E-commerce Statistics tips for Strategic Planning in 2019

Owning your own eCommerce business? Then this is a must-read article for you.

Whether you own your an online business or in-store one, you should be aware of the current e-commerce trend and where the market is going in-order to expand your business and get more sales.

The below-mentioned points will update your pre-existing knowledge on e-commerce and will remove the pre-existing notions that you have.

On the whole, it will help strengthen your strategies for e-commerce marketing and in expanding your business.

E-commerce Statistics Tips

In order to study the E-commerce trend and get your business going accordingly, you should have knowledge about the following points

  • General Facts
  • Online Shopping trend
  • Mobile-based e-commerce statistics review
  • Behavioral study of the shopper

General facts

Here are a few general facts that you should take into consideration while developing e-commerce strategies for your business.

  • The total value of global retail e-commerce sales
  • More than 10% of global retail sales will be covered by e-commerce
  • There are about 12-24 million global e-commerce sites
  • Credit cards are the most preferred form of payment

The total value of Global retail e-commerce sales

World wide E-commerce sales from 2014 to 2021 - Statista
Image source: Statista

E-commerce statistics report a steady rise in global e-commerce sales. And this rise is speculated to reach over $4878 billion in 2019. (Source: Statista)

More than 10% of global retail sales will be covered by e-commerce

There is constant and steady growth in the field of e-commerce retail sales.

While e-commerce accounted for only 7.4% of total retail sales in the year 2015, it has shown a remarkable increase and accounted for more than 10% of e-commerce sales in the year 2019.

More than 12-24 million global e-commerce sites

There are a huge number of e-commerce companies in the world. Actually, there is no particular definition of an e-commerce company.

There are companies which have a business online and sell their products on their website.

There are other e-commerce companies like Amazon, Flipkart, Alibaba, etc. and companies who have their site but do not really sell anything online.

All these companies altogether account for about 12-24 million global e-commerce sites.

Credit cards are the most preferred form of payment

According to a survey most of the online shoppers prefer credit cards as their mode of online payment.

This is followed by electronic payment with sites like PayTM and then follows payment with Debit cards and cash on delivery.

Online shopping trend

As per the notice, here are the few shopping trends that are observed in the shoppers throughout the world.

  • Men shop more from e-commerce sites than women
  • The most active online shoppers

Men shop more from e-commerce sites than women

Shopping n E-commerce Sites

Generally, it is observed that 65% of males shop more from e-commerce sites as compared to their female counterparts which are 58%.

The main reason behind this being the products preferred by men like luxury goods and electronic items are on high value and the goods preferred by women like cosmetics, jewelry and cooking items are listed as low-value items. (Source: Adglow)

The most active online shoppers

Opposite to the popular belief, it is observed that not the Millennial generation ( people born between 1982-2000) but Generation X (people born in between 1966-1981) are more frequent online shoppers.

The main reason behind this is that these people have become financially stable by now and are more stable in their income.

Mobile-based e-commerce statistics review

Nowadays the mobile versions of the e-commerce sites are also available. People download these apps on their mobile phones and then do shopping from them.

This is called m-commerce. Here are the m-commerce statistics that a businessman should consider.

  • Increase of mobile e-commerce
  • Global mobile shopping highest in the Asia-Pacific region
  • The rise in online shopping mobile

Increase in mobile e-commerce

Interestingly shopping on mobile has become the most important part of e-commerce. Do you know that by 2021 m-commerce will have a share of almost 73% in the e-commerce market?  This is a massive rise in itself. China being the major country behind this, India and other countries follow close behind. (Source: Statista)

Global mobile shopping highest in the Asia Pacific region.

The improved economics and infrastructure in mobile shopping have made Asia Pacific region for m-commerce. Big e-commerce brands are getting very good opportunities from the Asia-Pacific market.

The rise in online shopping from mobile

Between the years 2016 and 2017 the US market so a recorded rise in online shopping with the help of smartphones.

