Though the global retail industry saw a slight decrease in 2020 because of the COVID-19 pandemic, one segment, the online retail industry saw significant growth because of stay-at-home mandates.
We have reviewed 28 sources to highlight some of the recent changes in consumer behavior and the overall online market growth.
The global online retail industry
- The global sales from e-commerce sites increased by 27.6% from 2019 to 2020, reaching $4.3 trillion, and is expected to grow at a compound annual growth rate of 6.3%, hitting $5.4 trillion by 2022
- Online sales account for 18% of the total global retail sales in 2020
- The countries that contributed to the increase in global e-commerce transactions include:
- Argentina - 79%
- Singapore - 71.1%
- Spain - 36%
- Brazil - 35%
- UK - 34.7%
- By the end of 2021, the number of people who buy from online stores will reach 2.14 billion, an increase of 29% from 1.66 billion in 2016
- Turkey is projected to have the highest CAGR of 14.6% for online retail sales from 2021 to 2025 followed by:
- Argentina - 12.8%
- Indonesia - 10.2%
- South Africa - 10%
- India - 9.6%
- Brazil - 7.2%
North America
In the first quarter of 2021, the e-commerce retail market reached a value of $1.6 trillion and is expected to grow at a CAGR of 11.7% from 2021 to 2027
In the US:
- Consumer spending increased by 32.4% from $598 in 2019 to $791.7 billion in 2020
- According to the Census Bureau of the Department of Commerce, during the second quarter of 2021, the US online retail sales reached $222.5 billion, which increased by 3.3% from the first quarter of the year
In Canada:
- Online platform sales reached $29.9 billion during the first half of 2021 and is expected to hit a value of $40.3 billion by 2025
- It is projected that digital buyers in Canada will reach 24.2 million by the end of 2021
- In 2020, the online retail industry in Canada grew by 75% despite its overall retail sector declining by 4.6%
South America
South America reached $749 billion in 2020 with the following countries experiencing the largest online sales growth during that year:
- Argentina - 100.6%
- Mexico - 65.2%
- Brazil - 50.1%
In 2020:
- 13 million people in Latin America made their first online purchase, causing the e-commerce market in that region to grow by 36.7%, reaching $85 billion
- Mercado Libre, one of the largest electronic commerce sites in Latin America, grew its:
- Unique active users by 84.3%, from 61.1 million to 112.5 million
- Total payment volume by 71.5% to $33.8 billion
- Share in the region from 19% in 2015 to 28%
Europe
Online platform sales in Western Europe increased by 31.1% from £224.4 billion ($309.6 billion) in 2019 to £294.2 billion ($405.8 billion) in 2020
The largest contributors to Europe's online sales are:
- Ireland - 44%
- Belgium - 31%
- Czechia - 30%
- Denmark - 29%
- Sweden - 24%
Asia Pacific
- The Asia Pacific region generated the largest online shopping revenue at $2.5 trillion in 2020
- The fashion industry was the largest contributor to APAC's online shopping revenue at $428 billion during the same year and is expected to reach $630 billion by 2024
- Also in 2020, online sales of:
- Sales of toys, hobbies, and DIY market was valued at $404 billion
- Electronics and media hit $335 billion
Payment methods
The top 5 preferred payment methods globally in 2020 are:
- Digital or mobile wallet - 44.5%
- Credit card - 22.8%
- Debit card - 12.3%
- Bank transfer - 7.7%
- Cash on delivery - 3.3%
Preferred payment methods per region
- North America
- Credit card - 32%
- Digital or mobile wallet - 29.3%
- Debit card - 20.1%
- Charge & deferred debit card - 7.4%
- Bank transfer - 5.8%
US
In the US, the top payment methods in 2020 were:
- Visa - 94.3%
- Mastercard - 94.3%
- American Express - 89.4%
- Discover - 84.1%
- PayPal - 73.9%
South America
The majority of shoppers in South America use credit cards to pay for goods from online retailers
- Argentina - 77%
- Uruguay - 70%
- Colombia - 61%
In Brazil, 90% use national payment methods to pay for their online purchases which include:
- Credit card - 57%
- Boleto Bancário (cash-based payment system) - 25%
- Online bank transfer - 13%
- Debit card - 5%
Europe
In Europe, the preferred payment methods are:
- Digital wallets - 44%
- Card (debit or credit) - 42%
- Paypal - 32%
- Local payment method - 11%
- Pay on delivery - 11%
