40 eCommerce Statistics to Boost Your Online Sales in 2021

40 eCommerce Statistics to Boost Your Online Sales in 2021
ByAndrea
August 20,2021

eCommerce refers to businesses, companies, and individuals selling goods or services online. Today, many products - such as movies, music, books, and academic papers - are sold and purchased most commonly via eCommerce platforms.

Other goods like food, beverages, and consumables are more often purchased in person. And yet eCommerce statistics show that these items are also growing in popularity. This is not because people are getting lazy - quite the opposite. People with money simply no longer have the time to cook.

Now, as the changes in eCommerce reflect some shifts in our real lives, it’s often difficult to keep track of all the sharp turns. If you’re in this business, it’s important to stay on top of these changes and adapt to global trends.

With that in mind, we’ve collected some of the most recent, up-to-date eCommerce sales statistics to help you meet your new challenges in 2021. We’ve included reports from Nielsen and Shopify, as well as scholarly articles from world-renowned universities. It’s a mixed bag of reliable sources that ensures we approach the subject from every possible angle.

So, if you want to know how to draw attention to your product or service online and what conversion-killing traps you ought to avoid, check out our stats and commentaries below.

Top 10 eCommerce Stats to Help Your Business Thrive

  • Online retail shops generated 14.34 billion visits in March 2020.
  • 52% of people who switched to online shopping for groceries say that they wouldn’t switch back.
  • In 2021, there will be 2.1 billion digital buyers worldwide, up from 1.66 billion in 2016.
  • Almost 61% of shoppers who abandon a purchase do so because the site they’re using is missing trust logos.
  • Amazon is behind 44% of all eCommerce sales.
  • Mobile payments are becoming mainstream and will have passed the 50% milestone in most markets by 2026.
  • In 2019, 14.1% of global retail sales were made online.
  • In 2018, eCommerce influenced up to 56% of in-store purchases.
  • As many as 18% of local searches lead to a sale within 24 hours.
  • 39% of online buyers prefer to pay for online goods and services via PayPal.

In 2021, there will be more than 2.14 billion digital buyers worldwide, up from 1.66 billion in 2016.

(Statista)

The number of online shoppers is skyrocketing. The more popular online commerce is, the more trust people are likely to put in this type of service. Ordering food, deciding which retail store’s new collection best fits your style, and even planning vacations or business trips all now take place online.

When you browse online, you can do more in-depth research in a shorter timespan and also enjoy competitive price offers. A whole range of digital resources, such as product reviews, are also easier to access online. Not sure about the food quality of a restaurant? Just check out the average score based on hundreds of online reviews and make an informed decision.

42% of online shoppers prefer to pay with their credit cards.

(Statista)

Global eCommerce statistics show that plastic is still the most popular option for online payments. In the US, there are approximately 160 million credit card holders, which is about half of the total population. All these credit card users are potential eCommerce shoppers, and businesses will use various tricks to lure them in. (Medium)

39% of online buyers prefer to pay for online goods and services via PayPal.

(Statista)

The second-most popular payment method, PayPal connects directly to a user’s bank account, so there’s no need to even own a credit card. And since buyers can pay for merchandise immediately, sellers receive payments immediately, without having to wait for checks to go through the mail or clear the bank. Considering the convenience, it’s easy to understand why this eCommerce statistic remains true in 2020.

Still, one of the biggest disadvantages of PayPal is its payment policy. Although transactions are fast, if you look at all suspicious or dodgy, PayPal can withhold payments for up to 21 days.

PayPal had 305 million active registered accounts at the end of 2019.

(Statista)

In the first quarter of 2020, there were 325 million active accounts worldwide, representing a 17% year-on-year growth. In 2002, PayPal was acquired by auction site eBay, which basically propelled it to fame, becoming the best-known eWallet in the world. In order to improve its coverage of all demographics of online shoppers, PayPal recently expanded to brick-and-mortar retailers and shops. As of December 2018, 36% of North American retailers accepted PayPal as a payment method and 34% planned to do so within the next 24 months.

In 2019, retail eCommerce sales grew 20.7%.

(Statista)

Physical sales are still customers’ favorite purchase option. However, the penetration of online commerce into consumers’ lives has been growing steadily for years now, showing no signs of slowing down. What’s more, the less popular sectors are expected to become more open to eCommerce options. Based on online shopping statistics by year so far, we can predict the growth rate for 2020, 2021, and 2022 to be 19%, 17.1%, and 15.6%, respectively.

In 2019 14.1% of global retail sales were made online.

(Statista)

Online shopping and retail have witnessed a steady growth in popularity worldwide. eCommerce’s share of total global retail sales has nearly doubled from 2015 to 2019. Four years ago, just 7.4% of all retail sales were made online, while in 2019 this number rose to 14.1%, generating a total of $3.5 trillion. Statistics on online shopping vs in-store shopping tell us that in the next four years, 22% of retail sales will come from online shopping channels, which will drastically affect the global eCommerce success rate.

In 2018, eCommerce influenced up to 56% of in-store purchases.

(Research Gate)

As the figure above indicates, eCommerce is so much more than just buying stuff from a website. In this day in age, if you don’t realize, appreciate, and take advantage of the complex and evolving synergy of online and offline commerce, it’s unlikely that your business will thrive. The very fact that there is such a thing as “offline” shopping in contemporary discourse shows traditional shopping is no longer the norm.

