What Is E-commerce Penetration Rate?

What is e-commerce penetration rate? The percentage of total households in a specific area (market, region etc) that have bought at least once goods online within the last 12 months.

How big is the US e-commerce market?

The eCommerce market in the U.S. The United States are the second largest market for eCommerce with a revenue of US$538 billion in 2020, placing it ahead of Japan and behind China. With an increase of 30%, the U.S. eCommerce market contributed to the worldwide growth rate of 29% in 2020.

How many e-commerce users are in the US?

In 2016, 209.6 million U.S. people were online shoppers and had browsed products, compared prices or bought merchandise online at least once. These figures are projected to reach 230.5 million in 2021, positioning the United States as of one the leading e-commerce markets based on online shopper penetration.

What percentage of US sales are online?

In 2019, e-commerce sales accounted for 11 percent of all retail sales in United States, this figure is expected to reach 15 percent in 2021. In 2017, the leading e-retailer in the United States was Amazon with 54.47 billion U.S. dollars in e-commerce sales of physical goods in the United States.

How is e-commerce penetration rate calculated?

To calculate the penetration rate, divide the number of customers you have by the size of the target market and then multiply the result by 100.

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How quickly is ecommerce growing?

Ecommerce Sales Statistics

We forecast US retail ecommerce sales will grow 13.7%, reaching $908.73 billion in 2021. As online business trends continue to play a role in everyday B2B operations, we forecast B2B ecommerce site sales will reach nearly $1.5 billion in 2021, a 12.2% increase from a year prior.

Is eCommerce the future?

The future of eCommerce in India is enormous, and the ever-increasing penetration of smartphones will only add impetus to the growth. As the e-commerce industry sees increased traction, it is expected to increase to reach a market size of US$ 188 billion by 2025. The industry is quick to adapt to new technologies too.

Is e-commerce slowing down?

E-Commerce Loses Some Momentum As Sales Slowed Down in the Latest Quarter. Before the latest quarter, the slowest rate of year-over-year increase for e-commerce sales over the past three years was 11.1%, registered in the fourth quarter of 2018, according to the Commerce statistics.

How much did us eCommerce growth in 2020?

Retail e-commerce revenue in the United States from 2017 to 2025 (in million U.S. dollars)

Characteristic Revenue in million U.S. dollars
2021 469,245
2020 431,648
2019 360,099
2018 319,772

What does America buy the most online?

According to Statista figures, more than 263 million American consumers shop online—some 80% of the population—and this number is projected to climb to 291.2 million by 2025. The most popular online shopping categories in the US are fashion and media and electronics.

Why is ecommerce growing?

Why is ecommerce growing fast? The rapid adoption of smartphones, easy and affordable access to technology, and the convenience of shopping from anywhere, at any time are the major reasons for the rapid growth of online commerce.

What state has the most online shoppers?

But which states in the U.S. are the most interested in buying consumer products online? Using Google trends data, a study found that Nevada is the state most interested in shopping online.

Is eCommerce bigger than traditional commerce?

Consumers spent $791.70 billion online in the U.S. in 2020, up an incredible 32.4% from $598.02 billion the prior year, according to a Digital Commerce 360 analysis of U.S. Department of Commerce data. This means ecommerce now accounts for 19.6% of total retail sales, up from 15.8% in 2019 and 14.3% in 2018.

What percent of eCommerce is Amazon?

U.S. Amazon retail e-commerce GMV share 2016-2021

In 2017, Amazon's market share of the U.S. e-commerce retail market was 37 percent, and this is expected to increase significantly by 2021.

What percentage of sales were eCommerce in 2020?

In 2020, e-retail sales accounted for 18 percent of all retail sales worldwide. This figure is expected to reach 21.8 percent in 2024.

What is a good penetration rate?

An above average market penetration rate for consumer goods is estimated to be between 2% and 6%. A good penetration rate for business products is between 10% and 40%. Some brands calculate market penetration every quarter while others find it useful to do so after each ad and marketing campaign.

What is a high penetration rate?

A high penetration rate may indicate that a target market is too small and needs to be expanded with new products, brands or distribution channels. A low penetration rate may indicate that a target market is too broad and a firm may be more successful targeting high yield customers first.

How do you penetrate a new market?

  • Create a product push strategy from product position to training.
  • Keep your salespeople involved.
  • Train your sales team.
  • Help your salespeople own their learning.
  • Create a sharing environment.
  • Engage new opportunities with existing customers.
  • Product positioning.

  • How much did e-commerce grow in 2021?

    As the largest European eCommerce market, the United Kingdom is expected to generate close to US$104bn in revenue in 2021, a 7% increase in a year.

    Is e-commerce still profitable?

    Is ecommerce still profitable today? Yes, ecommerce is still very profitable if you know what to do right from the start and implement that plan. There is still a lot of growth in these markets as buyers are still shifting from offline purchasers to digital buyers.