The increase ranged from 8% to 15%. While there was a drop in online shopping from desktops from 78% to 63%. Which shows that m-commerce is becoming an integral part of e-commerce share. (Source: Statista)

Behavioral study of the shopper

In order to expand your business through e-commerce and planning business strategies, you should also need to track the behavior patterns of the shopper. Here are a few pointers to follow

  • The percentage of conversions for potential customers
  • Global cart abandonment rate
  • The effect of a slow website

The percentage of conversions for potential customers

According to observed trends, only 2% to 3% of e-commerce website visit convert into a purchase. In order to improve your business, you need to have good content on your site and smooth check out process.

Global cart abandonment rate

Many times it is observed that people add the product to the shopping cart of an e-commerce site and then drop out at the end moment.

The statistical study shows that about 75% of shoppers drop out at the time of purchase. The main reason behind this is the added shipping cost, the unclear payment instructions, and unresponsive payment gateway sites.

The effect of a slow website

The loading time of your website pages plays an important role in retaining the potential customer on your site. If your site is slow you may lose the customer and he or she will drop out.

These are the e-commerce statistical analysis tips that help you in building your business strategies.

Why Magento Is The Ultimate Choice For ECommerce Business?

Magento is the most popular platform to implement eCommerce application for online marketplace. The reasons are like it’s highly scalable and provides great user experience with optimum performance.

This is the fast-growing solution for eCommerce development for those who are looking for online marketplace.

It has shown significant improvement over the past few years. Magento successfully integrates digital and physical shopping experiences, to the delight of customers.

According to official website, more than 250,000 merchants around the globe have opted Magento as their eCommerce platform.

Never miss an update from us. Join 10,000+ marketers and leaders.

The usage of Magento has increased and it is far ahead from other platforms like Shopify and Big Commerce. Let’s have a quick look at the E-commerce statistics of various platforms.

Ecommerce

(Source: cminds.com)

The internet users are growing day by day and eCommerce business owners are generating more & more revenues. eCommerce can take your business to great success as it has more reachability.

Let’s have a look at the benefits of using Magento for your eCommerce application.

Benefits of Using Magento eCommerce Platform for Your Business

Conclusion:

Magento stands tall as a one of the best eCommerce platform, offering boundless features that grant your business unparalleled flexibility and customization.

This cutting-edge content management system is meticulously crafted to align with the latest trends, driving your website’s SEO ranking to new heights and propelling the exponential growth of your business.

With the CMS, the possibilities for developing your dream app or online store are truly limitless.

Our dedicated developers team is here to support you every step of the way, resolving any challenges that may arise and turning your innovative ideas into tangible realities.

Are you looking to develop a Magento App/Store for your Business? Contact US!

Top Factors That Influence Online eCommerce Behavior

You can setup the best eCommerce store in the world, but if you fail to fully understand online customer behavior or how to align your marketing practices for best results, you won’t get the results you’re looking for.

The good news is that there is lots of information on how to best market your products and services online.

It all begins with a working knowledge of your product and the niche in which you operate. It would also help to have a basic understanding of the operating systems that support your store. Then there’s the marketing side of things, and there is a good chance you will have to cover this essential aspect of retail all on your own.

But, there is one more crucial aspect of eCommerce that is sometimes underappreciated and misplaced in all the facts and figures. This is the behavior of the online customer. While the behavior seems pretty straightforward – a customer arrives on your site, sees something that interests them and if the price and shipping is acceptable, the transaction is made.

In a perfect world, yes! But, in reality things are rarely that simple. There is a lot more that goes into the buying process. The four stages of the frameworks are these:

  • Need recognition
  • Search for solution
  • Evaluation of alternatives
  • Purchase

Each of these stages of the process has specific factors that affect them. If you are thinking of investing time and effort into your store, you can’t ignore these crucial factors that affect your success.

The FFF Model Of Online Consumer Behavior

In 2012, two management professors working at the Priyadarshini Engineering College and S. B. Patil Institute of Management proposed a model for online customer behavior. Ujwala Dange’s and Vinay Kimar’s model is not the first of its kind, but is the most relevant one I have found to this day.

