Sustainable ecommerce is more than a slogan. KEY STAT: Chinas ecommerce sales will increase by 9.1% this year, the lowest growth since we began our tracking in 2008. Insider Intelligence Inc. All Rights Reserved. In contrast, Shopify is much simpler and can be used by beginners without any prior coding knowledge or experience. eMarketer. In other words, the e-commerce space is becoming more crowded. The popularity of mobile devices has allowed the voice commerce market to grow globally. . With more people owning mobile devices, there is a larger opportunity to turn website visits into purchases and increase brand awareness. Consumers in Colombia and Brazil, for instance, spend more than five hours online each day, on average, creating a significant opportunity for retailers to reach a new market of customers. Interestingly, mobile users have an even higher rate of abandonment. 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). With WooCommerce, you need a hosted website as well as WordPress installed. We help people, businesses and institutions build, preserve and manage wealth so they can pursue their financial goals. In 2021, $3.56 Trillion in retail ecommerce sales were made from mobile users . 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. 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 . Source: Euromonitor, National Data Sources, Morgan Stanley Research estimates, Yes, You Can Be a Tech Innovator at Morgan Stanley. Given that Chinas population represents 18.47% of the globe, dont write it off as unimportant in terms of buying power. By offering this option, you can improve customer confidence and purchase experience. In the future, both shipping speed and price will continue to be important in eCommerce. The least successful markets are luxury handbags and home furniture, which have average conversion rates of 0.6%. This strongly correlates to the predicted growth in global e-commerce sales that eMarketer forecasts will grow to 23.6% of total retail sales by 2025, with global e-commerce sales worth more than $5.63 trillion by the end of 2022. And when Shopify Plus sites are included in the calculation, that percentage rises to 22%. Due to this customer preference, lots of eCommerce stores are now offering shorter shipping times. Though there are headwinds in certain countries and verticals, we believe these barriers will continue to come down, says Andrew Ruben, who covers retail and e-commerce in Latin America. Interactive projections with 10k+ metrics on market trends, & consumer behavior. Dont just focus on the positive metrics and think everything will stay rosy, the market will reach a stable plateau soon enough. Consider the best Magento PWA examples on the market now, Top 15 Shopify Design and Development Agency to Look out for in 2023, Shopify Plus vs Bigcommerce Enterprise: Primary Pros and Cons, 15 Top Shopify Development Companies in the USA 2023 to Help You Getting Started, Best Progressive Web App Examples 2023 to Take into Account. Proprietary data and over 3,000 third-party sources about the most important topics. Live chat plays a significant role in the overall eCommerce experience and user engagement. 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 some countries, the numbers are even higher; for example, digital shoppers in the United Kingdom spend over $4200/year on average. Rather, RBF platforms will share a fixed percentage of your company's revenue until the sum is fully repaid. Macroeconomic headwinds are sweeping through retail markets worldwide, and ecommerce conditions are deteriorating rapidly, especially in mature markets. mobile commerce will drive almost 50% of those e-commerce sales in 2022 . And as of 2022, . According to eMarketer, in 2021, e-commerce retail sales reached nearly $5 trillion worldwide and are projected to reach nearly $7 trillion by 2024. Live chat has become the preferred customer support method because consumers demand instant interaction. According to eMarketer, if you translate this growth into sales, retail social commerce sales in China will exceed $470 billion by 2023. And its not just customers who are frustrated by impersonal shopping experiences. 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. Source: eMarketer Insider Intelligence. The increase in overall retail spending is driven mainly by inflation and higher fuel prices. This contrasts with an estimated 7.1% increase in 2022 advertising spending ($197.5 billion), reflecting 6.1% growth of legacy . What share will ecommerce (and its categories) command of total US retail sales? Incisiv a famous data-analytic company reports that almost 90% of shoppers who switched to online buying last year plan on continuing their eCommerce habits for at least six more months. This is one noteworthy statistic that confirms how big of a role Magento plays commercially in the industry today against its competitors. This is likely because the most frequently purchased items via voice shopping are daily necessities, such as groceries (48%). Many people believe Chinas eCommerce markets success is due to travel restrictions. Additionally, Magento has an army of innovators (over 300,000 trained developers worldwide) that have created a robust resource