Ecommerce continues to grow steadily worldwide, creating higher competition, especially with dropshipping. Each year and season comes with its unique issues.
Retailers who wish to succeed in this highly competitive environment must be in a position to keep up with these changes. By following up on ecommerce statistics, you can know what to expect and prepare adequately.
Below are 20 key ecommerce statistics you must know when dropshipping to ensure your store survives 2021 and the subsequent years.
Buyer behavior statistics
Over 2.14 billion people worldwide are expected to do online shopping in 2021.
Retail eCommerce market sales worldwide will reach $6.54 trillion in 2023
Ecommerce statistics indicate that online shopping is not slowing down but rather accelerating. As more people resort to online buying, there has never been a better opportunity to start an online store.
Nowadays, just about anything can be sold and found online. So, whether you are into B2B or B2C selling, the eCommerce climate is becoming more conducive every day.
Dropshippers must position themselves to tap into this $3.53 million pie by:
- Choosing the right products
- Adequate marketing
- Appropriate pricing
Almost 40% of consumers report that they’re more comfortable with digital technology than before lockdown
Customers are more accustomed to online buying. So, more than ever, you may want to employ technology to improve your dropshipping stores.
Start using chatbots, dynamic call to action buttons, etc., to enhance customer experience and encourage purchases and customer repeat visits.
Additionally, customers are more comfortable with overseas buying.
70% of online buyers purchase from foreign sites.
96% of small businesses using eBay in the USA export to an average of 17 countries.
Since people are more willing to shop from abroad, this is the best opportunity to extend your dropshipping store’s reach. By expanding, you can dramatically increase your sales and also tap into unmet demand in other regions.
Expand your marketing strategy activities to cover other countries. This expansion should cater to both your offering and payment methods.
Gone are the days when customers visit their local brick and mortar store or even search google for products.
76% of shoppers on Amazon use the search bar to find an item in 2020
63% of online shoppers start their product search on Amazon
What this tells us is that search optimization for eCommerce is now a necessity. It is not enough to create compelling content or use ads. You must optimize your content for product search.
For instance, if you’re dropshipping from Amazon, but customers cannot find your products when they input a keyword, then you will lose business to the competitor.
It thus helps to follow SEO best practices for eCommerce by:
- Conducting keyword research
- Including keywords on your product pages
- Use meta descriptions
Gen X and Baby Boomers make up the largest demographic on eBay, with 32% of the site’s buyers aged 35 to 49 and 29% aged 50 to 64.
Gen X make the most online purchases per year (18.6%), followed by millennials (15.6%) and baby boomers (15.1%).
Using ads is one of the best ways to drive traffic to your online store. In 2021, because even more customers will be online, Google ads and social media ads will prevail.
However, note that the biggest online buying population is not the largest group on social media. This dynamic justifies Google ads as more effective than social media ads for driving sales. Dropshippers who ignore this reality may lose out to competitors.
Businesses make an average of $2 in income for every $1 they spend on Google Ads
Customer experience statistics
85% of consumers prefer free shipping over fast shipping.
Customers love free stuff. For your dropshipping store, explore the opportunity to offer free shipping for your customers.
Stores with free shipping, even with more expensive items, make more sales on average than those with a shipping fee. Customers also purchase more items per session
Orders with free shipping average around 30% higher in value
The research indicates that customers do not mind waiting for their packages so long as they don’t have to pay for the shipment.
However, this depends on your specific store. Some items derive a higher perceived benefit. Customers are thus willing to buy even with a shipping fee.
Furthermore, even with additional shipping fees, transparency is vital. People hate surprise charges.
The average shopping cart abandonment rate is approximately 70%.
Cart abandonment is the biggest problem for online buyers, and surprise costs are the number one cause.
Massive cart abandonment can cause huge sales losses. Therefore, it helps to indicate any charges applicable earlier in the process so that buyers are aware. That way, they are also less likely to see you as a scam.
However, when a buyer abandons the cart, all hope is not lost. You must create an email marketing strategy for your dropshipping store to reach such customers.
41% of abandoned cart emails are opened, and 9% are clicked
It may not look like much but considering most eCommerce emails are not opened at all, this is a good number. With an email retargeting strategy, you could complete more sales.
Regarding transparency, customers will be more interested in their purchase progress, especially when it takes longer than usual. When you keep them in the know, they are more likely to wait even longer. They can trust you more easily and are likely to buy from you in the future.
83% of US online shoppers expect regular communication about their purchases
The look and feel of your dropshipping site will also be a significant factor in 2021.
83% of US smartphone users say that product photography is “very” and “extremely” influential to purchasing decisions.
In 2021, low quality or very few product images will significantly affect your online sales. You must not only rely on supplier images. Order sample products and take your high-quality photos.
Doing so also reduces customer dissatisfaction.
22% of returns happen because the product looks different in-person
It is typical for product images sent by suppliers to be an exaggeration of the actual product. Since this is a common occurrence in eCommerce, many customers are skeptical.
In 2021 if you want to stand out and gain customer trust, you must show them real-life photos of the product.
Visa and Mastercard are the most popular credit card companies.
PayPal is the preferred payment method among online shoppers worldwide.
In 2021, you must pay more attention to payment methods on your dropshipping store.
Payment complications are the 2nd reason why most buyers abandon the cart. To reduce this occurrence, ensure that you have a single-page checkout form. Also, incorporate as many payment methods as you can, especially Visa, Mastercard, and PayPal.
Ecommerce platform statistics
40% of consumers have purchased via Facebook, 13% via Instagram, and 12% via Pinterest.
Ecommerce statistics by SalesCycle indicates that social media will play an even bigger role in online buying. Now with the existence of shop buttons on social media, social media sales will increase.
It is therefore critical for you to focus on social media marketing for your dropshipping store in 2021. And not just for promotion, but as a sales channel as well.
Furthermore, customers spend a lot of their time on social. It is thus their first search engine for items they want to buy.
49% of American shoppers say they find new products through Facebook
To maximize your social media presence, ensure to use key terms in your descriptions and relevant hashtags. That way, customers can easily find you when they type in the product.
Buyers are more likely to share information about products during their many social media interactions. They trust their peers more than brands and thus more likely to buy the recommended products.
Peer recommendations influence 84% of consumers’ purchasing decisions.
Therefore, in 2021, you may want to focus on reviews and referrals to increase traffic and sales. Encourage all your buyers to leave reviews about your products to create credibility.
Similarly, referral marketing will be more pronounced for dropshipping in 2021. The strategy is more effective at driving traffic to the store and also increasing sales.
Here is what to expect in dropshipping landscape in 2021. Do ample research on ecommerce statistics to enable you draft effective strategies for your store.