The FFF model includes both the external and internal factors when affecting buying behavior. It goes on to describe in detail some filtering elements that customers apply to their selection process when choosing a store to do business and the process that leads them to the final choice of product.

Let’s have a look at the factors that influence online shopping behavior,

1. Factors

From left to right, the first thing we see illustrated by Kumar and Dange are the factors that lead a customer to purchase a particular product. There are two categories the internal and external that affects a purchase. The external factors are those that can’t be controlled by the customer. These include five different sectors:

  • Demographics (including socio-economics, technology and public policy)
  • Culture
  • Subculture
  • Reference groups
  • Marketing

From these factors, the customer produces two very different buying emotions: non-functional and functional.

Functional motives for buying include those reasons that appeal to the needs of the consumer, such as the availability and convenience of a certain outlet. This could also include the environment of the shopping location and the selection of goods available.

Non-functional motives are related to reasons such as social values or cultural reasons for a purchase. These may include the specific brands available or the store brand itself.

2. Filtering Elements

Security, trust and privacy are the three hurdles that must be countered to attain successful online marketing. Customers use these three important factors to filter their stores and arrive at the one where they will be willing to do business. In other words, if you don’t pass these three tests from the customer, there is a good chance of losing customers, even if you are the cheapest option out there.

It is important to consider the risks involved with online purchases compared to conventional transactions in a brick and mortar location. Customers feel the lack of any tangible interaction as a high-risk purchase and must be reassured their cash and shopping experience is safe in every way.

They use the three factors mentioned to decide how reliable their retail outlet is.

Security

It is a hazard of the digital realm that information can be easily intercepted, lost or stolen. This includes the important figures of the payment made and the personal information of the individuals making a purchase.

The details of the transaction can be kept in the stores database and there are numerous cases of a security breach where all this sensitive information is accessed by the nefarious. Customers are becoming increasingly aware of this tendency to identity theft and are more cautious about who they hand this information to.

Privacy

Another important risk that even the most unassuming consumer is aware of is the threat that their information can finds it way to third parties with no end of misfortune. From spam to undesirable correspondence this is a serious issue. Even though the results of a privacy breach in this form will result in financial loss the inconvenience of this situation makes it serious enough to shun any non-trustworthy online retailer.

Trustworthiness

Trust is the single most important of the three and certainly the hardest to come by. There is an increasing amount of distrust online for these smaller stores. The obvious result is that bigger name corporations like Amazon are taking all the booty.

But, if you can attain a level of trust with your customer pool you will set yourself miles ahead of the competition. Trust tells the consumer they are the most important.

3. Filtered Buying Behaviour

The last topic covers a set of motives and expectations that your customers have about the filters set above and is important study material for the eCommerce entrepreneur.

How To Use Marketing Model To Develop a Better Store

Understanding these important points will allow you to build toward a better marketing model. The following takeaways should never be forgotten.

  • Understand that different demographics will have different motives for affecting their final purchasing decisions. Make sure that every aspect of your eCommerce presence is created with these details in mind.
  • Show some personality and present your human side in the store, this makes you a “real” person rather than a potentially dishonest machine. This can be done with those personal touches that show you really know your customer their needs and even what they like to see in a valued product.
  • Focus on customer service. If you are known for going the extra mile and making your customer feel it, you will reach that success you hope for. If they see you reaching out beyond the machine they will feel more inclined to do business with you.

Conclusion:

It’s very hard to read the exact behavior of users and consumers in your eCommerce business because online shopping completely depends on customers’ mindset. The above points can make your products to reach near your target users expectations. You need to do deep market and consumer behavior analysis.

We at Andolasoft provide wide range of services such as eCommerce application development/customization including store development. We have developed our own shopping cart (JuggernautCart) with digital products and services. JuggernautCart is one of the most affordable for selling your digital products/assets such as eBooks, add-ons, podcasts, images, videos and many more and you can customize and use these according to your needs.