Ecommerce is bouncing back. After a slowdown in 2022 and 2023, the trend is reversing. Last year, over 2.5 billion people shopped online – an 8.5% jump from the year before. Now, global ecommerce sales are expected to hit a record $4.12 trillion in 2024. That’s 15% more than in 2023 and double what it was five years ago.
Looking back, a report by Datareportal shows that in 2019, consumers spent $2.19 trillion online. This was 12% of total consumer spending that year. When the COVID-19 pandemic hit, ecommerce got a huge boost. People were stuck at home, and physical stores were closed. As a result, global sales reached $3.61 trillion in 2021. Ecommerce then made up 17.8% of total consumer spending.
However, the next two years were a different story. Inflation and rising prices made for a tough economic climate. This led to a slowdown in ecommerce growth in 2022 and 2023. Even though more people were shopping online, the average spend per person dropped 20% from its peak in 2021 to around $1,500 in 2023.
Who’s shopping online?
It’s not the same everywhere. The US and China are the clear winners in ecommerce. Online spending in these countries is way higher than the global average. Other countries like the UK, South Korea, and Canada are also ahead of the curve. In these places, online spending makes up 18-23% of total consumer spending.
When it comes to age, people between 35 and 44 are the most active online shoppers. 62.4% of women and 57.2% of men in this age group shop online every week. The 45-54 age group is next, followed by 25-34 year olds. Even people 65 and older are getting in on the action, with 54.3% of women and 50.6% of men shopping online regularly.
What drives online shopping?
During the pandemic, people shopped online because they had to. Now, it’s about free shipping, discounts, and customer reviews. 52.6% of people say free shipping is the top reason they shop online. Discounts and customer reviews come in second and third. People also care about easy returns, fast checkout, and next-day delivery. Loyalty points and social media influence are also becoming more important.
What are people buying?
According to a study by GWI, the iPhone is the most searched product on Google. When it comes to mobile apps, Amazon is the clear winner. Walmart has four apps in the top list. Fashion and food are still the biggest categories in ecommerce. Consumers are expected to spend $771 billion on fashion online in 2024. Food sales will reach $680 billion, beating out home and garden products. Electronics and media are also top categories, with sales of $465 billion and $439 billion respectively.
