E-commerce is experiencing phenomenal growth globally due to mobile commerce, social media, and the COVID-19 pandemic. Businesses must adapt to these shifts to grow in the competitive market.
E-commerce is changing at breakneck speed and becoming more and more popular. Businesses and consumers are also evolving in their interaction with each other. As a store owner, you might already feel the pressure to keep up. More and more customers are now browsing on their phones rather than desktops. This may have made you wonder how social media trends can translate to actual sales.
E-commerce is a competitive industry where trends shift faster than ever. That’s why understanding the right statistics and insights is essential to helping you adapt and grow.
The share of online retail transactions over the years:
The e-commerce market is experiencing exponential growth due to technological advancements and changing consumer behaviors. In 2022, global retail e-commerce sales reached approximately $5.7 trillion and are expected to hit $8.1 trillion by 2026. The growth is fueled by increased internet access, affordable smartphones, and the convenience of online shopping. Notably, 20.8% of all retail purchases now happen online, a significant leap from just 14.1% in 2019.
The COVID-19 pandemic has also impacted this surge. As physical stores closed, consumers shifted online, pushing businesses to adapt rapidly. From essential groceries to luxury goods, the variety of products available online continues to grow, attracting more and more customers globally.
Several factors drive this impressive growth:
The distribution of e-commerce growth varies by region.
The growth in retail e-commerce sales globally:
Global e-commerce has been on a steady upward trajectory in recent years. As of 2022, global e-commerce sales reached $5.7 trillion and are expected to climb over $8.1 trillion by 2026. This remarkable growth of about 10% annually reflects consumers’ increasing adoption of online shopping. The ongoing adoption of digital payment methods, the convenience of online shopping, and expanding internet access have contributed to this growth. For businesses, investing in online infrastructure is no longer optional but essential for sustainable development.
It’s estimated that digital trade, including e-commerce, accounted for around 5.5% of global GDP in 2023. This number is expected to rise in the coming years. This growth is not just from big companies but also from small and medium enterprises that are finding new customers through online platforms. These businesses benefit from global reach in emerging markets and can compete internationally.
The rise of digital services, logistics improvements, and e-commerce platforms has also created jobs and business opportunities, which further contribute to the economy. This growing trend has made the digital economy more inclusive and less reliant on traditional retail methods.
Mobile shopping is a major reason why e-commerce has grown so rapidly. By 2023, mobile devices accounted for nearly 59% of global e-commerce sales, generating $3.5 trillion in revenue. This shift toward mobile is particularly strong in developing markets where smartphones are the primary way people access the internet. Countries in Southeast Asia, Africa, and Latin America have seen mobile commerce outpace desktop shopping in recent years.
A mobile-friendly website or app is very important for businesses. Mobile-first shopping is here to stay, and providing an easy, fast, and simple shopping experience on smartphones is essential for keeping customers engaged. With mobile technology improving, e-commerce businesses can also offer personalized shipping experiences, such as targeted ads, push notifications, and quicker payment options.
As more people gain internet access, e-commerce grows rapidly. In 2023, over 63% of the global population was online, a huge increase from previous years. This growth in Internet users has been especially strong in regions like Sub-Saharan Africa and Southeast Asia, where access to the Internet has been expanding rapidly. As more people get online, businesses can reach customers who were previously out of their reach.
The rise of 5G networks and faster internet speeds is helping this trend. Faster browsing and better user experiences mean consumers can shop online more easily. As internet access continues to improve, even more consumers in developing regions are expected to join the online shopping community.
Online sales now make up nearly 20% of total retail sales globally, and that number is expected to keep sales increasing. Retailers are adapting by offering both online and offline shopping. They are now creating an omnichannel experience that allows customers to shop how and when they want.
New business models like direct-to-consumer (DTC) brands are growing. They can sell products directly through online platforms and offer customers a more personalized experience. E-commerce has also driven improvements in logistics, with faster delivery times and systematic supply chains becoming the norm. This has made online shopping even more attractive for consumers, and businesses are starting to embrace e-commerce to stay competitive.
