Research Summary: Whether they own a giant retail building or create crafts from a 250 sq. ft. apartment, most business owners see the value in moving their shops online. After all, an online business can expose people from all over the world to your products.
So, what really makes online business so popular? Luckily, we’ve investigated all of the essential facts about online business, and according to our extensive research:
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71% of small businesses have their own website.
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81% of shoppers choose to research a business online before making a purchase
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At least 70% of small-mid-sized businesses are investing more in their digital presence.
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By 2040, an estimated 95% of all purchases will be facilitated by e-commerce.
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15% of Americans shop online on a weekly basis.
For further analysis, we broke down the data in the following ways:
Small Business Owners | Online Sales | Consumer Behavior | Consumer Opinions
Online Business Statistics by Small Business Owners
Mastering SEO and other skills to make your website stand out can be difficult, and many small businesses worry that the price of success simply isn’t worth the cost. To understand how small businesses view online business, here are some essential facts:
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35% of small businesses feel as though their business is too small to warrant a website.
And this also relates to cost, as many worry the cost of a new website will not be made up by the number of people who discover or purchase from their website. Additionally, many small businesses believe they can use social media instead.
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79% of business owners with a website expect to grow by 25% in the next three to five years.
That’s noticeably more than the 64% without a website who say the same, meaning that businesses with a website are more confident in their growth.
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23% of small businesses choose not to invest in a website due to the cost.
However, this isn’t the most common reason small business owners choose not to have a website, as 28% report that a website simply isn’t relevant to their business.
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85% of small businesses with websites have employees managing their websites.
This can help small businesses churn out regular content, the most popular of which being: Images and infographics (76%), Offers and promotions (58%), and Reviews and testimonials (52%).
Online Business Statistics by E-commerce Sales
Making sales is an important part of a successful online business. However, there are many ways to improve online sales. According to our research:
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36% of small-personal businesses are making sales online.
That means there’s room in the market for growth, especially considering the fact that 28% of small businesses still don’t have a web presence.
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18% of local mobile searches convert to a sale within one day.
Nearly one-fifth of all mobile searches will lead to a same-day sale, meaning that businesses who choose to make their websites mobile-friendly stand a much higher chance of capturing the market.
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Businesses with a blog experience 126% higher lead growth.
Blogs also include benefits like: 55% more page visits, 97% more inbound links, and 434% more indexed pages, to name a few.
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29.7% of business conducted in the US is done online.
For context, just ten years ago, in 2012, only 19.3% of business was conducted online, and 20 years ago, in 2002, that number was merely 9%.
E-commerce Statistics by Consumer Behavior
Websites and online businesses are undoubtedly shaped by consumer behavior. To understand what consumers want and how to deliver, here are some essential facts you should know:
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92% of consumers visit a business’ website for the first time for a reason other than making a purchase.
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60% of shoppers start their online product research with a search engine.
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62% of customers share online deals with their friends.
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69% of Americans shop online, with 25% doing so at least once per month.
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85.9% of Millennials make purchases online.
Online Business Statistics by Consumer Opinions
Sure, most Americans shop online now, but what are their opinions of this process? Well, our research shows that:
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34% of those who’ve shopped online before prefer it over visiting a physical store.
However, for frequent online shoppers, this percentage jumps to 62%. And on the opposite side of the coin, 82% of those who rarely shop online prefer physical stores.
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47% of consumers prefer that retailers contact them by email.
And for Millennials, this number jumps up to a whopping 73%. I guess many Americans aren’t fans of receiving mail or phone calls.
Online Business Statistics FAQ
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What percentage of business is done online?
29.7% of American business is done online. Worldwide, that number is 18%.
For Americans, though, online business has been growing steadily for the past twenty years. For example, just ten years ago, in 2012, only 19.3% of business was conducted online, and 20 years ago, in 2002, that number was merely 9%.
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What is the success rate of online businesses?
The success rate for online businesses is only 10-20%. The truth is that only 10% of online businesses succeed on average, with most failing within the first 120 days.
This is because online businesses can’t expect to make a profit within their first few months of inception. During this time, businesses need to prioritize marketing and improve SEO so potential customers are able to find their website.
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What percentage of e-commerce start-up businesses fail?
Up to 90% of e-commerce start-up businesses fail. If you want to know how to avoid becoming just another statistic, here are some of the top reasons why so many businesses fail:
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Poor product displays (poor quality images, descriptions, etc.)
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Lack of simplicity in the shopping cart
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Misguided pricing (either too high or too low)
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Lacking a clear return policy
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Ignoring the mobile side of online shopping
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Lack of marketing and SEO tactics
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Not testing or improving your products
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Working in a highly saturated niche
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Poor website navigation
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Annoying pop-ups on your website
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Website requires registration
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Lack of customer service
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How many online businesses are there 2022?
There are an estimated 12 to 24 million e-commerce sites in the world, with 2.5 million based in the U.S. Online businesses are growing every day. With easier access to the internet, especially through mobile phones, along with advances in server technology, the market for internet users is expanding. Additionally it is becoming easier to set up an online website for a business thanks to third-party assistance.
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What are the top 3 online businesses?
The top three online businesses are e-commerce, social media, and content writing. E-commerce is any business that sells goods or services online, such as retailers and food services. Social media includes popular social media applications, as well as third-parties that integrate their business models into social media. Content writing includes journalism, blogging, and other forms of writing that provide users with sought after information.
Conclusion
Given that almost a third of all American business is now conducted online, there’s never been a better time to invest in online business. In fact, 79% of business owners with a website expect to grow by 25% in the next three to five years.
However, it’s important to plan your online business strategy extensively before diving into the market. The truth is that up to 90% of online businesses fail, and knowing customer preferences and understanding the online platform is the key to achieving success.
In the end, if you can perfect your marketing and SEO strategy, you’ve already completed a crucial step in kickstarting your online business.
References
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The Manifest. “9 Risks and Rewards of Using Social Media Instead of a Website.” Accessed on August 16th, 2022.
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Visual Objects. “Small Businesses Without Websites Survey.” Accessed on August 16th, 2022.
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Agility. “Most small businesses manage social media in-house—but do they post often enough?” Accessed on August 16th, 2022.
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Search Engine Land. “6 Local SEO Stats Every Online Marketer Needs To Know.” Accessed on August 16th, 2022.
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Union Street Media. “Blogging Businesses Experience 126% Higher Lead Growth.” Accessed on August 16th, 2022.
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IBISWorld. “Percentage of Business Conducted Online.” Accessed on August 16th, 2022.
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Optimizely. “STUDY: 92 Percent of Consumers Visiting a Retailer’s Website for the First Time Aren’t There to Buy.” Accessed on August 17th, 2022.
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Power Reviews. “Millennial Shoppers & Reviews: A Deep Dive.” Accessed on August 17th, 2022.
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Pew Research Center. “Online shopping and purchasing preferences.” Accessed on August 17th, 2022.
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RetailDive. “Study: 47% of consumers prefer email messages from retailers.” Accessed on August 17th, 2022.
Author
Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.