UK eCommerce statistics have predicted that by 2020, the value of goods purchased online and picked up in retail locations across the country will increase by 78%.

(Ovum’s The Future of E-commerce: The Road to 2026)

The UK is generally considered the world’s most mature click-and-collect market, so it spearheads this global trend. The majority of today’s retailers use pickup points in convenience stores, post offices, and lockers, along with the more established own-store click-and-collect model.

2018 B2B eCommerce statistics predicted that these companies would spend more on eCommerce technology than online retailers in 2019.

(Research Gate)

With increased internet penetration both on desktop and mobile devices, the future of eCommerce is getting brighter by the hour. And the numbers keep rising - by 2021, more than 2.14 billion people will be buying goods and services online. That’s quite an increase from 1.66 billion global digital buyers in 2016. It makes sense because, nowadays, you can make a purchase using any device.

M-Commerce Statistics

Mobile commerce statistics predict that, by 2021, 53.9% of all US retail eCommerce income will be generated through mobile commerce.

(Statista)

Mobile commerce refers to commercial transactions conducted online via cell phones. Today, most people browse the web on mobile devices instead of desktop computers. Your customers are likely to spend a lot of their waking hours on their phones. Most of the time they do so for no reason whatsoever other than to avoid the boredom trap. So, this is your chance to grab their attention and present your offer.

Mobile payments are becoming mainstream and will have passed the 50% milestone in most markets by 2026.

(Ovum’s The Future of E-commerce: The Road to 2026)

According to Ovum’s mobile eCommerce stats report, business owners ought to adjust their marketing strategies to this new reality. As payments in general evolve slowly, mobile devices will take the lead but won’t replace desktop outright. Service development and adoption will speed up and ultimately reduce the use of physical credit cards. What’s more, they will also radically diminish cash payments.

67% of consumers have downloaded a retailer app.

(Synchrony)

According to the 2018 Synchrony Retailer Mobile Apps eCommerce statistics, more than half of those who downloaded retailer app(s) did so in order to make use of an app-only coupon or discount. Naturally, this eCommerce strategy doesn’t immediately convert all users into repeat customers. Still, almost 50% actually used the app to make one or more purchases, adding up to a satisfactory result.

Where transaction value is concerned, mobile commerce grew from $50.92 billion in 2014 to $693.35 billion in 2019.

(Ovum’s The Future of E-commerce: The Road to 2026)

In its mobile eCommerce statistics report entitled “The Future of E-Commerce,” Ovum decided to define m-commerce as remote consumer-to-business (C2B) mobile payments. The “follow the money” motto works well for making predictions about the future. The mobile-first landscape is growing stronger with reliable, positive mobile purchase experiences.

To add some of the big money to their own revenue, businesses are advised to consider eCommerce optimization options, such as flow optimization to navigation, homepage, purchase, and, of course, mobile optimization.

22% of millennials prefer to shop on their mobile device.

(Research Gate)

According to “eCommerce Trends,” a 2018 paper investigating how many people shop online, millennials are growing attached to the idea of making spur-of-the-moment purchases via their mobile devices.

Eight out of 10 mobile users look for local businesses online.

(Research Gate)

Nearly a fifth of local searches lead to a sale within the next 24 hours. Retailers now have a slew of advanced tools for measuring their ROPO ratio - the in-store impact of digital efforts. They can figure out exactly which ads, listings, and site visits are responsible for driving store visits and purchases by analyzing the data gathered through social media, geolocation/mobile tracking, inventory management software, ERP, CRM, and POS systems.

Mobile eCommerce will make up more than half of all US retail eCommerce in 2021.

(Statista)

US eCommerce statistics predict that 2021 will finally be the year when mobile eCommerce crosses the halfway mark with a 53.9% share of total eCommerce retail. This number has been rising steadily for years now, climbing at a rate of about 5% year over year.

More than one billion consumers with mobile phones have used their devices for banking purposes.

(Statista)

Online shopping statistics from 2019 show that the highest penetration of m-banking is in developed markets. In the US, this number was expected to reach 111 million by 2016. Almost 70% of millennials in the United States used mobile banking in 2018.

Mobile banking is exploding, with new ideas from voice-first development to putting humans back into the digital experience. The open system of banking data, however, is not as safe as the closed one that was available before banking went online. For the sake of competition, these safety risks are a necessity, and more and more money is invested in cybersecurity accordingly.

eCommerce Marketing Statistics

Online shopping growth statistics predict that Turkey will be the leader in global retail eCommerce development in the years to come.

(Statista)

With 20.2% annual retail eCommerce growth, Turkey firmly holds the throne, followed by Argentina at 16.3%, Indonesia at 15.4%, and India at 13.1%. Interestingly, Indonesia and India were previous favorites, reflecting the digital prosperity of the Asia-Pacific region.

eCommerce retail sales accounted for 20.7% of total retail sales in China in 2019.

(Statista)

This outcome is not in accordance with past predictions based on online retail statistics, which said the country would reach 33.6%. However, China is still the largest eCommerce marketplace in the world, and is often regarded as the world’s “factory” because it produces cheap, low-quality goods.

