How COVID-19 Changed eCommerce
With more people adapting to technology and the growing number of digital apps, the Internet and all that come with it definitely paint a picture of the future. In fact, it’s already so ingrained in almost every person’s lifestyle that the Internet has become a way of life. One of those developments that we’ve already been consuming so much is eCommerce.
Researchers have said that eCommerce is the future of shopping. But, now that the COVID-19 pandemic has hit the world, the future just became the present. Learn all about eCommerce with the statistics and facts below:
eCommerce before COVID-19
1. In 2019, eCommerce sales worldwide amounted to $3.54 trillion.
An estimated number of 1.92 billion people made online purchases in the same year.
2. In terms of platforms, online marketplaces were the top source of global online purchases.
They accounted for roughly 47% of all eCommerce transactions. Websites like Amazon, eBay, and Alibaba fall in this category.
3. The Clothing and Footwear segment had the largest share of revenue of 24.01% in 2019.
The convenience of shopping online and replication of the physical shopping experience to a digital version contributed to this growth.
4. Before COVID-19 hit, it was forecast that online sales in 2020 would reach $4.11 trillion.
This was equivalent to a growth of 18.4% from 2019.
5. The compound annual growth rate (CAGR) of the eCommerce market size is expected at 7.9% through 2027.
This is due to more disposable income and more people adapting to technology and the Internet.
6. The Asia-Pacific region has been generating the most digital sales all over the world.
With China at the forefront, this territory accounts for at least 62.6% of all online purchases.
7. In the US, consumers spent $601.75 billion on online purchases in 2019 alone.
This figure was 14.9% more than 2018’s online sales, which amounted to $523.64 billion.
8. Amazon is the eCommerce channel that generates the most global revenue.
The company closed 2019 with a revenue of $280.52 billion.
9. At least 52% of global Internet users made a purchase through their mobile device in 2019.
In contrast, 36% purchased through their laptop or desktop computer.
10. Each global consumer is estimated to spend at least $2,594 worth of online purchase in a year.
Most purchases were under the Fashion and Beauty, Electronics and Physical Media, and Toys, DIY, and Hobbies categories.
After COVID-19: General eCommerce
11. As of Q2 2020, US retail eCommerce sales amounted to $211.5 billion.
This is equivalent to an increase of 31.8% from Q1 2020 and 44.5% from Q2 2019.
12. COVID-19 has accelerated the shift to eCommerce by five years.
This has resulted in department stores experiencing a significant decline.
13. In a survey conducted in June 2020, 50% said that they will still shop online, even after things have normalized.
Majority of consumers will also lessen their spend on out-of-home leisure activities, like cinemas, restaurants, and gyms.
14. More people prefer the “buy online, pick up in store” (BOPIS) option in the US
As of August 2020, it showed further surge with an increase of 59% from July 2020 and 259% from August 2019.
15. In June 2020, global eCommerce website traffic recorded 22 billion visits.
It started at 16.07 billion visits in January 2020.
16. As of July 2020, sports equipment is being purchased online the most.
The other top categories are groceries and retail technology.
17. Millennials and high-income earners are the leaders in shopping essential and non-essential items online.
Gen Zers are also shopping online, but in specific categories only.
18. A survey from April 2020 says that 14% of Americans shopped online for the first time, while 56% increased their online spend.
A small, but promising, portion of these first-time shoppers are at least 65 years old.
After COVID-19: Email eCommerce
19. Click and open rates in March and April 2020 were higher than all of 2019 combined.
Global open rates were reported to be as high as 15%. Unsubscription rates were also lower during these months.
20. Smaller businesses, in particular, saw a highly significant increase in engagement from March 2020.
While big businesses also had an increased engagement, it wasn’t as drastic.
21. In April 2020, businesses in the US generated $24.5 million per day via email.
From January 2020 to early March 2020, they were generating only $8.5 million per day.
22. Since the pandemic, 30% of US brands that sent email campaigns regularly saw increased revenue.
They reported a revenue that was as much as their Cyber Weekend performance in 2019.
23. The best days with the highest opens for emails have, so far, been Fridays and Mondays.
Additionally, Sundays, Saturdays, and Mondays have become the days with the lowest unsubscribe and bounce rates.
24. Emails from Government organizations had the highest Open and Click Rates of 39.5% and 5.71%, respectively, in April 2020.
Organizations under the Education, Architecture, and Design categories also saw an increase in these metrics.
25. Email campaigns sent after the pandemic hit (mid-March 2020 to April 2020) saw a year-on-year conversion rate as high as 22.66%.
On the other hand, the year-on-year conversation rate during the pre-COVID months was 11.81%.