But per country, the preferred payment method changes:
- In the UK, they choose to pay for online purchases using Visa + Mastercard at 50%
- In the Netherlands, 83% of online shoppers use iDeal, an online banking type of payment platform
- Digital wallets are popular among 53% of Germans, 53% of Italians, and 46% of French people
- 53% of Belgians use Bancontact, a single-use payment method
- PayPal is the trusted payment method of 53% of people living in Spain
Digital buyer penetration
Based on a survey conducted in 2020, the age bracket that used online retailers the most is those aged 25 to 34 years old at 87.6% followed by:
- 18 to 24 - 86.4%
- 35 to 44 - 82.1%
- 45 to 54 - 76.8%
- 55 to 64 - 68.5%
- 14 to 17 - 61.8%
- 65 and over - 48.9%
Consumer behavior
Product research
When looking for things online, shoppers use:
- Google - 42%
- Amazon - 33%
When things go wrong with their online shopping experience
- 52% leave and shop with a retailer's competitor
- 26% contact customer service to ask for assistance
Cart abandonment
Based on a survey done in 2020:
- 40% of shoppers struggle doing simple tasks on online retail sites
- 62% abandon their online carts when they struggle with anything on the retailer's website
- 53% of consumers believe their online purchase should arrive within 3 days after purchase
- Based on generation, Generation Z had the most difficulty in completing online transactions at 46% followed by:
- Millennials - 41%
- Gen X - 40%
- Baby boomers - 33%
Products purchased online
In 2020, US consumers' online purchase of:
- Clothing, shoes, or accessories decreased from 56% to 52% from February 2020 to April 2020
- Pharmacy, health, or beauty products increased from 38% to 44%
- Household supplies (cleaning supplies, kitchen supplies, etc.) increased from 30% to 37%
- Food or beverages increased from 275 to 36%
- Books, music, or videos increased from 32% to 33%
- Pet products increased from 25% to 31%
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Use of content
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References
https://www.statista.com/statistics/379046/worldwide-retail-e-commerce-sales/
https://www.statista.com/statistics/288487/forecast-of-global-b2c-e-commerce-growth/
https://www.statista.com/statistics/534123/e-commerce-share-of-retail-sales-worldwide/
https://www.statista.com/forecasts/220177/b2c-e-commerce-sales-cagr-forecast-for-selected-countries
https://www.statista.com/statistics/311357/sales-of-e-commerce-worldwide-by-region/
https://www.statista.com/statistics/266064/revenue-growth-in-e-commerce-for-selected-countries/
https://www.statista.com/statistics/251666/number-of-digital-buyers-worldwide/
https://www.emarketer.com/content/latin-america-will-fastest-growing-retail-ecommerce-market-this-year
https://www.digitalcommerce360.com/article/e-commerce-sales-retail-sales-ten-year-review/
https://www.researchandmarkets.com/reports/5406799/north-america-e-commerce-retail-market-2021-2027?
https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf
https://www.statista.com/statistics/289741/canada-retail-e-commerce-sales/
https://www.emarketer.com/content/canada-ecommerce-forecast-2021
https://www.retailresearch.org/online-retail.html
https://www.statista.com/statistics/435907/e-commerce-revenue-share-of-companies-by-country-europe/
https://www.statista.com/forecasts/1259087/asia-revenue-e-commerce-market-segment
https://ikajo.com/blog/popular-payment-methods-south-america
https://www.pagbrasil.com/online-payments-in-brazil/
https://www.oberlo.com.ph/statistics/most-popular-online-payment-methods
https://www.statista.com/forecasts/1081156/united-states-top-payment-methods-ecommercedb
https://ecommercenews.eu/preferred-payment-methods-in-europe-2021/
https://www.statista.com/statistics/251666/number-of-digital-buyers-worldwide/
https://www.emarketer.com/chart/231369/us-digital-buyer-penetration-by-age-2020-of-population
https://www.retaildive.com/news/study-62-of-shoppers-that-struggle-to-complete-purchases-abandon-their-ca/586749/
https://www.maginus.com/imagine/articles/episerver-commerce-2020/
https://www.synchrony.com/Synchrony%20Financial%20-%20Brick%20and%20Mortar%20Reborn%20-%20August%202016.pdf
https://www.statista.com/statistics/1112172/most-popular-product-categories-purchased-digital-buyers-usa/
https://oxfordbusinessgroup.com/news/how-covid-19-triggered-latin-american-e-commerce-boom