How Many Ecommerce Small Businesses in US Will Open in 2020
The rapid growth of eCommerce has become a vital part of daily life, and the pandemic hasn’t slowed it down. In 2020, it will grow by 25.7% year-over-year, the fastest rate since 2009. The pandemic caused many SMBs to turn to online stores to stay in business, and the growth rate has slowed down a bit in 2022, but it still maintains a healthy growth rate of nearly 17 percent.
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200,000 new eCommerce stores expected in the second half of 2020
Despite Amazon’s dominance in eCommerce, a pandemic has caused other top players to rise to the fore. The Covid-19 virus wiped out the Covid brand in the US and drove people back to local brick-and-mortar retailers. In the second half of 2020, 200,000 new eCommerce stores are expected to open in the US alone. Regardless of the reasons behind these new online retailers’ growth, they are a boon to the country.
13.3% share of total sales
According to estimates from the U.S. Census Bureau and the Federal Reserve Economic Data, 13.3% of all U.S. retail sales are attributed to eCommerce. The figure can vary based on sources and methodology, but the overall percentage has risen steadily since 1999, peaking at 16.4% in Q2 2020. At that time, eCommerce accounted for 14.3% of all U.S. retail sales, up from just 11.1% a few years before the e-commerce boom began. Still, many people prefer brick-and-mortar retail stores. According to Forrester, physical retail sales will account for 72.3% of all retail sales in 2024.
Mobile commerce revenue
According to a new study, almost one-third of all online sales are made through mobile devices, a growth that has doubled in the past year. Nearly six out of every ten people will make a purchase using their smartphones. By 2022, eCommerce revenue from mobile devices is expected to account for 73% of all online retail sales. Today, nearly three-quarters of US consumers make purchases on their mobile devices. Many reasons have been attributed to this growth.
Cost of eCommerce websites
Developing an eCommerce website is a complex process that involves several costs. These include the layout of the website, the use of custom themes and videos, and incorporating design and services. The cost of eCommerce website hosting also depends on the type of platform chosen. In general, fully customized designs are more expensive than those based on a template. Another major cost is the domain name and hosting of the website. Once the site is live, you will need to perform regular maintenance, including bug fixing, and possibly using a Content Management System (CMS).
Impact of COVID pandemic on ecommerce
The impact of the COVID pandemic on e-commerce is still being assessed. The post-COVID era has witnessed new behavioral shifts in both ecommerce and retail businesses. The COVID-19 pandemic was a catalyst for a growing digital economy and for consumers to embrace social distancing. A survey showed that 67% of consumers have changed their shopping habits as a result of the virus. To cope with the newfound distaste for human contact, many retailers have been embracing emerging technologies and supporting online sales.