Mintel noted a 28.1% increase in ecommerce sales in 2020, equating to nearly 14% of total retail sales.
Is your ecommerce business model providing the best checkout experience?
The eCommerce Business Model
The coronavirus pandemic has forced small businesses to digitise everything from payment acceptance to back-end operations — creating an opportunity for point-of-sale (POS) providers to both tighten relationships and attract new customers.
While ecommerce will continue growing and comprise a higher than originally expected share of total retail sales (16.2% in 2021 versus original pre-pandemic estimates of 12.9%), growth rates will be more in line with pre-pandemic levels from 2021-25 (13.7% annual average rate) and start to temper in 2025 as the industry matures.
eCommerce Key Trends
eCommerce continues to see strong growth
The ecommerce market was already expected to hit strong numbers in 2020, but the onset of the pandemic has added fuel to the flame. Mintel predicts a 28% increase for ecommerce this year as COVID-19 pushes consumers to shop online.
Social media offers a way to window shop online
Social media is known for its visual capabilities and aesthetically pleasing content, making it a great digital window for brands to show off their products. Brands and retailers can showcase products through owned- and user-generated content to appeal to and stop consumers as they scroll their feeds. From there, brand pages and shoppable posts make it simple to research the product and make a purchase all in one place.
Economic downturn drives consumers to look for value
The pandemic, together with a recession and presidential election, has left consumers feeling uncertain and anxious about their future. Consumers want to be in as much control of their situation as they can be, which means that they will be prioritising saving over spending in order to mitigate any unexpected loss of income or incurred costs. As consumers may be hesitant to spend, brands using social commerce should highlight the various forms of value shopping on the platforms can provide, such as convenience, monetary savings, and direct access to customer service representatives or brand associates.
The consumer journey does not end after purchase
This can help further the relationship between brand and consumer, which benefits both in the long run.
Retail eCommerce Opportunities:
Partnerships will be key to future growth and success
Brands are looking to expand their reach and influence by exploring partnerships that leverage consumers’ changing behaviors. As consumers’ behaviors and needs continue to evolve, partnerships can help brands find new ways to connect and engage with consumers along their consumer journey.
Social commerce continues to climb
Social shopping is picking up speed as it allows for consumers to discover, research and purchase all in one place. Retailers from mass merchandisers to DTC brands have made it an option to shop products on social media, a channel consumers are already using for inspiration.
Moving forward, social commerce will be a viable shopping option on the consumer journey, especially among younger consumers, creating a new avenue for brands to drive sales.
If you want to learn more about social commerce, click here to read our blog.
Local businesses rely more heavily on ecommerce
COVID-19 shows how important small businesses are to local communities and local economies. When consumers looked for ways to support their local communities during the height of the pandemic, consumers turned to online channels and sources to find local businesses to provide support.
Seamless shopping is expected
Consumers’ expectations to be able to navigate seamlessly across online and offline channels will increase. COVID-19 has accelerated this trend, which has led to brands prioritising a variety of shopping options including BOPIS, click-and-collect and shopping by appointment. Moving forward, these offerings will become key factors in guiding consumers’ shopping journey.
B2B Ecommerce Revenue Growth during Covid-19:
Forcing Transformation To Meet Buyers Through A Digital Avenue
For B2Bs selling physical products to their customers, the road to digital transformation has been slow. B2B marketplace report from last year showed how some B2Bs have been reluctant to adopt an ecommerce strategy. March 6 forecast found that just 9% of total B2B US product sales occurred via an ecommerce website.
Given the conditions of the COVID-19 pandemic and associated restrictions, experts have noted that this crisis is a catalyst for B2Bs that have been dragging their feet on ecommerce. "The desire to build a completely digital self-service ecommerce platform has not gone away,” McKinsey’s Stanley said. “It’s been amplified by COVID-19.”
B2B Transformation in Action:
So, how can a business pivot, undergoing a B2B digital transformation? We can help. In the space of 3 months we delivered a future-proof B2B ecommerce solution, which offered Living Proof a robust platform for future growth and innovation.
As part of their digital transformation, we ran workshops, simplified their processes, helped with change-management, and built integrated back-office systems. Click here to find out more.
If you would like to discuss how your brand can benefit from an eCommerce upgrade or a full transformation, feel free to get in touch.