Top factors that motivate people to shop online:
Consumer shopping habits have changed a lot in recent years. Many people now prefer shopping online because it’s convenient, quick, and allows them to compare prices easily. In fact, 87% of U.S. shoppers research products online before buying them. This trend has been particularly strong among younger shoppers, who shop online for everything from daily essentials to big-ticket items like electronics and furniture.
With the rise of easy-to-use online platforms and personalized shopping experiences, more consumers are buying online instead of visiting physical stores. Quick shipping, hassle-free returns, and easy payment options like one-click checkout have also made online shopping more attractive.
More and more consumers are shopping on mobile devices. Mobile e-commerce made up 59% of global online sales in 2023, a clear sign that mobile shopping is on the rise. Mobile shopping is especially popular in developing countries where smartphones are the main way to access the internet. This makes mobile optimization key for businesses. Shoppers want an easy-to-navigate experience on their phones.
However, desktops are still widely used for more complex purchases. Shoppers prefer larger screens when researching big items like electronics or furniture, where they want to compare several options in detail. Businesses need to make sure that both mobile and desktop experiences are optimized to meet consumer expectations.
Consumers are now looking for a smooth shopping experience online, in-store, or through social media. Omnichannel shopping, which integrates all shopping methods, is becoming increasingly popular. Many shoppers will browse online and then make a purchase in a physical store, or vice versa. In fact, 73% of shoppers use multiple channels during their shopping journey.
Retailers who integrate their online and offline strategies to provide a unified experience are reaping the benefits, as customers are more likely to make a purchase when they have access to various shopping touchpoints.
Over the last few years, consumer spending patterns have seen a noticeable shift, particularly toward e-commerce. Consumers are now spending more on experiences and services and are more willing to shop online for a broader range of products. This includes everything from groceries to high-end fashion, once predominantly purchased in-store.
According to a recent study, 80% of U.S. consumers have increased their online shopping frequency since the pandemic began. Also, consumers are spending more money on personalized products and services, with 63% of shoppers willing to pay more for a customized experience. These spending patterns reflect a broader trend toward valuing convenience, speed, and customized experiences over in-store shopping.
Customer reviews and ratings are among the most influential factors in online shopping decisions. Today’s consumers trust peer reviews more than traditional advertising. In fact, 79% of people trust online reviews as much as personal recommendations, and 93% of consumers read reviews before making a purchase. Positive reviews can increase a business’s credibility and conversions, while negative reviews can turn potential buyers away. Ratings are especially important for products like electronics, beauty items, and fashion, where customers rely on the experiences of others to guide their decisions.
Consumers rely on reviews to gauge the quality of a product and make informed decisions. With the rise of social media, influencers, and user-generated content, reviews have become even more integrated into the purchasing process. For businesses, maintaining a strong reputation online through positive reviews can be the difference between gaining or losing a customer. Engaging with reviews, be they positive or negative, shows customers that brands care about their opinions and helps build stronger relationships.
Market share of leading e-commerce retailers in the U.S. in 2024:
Amazon is the undisputed leader in global e-commerce, capturing over 37.8% of the U.S. e-commerce market. Globally, Amazon is expected to surpass Alibaba in 2027 with an estimated annual sales growth of $1.2 trillion.
With over 300 million active customers worldwide, Amazon offers sellers unmatched reach with its Fulfillment by Amazon (FBA) service. This service handles storage, shipping, and customer service, helping businesses grow their brand without having to manage inventory. The platform also uses AI to recommend products to shoppers and eventually increase sales for sellers. Amazon’s credibility and trustworthiness make it a top choice among sellers.
Shopify is the go-to platform for businesses wanting to build their own branded online store. As of 2023, Shopify powers over 4.4 million websites globally and accounts for about 10% of U.S. e-commerce sales. It is a user-friendly platform that lets businesses of any size set up their own websites. Its tools help with inventory management, payment processing, and store customization.
