One of the best ways to make business decisions is to base them on ongoing industry trends. By doing so, you can ensure that you are taking relevant data into account and that you are basing your decisions on proven facts. With this in mind, it is important to take industry stats into account, especially when it comes to dealing with e-commerce. With this in mind, we've outlined the most important facts to keep in mind when dealing with e-commerce in 2023.
E-commerce stats for 2023
It should come as little surprise that e-commerce is constantly improving. All stats indicate that if you want to sell merchandise, you really need to consider e-commerce as a revenue stream. How you will tackle it, depends on a number of factors. But, if you are not sure whether tackling is worth your time, try to keep the following numbers in mind.
2023 will see a 10.4% growth in e-commerce sales
Saying that e-commerce is on a constant upward trajectory, doesn't really do it justice. To give a more precise idea, take into account the fact that e-commerce sales are expected to grow 10.4% in 2023. This ought to give you a good enough idea of how potent e-commerce is and how important it is that you make use of it. And the sooner you start tackling it, the better.
The global e-commerce market will be $6.3 trillion in 2023
To put this number into perspective, consider that the global e-commerce market was $4.2 trillion in 2020. And that by all estimates, it will be around $8.1 trillion in 2026. Even in 2020, e-commerce was a big market that held a lot of financial promise. And, as the number suggests, it is only going to get bigger.
57% of online shoppers report shopping internationally
So, how are you supposed to make use of the e-commerce market? Well, first understand that online shopping is a global endeavor. You can, theoretically, focus on your local area and only ship your merchandise relatively nearby. But, if you truly want to make the most out of e-commerce, you need to focus on growing your brand internationally. Luckily, there are plenty of modern tools (including AI ones) that make the process of marketing and shipping much easier. What is important to focus on is finding a good shipping company.
The most common reason online shoppers abandon their cart is because of additional costs like shipping, taxes, and fees (48%)
If you plan on shipping internationally, it is important that you either eliminate or at least minimize as much as possible, shipping costs. Almost half of all shoppers abandon their carts simply because they are met with extra expenses like taxes, fees, etc. To prevent this from happening, try to develop a business model where you don't outright charge the extra costs. There are various ways in which you can minimize shipping costs. And there are ways in which you can weave them into the consumer experience. Just try to avoid outright stating "Hey, this is how much extra you need to pay for shipping".
Millennials and GenZ shop online the most
Millennials and GenZ are the biggest demographics for e-commerce. Therefore, it only makes sense that you orient your brand to better cater to their needs. Start by understanding what their market preferences are like and what type of content they best react to. Keep in mind that there is a difference between the two groups and that you need to be aware of which one you wish to cater to more. Numerous studies show that social media and alike platforms and formats play a key trend in modern marketing and that you need to make that a priority. Ideally, you will utilize short videos to concisely sum up what your brand is about.
49% of social commerce shoppers have had an influencer’s recommendation impact their purchase
Anohter important thing to remember about shopping on social media is that it is largely driven by social media influencers. There is hardly a better way to market your product than to have a social media influencer recommend it. People who are not directly connected to your brand will always seem more trustworthy and reliable. This is why it is so important that you make use of UGC. Especially if it is made by experienced professionals. Therefore, it is paramount that you are aware of the active community leaders in your target demographic, and to find ways to work with them. What's important is that your marketing is honest and that your customers get a fair review of your brand.
Users are 62% less likely to return to a business if they’ve previously had a negative experience
Online reputation is hard to build and easy to lose. Now more than ever. If a customer has a single bad experience with your brand, they are far less likely to return to it. Even further, they might look to leave a poor review about your brand and present it in an overall bad light. This is why, if you want to retain your customers, it is important that you make a terrific first impression. Of course, there will always be dissatisfied customers. But, the better you get at brand management, the easier it will be to make a good first impression.
E-commerce will lose $48 billion due to fraud in 2023
The last of our e-commerce stats for 2023 should tell you that safety is a major concern when it comes to e-commerce. This is another reason why it is paramount that you only align yourself with trustworthy shippers and that you maintain a well-optimized online store. Keep in mind that a single issue regarding your customer's item safety can ruin your reputation. So, try your best to avoid that from happening.
The e-commerce stats for 2023 show a pretty clear picture. If you wish to grow your business, you'd be smart to engage with e-commerce as soon as possible. It is a large market that is only expected to grow as time goes on. Especially with Millenials and GenZ. But, engaging with e-commerce can be tricky. You need to ensure that you outline the right demographic for your brand and that you provide them with the best possible shopping experience. The fact that e-commerce is global means that you have a large market to make use of. But, it also means that you have a lot of competition to consider. If your customers don't find your shop satisfying, they won't think much before looking for an alternative. So, make sure that your store is top-notch before you start marketing it.
Once you do start, look to use UGC and social media influencers. There is no better way to gain the trust of your audience than to provide quality merchandise and to have people that they trust recommend it. If you also manage to make a good first impression, once they visit your store, you are almost bound to have a satisfied customer who will continue to promote your brand. Lastly, it is vital that you ensure that everything regarding safety is top-notch.