E-Commerce Industry Trend Report - Let's Recap 2023
3 Jan 2024
The world of retail is changing because of e-commerce, and it is evident that this industry is growing yearly. Business owners are finding that it’s essential to have a robust e-commerce strategy since it can be less expensive to sell products online. There are a plethora of platforms and tools available today to assist businesses in this endeavour. Let's review some e-commerce-related data and statistics from 2023.
Top E-Commerce Revenue Countries
China: $1.54 trillion in e-commerce revenue
United States: $870.78 billion in e-commerce revenue
Japan: $128 billion in e-commerce revenue
United Kingdom: $118 billion in e-commerce revenue
Germany: $109 billion in e-commerce revenue
Global eCommerce Sales Growth Steadily
According to Insider Intelligence's 2023 Worldwide E-commerce Forecast, the retail e-commerce market is growing at a positive rate of +8.9% over the previous year, with $5.784 trillion in sales. It is expected that this increasing tendency will continue in the upcoming years, gradually approaching the $8 trillion threshold by 2027.
The Rising Share of Online Retail: In 2023, e-commerce is expected to account for 19.5% of retail sales, with projections increasing to 22.2% by 2026. This change suggests that consumers are continuing to favour online shopping over traditional brick-and-mortar stores.
Dominant Players and Marketplaces: Amazon remains the leader in e-commerce sales, holding 37.8% of the market. Amazon’s dominance is a testament to the platform's all-encompassing approach to e-commerce, which functions as a one-stop shop for a wide range of product categories.
Challenges and Consumer Behaviour: E-commerce businesses must navigate challenges such as cart abandonment, which stands at 84% on mobile devices and 72% on desktops. A significant reason for cart abandonment includes additional costs like shipping and taxes. Addressing these pain points is essential for capitalising on the growing e-commerce market.
Most Popular Categories in the UK as of September 2023
Most Popular Categories in the US (By Revenue)
The Domination of Amazon in The Global E-Commerce Market
Amazon has made a name for itself as the dominating player in the global e-commerce market. As of 2023, it holds a commanding majority of the industry's net revenues. Furthermore, industry analysts predict that by the end of 2023, Amazon will have a $1.1 trillion worldwide net revenue setting the stage for unprecedented growth in retail sales and net revenue.
Amazon's dominance in the worldwide e-commerce industry stems from its skilled logistics, customer-focused strategy, value-added offerings, and varied revenue streams. Amazon is well-positioned to maintain and grow its market dominance as e-commerce continues to grow, offering significant prospects for brands to thrive on its marketplace.
Social Media: A Crucial Driver for E-Commerce Growth
These days, a significant portion of the purchasing process begins on the internet. Approximately 87% of consumers engage in research before finalising a purchase, and of these, about 74% rely on social media platforms to explore the most favourable buying options.
Around 50% of the 18 to 34-year-old demographic that uses social media is expected to make a purchase on these sites at some point.
Sales Growth Through Social Engagement
Brands who actively engage on social media platforms see a notable 32% increase in sales as opposed to those who do not. The data highlights the evident correlation between social media usage and business success. You can engage with a wide range of potential customers by building a strong social media presence and investing resources in social media campaigns. By using social media, you can create a unique brand identity and increase brand awareness, both of which can help your brand succeed on Amazon. Brands can increase sales and boost traffic to their Amazon listings by carefully using the unique features each platform has to offer.
Delivery & Shipping Statistics
Parcel Monitor data reveals that 54% of customers now expect their shipments to arrive within 1-2 days of the original estimated delivery date.
This represents a significant increase from the 24.9% recorded in 2022. While a substantial portion, 32% of customers, are still willing to wait for their orders within a 3-4 day window, there is a notable decline in customer patience for 5-7 day deliveries. Only 11% of customers are now willing to accept such longer delays.
According to the data, customers are becoming less understanding of delivery delays overall. An increasing number of consumers believe that waiting past the designated delivery time is unacceptable, especially since more and more well-known businesses are implementing next-day delivery strategies. This emphasises the value of an efficient logistics network and cooperative, win-win alliances between online retailers and logistics providers.
While Prime is an incredible perk for customers, it is extremely important for Sellers and Vendors to be Prime Eligible on Amazon, to ensure they can offer quick deliveries. Many Prime members filter products according to their Prime status; some only choose to purchase Prime Eligible items. Achieving Prime Eligibility can lead to increased sales and improved customer satisfaction and feedback. Additionally, having Prime Eligible status gives sellers the benefit of an improved sales rank and can help secure the buy box. Both of which significantly boosts conversions and contributes to improved revenue.