26. The open rate in desktop computers has been seeing a 10% week-over-week increase.
However, mobile is still the top-performing device when it comes to open rates.
After COVID-19: Social Media eCommerce
27. Gen Zers and millennials have been consuming social media the most, since the pandemic hit.
In terms of region, Latin America, and the Middle East and Africa have the most consumers.
28. At least 42% of global Internet users research about a brand via social media.
Gen Zers make up 47% of this statistic. Additionally, 27% of Internet users in the US and UK say that they discover a brand through ads seen on social media.
29. In a survey conducted in March 2020, 89% of consumers said that they will buy from a brand that they follow on social media.
Moreover, 84% said that they will choose that brand over a competitor, while 75% said that they are willing to spend more with that brand.
30. Facebook is the social media platform that consumers use the most.
This is followed by YouTube and Instagram. Meanwhile, social media marketers look to Facebook, Instagram, and Twitter to drive sales. While TikTok doesn’t have the most users yet, it’s steadily growing.
31. In the US, at least 18.3% of online shoppers shop directly from Facebook.
The other social media platforms that they shop from are Instagram (11.1%) and Pinterest (2.9%).
32. The market size of global social commerce is expected to reach $2.05 trillion by 2024.
Its compound annual growth rate (CAGR) is forecast at 31%.
33. Asia-Pacific was the largest market of social commerce in 2019 and will account for 52% of the industry growth by 2024.
The key contributors are expected to be increased social media advertising, more people using smartphones, and improvements in telecommunication infrastructures.
34. In the US, 37% of Internet users who have purchased directly from social media are within the 18-34 age group.
However, they don’t do it often, as social commerce has yet to build traction in the region.
After COVID-19: Mobile eCommerce
35. Because of the pandemic, the shift to a mobile-first world has advanced by two to three years.
The total time spent on mobile phones all over the world is at least 1.6 trillion hours.
36. The mCommerce (mobile commerce) industry is expected to reach $5.1 trillion by 2027.
Its compound annual growth rate (CAGR) is estimated at 23.8%.
37. China, one of the leaders of mCommerce, is expected to grow by 27.5% through 2027.
The United States is also expected to grow by 17.5%.
38. As of July 2020, there are 5.15 billion unique mobile phone users in the world.
This is equivalent to a penetration of 66% and an increase of 2.4% from July 2019.
39. At least 70% of global Internet users are using their smartphones or mobile phones more during the pandemic.
The amount of time spent is almost equal between females and males.
40. Globally, consumer spend on mobile apps amounted to $50 billion in the first half of 2020.
Additionally, 64 billion app downloads worldwide were recorded.
41. At least 45% of global Internet users are shopping more online through their mobile phones.
It’s highly likely that 93% from this segment will maintain this increased usage.
42. A survey conducted in March 2020 says that bridge millennials (i.e. millennials in their late 30s) and high-income earners are leading the way in mobile commerce.
The second age group that’s adapting to mobile commerce is the Gen Z.
After COVID-19: Shopping cart eCommerce
43. Shopping cart abandonment rate is as high as 94%.
This is a decline from last year’s rate, even though consumers are browsing and adding more to cart this year.
44. In Q2 2020, mobile devices recorded an abandonment rate of 86%, the highest compared to other devices.
The abandonment rate for tablets is 79% and 75% for laptops or desktop computers.
45. The Automotive sector had an abandonment rate of 96.88% in March 2020.
The other top sectors are Luxury (92.61%) and Car Rental (92.04%).
46. According to a survey conducted in April 2020, US consumers depend on the item’s price the most when purchasing online.
Fast and convenient delivery, and the brand’s reputation are also huge factors.
47. Conversion rates in the US eCommerce industry has seen a growth of 85.77%.
Conversions in desktop sessions have been higher than in mobile sessions.
48. At least 60% of global consumers have changed their shopping behavior, in terms of shopping method and preferred brands.
The main reasons are value, convenience, and availability.
49. Around 53% of consumers are likely to click on the ad of a brand’s competitor that shows a cheaper alternative.
This reinforces the shift in behavior where consumers are more price-conscious.
50. Consumers are prioritizing limits on food waste, more health-conscious products, and more sustainable shopping choices.
Overall, online shoppers are more conscious of every aspect of their purchase — price, sustainability, health benefits, and effect on the local economy.
Even when the world “normalizes” after the pandemic, these changes in the shopping behaviors of consumers are here to stay. Just as consumers are forced to make their purchases online more often, businesses are expected to make the shift from brick-and-mortar to online in order to stay afloat.
If the present is any indication, the future is definitely going to get even more digital.