Opinions expressed are those of the author. The Top 3 E-Commerce Trends for 2022. Credit: Getty Images by Oscar Wong . To put this into perspective, more than a third of the time that internet users aged 16 to 64 spend online is spent on social media. According to Morris Cohen, Wharton Professor of Operations, Information, and Decisions, the COVID-19 pandemics effects on supply chains were as big as an earthquake or tsunami. High-profile retailers are shuttering stores, but that doesnt mean a broader retailpocalypse is IRI integrates with Meta in bid for incremental shopper marketing dollars, Lululemon, Macys, and Chicos lower their Q4 outlooks, Amazon layoffs multiply, indicating continued strife in tech sector. By 2022, 62% of US adults will be using voice assistants. By offering this option, you can improve customer confidence and purchase experience. Global ecommerce sales will likely reach $5.4 (3.95) trillion in 2022. Added in 2022. Regular re-evaluation of available data means the forecasts reflect the latest business developments, technology trends, and economic changes. with an annual growth rate of 21%, China is also one of the fastest-growing eCommerce markets. Personalization provides users with product recommendations and targeted email campaigns that match their interests. United Kingdom: +150 billion Euros (+160 billion USD). According to recent research by eMarketer, China will remain the worlds most penetrated eCommerce market in 2022, with 46.3% of the countrys retail sales taking place online. Social Commerce Is Also Popular in Asia-Pacific Regions Loan repayments in fixed installments would put pressure on their companies' cash flow. According to Invesp, by 2020, 50% of searches will be voice searches, and Voice Shopping is expected to reach $40 Billion in the US by 2022. eCommerce will total $6.51 trillion by 2023 according to reports from eMarketer and Statista, thats 22.3% of all retail sales. According to research by e-commerce expert Gary Hoover, the growth of e-commerce companies has soared over the past 14 years. Autonomous Driving: In 2022, GM's Cruise expanded its autonomous taxi service to most of San Francisco in the . The COVID-19 pandemic drastically changed eCommerce trends worldwide. Indias eCommerce market is estimated to grow by 25.5% in sales by 2022, making it one of the worlds top 5 fastest-growing countries for this industry. Evidently, e-commerce companies are poised for growth and challenges ahead. From opportunism to long-termism. KEY STAT: Around the world, ecommerce sales will increase by just 9.7% this year, by far the slowest pace of expansion since we began tracking the figure in 2011. With options like Magento, Shopify, or WooCommerce, its hard to know where to start. The trend continues: Latin America (including Peru, Brazil, Argentina, Chile, Colombia, and Mexico) saw $104 billion in ecommerce sales in 2022, up 22.4% from $85 billion in 2021. Since market research can be quite time-consuming, we have decided to do the work for you and provide eCommerce statistics that will help your business get the preparations for 2023. What is the global outlook for retail sales and retail e-commerce sales in 2022 and beyond? In the United States, there are 57.624 sites on Magento 1 and 34.863 sites on Magento 2, making it the country with the most Magento-powered websites, as gathered from data by Builtwith. . The statistics of PopupSmart state that online videos will make up over 82% of all consumer internet traffic by the end of 2022, which is 15 times more than in 2017. Global retail e-commerce revenue 2022, by region. Some products are more appropriate to buy in person, while some are better buys through a website or app, it all makes perfect sense. Headless eCommerce allows you to separate the front end and back end of a website or application so that you can deliver content to any front-end framework using APIs. Reliable data in simple displays for presentations and quick decision making. . Even though Chinese companies can enter western markets, advertising and social content via Facebook, Instagram, YouTube, and Google are unavailable in China. Download a complimentary copy of this new eMarketer analyst report, sponsored by ChannelAdvisor: Global E-Commerce Forecast 2022: As 2-Year Boom Subsides, Plenty of Bright Spots Remain, for answers to the following key questions: A lot of businesses across various industries have been impacted by the COVID-19 pandemic. Insider Intelligence Inc. All Rights Reserved. Customers have also gradually shifted from limiting their appearance in stores to ensuring their safety and looking for products combined with home delivery services. ET. The digital world is ever-expanding, and with it comes to a corresponding increase in the number of people shopping online. In 2021, the number of physical stores in America dropped from 450,000+ locations to 350,000. Retail eCommerce sales in the US for Q2 of 2022 amounted to $257 billion, which is a 2.7% surge from the last quarter. In fact, every country covered in eMarketers Global eCommerce Update 2021 research saw double-digit growth in online shopping last year, signifying that this trend is still here to stay: Even though retail eCommerce sales are predicted to make up a higher percentage of total retail sales in the next few years, the growth rate has actually decreased. Additionally, this eCommerce platform is a great solution if youre looking for an SEO-friendly