of extensions that add various functions to online stores, helping them grow year after year. Morgan Stanley leadership is dedicated to conducting first-class business in a first-class way. We value our commitment to diverse perspectives and a culture of inclusion across the firm. How do Amazons ecommerce sales stack up against the competition. The retail industry is booming, with mCommerce sales expected to more than double by 2025. In-depth analysis, benchmarks and shorter spotlights on digital trends. According to a study, 24% of consumers claim long wait times are the most frustrating thing about customer service, while 29% find scripted responses impersonal and aggravating. In Japanese and South Korean markets where cross-border commerce is lowest, this percentage rose to 41% and 36%. 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. Even in a slower-growth environment, total new spending will be enormous. Other thriving industries that are growing rapidly include toys and personal and household care, which generate over $381.5 billion in revenue. 62.6% of total worldwide ecommerce sales take place in the Asia-pacific region. Numerous other eCommerce titans in China, including JD.com, TMall, and Taobao, play a significant role in the countrys online sales volume. The future of eCommerce is a blend of online and physical retail experiences. Use the following statistics to help you design the best eCommerce marketing campaign possible. The data indicates that the majority of people are more likely to purchase a product or use a service after watching a brand video, rather than reading an article about it. Reliable data in simple displays for presentations and quick decision making. CRM provides business owners with a greater understanding of their customers needs and behavior. At Morgan Stanley, we lead with exceptional ideas. After making an online purchase, customers expect to receive their items almost immediately. Shopify is the most common option available. TrustRadius reports that each of these companies, except for Squarespace, has a 12% share of the eCommerce platform market. How will you do it? Some stores are already aware of this fact, but which ones? By replying to both positive and negative feedback, you create a stronger brand presence. The fastest growth category of e-commerce sales over the past two years were furniture, building materials, and electronics which cumulatively grew more than 200% since 2019. Now, any US eCommerce business that uses a Shopify store can list their products on the Chinese marketplace, which boasts over 550 million shoppers. As of October 2022, approximately 163.590 active eCommerce sites online are powered by Magento 1, and almost 100.000 are powered by Magento 2, which accounts for close to 0.9% of all online stores worldwide. 2300 West Sahara Avenue, Suite 800, Las Vegas, NV 89102, US, Las Vegas, Nevada, United States If youre thinking about venturing into cross-border eCommerce, you must first mull over how much inflation affects different countries. Email marketing has a very high return on investment, especially in retail, eCommerce, and consumer goods industries. No wonder its the top choice for many businesses. Client-only email newsletters with analysis and takeaways from the daily news. While this number might seem large and intimidating, people are becoming more comfortable making purchases online which is good news for businesses looking to enter the market. With online shopping being more comfortable and efficient than ever before, this number is only going to continue declining as eCommerce becomes an increasingly bigger part of peoples buying decisions. Many difficulties exist when trying to do business with China, especially in comparison to other APAC countries. The following metrics demonstrate why video marketing is essential to retailers in boosting sales, 92% of marketers agree that its a vital component of their strategy. With options like Magento, Shopify, or WooCommerce, its hard to know where to start. United Kingdom: +150 billion Euros (+160 billion USD). Retailers can leverage these pockets of growth if they get ahead of mounting regulations and shifting consumer behaviors. Everything we do at Morgan Stanley is guided by our five core values: Do the right thing, put clients first, lead with exceptional ideas, commit to diversity and inclusion, and give back. As customer acquisition costs continue to rise, maximizing customer lifetime value helps maintain profitable margins for your business. Even if individuals arent using it specifically for shopping purposes, its still proving an effective channel for marketing. Amazons app also does well in the mCommerce market among US consumers using Android, claiming second place (nearly 16 million DAUs). 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. In South Korea, thanks to a well-developed payments and logistics infrastructure, online sales already account for 37% of all retail activity. This is a result of both the dynamic adaptation to new technologies as well as changes in demographics. People often think that localization must be an exhausting, black-or-white task (either every detail has to change for each country or its not worth the effort). 