Online Shoppers’ Statistics by Age & Generation
Millennials and Gen-Xers are particularly drawn to e-commerce, with 67% of millennials and 56% of Gen-Xers saying they prefer to purchase online. But it's not only about generational differences; age is a major factor in determining an individual's preferences when it comes to internet purchasing. With 41.8 million people actively making purchases online, the 25–34 age group is home to the greatest cohort of online buyers. Ages 35 to 44 are next in line, and 65 and older make up the third-largest age group. This demonstrates how internet purchasing crosses generational divides and is popular with both younger and older customers.
Online Shoppers Consult Reviews Before Making Purchases
Consulting reviews online is a noteworthy consumer behaviour. Online Shopping 2023 Data Analysis & Market Share report by Finances Online showed that:
An astounding 91% of customers between the ages of 18 and 34 say they trust internet evaluations just as much as they do referrals from friends and family.
In addition, 78% of internet buyers believe that an e-commerce platform's product reviews are very important.
Amazon Vine is a product review program created by Amazon to provide customers with honest and unbiased reviews. Amazon Vine invites its top reviewers to receive a product for free in exchange for a review. This incentive program benefits both the reviewer and the seller. Amazon Vine helps brands get greater review potential with more thorough, higher quality reviews which if they are positive, will ultimately lead to increased conversions.
Consulting Services: Navigating the Changing Landscape
To effectively negotiate complications and improve your overall success in the rapidly changing e-commerce industry, you must work with knowledgeable e-commerce consulting services. Experts are essential to streamlining your operations and keeping you ahead of industry advancements, incorporating cutting-edge technologies, or creating data-driven marketing plans.
Summary
Businesses must work on developing an online presence that is both interesting and user-friendly to be ready for a shift in the way people shop as consumers shopping habits are constantly changing. By understanding the demographics of who is shopping online, as well as the trends driving increased revenue for e-commerce brands, it’s possible for brands to capitalise on these trends to accelerate growth.
With the e-commerce market growing at a positive rate of +8.9% from the previous year with $5.784 trillion in sales and is expected to account for 22.2% of retail sales by 2026, we can understand how important it is for brands to have a strategy in place for 2024 and beyond.
Amazon remains the leader in e-commerce sales, holding 37.8% of the market. Amazon’s dominance is a testament to the platform's all-encompassing approach to e-commerce, which functions as a one-stop shop for a wide range of product categories.
Due to the hold that Amazon has in the market, it is more important than ever for brands to start selling on Amazon if they haven’t already or if brands already have, to look at their strategy and look to see how they can always be improve and optimise Due to the unparalleled customer reach, consumer trust, robust advertising opportunities & fast delivery it is a no-brainer for brands to invest in an Amazon strategy and this is where Toucan can help you. Toucan provides full-service expertise, advertising and creative services for brands of all sizes who want to sell on Amazon. If you want to look at what your strategy would look like for Amazon, get in touch today.
The world of retail is changing because of e-commerce, and it is evident that this industry is growing yearly. Business owners are finding that it’s essential to have a robust e-commerce strategy since it can be less expensive to sell products online. There are a plethora of platforms and tools available today to assist businesses in this endeavour. Let's review some e-commerce-related data and statistics from 2023.
Top E-Commerce Revenue Countries
China: $1.54 trillion in e-commerce revenue
United States: $870.78 billion in e-commerce revenue
Japan: $128 billion in e-commerce revenue
United Kingdom: $118 billion in e-commerce revenue
Germany: $109 billion in e-commerce revenue
Global eCommerce Sales Growth Steadily
According to Insider Intelligence's 2023 Worldwide E-commerce Forecast, the retail e-commerce market is growing at a positive rate of +8.9% over the previous year, with $5.784 trillion in sales. It is expected that this increasing tendency will continue in the upcoming years, gradually approaching the $8 trillion threshold by 2027.
The Rising Share of Online Retail: In 2023, e-commerce is expected to account for 19.5% of retail sales, with projections increasing to 22.2% by 2026. This change suggests that consumers are continuing to favour online shopping over traditional brick-and-mortar stores.
Dominant Players and Marketplaces: Amazon remains the leader in e-commerce sales, holding 37.8% of the market. Amazon’s dominance is a testament to the platform's all-encompassing approach to e-commerce, which functions as a one-stop shop for a wide range of product categories.