platform that is also highly customizable and scalable. If you have a physical store, another great way to increase traffic is by allowing QR code payments, this creates a better shopping experience overall and gives customers more payment options, which can influence whether or not they make a purchase from you. Online retail sales amounted to 4.9 Trillion U.S dollars worldwide. A major goal for any eCommerce website is to turn browsers into buyers. The primary reason driving such a quick rise in smartphone penetration among Chinese consumers are 1 billion active smart devices and mobile phones currently being used on a daily basis. Nevertheless, the average conversion rate on desktop devices is much higher than that of mobile devices, this difference indicates that many consumers use their mobile devices to window-shop before making a purchase on their desktop. For investors, this means the e-commerce boom will likely continue, offering opportunities for gains across multiple businesses, regions and verticalsand at a time when recent stock valuations dont necessarily reflect that growth. According to Oberlo, around 1.94% of all visits to eCommerce sites result in a sale. With the pandemic driving record numbers of deliveries in 2020 and 2021, there are now 6.3 billion tons of plastic waste globally. Whats the outlook for total retail and ecommerce sales in China this year? They are expected to be used for about 53% of all eCommerce transactions by 2025. Credit cards came second with a 21% market share, followed by debit cards (13%), bank transfers (7%), and the buy now, pay later (BNPL) solutions (3%). In fact, 842 million people shopped online in China in 2021. Macroeconomic headwinds are sweeping through retail markets worldwide, and ecommerce conditions are deteriorating rapidly, especially in mature markets. Submit your request here. That propels ecommerces share of total US retail sales to 15.0%up from 14.6%, where it sat for the last two years. After an update is released for the WooCommerce plugin, there are around 400,000 automatic downloads. In other words, the e-commerce space is becoming more crowded. That number comprises the worlds top million websites. Gain access to reliable data presented in clear and intelligible displays for quick understanding and decision making on the most important topics related to your industry, included at no extra cost. WordPress has many social media plugins that you can install to let visitors share your products and content. The goal of this activity is to improve customer experience. We are an international, data-driven e-commerce player in the leisure, retail, and travel sectors. So if youre thinking about starting a loyalty program, consider offering immediate rewards instead of points. WooCommerce is currently the most popular choice for eCommerce sites, leading both Magento and Shopify in market share. Although retail has had it tough since 2020, every national market covered by eMarketer saw double-digit ecommerce growth. Reliable data in simple displays for presentations and quick decision making. Also, 86% of businesses use video as a marketing tool because it is more engaging than text and images. But shifts in consumer behavior during the pandemic have changed the way certain products are bought online, particularly in the automotive and grocery categories. The voice search market is expected to grow 23.7% annually, increasing from $11.21 billion in 2022 to $49.79 billion by 2029. What is Magento PWA studio and why businesses should use it for their eCommerce operations? Many companies are now using chatbots as their initial form of customer service, due to the increasing demand for real-time assistance. Even if individuals arent using it specifically for shopping purposes, its still proving an effective channel for marketing. The Challenge: Weighing The Pros And Cons Of Alternative Financing. By October 2022, the world population will have reached over 7.9 billion people which means that at least 27% of the entire world will shop online by then. Brick-and-mortar retail, meanwhile, returned with a vengeance last year and is in better shape than expected going into 2022. Ecommerce Forecasts 2022 Our data and analyses of ecommerce across 8 markets: US, Canada, China, Latin America, India, Southeast Asia, Western Europe, and UK more Report China Ecommerce Forecast 2022 Report Worldwide Ecommerce Forecast Update 2022 Report US Ecommerce Forecast 2022 Report Canada Ecommerce Forecast 2022 Report And if you want your business to succeed, it is essential that you are visible on Google My Business. In fact, 83% of online customers said theyre more likely to buy again from a brand if they belong to its loyalty program. The global presence that Morgan Stanley maintains is key to our clients' success, giving us keen insight across regions and markets, and allowing us to make a difference around the world. Interestingly, mobile users have an even higher rate of abandonment. Analyzing survey data from 1037 college students in China, a country with the world's largest number of Internet users and the world's largest e-commerce market, the current study demonstrates that consistent with previous research, some routine telecom/cyber activities of Chinese college students predict higher odds of being targeted for telecom/cyber fraud, but online routines do not . 