The retail industry is booming, with mCommerce sales expected to more than double by 2025. Multicultural and women entrepreneurs are the cutting-edge leaders of businesses that power markets. Last year, they reported that 64% of all traffic was from mobile. In short, if you have an online store and are only relying on a mobile site to make sales, youre missing out big time. Morgan Stanley is differentiated by the caliber of our diverse team. Snapchat and TikTok are popular options to this end. In general, younger generations are more comfortable using technology and therefore shop online more frequently than older generations. In fact, 75% of customers prefer companies with such programs. Based on Tidios chart, you can see that Amazon Shopping is the most popular mobile commerce platform available on iOS. What is the outlook for US retail and ecommerce sales growth in 2022? Amazon marketplace has a roughly 25% market share of the total U.S. e-commerce spending. Even in a slower-growth environment, total new spending will be enormous. Although many companies strive to show customers that voice shopping is secure, its still a new way to shop online. With Europe and US eCommerce sales equating to about $738 billion annually, its estimated that optimized checkouts could save up to $260 billion worth of lost orders yearly. Fortunately, there are tools like Google Analytics that can help you do just that by monitoring various website statistics. This year, macroeconomic pressures related to the war in Ukraine, inflation, and supply chain issues will all have a heavy impact on Amazons gross merchandise value growth. In some countries, the numbers are even higher; for example, digital shoppers in the United Kingdom spend over $4200/year on average. Amazons struggles give Walmart an opening, What happened this holiday season and what to expect from earnings, Amazon Fashion teams up with Rent the Runway on resale, Spiking holiday returns could lead retailers to adjust their policies, What retailers need to know for 2023 in 5 charts. One of the top differentiating factors for e-commerce platforms could be supply chain and fulfillment capabilities, which could empower better customer servicing, says Gary Yu, who covers telecom and internet stocks in China, where grocery delivery is growing faster than China e-commerce overall. KEY STAT: Chinas ecommerce sales will increase by 9.1% this year, the lowest growth since we began our tracking in 2008. Social commerce sales are set to triple by 2025. Apple's advocacy for privacy and Covid-19 aren't going anywhere soon. However, we think that this number may not be accurate. In the US alone, volume is expected to increase from $128.4 billion in 2019 to a whopping $553.28 billion by 2024! A major goal for any eCommerce website is to turn browsers into buyers. A quote from The Art of War, China's monumental treatise on warfare goes like this: "Know the enemy and know yourself; in a hundred battles you will never be in peril.". Not only that, but 17% of Baymards respondents have stated theyve abandoned their shopping carts due to convoluted checkout processes. Email personalization is nearly as important as content personalization, with increased unique open rates by 29% and unique click rates by 41%. This means more branded shopping apps, SMS and Facebook campaigns, as well as TikTok and Instagram videos specifically catered towards promoting a product. BEIJING, Jan. 17, 2023 /PRNewswire/ -- DHgate, the leading cross-border e-commerce marketplace in China, has witnessed steady growth momentum in 2022 while achieving great breakthroughs due to . Out of that time, only 10% is spent on a web browser. KEY STAT: This year, worldwide ecommerce sales will exceed $5 trillion for the first time, accounting for more than a fifth of overall retail sales. Source: Euromonitor, National Data Sources, Morgan Stanley Research estimates, Yes, You Can Be a Tech Innovator at Morgan Stanley. Expertise from Forbes Councils members, operated under license. Therefore, each business should prepare at least 2-3 suppliers on their own to face to the worst scenario. US retail sales growth will stabilize in 2022, but changes wrought by two years of the pandemic will drive growth in online automotive and grocery sales. That figure represents a projected 16 percent. In-depth analysis, benchmarks and shorter spotlights on digital trends. Many companies are now using chatbots as their initial form of customer service, due to the increasing demand for real-time assistance. For perspective, in 2020 it was only around $240 billion. 2022 was a landmark year for H.B. If the website doesnt load quickly or if photos of products cover up descriptions, it creates a bad first impression of your business. In fact, 84% of respondents said they had been convinced to buy something after watching a brands video, while only 18% said they would prefer to read text on products or services. According to the Digital 2022: Global Overview Report, consumer electronics generated more revenue than any other product category in global business-to-consumer (B2C) eCommerce markets, raking in over $988.4 billion. According to Buildfires statistics, 63% of consumers claim they find mobile apps more convenient than mobile websites. At Morgan Stanley, youll find trusted colleagues, committed mentors and a culture that values diverse perspectives, individual intellect and cross-collaboration. eCommerce Statistics and Trends for 2022 [Infographic] Published Jan. 10, 2022. WooCommerce is currently the most popular choice for eCommerce sites, leading both Magento