    Are online sales increasing?

    The third quarter 2021 e-commerce estimate increased 6.6 percent (±0.9%) from the third quarter of 2020 while total retail sales increased 13.1 percent (±0.7%) in the same period. E-commerce sales in the third quarter of 2021 accounted for 13.0 percent of total sales.

    What are the disadvantages of eCommerce?

    16 Disadvantages Of E-commerce – Problems with E-commerce

  • Security.
  • Site crash.
  • No possibility of tried and tested product.
  • Late delivery.
  • Some products are difficult to buy online.
  • Lack of privacy.
  • Tax issues.
  • Legal issues.

  • How much does the average eCommerce site make?

    A rough estimate is in three months an average eCommerce site in the US makes over $150,000 in monthly revenues while business at the end of one year generates almost $330,000 in monthly revenue.

    What is the next evolution of eCommerce?

    By the year 2023, it's estimated that ecommerce purchases will rise from 14.1% to 22%. These estimations are highly optimistic and they show that ecommerce, as a business, is yet to reach its potential. Mobile ecommerce sales are also expected to rise, estimated to reach almost 2.91 trillion in 2020.

    Will e commerce continue to grow?

    KEY STAT: US ecommerce sales are projected to continue to grow by double digits, up 17.9% in 2021 to $933.30 billion. Ecommerce penetration will continue to increase, more than doubling from 2019 to 23.6% in 2025.

    When did Ecommerce take off?

    Of course, eCommerce as we know it today really got its start when retail giant Amazon created one of the first eCommerce websites back in the early 1990s. Since then, countless companies have followed its lead.

    Is online shopping growing?

    As internet access and adoption are rapidly increasing worldwide, the number of digital buyers keeps climbing every year. In 2020, over two billion people purchased goods or services online, and during the same year, e-retail sales surpassed 4.2 trillion U.S. dollars worldwide.

    How much has Ecommerce increased during Covid?

    The dramatic rise in e-commerce amid movement restrictions induced by COVID-19 increased online retail sales' share of total retail sales from 16% to 19% in 2020, according to estimates in an UNCTAD report published on 3 May.

    What is the current economic value market share of e-commerce?

    In the second quarter of 2021, the share of e-commerce in total U.S. retail sales stood at 13.3 percent, down from 15.7 percent in the same quarter in the previous year.

    How much has Ecommerce increased?

    Ecommerce reached $612.86 billion, up 16.4% from $526.72 billion in the first three quarters of 2020. Online penetration hit 18.7%, up from 18.4% for the same period last year. Offline sales increased 14.1% year over year, up significantly from 1.9% for the first nine months of 2020.

    What do females buy the most online?

    During a November 2017 survey, it was found that 71 percent of female respondents had purchased clothing online in the past 3 months.

    Characteristic Male Female
    Fashion, clothing and accessories 49% 71%
    Health and Beauty 33% 54%
    Toys and baby equipment 31% 46%
    Books, CDs and other physical media 44% 45%

    Who buys more online male or female?

    A recent study by Affilinet reports that 84.3 % of men buy online, compared with 77 % of women. Men perform many more product searches on the Internet than women, 70 % versus 30%.

    Who online shops the most?

    The largest proportion of people buying online once or twice is found among those aged 55-74 (42 %). The youngest age group (16-24) was the larger age group to shop three to five times (37 %), but tends to shop more online one to two times (38 %).

    What are the 3 types of e-commerce?

    There are three main types of e-commerce: business-to-business (websites such as Shopify), business-to-consumer (websites such as Amazon), and consumer-to-consumer (websites such as eBay).

    What is the fastest growing e-commerce?

    At the country level, Argentina was the fastest growing eCommerce market in 2020, with a 79% increase in online sales compared to 2019—almost double the worldwide country average. Singapore was the second-fastest, with a 71.1% increase in eCommerce sales.

    What is framework of e-commerce?

    An ecommerce framework refers to the type of software you're using to build your ecommerce store. For example, ecommerce software Magento uses an open source framework, while BigCommerce is SaaS. Both also enable a headless framework.

    Which US cities shop online most?

    Miami citizens spend 5.6 times the national average shopping online, and complete five times as many online transactions as the average American, according to Bundle. Other top e-commerce cities are New York City, San Francisco, and St. Louis; see the full list at Bundle.com.

    What state buys the most from Amazon?

    As of July 2020, Iowa was the top U.S. state with the most small and medium sized businesses selling on Amazon per capita, accounting for almost 10,000 third-party Amazon sellers in total. Additionally, Delaware had 3,000 SMB sellers, making Delaware the second-highest ranking state of a per capita basis.

    Where do most online shoppers live?

    Rank Country % of Salary Spent Online
    #1 China 19.34%
    #2 Mexico 17.31%
    #3 Indonesia 12.66%
    #4 United Kingdom 11.14%

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