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Retail e-commerce sales in India will climb 31.0 percent this year to reach US $32.70 billion, according to eMarketer's latest forecast. In South Korea, thanks to a well-developed payments and logistics infrastructure, online sales already account for 37% of all retail activity. Yet, "plenty of bright spots remain," according to a new analyst report from eMarketer, presented by ChannelAdvisor: Global Ecommerce Forecast As 2-Year Boom Subsides, Plenty of Bright Spots Remain . Our board of directors and senior executives hold the belief that capital can and should benefit all of society. No wonder its the top choice for many businesses. Are you a member of the press with a question about eMarketer? Amazon is currently the most valuable company in the world, with a worth of just over $1 trillion as of June 2022 (Statista, 2022). You might think that since you have a great eCommerce site or app, selling on online marketplaces wouldnt be worth your time. Currently, the Asia-Pacific region and South America are growing at the fastest pace in terms of eCommerce. Exportable files for easy reading, analysis and sharing. Fuller. According to eMarketers data, almost 56% of social media users between 18 and 24 have made a purchase on Facebook, Instagram, Pinterest, Line, WeChat, or VK at least once. eMarketer. Marketing has made remarkable progress in recent years, providing businesses with innovative ways to reach consumers. Across the world, we have yet to see a ceiling for e-commerce penetration.. All rights reserved. The slow loading speed of websites on foreign servers in China has a negative impact on both conversion rates and search engine rankings. Live chat plays a significant role in the overall eCommerce experience and user engagement. Know yourself and your rivals, or you risk losing the e-commerce battle. Even though small screens have caused historically poor conversion rates due to customer frustration, smartphones are now the primary driving force behind mCommerce growth. The chart also suggests that this growth rate will continue to slowly decline over the next few years. The US ecommerce market size's growth rate also pales in comparison to China's. Most of these stores use Woocommerce or Shopify as their platform. 90% of marketers find that social media data gives them an edge against their competitors. Also, dont forget that we have the best marketing method omnichannel marketing. In the US alone, volume is expected to increase from $128.4 billion in 2019 to a whopping $553.28 billion by 2024! Current Price. Just one year later, this number increased by almost 40%. Worldwide retail and retail ecommerce spending is expected to stabilize in 2022 after two years of unpredictable circumstances and unusual growth patterns. 71% of them say that how well a company understands their individual needs affects their loyalty. Additionally, the number of Shopify users has been gradually catching up to WooCommerce in recent years. Latest Ecommerce Sales data and analysis from Insider Intelligence including reports, charts, and articles. If you want to stay ahead of your competition, its crucial that your marketing campaign is on point. The statistics discussed above make it evidently clear how important reviews are for a business. In this article, youll find stats about the eCommerce market in general, consumer behavior, mobile shopping, social media marketing, macro, and micro trends. Industry benchmarks for the most important KPIs in digital marketing, advertising, retail and ecommerce. Amazons app also does well in the mCommerce market among US consumers using Android, claiming second place (nearly 16 million DAUs). The market research firm said the sector's value would grow at a compound annual growth rate of 33.7% between 2022 and 2028. In a study from Flow.io, it was found that over two-thirds of English-speaking shoppers said they would not purchase from a website if it wasnt translated into English. Asia-Pacifics retail eCommerce sales are projected to surpass the rest of the world by 2023 due to a few reasons. Total annual retail e-commerce sales in the US are slated to surpass the $1 trillion mark for the first time, in 2022. Each eMarketer forecast fits within the larger matrix of all its forecasts, with the same assumptions and general framework used to project figures in a variety of areas. With the increasing popularity of online shopping, the market has become oversaturated. Become a . Online shopping has become widely popular only within the last few years, with more consumers choosing to shop online than those who stick to physical stores. 5 billion - the net revenue of Amazon in 2019, making it the leading online retailer (Statista, 2020). You can use platforms that manage your signup forms and emails. US retail sales growth will stabilize in 2022, but changes wrought by two years of the pandemic will drive growth in online automotive and grocery sales. Having a sustainability strategy will be increasingly important to retailers in 2022, according to Andrew Lipsman, eMarketer principal analyst at Insider Intelligence. You can optimize your store for voice search to customize the shopping experience for each visitor. On the other hand, if your brand has been around for a while, use these same marketplaces to navigate customers to your website. In a recent eMarketer report, The Future of Retail 2020, the growth of e-commerce will reach $666 billion in the U.S . 