It’s a one-stop-shop for all of our needs and wants. Today, online shopping is no longer just a fad. It has become a new way of life. Such is the shift, that consumer spending, which makes up two-thirds of the US economy, has begun to show a definitive move towards online shopping versus in-store shopping.
For a country that started the e-commerce phenomenon, the United States is quite naturally one of the leaders in the race, with both Amazon and eBay leading the way. Driven by increased purchasing power and changing needs, the trend continues to be on an upswing, attracting interest and investment in equal measure. Today, e-commerce represents almost 10% of retail sales in America and the number is expected to grow by nearly 15% each year. Interestingly, Amazon alone accounts for nearly 44% of all online sales in the country.
So how is this multi-billion-dollar industry changing consumer habits and what are the factors that are influencing their everyday spending? Piplsay (powered by Market Cube) finds out*
8 out of 10 Americans today shop online at least once a month, out of which 35% are frequent shoppers. Clothes, electronics, and household basics continue to be the most popular picks. Such is their appeal, that even big retailers like Walmart and Home Depot have had to jump on the e-commerce bandwagon, to counter their dipping sales. Still, e-commerce companies don’t have it easy. As paradoxical as it may sound, Americans still prefer shopping in brick and mortar stores. This means e-commerce companies are still competing against retail stores, despite the latter reeling under bankruptcies and closures. That, 19% of Piplsay respondents rarely shop online could be reflective of their continued loyalty towards offline stores.
Still, there is no denying the fact that e-commerce platforms are luring shoppers by the multitudes. While product discounts continue to be a huge draw, website credibility also matters for a huge percentage of online consumers. After all, it’s the value for their money that ultimately keeps them coming back for more. Not surprisingly, online reviews continue to be the most important factor influencing consumer choice and spending. Free shipping is another, especially given how unexpected shipping charges often force shoppers to abandon their carts.
The U.S. e-commerce market is projected to add over 6 million new online shoppers in the next two years, taking the number to 230.5 million*
Caught in the rat race, e-commerce companies are going all out to stay ahead of the competition. Not just with jaw-dropping discounts and products, but also with in-store perks like quick trials, live chats, 360-degree view, etc. The use of drones is a different level altogether. Today, people are not just spending more time shopping online, they are also spending more money each time they shop. Online shopping is definitely on the rise, and it’s only a matter of time before people begin to shop solely online.
Based on 16,600 online respondents; Source *Statista