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eCommerce sales growth in 2022

eCommerce shopping in the US continues to grow and online sales growth is expected again in 2023

Screenshot 2023 01 11 at 4.07.26 PM

Source: OBERLO

 

eCommerce sales results for the United States

The growth in eCommerce has grown steadily for over a decade, with significant growth in the previous two years due to Covid. Per the US Commerce Department. Sales online reached $959.6B in 2021 and one still rising. In the first half of 2022 e-commerce sales expanded again with a 6.8% increase to $507.7 billion (sounce U.S. Commerce Department). Q3 2022, saw eCommerce sales soar to a record high of $265.9 billion.. 2022 is expected to present another record-breaking sales year

Who is shopping online?

Shoppers looking for fashion items, electronics, toysWho is Shopping Online and electronics, were the most purchased items and are driving e-commerce in the US. Total 2022 online shoppers increased to 285 million eCommerce shoppers. This figure is only expected to increase to 285 million online customers by 2025. (Statista )

Currently (2021) 5.9% of US online shoppers use their mobile phone to make a purchase online. Smartphone shoppers have a healthy 2% conversion rate (i.e. from browsers to making a purchase). This number is expected to almost double to 10% of retail sales by 2025. This equals a 7% growth from 2018.

For product producers a key fact to keep in mind – 45% of shoppers will research a major purchase before putting down their hard-earned cash to buy. This fact alone is proof manufacturers need to have a strong online presence to help customers learn about their products. If you aren’t online, you will be left behind! Competitors that have a clear, concise product message online will win the day!

Fun Facts

Mobile Friendly Websites are a must!

5.9% of online sales are made on a smartphone with mobile sales expected to rise to 10% by 2025.

Who is spending all this money online? Women typically get a bad rap as being the big spenders. For online sales, Men are the big spenders, spending 28% more shopping online then their female counterparts.
Gen X and Millennials spend the most time shopping online, because they spend the most of time online they also represent the largest spenders online. Millennials and Gen Xer’s will spend 6 hours shopping online compared to 4 hours for older shoppers. That time spent online translates to more spending online versus brick and mortar. 67% of millennials and 56% of Gen Xer’s preferring to shop online. (Kinsta)

Where do eCommerce customers shop?

As of June 2022, the top 3 online retailers in US eCommerce sales are:

Amazon: 37.8%
Walmart.com: 6.3%
Apple: 3.9%

 

2021 sales for Amazon reached $125,844 B, Walmart.com: $46,466 and Apple: $25,862 B.

In 2021 Kroger had online sales of $4,571B, walmart.com $3,716B with hellofresh.com at $3,108B. Amazon followed at $2,957B. (Statista)

In addition to the above Business to Consumer (B2C) results, Business to Business (B2B) online sales are driving the growth of e-commerce. B2B sales are harder to capture, Frost and Sullivan predicted B2B eCommerce sales to reach $12 trillion globally by 2020. B2B sellers are spending more than their B2C counterparts on eCommerce technology.

eCommerce mobile ready stores built by Capstone Website Design

Fun Facts:

What is the most returned item bought online? Clothes

Fun Facts:

51% of U.S. consumers have made a purchase directly from an email they received in the last year, outperforming banner ads by 139%!  source Cheetah Digital

Key Success Factors for Online Selling

While paying for online Ads is a good alternative for driving traffic, and revenue, paying attention to the fundamentals of good organic SEO is important.

Per Kinsta, 43%traffic for eCommerce in the US is coming to online sellers from organic Google searches. With this level of organic traffic, it still makes profitable sense to work on creating effective SEO practices for your selling platform.

For successful eCommerce selling concentrate on creating an awesome experience for your customers, including;

• good visuals that help tell your brand’s story
• ease of payment
• fast, super fast website loading times.
• strong, reputable online security
• Customer Service

capstone service offerings are the best online servicesVisuals: Good, effectively optimized images and videos will help shoppers understand your product and help build trust and credibility. Complete your brand story with strong pictures and movies.

Easy, Secure Payment: Nothing is more frustrating for both the shopper and seller than to get to check out and have trouble entering payment. You need a secure, intuitive payment system to close the sale.

Fast Super Fast eCommerce Loading times: Capstone uses premium Lite Speed website hosting from A2 Hosting for superior performance and ease of mind. (Learn More)

Strong reliable online security: Always use SSL security certificates from reputable SSL providers to protect your customer’s information and the eCommerce platform.

Solid Customer Service: Shoppers will have questions, they will get frustrated, and they will want refunds and have returned. Put together a good customer service plan that meets your customer’s needs and is executable by your team.

It’s a fact, consumers tell on average 15 people about poor customer service, but only tell 11 folks about a good experience.

Should a Service Business have an eCommerce website?

It is Capstone’s belief all Service Businesses should seriously look at their business model and determine if they can build an eCommerce strategy.

Sad Fact:

46% of American businesses still do not have a website. (Kinsta)

Why consider an eCommerce strategy?
• Can you create standardized offerings that can be “pre-sold” online to bring in additional revenue, and save time on “free estimates” and nonrevenue generating tasks?

• Are there tasks that your business offers that can be set up as subscriptions for consistent payment? Examples maintenance plans for HVAC firms, and quarterly auto service plans for mechanics.

• Help level out the peaks and valleys of your revenue stream. Keep your employees busy on a more consistent basis.

• Put your online 24/7 salesperson to work for your business. You can sell your services to shoppers around the clock and not be dependent on traditional business hours.

• Set your business apart from the competition. Be different, more customer friendly, and add another selling tool to your marketing toolbox.

 

eCommerce Shopping Summary:

  • Business-to-consumer online shopping is growing $878.8B in 2021 and is projected to continue to grow.

  • Amazon is the largest B2C seller in the US, reaching sales of $125.8B in 2021.

  • Business to Business sales far outpace B2C sales amounting several trillion dollars in 2021.

  • A good easy, intuitive, and safe customer experience is vital to achieving a successful and profitable eCommerce business.

  • eCommerce on mobile phones is where the business is going. A mobile-optimized and friendly website is vital to maximizing eCommerce sales.

  • Capstone believes all business organizations should strongly consider an eCommerce strategy.

Capstone is here to help you build a successful eCommerce solution that achieves results, give us a call or complete our contact form and we will reach out within 24 hours.

Other Resources:

Insider Intelligence | e Marketer

United States Census Bureau

Kinsta

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