of retail sales. It is mentioned that online sales have jumped significantly due to the pandemic, with a projection that they will continue to grow exponentially in the coming years. The video uses the statistic that e-commerce sales will make up 19.5% of all retail sales in 2021, illustrating the impact of online sales on the retail industry.
💡Small Business
Small businesses are a key focus of the video, which discusses the opportunities e-commerce presents for them. It highlights that many small businesses do not yet have a website or a documented conversion optimization strategy, suggesting that there is a large untapped market for entrepreneurs looking to start an online store. The video also provides statistics on the prevalence of online shopping among different age groups, indicating that small businesses can reach a wide audience through e-commerce.
💡Conversion Optimization
Conversion optimization is the process of improving the effectiveness of a website to convert visitors into customers. The video points out that many small businesses lack a documented strategy for conversion optimization, which presents an opportunity for those willing to study and implement it. It is related to the video's theme as it discusses how understanding conversion optimization can lead to creating a high-converting e-commerce website, giving businesses a competitive edge.
💡Repeat Purchases
Repeat purchases refer to the act of customers buying from a business more than once. The video states that 75% of repeat purchases are made online, which is significant for e-commerce businesses as it indicates a higher customer retention rate compared to brick-and-mortar stores. This is important for the video's narrative as it emphasizes the potential for e-commerce businesses to build long-term customer relationships and revenue streams.
💡24/7 Shopping
24/7 shopping is the ability for consumers to make purchases at any time, day or night, facilitated by online stores. The video mentions that consumers prefer the convenience of shopping online at their own schedule, which is a key advantage of e-commerce over traditional retail. This concept is integral to the video's message that online shopping is becoming the norm due to its accessibility and convenience.
💡Showrooming
Showrooming is the practice where customers inspect products in physical stores but then purchase them online, often for a lower price. The video discusses how e-commerce stores can offer lower prices due to reduced overhead costs and how consumers use their mobile phones to comparison shop while in physical stores. This behavior is relevant to the video's theme as it illustrates the shift in consumer behavior towards online shopping.
💡Online Research
Online research is the act of consumers gathering information about products or services on the internet before making a purchase. The video notes that 43% of consumers conduct research on their phones while shopping in physical stores, highlighting the importance of providing detailed product information online. This keyword is connected to the video's theme as it underscores the informational role e-commerce plays in the modern shopping experience.
💡Millennials
Millennials are the demographic born between the early 1980s and the mid-1990s to early 2000s, and they are a significant segment of online shoppers. The video provides a statistic that 86% of millennials in the U.S. shop online, indicating their importance as consumers in the e-commerce space. This keyword is relevant as it helps to identify the target audience for e-commerce businesses and the potential market size.
💡Start-up Costs
Start-up costs refer to the initial expenses required to launch a new business. The video emphasizes the low start-up costs for e-commerce businesses compared to physical stores, with estimates ranging from $300 to $500 for an online store. This keyword is central to the video's message that e-commerce presents an accessible and low-risk opportunity for entrepreneurship.
💡Pandemic
The pandemic refers to the global health crisis caused by COVID-19, which has significantly impacted consumer behavior and accelerated the shift towards online shopping. The video mentions the pandemic's role in boosting e-commerce sales and market share, making it a crucial context for understanding the current state and future prospects of e-commerce.
Highlights

E-commerce sales account for over 18 percent of all retail sales worldwide and are growing rapidly.

The pandemic has accelerated the shift to online shopping, increasing market share over traditional retail.

One-fourth of the world's population, or 2.1 billion people, are expected to buy goods and services online.

In the U.S., two out of every three people shop online, highlighting the prevalence of e-commerce.

E-commerce is projected to grow exponentially, potentially exceeding 22% of retail sales by 2024 and 95% by 2040.

Major e-commerce platforms like Amazon, eBay, and Shopify experienced significant growth in 2020.

37% of small businesses in the U.S. do not have a website, indicating a large untapped market for online services.

55% of small businesses lack a documented conversion optimization strategy, presenting an opportunity for those who invest in understanding it.

75% of repeat purchases are made online due to the ease of customer retention strategies like email marketing and loyalty programs.

Consumers prefer the 24/7 shopping convenience of online stores, a preference that has been solidified by the pandemic.

35% of shoppers price compare on their mobile while in a physical store, a practice known as showrooming.

43% of consumers conduct online research while shopping in a physical store, looking for better information and prices.

86% of millennials in the U.S. shop online, representing a significant demographic for e-commerce.

Starting an online store is extremely cost-effective, with initial costs up to 100x less than a physical store.

The cost to start an e-commerce business varies by model but averages between $300 to $500 plus inventory costs.

E-commerce is a massive opportunity for small business owners, with the potential for high growth and low entry costs.

Now is the best time to start an e-commerce business as the market is growing and many businesses are still developing their online strategies.

Transcripts

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E-commerce GrowthOnline RetailPandemic ShiftEntrepreneurshipOnline ShoppingSmall BusinessGlobal MarketConversion StrategyCustomer RetentionMillennial ShoppersStartup CostsOnline BusinessDigital MarketingShowroomingMobile CommerceProduct ResearchDropshippingWholesalePrivate Label