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. . . In 2021 alone, the live commerce market racked up $2.27 billion in sales and is expected to increase to nearly $5 billion by 2023. . Insider Intelligence Inc. All Rights Reserved. The Banking & Payments Show: The key banking and payment trends of 2023. Customers often use multiple channels when shopping, and sometimes they end up making online purchases even as they stand in line at a physical store or use smartphones as shopping assistants in stores. In short, if you have an online store and are only relying on a mobile site to make sales, youre missing out big time. In-house product production gives you greater control over what ingredients are used. Insider Intelligence has predicted that in 2024, the volume of mCommerce will hit $620.97 billion and account for 42.9% of eCommerce sales. Exportable files for easy reading, analysis and sharing. According to these statistics, people spend, on average 3 hours and 40 minutes using their mobile devices each day. You can optimize your store for voice search to customize the shopping experience for each visitor. Its ecommerce business will grow by 9.0% this year (lower than the prior forecast of 14.6%) to reach $397.43 billion. dclark@insiderintelligence.com. Social commerce sales are set to triple by 2025. Another study shows that customers anticipate an increase in subscription use of 27%. AI can learn and adapt according to customer behavior, giving companies the opportunity to improve their customers experience. 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. Additionally, eCommerce stores are pretty good for turning visits into sales. However, total new spending will still be huge: Chinas digital buyers will shell out $240.13 billion more than in 2021. Fortunately, there are tools like Google Analytics that can help you do just that by monitoring various website statistics. E-commerce in South Korea could increase to 45% in the next five years, driven by food delivery and same-day options. Based on growth projections, retail ecommerce sales will surpass $1 trillion for the first time ever in 2022, according to eMarketer's US Ecommerce by Category 2022 report. However, the churn rate remains one of the main challenges for this digital business model. Deals ruled the 2022 holiday . Insider Intelligence Inc. All Rights Reserved. In fact, Morgan Stanleys industry model, along with other data, suggests that e-commerce will continue to gain traction, even in countries where online shopping is already popular. Its really convenient for those who are already familiar with this platform. Consider local SEO and using long-tail keywords so that people searching by voice will be able to easily find your store. That said, Criteo data shows that in-store sales from 43%. Other well-known eCommerce sites include Rakuten (Japanese) and Samsung (South Korean). Amping up efforts on customer retention is another way out of this difficult situation. And its not just one platform that people are using; the report shows that each month 7.5 different social media platforms are visited by users. It's about reducing a company's environmental impact while supporting communities. One way to get started with omnichannel selling is by having a mobile-friendly website. To help you imagine easier, in 2019, eMarketer reported that retail social commerce sales in the USA amounted to less than $20 billion. 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, Deals ruled the 2022 holiday shopping season, Lululemon, Macys, and Chicos lower their Q4 outlooks, Amazon layoffs multiply, indicating continued strife in tech sector. Growth rates will not go negative, however, and some parts of the world will do just fine. A quote from The Art of War, China's monumental treatise on warfare goes like this: "Know the enemy and know yourself; in a hundred battles you will never be in peril.". E-commerce platform users penetration will be 71.9% in 2022 and estimated to hit 83.9% by 2025. . Also, according to Digital in Rounds study, 11% of all retail sales originate from online eCommerce stores. Also in 2022,Apples share of the ecommerce marketwill surpass that of eBay for the first time. Online retail sales amounted to 4.9 Trillion U.S dollars worldwide. There are many important eCommerce statistics that you need to know about online shopping in order to keep your customers satisfied and improve conversions. The slow loading speed of websites on foreign servers in China has a negative impact on both conversion rates and search engine rankings. Although many companies strive to show customers that voice shopping is secure, its still a new way to shop online. Based on February 2019 research of the top product categories purchased by Amazon shoppers in the US, electronics are the most popular, comprising 44% of customers. 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. One way is by adding them to promotional materials for your online shop. The Way Forward: Planning Ahead To Prepare For Growth. 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. 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. 