Challenges and Consumer Behaviour: E-commerce businesses must navigate challenges such as cart abandonment, which stands at 84% on mobile devices and 72% on desktops. A significant reason for cart abandonment includes additional costs like shipping and taxes. Addressing these pain points is essential for capitalising on the growing e-commerce market.
Most Popular Categories in the UK as of September 2023
Most Popular Categories in the US (By Revenue)
The Domination of Amazon in The Global E-Commerce Market
Amazon has made a name for itself as the dominating player in the global e-commerce market. As of 2023, it holds a commanding majority of the industry's net revenues. Furthermore, industry analysts predict that by the end of 2023, Amazon will have a $1.1 trillion worldwide net revenue setting the stage for unprecedented growth in retail sales and net revenue.
Amazon's dominance in the worldwide e-commerce industry stems from its skilled logistics, customer-focused strategy, value-added offerings, and varied revenue streams. Amazon is well-positioned to maintain and grow its market dominance as e-commerce continues to grow, offering significant prospects for brands to thrive on its marketplace.
Social Media: A Crucial Driver for E-Commerce Growth
These days, a significant portion of the purchasing process begins on the internet. Approximately 87% of consumers engage in research before finalising a purchase, and of these, about 74% rely on social media platforms to explore the most favourable buying options.
Around 50% of the 18 to 34-year-old demographic that uses social media is expected to make a purchase on these sites at some point.
Sales Growth Through Social Engagement
Brands who actively engage on social media platforms see a notable 32% increase in sales as opposed to those who do not. The data highlights the evident correlation between social media usage and business success. You can engage with a wide range of potential customers by building a strong social media presence and investing resources in social media campaigns. By using social media, you can create a unique brand identity and increase brand awareness, both of which can help your brand succeed on Amazon. Brands can increase sales and boost traffic to their Amazon listings by carefully using the unique features each platform has to offer.
Delivery & Shipping Statistics
Parcel Monitor data reveals that 54% of customers now expect their shipments to arrive within 1-2 days of the original estimated delivery date.
This represents a significant increase from the 24.9% recorded in 2022. While a substantial portion, 32% of customers, are still willing to wait for their orders within a 3-4 day window, there is a notable decline in customer patience for 5-7 day deliveries. Only 11% of customers are now willing to accept such longer delays.
According to the data, customers are becoming less understanding of delivery delays overall. An increasing number of consumers believe that waiting past the designated delivery time is unacceptable, especially since more and more well-known businesses are implementing next-day delivery strategies. This emphasises the value of an efficient logistics network and cooperative, win-win alliances between online retailers and logistics providers.
While Prime is an incredible perk for customers, it is extremely important for Sellers and Vendors to be Prime Eligible on Amazon, to ensure they can offer quick deliveries. Many Prime members filter products according to their Prime status; some only choose to purchase Prime Eligible items. Achieving Prime Eligibility can lead to increased sales and improved customer satisfaction and feedback. Additionally, having Prime Eligible status gives sellers the benefit of an improved sales rank and can help secure the buy box. Both of which significantly boosts conversions and contributes to improved revenue.
Online Shoppers’ Statistics by Age & Generation
Millennials and Gen-Xers are particularly drawn to e-commerce, with 67% of millennials and 56% of Gen-Xers saying they prefer to purchase online. But it's not only about generational differences; age is a major factor in determining an individual's preferences when it comes to internet purchasing. With 41.8 million people actively making purchases online, the 25–34 age group is home to the greatest cohort of online buyers. Ages 35 to 44 are next in line, and 65 and older make up the third-largest age group. This demonstrates how internet purchasing crosses generational divides and is popular with both younger and older customers.
Online Shoppers Consult Reviews Before Making Purchases
Consulting reviews online is a noteworthy consumer behaviour. Online Shopping 2023 Data Analysis & Market Share report by Finances Online showed that:
An astounding 91% of customers between the ages of 18 and 34 say they trust internet evaluations just as much as they do referrals from friends and family.
In addition, 78% of internet buyers believe that an e-commerce platform's product reviews are very important.
Amazon Vine is a product review program created by Amazon to provide customers with honest and unbiased reviews. Amazon Vine invites its top reviewers to receive a product for free in exchange for a review. This incentive program benefits both the reviewer and the seller. Amazon Vine helps brands get greater review potential with more thorough, higher quality reviews which if they are positive, will ultimately lead to increased conversions.