This is all about to change in the near future, with some developments already evident. According to the Made in China 2025 plan, the country aims to move to producing higher-value products and services. It is, in essence, a blueprint to upgrade the manufacturing capabilities of Chinese industries.

Returned merchandise has cost US retailers $284 billion in potential sales.

(Ovum’s The Future of E-commerce: The Road to 2026)

This is according to eCommerce statistics collected by the US National Retail Federation. AR apps will also allow consumers to view products in their homes and purchase them on the spot from their mobile devices.

There are more than 660,000 machine-to-machine connections in the world right now.

(Ovum’s The Future of E-commerce: The Road to 2026)

Since M2M plays a huge role in the global retail industry, it will also undoubtedly further affect the development of eCommerce. The more connections there are in the world, the bigger the potential for automated online shopping.

50% of millennials prefer to shop in-store.

(Research Gate)

While brick-and-mortar experiences are much more popular with generation X-ers and boomers, at least half of millennials still enjoy walking into a store, according to online shopping vs in-store shopping statistics. Online merchants are doing their best to understand how they can make their shopping experience more life-like and personal. At the same time, brick-and-mortar stores are going out of their way to establish a strong online presence and offer online payment options along with effective eCommerce marketing.

Nordstrom, for example, is now solely an eCommerce business, and yet it recently opened a 3,000 square foot store that holds no merchandise. Instead, it focuses on try-ons, stylists, and tailoring. This fashion safe space is made more pleasant with fresh juice and manicures. People can also pick up or replace online purchases here.

More than 60% of millennials and generation Z-ers are likely to complete transactions on their mobile devices.

(Visenze)

According to recent Visenze eCommerce demographics research, nearly 80% prefer to learn about new products on a phone throughout the day while going about their business. The future, in that sense, is probably almost entirely mobile-first, as new generations are likely to put more trust into eCommerce on this medium.

The US B2B eCommerce market could reach $1.1 trillion and account for 12.1% of all B2B sales by 2020, causing the market to be worth over $6 trillion worldwide.

(Research Gate)

How much is the eCommerce market worth? A lot! Consumers are spending more time, with increasing frequency, on an expanded range of diverse digital activities. It’s undisputed that internet accessibility, mobile technology, and digital innovations are redefining consumers’ every interaction. What’s more, they will continue to enable and disrupt many aspects of consumers’ lifestyles well into the future.

89% of buyers search online during a B2B purchase.

(Research Gate)

Of these 89%, as many as 74% search online in a B2B purchase process for more than

50% of their purchases. Walking around the block and memorizing the stores you run into, or simply asking your neighbors for advice on the best place to eat is no longer the top go-to solution. Based on consumer spending online statistics, checking for online product reviews, photos, and recommendations from all over the world is now all the rage. Global culture and free/cheap shipping make merch from anywhere more readily available than ever.

As many as 18% of local searches lead to a sale within 24 hours.

(Research Gate)

Shoppers are browsing the web for anything nowadays - to find a good place to eat, or simply to buy a new pair of headphones. Searching for the best reviews, the most comments, and the most memorable experiences is the easiest way to find what you want.

Amazon is behind 44% of all eCommerce sales.

(Research Gate)

The mind-boggling fact that 55% of Americans begin their product searches on Amazon can be damaging for the morale of pretty much any small business owner reading these online sales statistics. For example, eBay - once a giant in the field - is responsible for just 7% of sales. With its own shopping app and 40% of mobile reach in the United States, Amazon ranks way ahead of everyone else.

268 million consumers in Europe shop online, and 200 million European consumers buy from abroad electronically.

(PostNord)

In an attempt to pursue its Digital Single Market Strategy, the European Commission is working towards more connected, safer online shopping options. To this effect, it passed the new, revised Payment Services Directive. Geoblocking is also limited, allowing customers to view previously inaccessible content. Finally, revised consumer protection options and revised value-added tax rules will apply from 2021. With these improvements, the effects on eCommerce growth statistics are already visible.

It’s estimated that European consumers spent a total of €198 billion online in 2017.

(PostNord)

European integration began over 60 years ago. Today, the European Union consists of 28 countries with a total population of almost 500 million. With many European countries like France, the Netherlands, and Germany enjoying immense GDPs, online consumers are likely to spend a lot of money. They have also been using one currency since 2002, further facilitating the transaction process. In addition, there are a number of market clusters, where neighboring countries share similar languages, cultures, and technical standards.

An average of 57% of online shoppers make purchases from overseas retailers.

(Shopify)

This data is based on eCommerce statistics worldwide published by one of the biggest platforms in the world: Shopify. A physical presence is no longer a requirement for taking your business globally. Online shoppers are getting more and more accustomed to making purchases from foreign sellers. In fact, during a six-month evaluation period, Shopify’s researchers found that North Americans are the only ones predominantly buying from domestic eCommerce merchants. During that period, shoppers from other continents made the majority of their purchases from a retailer located outside their country.

(Nielsen)

The 2018 Nielsen report on the state of connected commerce was based on a survey that polled over 30,000 online consumers in 64 countries. This pretty accurate view of contemporary eCommerce basics and global consumer habits comes from the opinions and data from countries in Europe, Latin America, Asia-Pacific, North America, the Middle East, and Africa.

