E-commerce growth set a new record in 2022—passing $1 trillion in sales in a single year—thanks to an increase in mobile usage.
Key Details
- Comscore, an analytics and measurement company, tells Forbes that online sales grossed $1.09 trillion in 2022, $332.2 billion of which was grossed during the holidays.
- The five highest-grossing categories were groceries, apparel, computers, consumer electronics, and furniture/appliances, with the fastest-growing categories being event tickets, digital content, apparel, video games, and home and garden, Forbes reports.
- The embrace of digital technologies and apps by the younger generation will likely result in exponential growth in digital commerce in the immediate future.
Why It’s Important
Technology is becoming more deeply embedded in the younger generation and seems more daily utilized. Apps like Lyft, Uber Eats, Airbnb, Venmo, Facebook Marketplace, and Instacart have changed how young people shop, eat, drive, and spend money. And that usage is very interconnected. As Forbes notes, there is a correlation between Tiktok and Amazon users, with at least 86% of Tiktok users also being regular Amazon shoppers.
The rise in spending is also attributed to post-COVID anxieties. Event tickets increased 75% from 2021 as millions of vaccinated audience members rushed out of the house for the first time in nearly two years. Digital ticket sales have skyrocketed, increasing from a minority of ticket sales to 90%. The pandemic played a significant role in the shift as well, forcing more sales online. Digital grocery shopping increased 333%, from $15 billion in 2018 to $64 billion in 2022.
Even with inflation driving up prices, spending is still very high. The Federal Reserve’s tightening policies have yet to dent the total market share. While analysts are predicting a recession within the next six to 12 months, the strong market share that E-Commerce has taken will likely continue into the future, further showing that the young generation is embracing convenience over brick-and-mortar establishments.
Notable Quote
“The strong 18% digital commerce growth seen in Q4 was driven largely by mobile’s 26% jump. After multiple years of hovering in the low 30s, mobile’s share of total digital commerce dollars has nearly reached 40%,” says Comscore.