and Shopify in market share. Exportable files for easy reading, analysis and sharing. Shopify vs Amazon: Things to Know before Considering One of Them or Both. These are some aspects to consider before choosing a financing solution for your company. Business personalization is a top priority for many companies. According to Yotpos surveys, customer loyalty programs are an excellent way not only to increase conversions but also to keep customers coming back. humane and donates to like-minded causes. I also discuss challenges ahead and how to overcome them. eMarketer recently found that in the US alone, the DTC ecommerce market grew from $36.08 billion in 2016 to $128.33 billion in 2021 - a gain of nearly $100 billion in just five years. The experts are also anticipating the eCommerce industry sales to reach its first $1 trillion in 2022. WHATS IN THIS REPORT? Since our founding in 1935, Morgan Stanley has consistently delivered first-class business in a first-class way. See how you can make meaningful contributions as a student or recent graduate at Morgan Stanley. 5. Each eMarketer forecast fits within the larger matrix of all its forecasts, with the same assumptions and general framework used to project figures in a variety of areas. Regular re-evaluation of available data means the forecasts reflect the latest business developments, technology trends, and economic changes. And while inflation concerns would seem to contradict this, consumers spent $2.8 billion in added cost from January to March, according to Adobe Analytics. Personalization also lowers customer acquisition costs. While that might seem like a small percentage, it is quite significant in terms of internet traffic and reaches. Consumers can browse and purchase through the Internet of Things (IoT) devices such as smart speakers, fitness trackers, and home assistants. The increase in overall retail spending is driven mainly by inflation and higher fuel prices. In fact, product recommendations could make up for 31% of your eCommerce stores revenue. Social commerce is growing in popularity not just in China, but in the United States as well. 1. (3) 7. Across all our businesses, we offer keen insight on today's most critical issues. See how you can continue your career journey at Morgan Stanley. Entering marketplaces can open up new opportunities for online shops to bring in higher revenues. The only other competitor that comes close to Amazon is Alibaba, which falls significantly behind at $304 billion. With more people owning mobile devices, there is a larger opportunity to turn website visits into purchases and increase brand awareness. Whether its hardware, software or age-old businesses, everything today is ripe for disruption. eMarketer also acknowledges that success in 2022 and beyond starts with a multichannel approach and social listening. Additionally, 38% of consumers are more likely to buy from a company if they offer live chat support. Do I qualify? Here are all the facts about social eCommerce. Whats the outlook for total retail and ecommerce sales in China this year? Brick-and-mortar retail, meanwhile, returned with a vengeance last year and is in better shape than expected going into 2022. The goal of eCommerce is not to immediately phase out brick-and-mortar stores. The Daily: Influencer Marketing by Platform and Tier, Luxury Ecommerce, and Out-of-Pocket Drug Costs | Sep 6, 2022: On today's episode, we discuss what brand new forecasts the forecasting team cooked up in Q2, including influencer marketing spend by platform and tier, luxury ecommerce, and US prescription drug sales. Amazon US Ecommerce Sales, by Product Category, 2022 (millions, % change, and % total Amazon retail ecommerce sales), US Retail Ecommerce Sales, by Company, 2022 (% of total retail ecommerce sales), Amazon US Ecommerce Sales, 2019-2023 (billions, % change, and % of total US retail ecommerce sales), Amazon US Ecommerce Direct vs. eCommerce will total $6.51 trillion by 2023 according to reports from eMarketer and Statista, thats 22.3% of all retail sales. We believe that the Covid-driven bump will not flatten future e-commerce growth, says Brian Nowak, an equity analyst covering the U.S. internet industry. Social commerce is most common among Gen Z consumers in the United States. Also, reply time is key when speaking with customer service when 60% of customers believe that 10 minutes or less is an acceptable response time. Plus, most marketplaces provide free shipping and returns. Insider Intelligence has predicted that in 2024, the volume of mCommerce will hit $620.97 billion and account for 42.9% of eCommerce sales. Amping up efforts on customer retention is another way out of this difficult situation. ContentSquares data for 2021 shows that mobile devices are continuing to dominate online traffic, with 58% of all visits coming from smartphones. How do global retail giants stack up on their home courts? And the growth is forecasted to continue, by 2025, 23% of all sales are estimated to be made online, which would be a 5.2 percentage point increase in five years. In other words, the e-commerce space is. Mobile shopping apps are becoming more prevalent both among retailers and shoppers. But shifts in consumer behavior during the pandemic have changed the way certain products are bought online, particularly in the automotive and grocery categories. China is continuing to lead the pack when it comes to social commerce. Market research showed that in 2021 Q2 alone, funding acquired by e-commerce companies worldwide totaled US$16.8 billion. Our firm's commitment to sustainability