Books and movies were the third-most popular category at 49%. IT and mobile came fourth at 47%, and event tickets amounted to 45%. eCommerce industry statistics confirm that online shopping is still one of the most popular internet activities on a global scale.

The online purchase of restaurant/meal kit delivery amounted to 33% in 2018, 2% higher than in 2017.

(Nielsen)

Packed groceries (30%), medicine and healthcare (27%), and fresh groceries (26%) were the other consumable online purchase categories buyers were the most enthusiastic about. Consumers have less and less time to prepare food and consumables themselves, and this is how eCommerce works - it satisfies a market need.

It seems people now people give up on the idea of making their own food often enough to outsource and seek help from restaurants. Quality time preparing food is now but a pipe dream for busy working individuals. eCommerce growth stats demonstrate that. Even packaged groceries are now eCommerce friendly, as are medicine/healthcare products and goods for babies, children, and pets. Even the frequency of buying booze online has increased by two points.

Consumers indicate that they are purchasing entertainment (61%) and services (56%) categories more often online than in-store.

(Nielsen)

Some products are easier to purchase online by default, as they are consumed on connected devices. eCommerce website marketing facilitates the process of searching and comparing products and service specifications, as well as their availability and prices.

Comparing online shopping vs. traditional shopping statistics, it’s easy to see why some products are better suited to online sales. For example, consumers can enjoy products from outside their home country, which would otherwise be either inaccessible or difficult to pursue. This includes books, music, gaming, and similar products. Event tickets are often bought online, especially for people traveling abroad to attend the events in question. After 20 years of eCommerce retailing, these products have a higher sales volume than more traditional consumer goods.

On average, 26% of global online shoppers purchased FMCG products in 2018.

(Nielsen)

According to Nielsen’s eCommerce stats, that’s a 2% increase compared to 2017 for fast-moving consumer goods. FMCG, or consumer packaged goods (CPG), are products businesses can sell quickly and at a low cost. Examples include packaged foods, over-the-counter drugs, beverages, and other consumables.

49% of consumers would rather shop online if they had a money-back guarantee for products that don’t match what they ordered.

(Nielsen)

One of the biggest challenges eCommerce websites face is trust. When you’re not satisfied with a brick-and-mortar service, it’s easier to return the faulty or otherwise misunderstood item. Online shopping stats show that, for most consumers, the idea of knowing for a fact they can easily return the undesired item to the seller and get their preferred one sent to them is of vital importance. Ideally, consumers wouldn’t have to pay any additional shipping costs and wouldn’t damage the goods they returned.

50% of shoppers report abandoning a transaction due to extra costs, such as shipping fees.

(Baymard Institute)

Hidden costs aren’t doing anyone any favors, as every eCommerce business owner should know. Customers feel betrayed and manipulated, and the integrity and reputation of a brand or website suffer a great deal. The eCommerce conversion rate is lower if consumers find anything unclear about the full cost of a purchase.

According to the Baymard online shopping demographics, as many as 28% of shoppers abandon their carts because the site requires them to create an account. Another 21% consider the checkout process too long or complicated, while 18% have difficulties calculating the total cost of the product.

A Shopify article indicates that almost 61% of surveyed shoppers didn’t complete a purchase because trust logos were missing.

(Medium)

SSL certificates are small data files that digitally bind a cryptographic key to an organization’s details. Online purchase statistics urge you not to forget to include some form of safety assurance, since consumers are likely to look for it. Typically, websites use these certificates to secure many aspects of eCommerce, such as credit card transactions, logins, and data transfer. Lately, securing web browsing has become the norm. There are different types of trust indication, the most frequent ones being Site Seal, TrustLogo, and Corner of Trust.

Online retail shops generated 14.34 billion visits in March 2020.

(Statista)

According to the latest eCommerce statistics, COVID-19 has had quite an impact on online shopping habits. There has been a noticeable increase from January this year, when the numbers reached “just” 12.81 billion. This can be attributed to global efforts to stay home. The pandemic has also affected buyers’ choice of products, so they’re now more likely to head online to buy everyday items like groceries or precious toilet paper.

About 31% of users in the United States ordered food from restaurants online in recent months because of the coronavirus.

(Statista)

This is a great chance to see exactly how much the global pandemic has affected the world. During lockdown, a significant percentage of online shoppers (27%) decided to buy hygiene products on the web, while another 26% opted for clothing items online. Interestingly, 29% of surveyees stated that they didn’t change their offline buying habits due to the outbreak.

52% of people who switched to online shopping for groceries said they wouldn’t switch back.

(PYMNTS)

It would appear that COVID-19 has put even more wind in the sails of eCommerce, speeding up the already rapid development of the industry. Online shopper demographics show that more than half of buyers who tried buying online groceries wouldn’t go back to their old habits. The number is even greater (60%) for users who switched to buying something other than groceries online.

Frequently Asked Questions
What is eCommerce & E Marketing?

eCommerce refers to selling goods or services electronically, from clothes to groceries to ebooks via websites. E-marketing, on the other hand, is all about driving traffic to said goods and services, and drawing consumers’ attention to them. Usually, some consumers are more likely to enjoy a product than others, and this is where internet sales statistics can be useful. If a targeted audience sees your product and finds it appealing, you’ll get more conversions for less marketing money.

How do I get into eCommerce marketing?