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Premium or paid loyalty programs have become a popular alternative to the traditional type recently. Even though net sales increased by 38.6% in Q2 2022, Wong says that Olaplex isnt immune from these problems. A report by Stackla found that, even though marketers have created a lot of different types of content, 60% of consumers think user-generated content (UGC) is the most real. How do Amazons ecommerce sales stack up against the competition. By 2025, it is predicted that there will be around 564 million eCommerce users in Europe. The 61% of respondents who use voice technology to capture shopping habits said they did so to repurchase saved orders. Macroeconomic Trends Affecting Retail Sales in 2022, Ecommerce Sales Growth Will Decline to Single Digits, Livestreaming and Groceries Will Be Silver Linings, Macroeconomic Conditions Weigh on Chinas Big Three Ecommerce Platforms. In fact, it outpaces dedicated customer service channels and email support. The subscription market is growing rapidly, with an estimated CAGR of 68%. E-commerce as a percentage of retail sales continues to grow across regions. While that might seem like a small percentage, it is quite significant in terms of internet traffic and reaches. It credited this largely to PayPals recent adoption of QR payments and partnership with CVS, which has tapped into Americans growing need for cashless options during the pandemic (11% more people have been using QR codes since the pandemic began). Its online business will soar by 13.5% to reach $40.79 billion, giving it a 3.9% share of US online sales. Additionally, 94% say that videos have helped customers better understand what theyre offering. Displaying your site in your native language dramatically increases the likelihood of closing a sale with international clients. According to McKinsey, manufacturing production is being disrupted every 3.7 years on average now. The second most popular online retail store is eBay, which had just over 1 billion visitors in 2020. In general, younger generations are more comfortable using technology and therefore shop online more frequently than older generations. eCommerce in Publishing 2022: Report Download. Consider local SEO and using long-tail keywords so that people searching by voice will be able to easily find your store. SHEIN stands as the third most popular option with 1.6 million daily active users. Social commerce, which encompasses Facebook and Instagram shopping features as well as TikTok shopping, has been a growing trend over the past five years. (3) 7. A look at what this paradigm shift could mean for workers, employers and investors. Negative customer interactions can quickly lead to a loss of business, so its crucial for eCommerce companies to have excellent customer relationship management. If your primary marketing strategy is driving traffic through content for search engines, this platform is perfect for you. Here are the top three retail technology trends we see as we enter another growth year of e-commerce. But the outlook remains positive in spaces that are capturing consumer interest and demandlike live commerce and digital groceries. Reliable data in simple displays for presentations and quick decision making. Shopify is a platform utilized by merchants all over the world, in over 175 countries. We offer scalable investment products, foster innovative solutions and provide actionable insights across sustainability issues. amounting to an eye-popping 4.21 trillion US dollars.1 47%. In only 2020, Amazon recorded an immense 3.6 billion visitors to its site. We provide comprehensive workplace financial solutions for organizations and their employees, combining personalized advice with modern technology. Rapid urbanization and technological advancements; A host of government initiatives led by China in collaboration with private companies. According to Baymark Institute, in the last 3 months alone, 58.6% of online shoppers in the US have abandoned a cart due to aimless browsing with no intention of making a purchase, and most abandon before they even reach the checkout flow. Morgan Stanley helps people, institutions and governments raise, manage and distribute the capital they need to achieve their goals. In September 2022, Builtwith reports that a total of 6,607,128 websites use WooCommerce. How many new digital buyers will come online this year, and where can they be found. . Morgan Stanley is differentiated by the caliber of our diverse team. The future of eCommerce is a blend of online and physical retail experiences. This is a practice that could have harmful consequences for sales figures. Women also make purchase decisions 7% faster than men. KEY STAT: This year, worldwide ecommerce sales will exceed $5 trillion for the first time, accounting for more than a fifth of overall retail sales. A majority of these businesses also have resellers who sell their products worldwide. By 2022, eCommerce sales in Latin America are projected to surpass $104 billion, a 22.4% increase from just $85 billion in 2021. Weve also provided suggestions on how to use each statistic for increased returns. It now sits at an estimated 22% of sales. According to statistics, 92% of customers would abandon business after just two or three poor experiences. This will give you a better understanding of their preferences and habits so that you can make the necessary adjustments. As we mentioned, WooCommerce is the most popular eCommerce platform in the world right now but it cant be guaranteed in the near future. Even in a slower-growth environment, total new spending will be enormous. WHATS IN THIS REPORT? Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Client-only email newsletters with analysis and takeaways from the daily news. Amping up efforts on customer retention is another way out of this difficult situation. The other two advantages are that its easier to search for desired products (65%) and there is more information available about the features and quality of the products (57%). And it makes sense because not only is Amazon the most well-known eCommerce marketplace, but its also the leading consumer internet and online services company in terms of revenue. If eMarketers predictions are accurate, in 2021 Chinese social commerce sales will surpass $350 billion, which is 10 times the amount of US sales. When COVID-19 first broke and supply chains around the world were disrupted, companies began to focus on building resilience into their supply chains or ways to keep them from halting completely and restore them quickly if they did. In other words, many people are more influenced by shipping costs than the actual product prices. Investors are wondering whether they can look to emerging markets for strong performance over the short term or the long term. According to a recent industry report, e-commerce will account for 20.4% of global retail sales by the end of 2022, up from only 10% five years ago. In fact, today over 67.2% of all online transactions happen on a mobile device. The paradigm shift didn't happen for no reason. This growth can be attributed to many factors, such as the rise in mobile shopping, the popularity of social media, and the growing subscription services market. Cowen and Company, Group M, Magna Global, Zenith/Publicis, eMarketer, MoffettNathanson, Nielsen, and Standard Media Index. A lot of people use WordPress for blogging and creating online content, so when they want to start an online business, all they need to do is integrate WooCommerce into their existing WordPress website. Its ecommerce business will grow by 9.0% this year (lower than the prior forecast of 14.6%) to reach $397.43 billion. The Daily: Influencer Marketing by Platform and Tier, Luxury Ecommerce, and Out-of-Pocket Drug Costs | Sep 6, 2022: On today's episode, we discuss what brand new forecasts the forecasting team cooked up in Q2, including influencer marketing spend by platform and tier, luxury ecommerce, and US prescription drug sales. If you want to get the most out of reviews, dont just depend on third-party platforms; put them prominently on your website and product pages as well. By establishing a presence on these online channels, you can improve your brand awareness and turn visits into social commerce sales. For e-commerce business owners, keeping abreast of industry trends is particularly important for you to stay competitive and identify new opportunities. The projected number of users is expected to amount to 1,230.4m users by 2025. If you want loyal customers who keep coming back, give them a personalized shopping experience. In 2021, approximately 50% of internet users in China have made a purchase through a social network. This encourages 60% of consumers to make a purchase from the company. mCommerce, or mobile commerce, is expected to surge in the next few years. It's a lot of time. In the past three years, cross-border e-commerce has experienced a booming time and also a slowdown due to various factors, such as the COVID-19 pandemic and inflation. Predictions say that systems wont be back to normal until 2023, and this is the earliest estimate. The COVID-19 global e-commerce surge was initially born out of necessity. Free shipping is particularly effective in reducing online shopping cart abandonment on mobile and desktop devices. Shopify is the most common option available. By 2025, retail mCommerce sales should reach $728.28 billion and account for 44.2% of total US eCommerce sales. ecommerce in 2020 would be 19% year over year. This is because it reads the highest-ranking content first and searchers usually ask complete questions instead of just using keywords. 79% of consumers allow UGC to factor into their buying decisions more than influencer or branded content. Besides, competition and talent acquisition in an unfamiliar market would pose challenges to the management. The Competitive situation between e-commerce and traditional commerce. In 2017, online sales accounted for 1/10 of all worldwide sales. Insider Intelligence aims to be the worlds leading research service focused on digital transformation. US retail and ecommerce sales growth will return to pre-pandemic levels in 2022. For online purchases, we recommend offering these transaction methods: Providing an alternative payment scheme, such as BNPL, can give your business a competitive edge. Worldwide retail and retail e-commerce spending is expected to stabilise in 2022 after two years of unpredictable circumstances and unusual growth patterns. In order to create more personalized campaigns and shopping experiences for your customers, you need accurate data. See how you can make meaningful contributions as a student or recent graduate at Morgan Stanley. According to online data shared by Statista, its estimated that in 2022 sales via social media platforms across the world will add up to $992 billion.
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