Many people are debating whether or not they should open an E-commerce store. Considering there are hundreds or thousands, if not millions already out there. Some people believe the market is too crowded and it is hard to make yourself known. In the article I am going to tell you why I believe you SHOULD open up an E-commerce store. Simply by stating the statistics. Sit back and get your mind blown because the E-commerce market is going to keep booming!
According to Statista the annual e-commerce sales is going to continue to grow, possibly doubling in the next 5 years. Right off the bat this tells you that there is enormous growth and growth potential for an online e-commerce business. Getting into the market now gives you a chance to grow your business before the boom. You can start marketing your brand and by the time the boon hits you have a huge following that will buy from your store. Treat them right and get repeat customers!
Who Buys Online?
Literally everyone. Recent stats suggest that almost everyone has made at least one purchase online. But when you are creating an e-commerce business you need to know who to target in order to be successful.
As you can see from the above info graphic, there is only a slight difference between men and women when it comes to buying online. This let’s you know that you could target either gender and be comfortable with your decision. While some may think the younger generation would online the most, these stats from Business Insider say they are wrong.
The majority of shoppers online are middle-aged from 25-54. If you decide to start an e-commerce store and use advertising, make sure you take these statistics into consideration. One of the most important things in marketing is to know your audience!
How do people Buy?
What drives people to make the purchase that they want online? What sources do they use to seek out potential items? These are the questions you should be asking yourself. If you think ahead of your shoppers then you could put yourself in a position to be in front of their eyes!
Reviews, reviews, reviews, reviews. Every single chart and statistic I looked up pointed me to reviews as the number factor in someone buying. Not only reviews for your products, but reviews for your website as well! We have a partner that helps people get reviews! Check them out here! And once those reviews are in you will need clever placement! Check out Thrive Themes as they have a specific plugin that can help you place your reviews all over your site!
Most people when they are looking for products go straight to Amazon. It might be a good idea to align yourself with them. There are ways you can partner with Amazon through Fulfillment by Amazon.
15% of people in the US use search engines to look products and 12% look for certain websites. These statistics let you know that you have to improve your SEO! Search Engine Optimization is critical for putting your company out there for organic traffic! This way you will spend less on marketing and still get new buyers everyday. The higher you can rank yourself on Google the better!
As you can see from the statistics, ranking on the 2nd page or 3rd page will not make sales. You need to be on the first page and close to the top! Check out our Top 20 SEO Strategies for help!
Where are people buying?
You would think the US would be largest market for E-commerce, but the US is actually 2nd on that list. According to Business.com here are the statistics for the top 10:
- China: $672 billion
- USA: $340 billion
- United Kingdom: $99 billion
- Japan: $79 billion
- Germany: $73 billion
- France: $43 billion
- South Korea: $37 billion
- Canada: $30 billion
- Russia: $20 billion
- Brazil: $19 billion
Nielsen’s breaks these stats down even further to figure out which countries are buying what products!
You can use the statistics in this info graphic for targeting purposes when you are running ads. If you look South Korea tops the list 5/8 categories. Spain takes the top spot for travel, Japan for books and music and Brazil for consumer electronics. China and India are also prevelant on the graphic, but the US is not. Do not dampen your stores possibilities by keeping it local.
How are your buyers paying?
In order to run a successful online e-commerce store you have to be flexible. Multiple payment methods is a must, especially if you are selling international. One of my biggest mistakes as an early entrepreneur was not accepting Paypal as a payment method. I have since learned from my mistakes and you should learn from my mistake.
41% of people worldwide prefer to use Paypal, even more than a credit card! This let’s you know that you need to be diverse in how people can pay. The preferred payment method in India is called a COD, cash on delivery. That means you do not get paid until after the package has been delivered. In most countries this definitely wouldn’t happen, but if you are from India or the surrounding region, you may need to work out a way to achieve this type of payment.
Paypal checkouts also increase your chances of converting the sale!
What are people buying?
We gave you a preview earlier in the blog post about things people are buying from what parts of the world. Lets take some stats from the biggest company in the market, Amazon.
The fastest moving industry according to Amazon statistics is the luxury beauty industry. Sales from luxury beauty have exploded and have a year over year increase of 47%. The next industry is Pantry which covers household cleaners and things for around the house. The year over year on that is 38%. I would recommend the luxury beauty industry but I would not recommend the Pantry industry. It is just way to hard to try and compete with the huge companies that can undercut you.
The top selling industries are consumer electronics, household and kitchen wares, publishing and sports and outdoors. Consumer electronics is a huge industry and if you can make yourself a go to review site for electronics then you can make a ton of money! You could do this as an e-commerce store or even as an affiliate marketer.
Here is another graphic depicting things people are buying off of mobile devices in the US.
25% of online e-commerce sales happen on mobile. You have to have a highly optimized website for mobile. Most people do not take these things seriously and it costs them sales!
I believe now is still a perfect time to open up an E-commerce business. All of the stats are pointing up and if you get in now and market yourself correctly you can ride the wave to the top!
Need help setting up a store? Check out our WooCommerce guide!
Need help setting up an online business? Check out how!
Want a theme designed for E-Commerce conversions? Check out Thrive Themes!
Check out ways to Automate your online business!