90+ Online retail industry statistics 2021 [Research Review]

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 behaviour 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 behaviour

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