Consulting Services: Navigating the Changing Landscape
To effectively negotiate complications and improve your overall success in the rapidly changing e-commerce industry, you must work with knowledgeable e-commerce consulting services. Experts are essential to streamlining your operations and keeping you ahead of industry advancements, incorporating cutting-edge technologies, or creating data-driven marketing plans.
Summary
Businesses must work on developing an online presence that is both interesting and user-friendly to be ready for a shift in the way people shop as consumers shopping habits are constantly changing. By understanding the demographics of who is shopping online, as well as the trends driving increased revenue for e-commerce brands, it’s possible for brands to capitalise on these trends to accelerate growth.
With the e-commerce market growing at a positive rate of +8.9% from the previous year with $5.784 trillion in sales and is expected to account for 22.2% of retail sales by 2026, we can understand how important it is for brands to have a strategy in place for 2024 and beyond.
Amazon remains the leader in e-commerce sales, holding 37.8% of the market. Amazon’s dominance is a testament to the platform's all-encompassing approach to e-commerce, which functions as a one-stop shop for a wide range of product categories.
Due to the hold that Amazon has in the market, it is more important than ever for brands to start selling on Amazon if they haven’t already or if brands already have, to look at their strategy and look to see how they can always be improve and optimise Due to the unparalleled customer reach, consumer trust, robust advertising opportunities & fast delivery it is a no-brainer for brands to invest in an Amazon strategy and this is where Toucan can help you. Toucan provides full-service expertise, advertising and creative services for brands of all sizes who want to sell on Amazon. If you want to look at what your strategy would look like for Amazon, get in touch today.
The world of retail is changing because of e-commerce, and it is evident that this industry is growing yearly. Business owners are finding that it’s essential to have a robust e-commerce strategy since it can be less expensive to sell products online. There are a plethora of platforms and tools available today to assist businesses in this endeavour. Let's review some e-commerce-related data and statistics from 2023.
Top E-Commerce Revenue Countries
China: $1.54 trillion in e-commerce revenue
United States: $870.78 billion in e-commerce revenue
Japan: $128 billion in e-commerce revenue
United Kingdom: $118 billion in e-commerce revenue
Germany: $109 billion in e-commerce revenue
Global eCommerce Sales Growth Steadily
According to Insider Intelligence's 2023 Worldwide E-commerce Forecast, the retail e-commerce market is growing at a positive rate of +8.9% over the previous year, with $5.784 trillion in sales. It is expected that this increasing tendency will continue in the upcoming years, gradually approaching the $8 trillion threshold by 2027.
The Rising Share of Online Retail: In 2023, e-commerce is expected to account for 19.5% of retail sales, with projections increasing to 22.2% by 2026. This change suggests that consumers are continuing to favour online shopping over traditional brick-and-mortar stores.
Dominant Players and Marketplaces: Amazon remains the leader in e-commerce sales, holding 37.8% of the market. Amazon’s dominance is a testament to the platform's all-encompassing approach to e-commerce, which functions as a one-stop shop for a wide range of product categories.
Challenges and Consumer Behaviour: E-commerce businesses must navigate challenges such as cart abandonment, which stands at 84% on mobile devices and 72% on desktops. A significant reason for cart abandonment includes additional costs like shipping and taxes. Addressing these pain points is essential for capitalising on the growing e-commerce market.
Most Popular Categories in the UK as of September 2023
Most Popular Categories in the US (By Revenue)
The Domination of Amazon in The Global E-Commerce Market
Amazon has made a name for itself as the dominating player in the global e-commerce market. As of 2023, it holds a commanding majority of the industry's net revenues. Furthermore, industry analysts predict that by the end of 2023, Amazon will have a $1.1 trillion worldwide net revenue setting the stage for unprecedented growth in retail sales and net revenue.
Amazon's dominance in the worldwide e-commerce industry stems from its skilled logistics, customer-focused strategy, value-added offerings, and varied revenue streams. Amazon is well-positioned to maintain and grow its market dominance as e-commerce continues to grow, offering significant prospects for brands to thrive on its marketplace.
Social Media: A Crucial Driver for E-Commerce Growth
These days, a significant portion of the purchasing process begins on the internet. Approximately 87% of consumers engage in research before finalising a purchase, and of these, about 74% rely on social media platforms to explore the most favourable buying options.
Around 50% of the 18 to 34-year-old demographic that uses social media is expected to make a purchase on these sites at some point.