The easy part is always the same. First, you register your business and pick a smart name. Then you get a business license, Employer Identification Number, and other necessary licenses and permits. Design a catchy, stylish logo, and on you go to the tricky part, which is driving top-of-funnel traffic to convert into sales and repeat customers.

To do this properly, you’ll need to do a lot of work on learning who your target audiences are, what they like about their product, and where you can find them. Demographics of online shopping show that millennials spend a lot of time on Instagram, while older people shop elsewhere. So choose your channels wisely and don’t forget to integrate multi-channel efforts. A sound business plan and in-depth marketing analytics are key.

What is the difference between eCommerce and digital marketing?

In short, digital marketing is about marketing the client’s goods or services to a specific, targeted customer, on a local or global scale. On one hand, eCommerce simply involves selling or buying goods and services. This could be you selling anything from a couch to concert tickets online. But finding the audience for said products using the demographics of online consumers and getting them to make repeated purchases or even tell their friends how amazing you are would be classified as digital marketing.

How many eCommerce businesses are there?

In today’s economic landscape, the eCommerce industry has blossomed to 24 million online stores. The monopoly held by Amazon, Alibaba, and Aliexpres is so overwhelming, though, that any small business that wants to sell goods on the internet is probably better off simply picking a pre-existing channel. Even eBay is only responsible for 7% of eCommerce sales.

And that’s all, folks. We hope you’ve enjoyed our extensive list of eCommerce statistics cherry-picked for relevance and contemporaneity. All sources included are reputable, recent, and linked in the description below. Our top experts provided short comments, elaborating on the relevant info for crystal clarity.

