By 2018, eCommerce will surpass 10% of total retail sales in the U.S., according to Internet Retailer, and this steady growth is expected to continue to 2020.
In a recent webinar hosted by Magento, one of our digital commerce partners, I learned about the top trends that are influencing eCommerce growth: mobile, social, and global.
Last year consumers in the U.S. purchased nearly $75 billion in products and services using their mobile devices, which is an increase of 32% compared to the previous year.1
However, conversion rates for mobile shopping carts are 70% lower than desktop. This is due in part to the shopping experience (or path to purchase) on mobile. As stated during the webinar, “if mobile isn’t enhancing the experience, then it’s not helping the experience.”
Removing the friction of the transaction process with mobile wallets and one-touch purchase is going to be essential for improving mobile conversion rates, among other things, which you can read more about here.
Black Friday and Cyber Monday 2016 are expected to see highest percentage of mobile shoppers to date:
19% growth YOY on Black Friday
26% growth YOY on Cyber Monday
Social commerce has erased the need for buyers to leave a social network to complete a purchase; the entire process takes place within the channel, creating a seamless purchase experience. Pinterest first made the leap to social commerce with the introduction of its buyable pins back in 2015. More recently, Facebook made a similar transition with its “Shop Now” stores.
According to Internet Retailer, social eCommerce growth outpaces overall digital commerce growth by 10%, so this trend is one that cannot be ignored.
For B2B buyers, we may not see them making purchases via social networks, but the impact of these platforms on the experience is still significant. More than 55% of B2B buyers use social media during their purchasing decisions to research product and vendor information.2
Additionally, there’s another emerging social aspect for digital commerce with payment apps like Venmo, which allows people to send money to each other quickly and easily. Services like this have been quickly adopted by Millennials, who are purchasing differently.
44% YOY increase in mobile payment volume by Millennials
Nearly 40% of Millennials don’t expect to need cash within the next 10 years3
Finally, the globalization of eCommerce is something to watch. The growth of APIs, the Internet of Things (IoT), and cloud technologies – just to name a few examples – are enabling merchants to expand their reach in the international market.
Cross-border sales from consumers are estimated to be $450 billion in the next five years4
Learn more about these and other trends impacting digital commerce in our latest guide, Innovating eCommerce: Nine Top Trends for 2017.
1 Source: eMarketer, Mobile Commerce Roundup, 2016
2 Source: Business 2 Community, Online B2B Interactions: How Business is Going Digital, 2016
3 Source: PayPal Q4 2015 Fast Facts
4 Source: Viacom Media Networks and Lloyd Bank, August 2015