Sales Growth Through Social Engagement
Brands who actively engage on social media platforms see a notable 32% increase in sales as opposed to those who do not. The data highlights the evident correlation between social media usage and business success. You can engage with a wide range of potential customers by building a strong social media presence and investing resources in social media campaigns. By using social media, you can create a unique brand identity and increase brand awareness, both of which can help your brand succeed on Amazon. Brands can increase sales and boost traffic to their Amazon listings by carefully using the unique features each platform has to offer.
Delivery & Shipping Statistics
Parcel Monitor data reveals that 54% of customers now expect their shipments to arrive within 1-2 days of the original estimated delivery date.
This represents a significant increase from the 24.9% recorded in 2022. While a substantial portion, 32% of customers, are still willing to wait for their orders within a 3-4 day window, there is a notable decline in customer patience for 5-7 day deliveries. Only 11% of customers are now willing to accept such longer delays.
According to the data, customers are becoming less understanding of delivery delays overall. An increasing number of consumers believe that waiting past the designated delivery time is unacceptable, especially since more and more well-known businesses are implementing next-day delivery strategies. This emphasises the value of an efficient logistics network and cooperative, win-win alliances between online retailers and logistics providers.
While Prime is an incredible perk for customers, it is extremely important for Sellers and Vendors to be Prime Eligible on Amazon, to ensure they can offer quick deliveries. Many Prime members filter products according to their Prime status; some only choose to purchase Prime Eligible items. Achieving Prime Eligibility can lead to increased sales and improved customer satisfaction and feedback. Additionally, having Prime Eligible status gives sellers the benefit of an improved sales rank and can help secure the buy box. Both of which significantly boosts conversions and contributes to improved revenue.
Online Shoppers’ Statistics by Age & Generation
Millennials and Gen-Xers are particularly drawn to e-commerce, with 67% of millennials and 56% of Gen-Xers saying they prefer to purchase online. But it's not only about generational differences; age is a major factor in determining an individual's preferences when it comes to internet purchasing. With 41.8 million people actively making purchases online, the 25–34 age group is home to the greatest cohort of online buyers. Ages 35 to 44 are next in line, and 65 and older make up the third-largest age group. This demonstrates how internet purchasing crosses generational divides and is popular with both younger and older customers.
Online Shoppers Consult Reviews Before Making Purchases
Consulting reviews online is a noteworthy consumer behaviour. Online Shopping 2023 Data Analysis & Market Share report by Finances Online showed that:
An astounding 91% of customers between the ages of 18 and 34 say they trust internet evaluations just as much as they do referrals from friends and family.
In addition, 78% of internet buyers believe that an e-commerce platform's product reviews are very important.
Amazon Vine is a product review program created by Amazon to provide customers with honest and unbiased reviews. Amazon Vine invites its top reviewers to receive a product for free in exchange for a review. This incentive program benefits both the reviewer and the seller. Amazon Vine helps brands get greater review potential with more thorough, higher quality reviews which if they are positive, will ultimately lead to increased conversions.
Consulting Services: Navigating the Changing Landscape
To effectively negotiate complications and improve your overall success in the rapidly changing e-commerce industry, you must work with knowledgeable e-commerce consulting services. Experts are essential to streamlining your operations and keeping you ahead of industry advancements, incorporating cutting-edge technologies, or creating data-driven marketing plans.
Summary
Businesses must work on developing an online presence that is both interesting and user-friendly to be ready for a shift in the way people shop as consumers shopping habits are constantly changing. By understanding the demographics of who is shopping online, as well as the trends driving increased revenue for e-commerce brands, it’s possible for brands to capitalise on these trends to accelerate growth.
With the e-commerce market growing at a positive rate of +8.9% from the previous year with $5.784 trillion in sales and is expected to account for 22.2% of retail sales by 2026, we can understand how important it is for brands to have a strategy in place for 2024 and beyond.
Amazon remains the leader in e-commerce sales, holding 37.8% of the market. Amazon’s dominance is a testament to the platform's all-encompassing approach to e-commerce, which functions as a one-stop shop for a wide range of product categories.
Due to the hold that Amazon has in the market, it is more important than ever for brands to start selling on Amazon if they haven’t already or if brands already have, to look at their strategy and look to see how they can always be improve and optimise Due to the unparalleled customer reach, consumer trust, robust advertising opportunities & fast delivery it is a no-brainer for brands to invest in an Amazon strategy and this is where Toucan can help you. Toucan provides full-service expertise, advertising and creative services for brands of all sizes who want to sell on Amazon. If you want to look at what your strategy would look like for Amazon, get in touch today.