Comparing E-commerce and Retail Statistics: What the Numbers Reveal
The growing trend of online shopping has revolutionized the world of retail, significantly changing the consumption habits of customers across the globe. In recent years, e-commerce has seen phenomenal growth, and undoubtedly, this growth has affected traditional brick-and-mortar retailers. With the growing importance of e-commerce, the debate between e-commerce and retail has continued to gain prominence. In this article, we will explore and compare the key statistics between e-commerce and traditional retail, gaining valuable insights into these two modes of shopping.
Introduction
E-commerce has been a game-changer in the retail industry. It has taken shopping from traditional brick-and-mortar stores to the comfort of our homes. Online shopping has enabled the quick comparison of prices, wider product offerings, and convenience. According to a report published by Statista, the global retail e-commerce sales accounted for 14.1% of all retail sales worldwide in 2019. As of 2021, this figure stands at an impressive 18.1% and is projected to keep rising.
Advantages and Disadvantages of E-commerce
E-commerce shopping has several advantages that make it a popular choice for millions of consumers worldwide. Firstly, it offers faster and more convenient shopping experiences. Shoppers can access online stores at any time, from any location, and can shop for all their needs from a single store. Secondly, e-commerce eliminates the need to travel to physical stores, saving consumers valuable time and effort. Thirdly, online shopping offers a wide range of products, giving consumers the chance to compare prices before making purchase decisions.
On the other hand, e-commerce has certain disadvantages. One major concern is the security of online transactions, including the possibility of identity theft and fraud. Secondly, there is the issue of product quality: consumers cannot physically touch or inspect products before purchase. Thirdly, there are shipping costs and wait times associated with e-commerce, which could make it less appealing to shoppers who want instant gratification.
Advantages and Disadvantages of Retail
Compared to e-commerce, shopping at a physical retail store has its advantages and disadvantages. The most significant advantage of retail shopping is the ability to use and physically experience products before purchase. Secondly, retail stores have a more personal touch that may appeal to shoppers, with knowledgeable sales personnel available to answer questions and offer opinions. Lastly, retail shopping allows immediate gratification.
However, retail shopping has its disadvantages. In addition to the inconvenience of shopping during store hours, limited product offerings and higher prices are significant concerns. Moreover, retailers are constrained by their location and may not be accessible to consumers.
E-commerce vs Retail: Statistics
Despite the advantages and disadvantages of e-commerce and retail shopping, how do these two shopping modes compare in terms of sales? Here are some key statistics:
– According to a report by Digital Commerce 360, global e-commerce sales in 2019, amounted to $3.53 trillion, up 18% from the previous year, while global retail sales were $25 trillion.
– In the US, e-commerce retail sales accounted for 14.9% of total retail sales in 2019, which increased to 21.3% in 2020, as reported by the US census bureau.
– In 2019, Amazon accounted for 37.7% of all e-commerce sales in the US, while Walmart came in at second place with 4.7% of e-commerce sales, as published by eMarketer.
– Cosmetics and personal care are among the fastest-growing e-commerce categories globally, with a growth rate of 23% each.
– A study conducted by Accenture showed that 87% of US consumers purchase something online at least once a month, while only 28% shop in physical stores once a month.
Conclusion
Our comparison of e-commerce and retail statistics has revealed that despite retailers’ continued relevance, e-commerce is growing incredibly fast and has become an essential part of doing business in today’s world. The convenience of online shopping, the low prices, the accessibility and accessibility of goods, and the speed and simplicity of transactions mean that e-commerce is set to continue apace for the foreseeable future. However, retail has the advantage of allowing the customer to touch, see, and feel the product, which will continue to motivate consumers and drive them into physical stores for the foreseeable future. In conclusion, both e-commerce and retail have distinct advantages and disadvantages, and each mode of shopping caters to different needs and preferences.