informs our operations, governance, risk management, diversity efforts, philanthropy and research. This number has been increasing rapidly, as in 2022 there were 4.26 billion people using emails (this is more than half of the global population). But thats not all. Overall US holiday season retail sales are expected to approach $1.30 trillion this year, compared to last year at $1.21 trillion. Some popular premium loyalty rewards include free shipping, immediate discounts, and online deals. According to online data shared by Statista, its estimated that in 2022 sales via social media platforms across the world will add up to $992 billion. By establishing a presence on these online channels, you can improve your brand awareness and turn visits into social commerce sales. In other words, many people are more influenced by shipping costs than the actual product prices. In addition, 90% choose to buy from the brands they follow, 86% prefer the brands they follow over a competitor, and 83% recommend the brands to people they know. According to a study, 24% of consumers claim long wait times are the most frustrating thing about customer service, while 29% find scripted responses impersonal and aggravating. In contrast, the United States is already a fully developed market for eCommerce in many years. Consumers in Colombia and Brazil, for instance, spend more than five hours online each day, on average, creating a significant opportunity for retailers to reach a new market of customers. The last couple of years have been remarkable for ecommerce businesses. In contrast, eCommerce sales have an annual growth rate of 13%. Prior posts are available here: Part 1 covered GMV trends from Jan 1 & copyright 2001-2023 channeladvisor. Other well-known eCommerce sites include Rakuten (Japanese) and Samsung (South Korean). The trend continues: Latin America (including Peru, Brazil, Argentina, Chile, Colombia, and Mexico) saw $104 billion in ecommerce sales in 2022, up 22.4% from $85 billion in 2021. Turning to segments, electronicswhich leads all the categories of e-commerce activityis slated to grow from 38% of retail sales to 45% of global retail sales. E-commerce owners will need some time to familiarize themselves with these financing solutions. As you are probably aware, potential customers take authenticity and transparency into consideration when reading reviews. In fact, a large portion of abandonment is simply due to users exploring and window shopping. KEY STAT: Health, personal care, and beauty ecommerce sales will grow 24.4% this year, while food and beverage sales will increase by 20.6%solidifying their status as Amazons fastest-growing ecommerce categories. According to recent research by eMarketer, China will remain the worlds most penetrated eCommerce market in 2022, with 46.3% of the countrys retail sales taking place online. ResearchAndMarkets.com forecasts that China's social commerce industry could hit $2 trillion by 2028 from its 2022 value of $363 billion. Though there are headwinds in certain countries and verticals, we believe these barriers will continue to come down, says Andrew Ruben, who covers retail and e-commerce in Latin America. From volatility and geopolitics to economic trends and investment outlooks, stay informed on the key developments shaping today's markets. and each category can be broken out by country, region or by company. Juniper Research recently found that the number of people using QR codes to make payments will exceed 2.2 billion in 2025, up from 1.5 billion in 2020; equating to 29% of all mobile phone users across the world in 2025. Just one year later, this number increased by almost 40%. Even in a slower-growth environment, total new spending will be enormous. To better understand the phenomenon overall, Baymark provides 3 additional main reasons: unexpected extra costs; account creation requirements; and slow delivery processes. By 2022, eCommerce sales in Latin America are projected to surpass $104 billion, a 22.4% increase from just $85 billion in 2021. As a result, the company will be investing in technology (such as eCommerce solutions) to help advance growth. Just over 26% stated that they follow brands on social media in order to see what new products are available. At Morgan Stanley, giving back is a core valuea central part of our culture globally. While their total cumulative spending power is lower than Baby Boomers, they make up for it by shopping online more frequently. Cowen and Company, Group M, Magna Global, Zenith/Publicis, eMarketer, MoffettNathanson, Nielsen, and Standard Media Index. By. Here in the US, the number of customers who dont make any internet purchases decreased to only 30%. eMarketer expects worldwide e-commerce sales to exceed $5 trillion for the first time this year. Ecommerce sales accounted for 14.1% of global retail sales. eMarketer tracks ecommerce sales on Amazon, including its retail ecommerce sales, Amazon direct sales and Amazon Marketplace sales. According to Baymark Institute, in the last 3 months alone, 58.6% of online shoppers in the US have abandoned a cart due to aimless browsing with no intention of making a purchase, and most abandon before they even reach the checkout flow. Women also make purchase decisions 7% faster than men. By developing stronger relationships, businesses can create a base of loyal customers. These ads will be no different from regular linear/cable TV commercials in terms of perception by customers. That might seem like a small percentage, it creates a bad impression! 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