In recent years, eCommerce has grown incredibly. In 2023, eCommerce sales are estimated to account for 17.5% of total retail sales worldwide. What’s driving this growth? In previous posts we looked at how eCommerce is changing the retail industry; now let’s look at some of the main factors behind the eCommerce boom.
Social trends driving eCommerce growth
The growing popularity of mobile shopping
Smartphones have revolutionized online shopping, making it easier and more convenient than ever. According to Statista, mobile commerce accounted for almost 40% of all eCommerce transactions in 2018. This trend is only expected to continue as more and more people switch to smartphones and other mobile devices as their main way to access the internet.
The growing adoption of digital payment methods
As digital payment methods such as PayPal, Apple Pay and Google Pay become more popular, customers are increasingly comfortable shopping online without using a credit card or cash. This makes it easier for customers to buy items from anywhere in the world without worrying about currency exchange rates or payment security issues.
Improved logistics infrastructure
With improved logistics infrastructure, businesses can ship products worldwide quickly and cost-effectively. This has made it easier for companies to reach new markets and expand their customer base beyond their local area.
The growing affinity for online shopping
As millennials make up a larger share of the shopping population, they bring a preference for shopping online rather than in physical stores. According to a study by Coresight Research, millennials now account for 43% of all eCommerce sales (compared with 34% for Generation X).
eCommerce is on an incredible growth trajectory that shows no signs of slowing down in the short term. The forces driving this growth include the rising adoption of mobile shopping, improved logistics infrastructure, greater use of digital payment methods and millennials’ growing preference for shopping online rather than in physical stores.
Businesses that want to capitalize on this trend should start focusing on developing an effective eCommerce strategy that takes these factors into account if they want to stay competitive in today’s fast-changing market.
