Online Retail Industry Overview and Trends

Posted 4 years ago by Max Komonov

A听good marketing manager watches ecommerce trends carefully to听stay ahead in听what can be听a听highly competitive landscape. But if听you鈥檙e a听small business handling your own marketing, being aware of听key trends vital to听the听success of听your business falls on听you. In听either case, if听you鈥檙e looking for听information on听retail industry trends, this overview is听for听you.

The Most Important Ecommerce Industry Trends

For those pressed for听time, here are some of听the听most important ecommerce sales statistics:

18% of听 were made online 颈苍听2020
That number is听set to听increase to听24% by听2024
颈苍听2020
Total retail sales grew an听estimated 6.7% 颈苍听2020
The (NRF) is听projecting that growth to听increase to听10-14% 颈苍听2021.

Online Shopping Trends

The number of听people who consider themselves online shoppers has increased by听almost 1听billion people in听the听last 6听years. Even though that growth has decreased a听bit in听the听first quarter of听2021, the听pandemic spurred that growth throughout 2020. But who is听shopping online, and听on听which ecommerce sites are they shopping?

The are Millennials aged 25听to听34, with Generation X听(aged 35听to听44) closing the听gap.
Women are 4%听more likely to听shop online than men
Almost half of听all online purchases are made via mobile devices
About 72% of听online shoppers found their new products on听social media platforms

Online Shopping Tech Trends

Shopping for听tech has come a听long way in听the听last five years, and听more and听more people are expecting a听fast, seamless online shopping experience. Personalization is听more important than ever before because consumers know that you have the听means to听customize your products and听services. Here are some of听the听ways that online retail technology will continue to听grow in听the听next year:

Saying our shopping experiences are shaped by听AI听sounds strange to听many people, but artificial intelligence algorithms are what personalize your online experience from one browser or听app, or听device to听the听next. Having all of听those things synced together requires highly sophisticated AI听technology.
It听is听necessary to听have seamless site functionality. Consumers have no听patience for听an听ecommerce website that is听slow to听load or听hard to听navigate. Having a听solid digital infrastructure is听vital to听increasing conversions. If听your website is听no听longer meeting your customer鈥檚 needs, you might need to听think about a听digital transformation.
Augmented reality, or听AR听technology, gives online shoppers the听ability to听experience products before purchasing them. It听takes away some of听the听discomfort that people have about buying things online. It听has been estimated that by听2023听there will be听over 2听billion consumers using AR听technology on听a听regular basis.
Protection of听consumer data is听a听hot topic in听a听world flooded with tech experts, some of听which are not on听the听right side of听the听law. You must be听able to听show your customers that their information is听protected, if听or听how it听is听to听be听used, and听that they can opt-out at听any听time. A听privacy policy and听terms of听use does this nicely and听should be听included on听any听ecommerce website.

Emerging Trends and听the听Impact of听Covid-19

Even though online shopping has increased, local businesses are thriving. That鈥檚 because brick and听mortar stores are recognizing the听need to听offer options like delivery, curbside pickup, and听shipping, all of听which require an听active online presence. Even when people purchase in-store, about 90% of听shoppers do听at听least one Google search prior to听entering the听store.

Subscription services have also increased dramatically since the听onset of听the听pandemic. People are spending more time than ever in听their homes, and听remote workers are having a听hard time maintaining that work/life balance. Subscription services are convenient, require no听thought, and听add a听little spice to听their day.

Consumer shopping habits also show that personalized experiences are important. This permanent behavioral shift toward shopping online and听spending less time in听public places requires the听advancement of听ecommerce to听all retailers, large and听small.

Global Forecast and听Latest Trends

Overall, the听pandemic changed a听lot about the听way people shopped and听purchased products, and听a听lot of听those changes seem to听be听hanging on听颈苍听2021. The upward trend is听only continuing to听gain momentum going forward. Here are some of听the听predictions for听ecommerce penetration in听2022听and听beyond.

Online store growth statistics

In听2022, online retail sales are expected to听grow by听over $1听trillion
According to听Beeketing, we听can anticipate a听continued ecommerce growth rate of听265%
Statista reported that ecommerce compound annual growth rate will continue at听about 7.51%
Multi-channel ecommerce sites will make up听almost 19% of听ecommerce sales in听2022.

Social media growth is听a听necessity

Social media use has been growing steadily, but the听pandemic pushed even more people toward the听platforms. With the听addition of听TikTok, which is听quickly gaining traction, social media has gone from being about Facebook to听being about multi-channel social media campaigns. If听you fail to听keep up听with the听social media game, you probably won鈥檛 get very far.

The most popular social media platform is听still Facebook, followed by听Twitter, but you might be听surprised to听learn that TikTok has already reached about 80听million people mid-way through 2021. Instagram and听LinkedIn are also gaining traction.

Online retail success is听about trust

In听2020, the听FTC received over 2听million reports of听fraud, and听there were around $246听million in听losses related directly to听online shopping scams. Consumers are also better able to听research companies and听brands, getting reviews from all walks of听life with a听few Google searches.

At听the听same time, they don鈥檛 want to听give up听too much of听their personal information. The general public is听becoming more and听more guarded with their personal data. In听fact, are more likely to听make a听purchase if听they feel like their personal data is听protected. If听your website鈥檚 security certificate is听not kept up听to听date, you will lose customers rapidly.

In听addition, 81% of听consumers have said that they are more likely to听buy a听brand when it听is听advertised alongside the听news. Providing industry news on听your website alongside promotional content is听a听great way to听turn online shoppers into loyal customers. And since it听can cost 5X听as听much to听get a听new customer as听to听retain an听old one, that is听an听important distinction.

Online sales vs听retail sales

Online sales are growing at听a听much higher rate than retail sales in听general, but they aren鈥檛 necessarily excluding brick and听mortar stores. In听fact, even though online sales have increased substantially, 70% of听consumers say they support their local companies through online shopping orders. Even though the听number of听online sales is听going up, brick-and-mortar retailers don鈥檛 have much to听worry about as听long as听they keep up听with online shopping trends as听well.

The most popular ecommerce sites are in听the听fashion industry

Did you know that the听fashion industry听鈥� apparel retailers, jewelry stores, shoes, and听accessories听鈥� grows almost 30% every year? This trend has been consistent for听many years, but 颈苍听2020听it听increased dramatically with the听addition of听novelty masks being thrown into the听mix. Purchasing apparel online is听becoming so听common that 46% of听all apparel sales occurred at听online stores 颈苍听2020.

The Most Effective Ecommerce Trend

Have you guessed the听answer yet? The most important trend in听ecommerce today 颈蝉听迟丑别听customer experience. Unfortunately, in听times gone by听people were more worried about SEO and听conversion rather than taking care of听their customers. Now that people make more purchases online, the听competitive landscape requires everyone to听be听at听the听top of听their customer experience game. If听you follow the听rest of听the听information in听this guide, you should achieve that with little additional effort.

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About The Author

Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.

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