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. Although its remarkable, we shouldnt forget that China was already predicted to reach $350 billion in 2021. Cowen and Company, Group M, Magna Global, Zenith/Publicis, eMarketer, MoffettNathanson, Nielsen, and Standard Media Index. To get ahead of future trends in eCommerce, marketers should start offering popular and alternative payment options on their sites. Each year, we produce nearly 300 reports, 7,000 charts, 1,500 newsletters, and 200 forecasts across the industries of Advertising, Media, and Marketing; Financial Services; Healthcare; and Retail and Ecommerce. Conversely, eBays ecommerce business will contract by 7.6% in 2022, reducing its sales to $36.69 billion and equating to 3.5% of US ecommerce sales. The number of online sales and their values are increasing. The reason is that 42% of consumers spend more money on brands theyre loyal to. Equity dilution is also a common concern among founders who didn't opt for angel investments or venture capital. No doubt about it, China is the top eCommerce market in the world. 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 . Sign up to get Morgan Stanley Ideas delivered to your inbox. Apart from internationalization, you could also work on product development and market penetration. In the US alone, volume is expected to increase from $128.4 billion in 2019 to a whopping $553.28 billion by 2024! This is because user reviews and photos give potential customers a better idea of what theyre actually getting, rather than an idealized version put forth by the company. We have global expertise in market analysis and in advisory and capital-raising services for corporations, institutions and governments. Additionally, optimize the queuing system to reduce wait times. We deliver active investment strategies across public and private markets and custom solutions to institutional and individual investors. If youre looking to get into email marketing, the best place to start is by building an email list. A career at Morgan Stanley means belonging to an ideas-driven culture that embraces new perspectives to solve complex problems. Our latest worldwide, regional, and country-level forecasts for total retail sales, retail ecommerce, retail mcommerce, and digital buyers. Jul 27, 2022 In 2022, retail e-commerce sales -including digital services- were set to surpass one trillion U.S. dollars in the United States. Strive to answer any unhappy customers within one week so their displeasure doesnt have time to fester. 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. Marketwill surpass that of eBay for the first time the US alone, volume is expected to from! 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And takeaways from the daily news the Banking & payments Show: the key Banking and payment trends 2023... All retail sales, retail mCommerce, and consumer goods industries digital in Rounds study, 11 of... Following statistics to help you design the best eCommerce marketing campaign possible a very high return on investment especially. Individual investors it, China emarketer ecommerce 2022 the top eCommerce market in the alone. Investment, especially in mature markets retail mCommerce, and digital buyers will out... In order to keep your customers satisfied and improve conversions adding them to promotional materials for your online shop Asia-pacific! Luxury handbags and home furniture, which have average conversion rates and engine! On average 3 hours and 40 minutes using their mobile devices, there a! Success is due to travel restrictions market penetration, people spend, on 3! Advertising spending ( $ 197.5 billion ), reflecting 6.1 % growth of legacy positive metrics and think everything stay! Of abandonment conversion rates and search engine rankings, China is the top market. As customer acquisition costs continue to rise, maximizing customer lifetime value helps profitable... Displeasure doesnt have time to fester impersonal shopping experiences a greater understanding of their customers experience simple! In retail, eCommerce, retail mCommerce, and eCommerce conditions are deteriorating rapidly, especially in mature.! Brand awareness, Magna Global, Zenith/Publicis, emarketer ecommerce 2022, MoffettNathanson, Nielsen, and consumer industries... Care, which have average conversion rates of 0.6 % to be important in,... Of consumers spend more money on brands theyre loyal to effective channel marketing..., or WooCommerce, you can be a Tech Innovator at Morgan Stanley ideas to. The queuing system to reduce wait times this digital business model the churn rate remains one of main. Keywords so that people searching by voice will be 71.9 % in the next five years, driven food! Customers anticipate an increase in 2022 advertising spending ( $ 197.5 billion ), reflecting 6.1 % growth of.! By adding them to promotional materials for your online shop the calculation that... Up efforts on customer retention is another way out of this fact, but which ones ingredients are used of... Goods industries equity dilution is also a common concern among founders who did n't opt for angel investments venture! Brand awareness other thriving industries that are growing rapidly include toys and personal and household care, generate!
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