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General White-Collar Crime Statistics FBI white-collar crime statistics show that these criminal offenses cost the US over $300 billion per year. (Cornell Law School 2020 Global Study on Occupational Fraud and Abuse) According to the Federal Bureau of Investigation (FBI), corporate crime offenses are estimated to cost the US more than $300 billion every year. Aside from fines, other penalties for white-collar crimes include paying the cost of prosecution, home detention, forfeitures, community confinement, supervised release, and even imprisonment.  Only 56% of organizations conducted an investigation of their worst corporate criminal incident. (PwC's Global Economic Crime and Fraud Survey 2020) When we look at white-collar crime report statistics, we can see that the main reason for the persistent recurrence of corporate crime might be the lack of people willing to report it. Figures show that only 56% of businesses conducted an investigation of their worst incidents related to white-collar crime. Simultaneously, barely one-third of organizations reported the incident to the board. 89% of the interviewees reported negative emotions after an incident or fraud happened at the company. Taking all the necessary steps to address and better understand the issue results in fewer fraud cases in the future. Ignoring white-collar crime sentencing statistics for a moment, nearly 60% of companies who conducted detailed investigations into the fraud cases ended up being better off for it.  80% of white-collar crime perpetrators received some punishment in 2020, but only 59% of the cases were referred to law enforcement agents. (2020 Global Study on Occupational Fraud and Abuse) Organizations can refer to the corporate criminal incident internally, through civil litigation, or by reaching out to law enforcement. The statistics on the response to frauds indicate that nearly half of the victim organizations (46%) never refer these frauds to law enforcement, believing that internal discipline is sufficient. Another big reason for refraining from reaching out to the criminal justice system is the fear of bad publicity (32%). There were 755 cases of money laundering in the United States in 2020. (United States Sentencing Committee) White-collar crime statistics by the state indicate that the Southern District of Florida had the highest number of money laundering cases during the fiscal year of 2020 (42). This was followed by the Southern Districts of New York and Texas, with 33 convictions each. One of the ways to prevent money laundering and tax evasion is to engage professional tax software solutions to help companies stay up-to-date and compliant with state and federal tax laws. White-collar crime prison statistics reveal that the maximum prison sentence for insider trading in the United States is 20 years. (US Securities and Exchange Commission) Even though not many people and organizations are willing to go to law enforcement in resolving corporate fraud cases, there are exceptions. When reaching out to the criminal justice system to solve the problem, victim organizations can expect the maximum prison sentence for insider trading to be 20 years. At the same time, the maximum amount of money charged from corporate criminals is $5 million for individuals and $25 million for organizations. Obviously, insider trading is just one of the many corporate frauds that can ruin a company’s finances and reputation, but the steep punishments should serve to encourage more people to speak up and get the felons convicted.
By Danica Djokic · October 07,2021
Diversity and inclusion are some of the most important policies that can not only improve the working environment and enhance employee engagement but significantly contribute to all other aspects of any business. The benefits are numerous, and we will discuss them as we unveil some of the most interesting diversity in the workplace statistics. Being a diverse company means hiring people of different ethnicities, gender, age, religion, etc. Companies that have successfully implemented D&I initiatives are often seen as more desirable for employees due to their broader perspective and the positive attitude they cherish. We have done our research, and these are some of the reasons everyone should embrace diversity. Editor’s Choice of Diversity in the Workplace Statistics In 2019, millennials accounted for 35% of the US labor force. Only 8% of CEOs at Fortune 500 companies are female. Diverse companies are 70% more likely to acquire new markets. 46% of Hispanic and 39% of black women earn less than $15 an hour. During the COVID-19 pandemic, fathers who worked remotely were promoted three times more than women in the same position. General Workplace Diversity Data and Stats In 2020, only 17.9% of persons with disabilities were employed in the US. (US Bureau of Labor Statistics) Based on the report published by the US Bureau of Labor Statistics, in 2020, the unemployment rate for persons with disabilities grew compared to the previous year. In 2019, the percentage of employed persons with disabilities in the US was 19.3. However, those numbers dropped to 17.9 the following year.  Regarding people without disabilities, the report stated 66.3% of them were employed during 2019, but the numbers decreased to 61.8% in 2020. These rates show that there is still much work to be done to overcome the lack of diversity in the workplace, and statistics will need to include more people with disabilities in the workforce going forward. By 2024, it’s expected that 24.8% of the US workforce will be employees older than 55. (Deloitte) It’s not a secret that the US workforce is aging each year. Research on shifting workforce demographics, conducted by Deloitte, suggests that by 2024 employees aged 55+ will make up 24.8% of the workforce. This might not mean much to you, but it is a severe increase if we go back to 1994 when this percentage was significantly lower, or to be precise, 11.9%. The research also projects that the US workforce diversity statistics are about to change and, by 2024, less than two-thirds of the labor force will be defined as “white non-Hispanic.” Back in 1994, over 75% of the labor force fell into that category. In 2019, millennials accounted for 35% of the US labor force. (Pew Research Center) Millennials are all those born between 1981 and 1996, and back in 2019, they accounted for over a third of the US labor force. In 2016, the millennial generation surpassed Generation Xers and became the largest population in the US labor force.  According to research from 2019, Millennials are expected to comprise 75% of the global workforce by 2025.  Gender Diversity in the Workplace Statistics Only 8% of CEOs at Fortune 500 companies are female. (Statista) The gap between male and female leadership roles has always been a thing, and there are multiple statistics to confirm that. However, it looks like things are changing for the better. As Statista confirmed earlier this year, there’s been a new record when it comes to female CEOs. As of June 14, 2021, there were 41 female CEOs employed at Fortune 500 companies. According to the statistics, this wasn’t the only record that got broken. For the first time ever, two black women are running America's 500 highest-grossing companies, giving us hope that gender diversity on executive boards might become a reality in the not-so-distant future. In terms of the median salary in the US, women earn around 18% less than men. (PayScale) The gap between the leadership roles isn’t the only hurdle that women are facing in business nowadays. PayScale, a company that helps employers and employees understand the appropriate pay for every position, reviewed these issues in its Gender Pay Gap Report for 2021. According to this report, women earn only $0.82 for every dollar a man makes. Although it might sound discouraging, this is a slight improvement compared to 2020, when they earned one cent less, as per employment diversity statistics. Also, bear in mind these are uncontrolled pay gap statistics - when doing the same job with the same qualifications, the numbers are less dire: women earn 98 cents for every dollar a man does. During the COVID-19 pandemic, fathers who worked remotely were promoted three times more than women in the same position. (CNBC) The ongoing COVID-19 pandemic has affected all aspects of the business as we know it. Many had to adapt to the new reality and switch to their home offices instead. According to a CNBC report, 34% of men with children working from home received some kind of promotion during this period.  