Shopify’s subscription plans range from $29 to $299 monthly. Although transaction fees can be a drawback, Shopify is a popular choice for businesses that want to build brands and increase direct-to-consumer sales.
eBay is a unique platform specializing in auctions, pre-owned goods, and new product sales. With 135 million active buyers and 1.7 billion live listings, eBay is a top platform for niche and collectible items.
Sellers have the freedom to set prices, run auctions, or offer fixed-price listings. Because of its global reach, eBay has become an attractive option for people and small businesses looking to expand. However, it charges fees for listing and final sales. For sellers dealing in vintage, refurbished, or niche items, eBay is a great place to tap a global audience.
Walmart has become a major e-commerce player, contributing about 7% of U.S. online sales in 2023. Its marketplace provides an omnichannel shopping experience by using its physical store network.
For sellers, Walmart Marketplace has access to its wide customer base and relatively low competition compared to Amazon. It’s particularly good for businesses targeting cost-conscious shoppers. Walmart also has strict seller criteria and competitive pricing requirements, which is why it’s suitable for established businesses rather than individual sellers.
Mobile commerce, or m-commerce, is becoming increasingly popular and making it much easier for consumers to shop online. Mobile devices now account for over 59% of global e-commerce sales, which is equivalent to around $3.5 trillion in revenue in 2023. By 2025, this figure is projected to rise due to increased smartphone usage and better internet access in developing countries.
Consumers prefer mobile shopping for its convenience. Research shows that 79% of smartphone users have made purchases on their devices within the last six months, and this trend is mainly prominent among Millennials and Gen Z. Younger shoppers prefer quick experiences. Businesses that optimize for mobile have seen stronger engagement. Also, mobile-exclusive features like discounts and flash sales are effectively boosting sales.
Payment innovations are also a major reason behind mobile commerce growth. Digital wallets like Apple Pay, Google Pay, and PayPal simplify and secure transactions. Consumers enjoy the speed of one-tap payments and the additional safety of biometric authentication, which reduces cart abandonment rates.
Globally, the “Buy Now, Pay Later” (BNPL) model has also gained popularity. Platforms such as Afterpay and Klarna allow users to split payments into smaller installments, which makes larger purchases more convenient. Reports show that BNPL usage grows by 20% annually, with mobile apps as a key driver of this trend.
Mobile payment systems have bridged the gap in countries with limited access to traditional banking. For example, M-Pesa in Africa and Paytm in India allow millions to participate in e-commerce.
Mobile apps offer better performance, faster checkout, and a personalized shopping experience compared to mobile browsers. Data reveals that shoppers using mobile apps are 54% more likely to make repeated purchases. This shows their effectiveness in building customer loyalty.
Businesses can send push notifications through apps to alert customers about exclusive deals or restocks. This engagement strategy has proven effective, as timely notifications can drive impulse purchases. For example, 84% of consumers have admitted to making a purchase after receiving a mobile notification.
Features like augmented reality (AR) help customers visualize products before buying. Brands such as IKEA and Sephora have implemented AR tools that allow users to try products virtually.
The COVID-19 pandemic created an unprecedented surge in e-commerce activity globally. As lockdowns and social distancing measures forced physical stores to close, consumers turned to online shopping for essentials and beyond. Global e-commerce sales rose by 27.6% in 2020, surpassing $4.2 trillion in value. Categories such as home goods, fitness equipment, and personal care saw growth as people adapted to staying at home.
This shift was particularly evident in regions like North America and Europe, where a majority of the population adopted online shopping for the first time. Platforms like Amazon, Walmart, and Shopify reported record-breaking sales during this period.
The pandemic didn’t just increase e-commerce sales. It permanently changed how consumers shop. Convenience became a priority, with 80% of shoppers reporting that they prefer online shopping for ease and speed. This shift is reflected in the steady growth of mobile commerce and the adoption of subscription-based services.
Another lasting change is the demand for contactless shopping. Features like curbside pickup and same-day delivery became essential during the pandemic and continue to be popular. According to studies, nearly 60% of consumers who used these options during the pandemic plan to continue using them.
