The Covid-19 pandemic really proved the value of having an online presence. Retail companies that were fortunate to have an established e-commerce store found lockdowns and stay-at-home orders far easier to navigate than those that did not.
In Australia, 2020 and 2021 saw many consumers discover the ease and convenience of shopping online for the first time. Australia Posts’s Report indicates that around four in five Australian households purchase something online in 2020, with Australians spending a collective $50.46 billion through online shopping.
The world may have returned to somewhat normal but that doesn’t mean that consumers are flooding back to brick and mortar stores. Shopping online equals convenience and often leads to better prices. As a leading web development company in Melbourne, Newpath Web knows that in 2022, if you’re a retail store without an e-commerce presence, you’re missing out on a significant percentage of potential customers.
Still not convinced? Here are a few choice statistics that point to the state and evolution of e-commerce in 2022.
Last year, 2.14 billion people bought something online
Without an e-commerce store, you are missing out on over 2 billion potential customers. Reports suggest that last year, 2.14 billion people bought something online. With the world’s population standing at 7.9 billion, that’s a fair percentage of us who are open to making online purchases.
This number is only expected to grow over the next few decades in line with consumer demand.
3 out of 4 online shoppers complete purchases on their smartphones
In case you needed more convincing as to the importance of mobile optimisation, 3 out of 4 online shoppers complete purchases on their smartphones. Simply put, your website needs to be optimised for mobile devices. It’s important from an SEO perspective, and it’s crucial from a user-experience perspective. Consumers don’t have the patience to navigate a desktop-sized website on their mobile device and will take their business elsewhere.
E-commerce stores that localise prices experience a 40 percent increase in conversion rates
Research from CMS e-commerce giant Shopify suggests that e-commerce stores that localise currency experience a significant increase in conversion rates. What does this mean? Well, customers who are shopping in the US want to be greeted with US prices, even if your business is located in Australia. It increases consumer trust. Even on the global world wide web, people want to feel as though they are shopping from a local provider.
Language is another important web element you should consider localising, particularly when it comes to the small differences between American and British English.
The average conversion rate for e-commerce stores is 1.53 percent
If getting customers to your e-commerce site is your first challenge, the second is certainly convincing them to make a purchase. Currently, the global average conversion rate for e-commerce stores sits at only 1.53 percent. This may seem low but consider your own shopping habits. How often do you find yourself browsing an online store and adding items to your cart without the intention of making a purchase?
What you do need to keep an eye on is if there are any specific barriers preventing your customers from completing their purchase. This could include a confusing interface, development bugs, and issues with security. Should this be the case, a web development services team will be able to design and implement a solution.
59 percent of consumers use Google to research a purchase they intended to make in-store or online
Regardless of whether your potential customers are looking to shop online or in a brick and mortar store, the majority of them will conduct some form of research online. This research could include comparing prices, checking stock levels, confirming opening hours, or asking questions through customer service channels.
Without a functional and visible website, your products won’t even be considered.
77 percent of shoppers read reviews online before buying
In the early days of e-commerce, arguably the biggest barrier preventing people from making purchases online was the fear that the product delivered would not match its online description. Online retailers have come up with a variety of strategies to mitigate this fear, including advertising reviews from happy customers.
77 percent of online shoppers will read reviews online before making a purchase. These reviews could be on third party sites or on your website. In the case of the latter, ensure your reviews convey their legitimacy. Include as much detail as your customers are happy to provide and consider providing a mix of positive and constructive reviews to avoid the impression that you’re curating responses.
Online stores with a social media presence average 32 percent more sales than those without
Research suggests that whether or not your store has a social media presence can have a significant impact on your sales. It’s possible that consumers see Facebook, Instagram, Twitter, or LinkedIn accounts as added legitimacy to your online presence.
By its very nature, social media will of course help spread brand awareness and can help people share your products and services with friends and family.
Keeping up to date with these statistics helps the web development services team at Newpath Web better understand consumer habits and build websites tailored to meet user demands. For more information about our approach to e-commerce design and development, contact the team at Newpath Web — a leading web development company in Melbourne — today.