On the other hand, women’s jobs have been hit much harder by the pandemic. According to an analysis conducted by the National Women’s Law Center, of the 1.1 million workers ages 20 and over, who left the labor force between August and September of 2020, 865,000 were women. Racial and Cultural Diversity in the Workplace Statistics 46% of Hispanic and 39% of black women earn less than $15 an hour. (The Washington Post) In 2019, around 39 million people earned less than $15 per hour. These 39 million employees made about 28% of the workforce at the time, and the majority of the low-wage category consisted of Hispanic and black women. In fact, they were more than 2x as likely as white men to fall into this wage category.  Based on the Washington Post’s research on diversity in the workplace, statistics haven’t really changed since 2019. Roughly 46% of Hispanic women and 39% of Black women still make less than $15 an hour. On the other hand, only 18% of White and Asian men hover around this wage bracket. More than 90% of all Google employees are white or Asian men. (Statista) According to Statista, the distribution of Google employees in the US from 2014 to 2021 does not look very racially or gender-diverse. The data for 2021 shows that white men account for 50.4% of employees, with Asian men following with 42.3%. On the flip side, only 4.4% of the employees are black men and women. If you look at the timeline of these statistics on diversity in the workplace, you will see the Asian population is experiencing steady growth, while the white population dropped from 64.5% in 2014 to 50.4% in 2021.  In 2019, black people held only 3.2% of senior leadership roles in large organizations in the US. (Coqual) “Being Black in Corporate America” is the name of Coqual’s intersectional exploration aimed to show if and how things have changed for the black people in the US during the past few years. The research on the representation of black adults in the US has shown that only 3.2% of black people held senior leadership roles in major companies, with just 0.8% of them being Fortune 500 CEOs. Benefits of Diversity in the Workplace Statistics Diverse companies produce 19% more revenue than those with non-diverse leadership. (Forbes) A study by the Boston Consulting Group (BCG), published in 2018, has found that diverse leadership increases the bottom line for companies. According to the study, increasing the diversity of leadership teams can lead to improved financial performance and better innovation. The study included 1,700 companies of all sizes across eight different countries. These findings are important as they show that diversity isn’t just an inclusion metric but an integral part of any successful business. In 2019, gender-diverse companies were 25% more likely to outperform their competitors. (McKinsey) Various diversity in the workplace stats show just how important diversity is and how it can help boost the overall performance of businesses of all sizes. Based on the findings from McKinsey’s research in 2019, companies with gender diversity have 25% higher chances to achieve higher profits than those with less gender diversity on the executive boards. Ethnic diversity in leadership teams is another vital factor. According to the report, companies implementing ethnic and cultural diversity on the executive level have a 36% likelihood of outperforming the competition.  Diverse companies are 70% more likely to acquire new markets. (Harvard Business Review) (Josh Bersin) Establishing a diverse workplace is vital for all modern organizations, and there are many diversity in the workplace statistics that prove this. Diverse companies also have 2.3 times higher cash flow per employee. They are also far better at capturing new markets when compared to the companies that do not practice diversity hiring.  80% of US job candidates look for inclusion when choosing an employer. (Deloitte) Salary and working hours aren't the only deciding factor when it comes to choosing a new employer. Back in 2017, Deloitte published a research paper that surveyed more than 1,300 full-time employees from a range of organizations all across the US. The paper showed just how important diversity and inclusion initiatives are by showing that four-fifths of all employees look for an inclusive workplace. 39% of respondents confirmed they would quit their current job if they found a more inclusive working environment, while 23% indicated they already left a job for that very reason.
By Nikolina Cveticanin · October 04,2021
Women account for 50.8% of the US population, hold 57% of all undergraduate degrees, and approximately 60% of all master’s degrees. And even though they hold about 52% of all management-level jobs, American women cannot keep pace with men in terms of representation when it comes to top leadership roles.  As male vs. female CEO statistics show, it’s the profit and loss roles or P&L responsibilities such as leading a brand, unit, or division, that set executives on the track to becoming a CEO. On the other hand, women who advance into C-suites - the “chief” jobs in companies - typically take on the roles such as head of human resources, legal, or administration. Although all of these functions are extremely important, the line of work they focus on doesn’t involve profit-generating responsibilities, which rarely makes them a path to running a company. Why does the percentage of CEOs that are female remain low in all parts of the world? There isn’t a simple answer to this question. Several studies have shown that it’s the fusion of work-life constraints, early professional trade-offs, and firmly established attitudes towards women in power and the skills and traits that make a good leader that can explain why the careers of equally ambitious and capable men and women often take such different turns. Let’s take a look at some of the most interesting findings. Male vs Female CEO Statistics - Editor’s Choice Female CEOs are running 41 Fortune 500 companies. There are two Black women among the Fortune 500 CEOs. Women made up only 5% of the CEOs appointed in 2020 globally. At the CEO level, men outnumber women by approximately 17 to one.  59% of male employees aspire to become CEOs versus 40% of women. 77% of women say the biggest obstacle to gender equity at the workplace is the lack of information on how to advance. Between 2015 and 2020, the share of women in senior vice president roles in the US increased from 23% to 28%. (McKinsey & Company) Over the same period, the percentage of women in the C-suite went up from 17% to 21%. All women, especially those of color, remained significantly outnumbered in senior management positions. However, prior to the start of the coronavirus pandemic, the representation of female workers in corporate America was slowly trending in the right direction.  According to 2020 statistics on female CEOs in the United States, 21% of C-suite members were women.  (McKinsey & Company)  Based on the survey results published by McKinsey & Company, there’s a leaky pipeline for women in leadership. In 2020, female workers accounted for 47% of entry-level positions, 38% of management roles, and 33% senior management/director roles. Women were entrusted with under one third (29%) of all vice president positions in American organizations. For every 100 men who got promoted to a managerial role, only 85 women advanced to the same position, based on the 2020 data.  (McKinsey & Company) This gap was even larger for women of color as only 71 Latinas, and 58 Black women received a promotion. Consequently, women remained underrepresented at the managerial level holding just 38% of manager positions, while men accounted for 62%. Male vs female CEO statistics from 2020 indicate that 39% of senior-level women burned out compared to 29% of men. (McKinsey & Company) Furthermore, 36% of women felt pressured to work more, in comparison with 27% of men. At the same time, 54% of C-suite women reported that they constantly felt exhausted, and so did 41% of men in similar positions. More than 50% of women in senior leadership roles promote gender and racial equality at work, in comparison with approximately 40% of male top executives. (McKinsey & Company) Women in leadership positions are more likely than men in senior-level roles to take a public stand on racial and gender diversity and champion the advancement of employee-friendly programs and policies. Women CEOs are also more likely to sponsor and mentor other female workers. According to the results of a recent survey, 38% of women in senior-level positions currently mentor or sponsor at least one woman of color, compared to only 23% of men in the same roles.   Female CEOs are running 41 Fortune 500 companies. (Fortune, Statista) In 2021, the number of women appointed to CEO positions in America's 500 highest-grossing companies reached an all-time high. However, the new record still only translates to approximately 8% of female representation at the top of the country's largest public businesses.  On the plus side, the number of women CEOs of Fortune 500 companies almost doubled in comparison with 2018 when there were 24 females leading the nation’s biggest businesses. Calls for diversity and inclusion in the highest echelons of America’s business world are starting to bear fruit as the number of female Fortune 500 chief executive officers increased for the third consecutive year. The top five biggest female-led Fortune 500 businesses as of August 2021 are CVS Health (rank four), Walgreens Boots Alliance (rank 16), General Motors (rank 22), Anthem (rank 23), and Citigroup (rank 33).  Speaking of women in leadership roles, statistics show that there are two Black women among the Fortune 500 CEOs. (Fortune) For the first time, two Black women are running Fortune 500 businesses - Roz Brewer of Walgreens Boots Alliance (rank 16) and Thasunda Brown Duckett of TIAA (rank 79). Before Duckett and Brewer started their new jobs in 2021, only one Black woman - Ursula Burns, former Xerox chief - had ever been appointed CEO at a Fortune 500 business on a permanent basis. After Burnes stepped down from the role in 2017, and, with the exception of Bed Bath & Beyond's Mary Winston, who worked as interim chief for a few months in 2019, Black female chief executive officers have been missing from the Fortune 500 list ever since. Citigroup CEO Jane Fraser is the first woman to run a major Wall Street bank. (Fortune) Fraser’s appointment marked huge progress for the financial industry. Much like Dick's Sporting Goods chief Lauren Hobart, Clorox chief Linda Rendle, new Coty CEO Sue Nabi, Walgreens Boots Alliance’s Roz Brewer, Thasunda Brown Duckett of TIAA, and CVS’s CEO Karen Lynch, Fraser took over from a male CEO. Statistics on Fortune 500 CEOs by gender reveal that there were only 37 female and 463 male chiefs leading America’s highest earning businesses in 2000. (Fortune) The number of women in CEO positions in the Fortune 500 hasn’t been growing steadily throughout the last two decades. There were 24 female chiefs in 2015, 21 women CEOs in 2016, and 32 women running Fortune 500 businesses in 2017, while that number dropped to 24 in 2018.  At the median, 16 female CEOs earned $13.6 million in 2020, in comparison to $12.6 million for the 326 men included in a study. (Equilar) According to a study published in May 2021 comparing a male CEO salary vs. a female CEO salary, women have outpaced men in total pay but remained underrepresented in executive positions. Equilar’s study indicates that Lisa Su, the chief executive officer of Advanced Micro Devices, was the highest-paid woman for the second consecutive year and the highest-paid CEO overall in 2020.  Globally, women made up only 5% of the CEOs appointed in 2020. (Heidrick & Struggles) The highest percentage of newly-appointed female CEOs was in Ireland (15%), while the lowest was in Brazil (0%). This is according to a paper that analyzed the backgrounds of chief executives leading 965 of the largest companies in 20 markets around the world. It sought to identify the skills and experience that shaped their path to the top while taking different male vs. female CEO statistics into account.  At the CEO level, men outnumber women by approximately 17 to one.  (Morningstar) According to a study that explored the gender gap in US companies, the number of male executive officers is seven times higher than the number of women holding the same positions. More than 50% of the companies analyzed didn’t have a single female on their lists of executive officers. Jackie Cook, the author of the Morningstar report, found that online retail giant Amazon didn’t have any women among its highest-paid executives as of 2020.  Women who negotiate for raises and promotions are 30% more likely to be considered as "too aggressive" or "intimidating". (Business Insider) Speaking of male managers vs. female managers, statistics reveal that women who don’t negotiate at all are 67% less likely to receive the same negative feedback. The proportion of women in senior management roles increased from 20% in 2011 to 29% in 2020, globally. (Grant Thornton) As 2019 saw a jump of 5% compared to 2018 (amounting to a total of 29%), 2020 represents a leveling off of the progress made during the previous year. This lack of movement doesn’t necessarily reflect a failure of companies to address the existing gender gap. Globally, the proportion of companies with at least one woman in senior management was 87% in 2020.  (Grant Thornton) The number of female CEOs and senior managers has risen by almost 20 percentage points over the last few years. For comparison, this figure stood at 68% in 2015 and 68% in 2017.  77% of women say the biggest obstacle to gender equity in the workplace is the lack of information on how to advance. (Working Mother Research Institute) Only 41% of female survey participants, as opposed to 64% of male respondents, said they have a network of coaches, mentors, and sponsors offering them career guidance. 37% of women versus 64% of men said that their companies provide information on career paths that lead to executive roles. (Working Mother Research Institute) Additionally, women CEO statistics indicate that 74% of female employees understand what the specific requirements are for advancing to the highest-paying roles in their companies even though they don’t receive this type of information directly.  60% of women believe they have the same opportunities to advance as anyone else at their workplace versus 74% of men.  (Working Mother Research Institute) Similarly, 65% of women express they are satisfied with the way their careers are progressing, and so do 78% of men.  Male vs female CEO stats reveal that 59% of male employees aspire to become chief executives versus 40% of women.  (Working Mother Research Institute) Of those women who aspire to become CEOs, 6% are first-level managers (as opposed to 13% of men) and 39% are executives. The same goes for 40% of men hoping to take on the role of chief executive officer.  Businesses with high representations of women in leadership roles had a 35% higher return on equity and 34% higher total shareholder return in comparison with male-dominated companies.  (Catalyst) Female vs male CEO statistics compiled by an NGO during a review of 353 Fortune 500 companies show that the differences were most apparent in facial services, consumer discretionary, and consumer staples industries.
By Milica Milenkovic · September 24,2021

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