Online grocery shopping saw one of the most dramatic increases during the pandemic. Platforms like Instacart, Amazon Fresh, and Walmart Grocery experienced a surge in demand as consumers preferred safe and convenient ways to stock up on essentials. In 2020 alone, online grocery sales grew by 54%, accounting for $95 billion in the U.S.
Even as the pandemic came, this trend showed no signs of slowing. Due to advancements in delivery logistics and subscription-based meal kits, the global online grocery market is expected to surpass $1.1 trillion by 2027. Grocery chains are now investing heavily in automation and AI-driven tools to improve the efficiency of online orders and personalized recommendations.
The pandemic also gave rise to virtual and remote shopping experiences. Live-stream shopping events, particularly popular in Asia, became a global phenomenon during this time. Brands and influencers used live videos to showcase products, answer questions, and engage with customers. This interactive approach has proven highly successful, with live-stream shopping projected to generate $35 billion in sales in the U.S. by 2024.
Similarly, AR tools allow customers to try products virtually, from clothing to furniture. Retailers like IKEA and Sephora have successfully integrated AR into their platforms.
With billions of active social media users globally, platforms like Instagram, Facebook, and TikTok have become essential tools for businesses to reach potential customers. Studies show that 54% of social media users use these platforms to research products, and 75% of Instagram users take action, such as visiting a website or making a purchase, after being influenced by a post.
Social media’s influence on buying decisions is driven by its ability to showcase products visually, build brand awareness, and create community. For example, product recommendations from friends or influencers feel more personal and trustworthy than traditional ads.
Platforms like Facebook and Instagram have built-in shopping features that allow users to make purchases directly within the apps. These features have made it easier for businesses to turn social engagement into actual sales.
Instagram and Facebook are now central to the e-commerce experience. Both platforms have shopping tools that allow brands to showcase their products and users to purchase directly through their feeds.
Instagram Shopping lets businesses create a catalog of products, and users can simply tap on a photo to view pricing and product details. With Instagram Checkout, users can purchase products without leaving the app. In 2021, it was reported that 81% of people use Instagram to research products and services before making a purchase.
Similarly, Facebook Shops allows businesses to set up a customizable online store within Facebook or Instagram. This gives retailers an opportunity to reach their audience where they already spend a significant amount of time. Facebook’s advanced targeting capabilities help businesses get the right customers with personalized offers and advertisements.
Influencers who have established trust with their audiences promote products in a personal and authentic way. 89% of marketers believe influencer marketing is an effective strategy for driving online sales.
The impact of influencers is particularly seen on platforms like Instagram and TikTok. Creators on these platforms share their personal experiences and recommendations about products. This has resulted in a shift from traditional celebrity endorsements to micro-influencers, who have smaller audiences but have more targeted engagement and better ROI.
Influencer partnerships are highly effective because they help build social proof, which is an important element in e-commerce. According to research, 92% of consumers trust recommendations from individuals over traditional advertisements. This trust makes influencer-driven campaigns highly effective in influencing buying behavior.
More and more e-commerce businesses are using social media platforms to drive traffic and sales. The global social media advertising market reached $154 billion in 2021, and this number is expected to continue growing, with platforms like Facebook and Instagram capturing a large share of the market.
One of the key trends is the rise of video ads, mainly on TikTok and Instagram Stories. Video content has a higher engagement rate compared to static images. This is a powerful tool for e-commerce brands looking to connect with their audience. As of 2023, it’s reported that 67% of users have purchased a product after watching a video ad.
Another trend is shoppable ads, which allow users to purchase directly from the ad. These ads are integrated majorly with product catalogs for a better shopping experience. As consumers demand convenience, these ads allow businesses to capture attention and drive sales.
The growth of e-commerce is undeniable. From mobile commerce to social media shops, businesses must adapt to these changes to stay competitive. The pandemic is also a major reason behind accelerated shifts in consumer behavior. With Instagram, Facebook, and Amazon, e-commerce is going to become more and more popular, contributing to global economic growth.
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