eCommerce is one of the fastest growing industries in the world today. In 2015, the market for online shopping is estimated to be worth around $1.6 trillion (yes, trillion, with a T). This is after a year in which the industry grew by 20.9%. That is a mind-boggling number.
The thing is, as big as the industry is today, it’s still in its infancy. Right now, there are approximately 1 billion online shoppers worldwide. That’s only about 12% of the world’s population. In the US, the number is a bit higher, with 191.1 million online shoppers in 2015. That’s about 60% of the population.
The growth in the industry is accelerating, not slowing down. In fact, in 2015, the US saw a 14% increase in online sales, the highest growth rate since 2011. By 2017, the industry is expected to be worth $2.3 trillion, with 25% of the world’s population shopping online. And by 2024, the US is projected to have 224 million online shoppers.
1. The First Online Sale Happened in 1994
The first online sale ever was made by a 21-year-old entrepreneur named Dan Kohn in 1994. He sold a Sting CD, “Ten Summoner’s Tales,” to a friend in Philadelphia who used their credit card to buy it on the internet. Dan’s business, NetMarket, became the first online retail platform, and the rest is history.
In 1994, only 2% of Americans had internet access. Fast forward to 2020, and 93.5% of Americans were online. That’s a 46.5x increase in potential customers in less than 30 years. The internet has become the most popular place to shop, and there’s never been a better time to start an online business.
2. The Average Ecommerce Conversion Rate Is 2.86%
The average conversion rate in ecommerce is 2.86%. This means that, on average, less than 3 out of every 100 people who visit an online store make a purchase.
The top 25% of ecommerce stores have a conversion rate of 5.31% or higher.
If your store’s conversion rate is lower than the average, or you’re not sure where you stand, it’s a good idea to track your conversion rate and make improvements to your store to increase it.
3. 51% of Americans Prefer to Shop Online
It’s no secret that eCommerce has been on the rise, but the COVID-19 pandemic has only accelerated the shift to online shopping. With social distancing guidelines and stay-at-home orders in place, many consumers turned to the internet to find the products they needed.
In fact, a survey conducted by BigCommerce found that 51% of Americans now prefer to shop online. This is a significant increase from previous years and shows just how much the eCommerce landscape has changed.
