Social distancing has affected every aspect of our lives, more than imaginable. We can no longer stand close to each other in a store, let alone travel in groups or attend massive parties. The same is true for business fronts, which have undergone an extreme digital transformation to survive and thrive in the new normal. Many filed for bankruptcy in unprecedented times, while some struck gold and flourished even better than before. It all depended upon how ready a business was to transition. The Impact of Covid-19 on the e-commerce market, however, was only advantageous.
The Adobe Digital Economy Index declared that Americans spent $844 billion during the first twelve months of the pandemic, a 42% rise from 2019. The spending on E-commerce in 2022 is predicted to reach 1 trillion USD.
Satisfying modern consumerism required innovative solutions for online and retail businesses creating an increase in eCommerce growth, during lockdowns in particular. As consumer habits change, brick-and-mortar businesses increasingly have to adapt to electronic or digital fronts to handle the high-volume flow of online customers.
Growth of E-Commerce During Pandemic
Becoming almost the primary choice for shopping, particularly due to curfews and physical proximity restrictions; e-commerce post-pandemic grew dramatically. Although the stats show a rise and fall due to sudden shifts; later on, the economic impact on the e-commerce industry improved.
According to a UNCTAD report titled “Covid 19 and E-Commerce – A Global Review”, the share of E-Commerce in global retail grew from 14 % to 17% from 2019 to 2020.
The same report also suggests that over 50% of consumers will continue to shop more often than they did before..It also highlights, that businesses prepared to handle the crisis were the ones with extensive e-commerce strategies.
E-Commerce COVID Stats
Although the trend for E-Commerce purchasing has been on the rise for several years, closures and restrictions brought the need for even necessities to be delivered to your doorstep, to avoid virus contraction as much as possible. Of course, panic buying had a lot to do with the newfound compulsion to shop some of us experienced, specifically, when stocking up on essentials for the first lockdown.
US E-commerce has now seen over 10 years’ worth of growth in three months during the first quarter of 2020 – commonthreadco.com
If you have not heard of retail therapy before, you should now. The human need to be ready for anything unexpected, especially during uncertain times, can lead to a group mindset where everyone begins to replicate the actions of others. So, if someone is stacking up on goods, no one will want to be left behind or feel helpless not having done so later. This frame of mind undoubtedly pushed E-Retail so much that many items ran out of stock, creating a greater supply chain demand.
Leading to soar in online purchasing, E-commerce sales skyrocketed for some particular fields. In March 2021, 78 billion Dollars were spent by Americans on items like toys, furniture, auto parts, etc. with a 49% increase year over year; According to retailtouchpoints.com
Demands grow ever more for augmented contact-less options of purchasing. With the increase in deliveries and curbside pickups, it’s no wonder there is a sudden rise in e-commerce stats.
Top Trends in 2021 for E-Commerce COVID Growth
This global trend shift of digital store fronts is said to continue in the future, where businesses will have to adapt further to retain customers. This means a complete revamp for the future; the top priority being humanizing the brand. The top five select trends emerging for Ecommerce post-pandemic are:
Usage of voice technology and Augmented Reality for consumer innovation (Shopify)
Multiplatform and cross-platform engagement is a necessity to expand (Forbes)
Free Shipping is the x-factor your business must have (merchantmaverick)
- Mobile shopping will dominate as the consumer choice (bigcommerce.com)
New payment methods will emerge for customers (shift4shop.com)
The growth of e-commerce during pandemic has made one thing crystal clear for retail businesses; if you’re not redundant virtually, you’re obsolete. To survive your business in the Covid surge, you must contest the marketplace with an innovative solution or at least a BPO partner that can provide you with one.
With increased customers come overwhelmed websites and high-volume purchases. Notwithstanding the increase in e-commerce in 2020, all business fronts require additional support of virtual storefronts especially during the holidays or retail events like Black Friday and Cyber Monday. If you require extra hands for E-commerce Support Services, contact Premier to learn more about how we can help, or visit our website.
